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I-24","page_number":2,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"3aaf39cf-ca24-43f8-ae87-15348bb3b929","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"585bd93e-679d-4368-be82-af3d5ded772f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-27","page_number":2,"box":{"x":382,"y":223,"width":526,"height":9}},{"id":"b4a7476a-1a24-4c02-adcd-40b786ec20c6","block_type":"box","text":"Financial Statements","page_number":2,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"dd614369-cae2-416b-9d08-45b14ad2a543","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-29","page_number":2,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"9eb4a824-ca12-4dcb-926c-7f04a46c964f","block_type":"box","text":"PART II","page_number":2,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"a29723d4-b044-4996-b4e9-4f9aee7fcda8","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":2,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"80414600-2dd4-4a7a-9702-923f460eb536","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I","page_number":2,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"7272a3d1-5a92-4b69-913e-9d1ea6c2babf","block_type":"box","text":"I-137","page_number":2,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"9f05f26a-56e9-4486-b00f-57a1107eb3ab","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"d9d8cf0f-d660-4fbd-81a3-482f1920fef1","block_type":"box","text":"........................................... 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Investment Restrictions","page_number":7,"box":{"x":69,"y":789,"width":194,"height":9}},{"id":"6fb8e8e5-a373-46de-9eba-1f81291c07ae","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":7,"box":{"x":101,"y":812,"width":800,"height":11}},{"id":"d2d262a4-591a-461e-83aa-88d98ce3febb","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":7,"box":{"x":69,"y":827,"width":825,"height":11}},{"id":"5ec21deb-5274-40c7-b2ae-ed3816a94660","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":7,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"b65adc28-89fe-43f8-b3e4-066ac201464f","block_type":"box","text":"Company Act of 1940, as amended (the “Investment Company Act”), means the lesser of (i) 67% of the shares","page_number":7,"box":{"x":69,"y":857,"width":793,"height":11}},{"id":"cd2aade0-dd2b-4cb3-b7b3-8cb8edda279f","block_type":"box","text":"represented at a meeting at which more than 50% of the outstanding shares are represented or (ii) more than 50% of","page_number":7,"box":{"x":69,"y":872,"width":839,"height":12}},{"id":"f35efae4-666c-448f-b59e-119b279a14cf","block_type":"box","text":"the outstanding shares).","page_number":7,"box":{"x":68,"y":888,"width":174,"height":11}},{"id":"ebff2931-07ba-415e-92e1-793511578ea2","block_type":"box","text":"I-5","page_number":7,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"408d067a-a808-410c-bebb-b6314e9ac553","block_type":"box","text":"NM1026U-5985614-7/232","page_number":7,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"d6645d68-ca8f-4503-842e-ce451635fca7","block_type":"box","text":"The Fund may not purchase securities of any one issuer (other than securities issued or guaranteed by the U.S.","page_number":8,"box":{"x":101,"y":45,"width":795,"height":11}},{"id":"538554dc-acb4-4903-ac27-265082d07552","block_type":"box","text":"Government, its agencies or instrumentalities or cer tificates of deposit for any such securities) if more than 5% of","page_number":8,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"98dcb6c4-6330-4695-8013-b86dd72cbbf1","block_type":"box","text":"the value of the Fund’s total assets would (taken at current value) be invested in the securities of such issuer, or","page_number":8,"box":{"x":68,"y":75,"width":808,"height":11}},{"id":"6f356920-dfa2-4d50-af0f-9000fedac0e4","block_type":"box","text":"more than 10% of the issuer’s outstanding voting securities would be owned by the Fund or the Trust, except that up","page_number":8,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"cf0ab371-ee53-4545-bc93-ffbbcc42959c","block_type":"box","text":"to 25% of the value of the Fund’s total assets may (taken at current value) be invested without regard to these","page_number":8,"box":{"x":68,"y":105,"width":790,"height":11}},{"id":"485df8cc-5bd0-4bbb-a241-735f04486cf1","block_type":"box","text":"limitations. For purposes of this limitation, a security is considered to be issued by the entity (or entities) whose","page_number":8,"box":{"x":70,"y":120,"width":797,"height":11}},{"id":"fb8fc334-e462-4c45-8b3d-fe6cc6666802","block_type":"box","text":"assets and revenues back the security. A guarantee of a security shall not be deemed to be a security issued by the","page_number":8,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"4722045b-50c3-4bda-b27a-f350176a1188","block_type":"box","text":"guarantors when the value of all securities issued and guaranteed by the guarantor, and owned by the Fund, does not","page_number":8,"box":{"x":68,"y":150,"width":839,"height":12}},{"id":"cba75bf6-2cf7-45d3-8565-d11d3023bcfa","block_type":"box","text":"exceed 10% of the value of the Fund’s total assets.","page_number":8,"box":{"x":69,"y":166,"width":366,"height":9}},{"id":"507f4054-f4c9-4fe7-8349-c7c4a795d3ba","block_type":"box","text":"The Fund may not borrow money or issue senior securities, except that the Fund may borrow from banks and","page_number":8,"box":{"x":101,"y":188,"width":776,"height":11}},{"id":"2255de60-d902-45e1-ae45-86ffa815855c","block_type":"box","text":"enter into reverse repurchase agreements for temporary purposes in amounts up to one-third of the value of its total","page_number":8,"box":{"x":69,"y":203,"width":831,"height":12}},{"id":"ea258f73-87d9-45d8-a7e6-75860915533c","block_type":"box","text":"assets at the time of such borrowing; or mor tgage, pledge or hypothecate any assets, except in connection with any","page_number":8,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"35c79590-bf03-425b-b529-bf4b681259e0","block_type":"box","text":"such borrowing and then in amounts not in excess of one-third of the value of the Fund’s total assets at the time of","page_number":8,"box":{"x":69,"y":234,"width":825,"height":11}},{"id":"610116e0-9591-4f96-9a38-f24c7184a3d5","block_type":"box","text":"such borrowing. The Fund will not purchase securities while its aggregate borrowings (including reverse repurchase","page_number":8,"box":{"x":69,"y":249,"width":818,"height":11}},{"id":"dd00cc5a-1bd1-4472-95c1-c13c2d97412f","block_type":"box","text":"agreements and borrowings from banks) in excess of 5% of its total assets are outstanding. Securities held in","page_number":8,"box":{"x":69,"y":264,"width":785,"height":11}},{"id":"b21b5ec0-f4bd-48c5-9110-277ac9f249de","block_type":"box","text":"escrow or separate accounts in connection with the Fund’s investment practices are not deemed to be pledged for","page_number":8,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"bee9655d-41dc-4927-92ae-7b949f006b95","block_type":"box","text":"purposes of this limitation.","page_number":8,"box":{"x":70,"y":294,"width":189,"height":11}},{"id":"deb3020b-06b2-4513-948b-6ae47857bd55","block_type":"box","text":"The Fund may not:","page_number":8,"box":{"x":101,"y":317,"width":130,"height":11}},{"id":"6525966e-ab94-49e0-9fc1-6ef65f10a1d3","block_type":"box","text":"1. Purchase any securities which would cause 25% or more of the value of the Fund’s total assets at the","page_number":8,"box":{"x":135,"y":339,"width":746,"height":12}},{"id":"a2dd3a77-c761-485b-925c-921eb80d74f4","block_type":"box","text":"time of purchase to be invested in the securities of one or more issuers conducting their principal business","page_number":8,"box":{"x":101,"y":355,"width":766,"height":11}},{"id":"2f9e9b20-b113-43e4-8fe1-270f9b2c2fc0","block_type":"box","text":"activities in the same industry, provided that (a) there is no limitation with respect to (i) instruments issued or","page_number":8,"box":{"x":102,"y":370,"width":784,"height":11}},{"id":"547fcac0-4fc0-427c-960f-dc44c5746afd","block_type":"box","text":"guaranteed by the United States and tax exempt instruments issued by any state, territory or possession of the","page_number":8,"box":{"x":101,"y":385,"width":797,"height":11}},{"id":"7051c247-6ae3-4ec5-9aed-18903d021720","block_type":"box","text":"United States, the District of Columbia or any of their authorities, agencies, instrumentalities or political","page_number":8,"box":{"x":102,"y":400,"width":740,"height":11}},{"id":"513f7951-e668-4c38-8f56-f0cc0f1ee0eb","block_type":"box","text":"subdivisions, and (ii) repurchase agreements secured by the instruments described in clause (i); (b) wholly","page_number":8,"box":{"x":102,"y":415,"width":763,"height":11}},{"id":"a756ea8a-49cf-4777-ba11-87f1dcd23694","block_type":"box","text":"owned finance companies will be considered to be in the industries of their parents if their activities are primarily","page_number":8,"box":{"x":102,"y":430,"width":806,"height":11}},{"id":"22595982-4ca7-48f7-a38b-23cc5c864cbf","block_type":"box","text":"related to financing the activities of the parents; and (c) utilities will be divided according to their services; for","page_number":8,"box":{"x":102,"y":445,"width":781,"height":12}},{"id":"0c145465-8077-4d31-bb00-f876c39f6202","block_type":"box","text":"example, gas, gas transmission, electric and gas, electric and telephone will each be considered a separate","page_number":8,"box":{"x":101,"y":461,"width":772,"height":11}},{"id":"54ac7145-4f37-40d9-ba3e-cd13240c1608","block_type":"box","text":"industry.","page_number":8,"box":{"x":102,"y":476,"width":59,"height":11}},{"id":"b05d340e-e2c7-44a4-9224-f94fe6eaff55","block_type":"box","text":"2. Purchase or sell real estate, except that the Fund may purchase securities of issuers which deal in real","page_number":8,"box":{"x":134,"y":498,"width":755,"height":11}},{"id":"e2538704-b867-4eb4-a0c0-dd242bad5d68","block_type":"box","text":"estate and may purchase securities which are secured by interests in real estate.","page_number":8,"box":{"x":101,"y":514,"width":582,"height":10}},{"id":"d3453297-b663-40d1-840f-c7a55f420a66","block_type":"box","text":"3. Acquire any other investment company or investment company security except in connection with a","page_number":8,"box":{"x":134,"y":536,"width":723,"height":11}},{"id":"2722ac7e-90fe-4585-bb82-9ebf87a86468","block_type":"box","text":"merger, consolidation, reorganization or acquisition of assets or where otherwise permitted by the Investment","page_number":8,"box":{"x":102,"y":551,"width":784,"height":11}},{"id":"d7d5bcd6-2ff9-4b15-821c-54901098fc53","block_type":"box","text":"Company Act.","page_number":8,"box":{"x":102,"y":566,"width":95,"height":11}},{"id":"a42d64d2-eb92-42cd-8f9c-941a83dafdcc","block_type":"box","text":"4. Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":8,"box":{"x":134,"y":589,"width":771,"height":11}},{"id":"ec78d825-7ace-4291-9240-ebdc9c6d959e","block_type":"box","text":"to the extent that the purchase of obligations directly from the issuer thereof, or the disposition of securities, in","page_number":8,"box":{"x":101,"y":604,"width":797,"height":11}},{"id":"93630a68-3788-429e-b7c7-b93d9258a624","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":8,"box":{"x":102,"y":619,"width":777,"height":11}},{"id":"4af009f2-c613-4174-9387-2e8e925721ff","block_type":"box","text":"5. Write or sell put options, call options, straddles, spreads, or any combination thereof, except for","page_number":8,"box":{"x":134,"y":642,"width":706,"height":11}},{"id":"ecbfa71c-0319-4123-a791-59398ac8d4ba","block_type":"box","text":"transactions in options on securities and securities indices, futures contracts and options on futures contracts.","page_number":8,"box":{"x":101,"y":657,"width":794,"height":11}},{"id":"89232f88-b204-4ebe-8348-57a47967cb30","block_type":"box","text":"6. Purchase securities of companies for the purpose of exercising control.","page_number":8,"box":{"x":134,"y":680,"width":527,"height":11}},{"id":"215ab1f7-f3b9-4467-9899-6ba6243f68e7","block_type":"box","text":"7. Purchase securities on margin, make shor t sales of securities or maintain a shor t position, except that","page_number":8,"box":{"x":135,"y":702,"width":756,"height":12}},{"id":"935940ad-7c08-42a1-90f9-3a76f12d2930","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":8,"box":{"x":102,"y":717,"width":791,"height":12}},{"id":"d6a6bb66-b609-429c-ba5e-f53dc259e2db","block_type":"box","text":"or the Fund’s sale of securities shor t against the box, and (b) the Fund may obtain shor t-term credit as may be","page_number":8,"box":{"x":102,"y":732,"width":790,"height":12}},{"id":"369056ff-2b50-440b-a1f0-b71fe8b3d9a1","block_type":"box","text":"necessary for the clearance of purchases and sales of por tfolio securities.","page_number":8,"box":{"x":102,"y":748,"width":531,"height":11}},{"id":"81b718dd-9fd5-4d53-b9d4-3fe5de624f55","block_type":"box","text":"8. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":8,"box":{"x":134,"y":770,"width":707,"height":12}},{"id":"44f8e597-652a-4e55-9844-1d377e8593d7","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":8,"box":{"x":102,"y":785,"width":795,"height":12}},{"id":"051ad074-2694-41ff-899b-b4af6ca8ea3c","block_type":"box","text":"companies engaging in whole or in par t in such activities and may enter into futures contracts and related","page_number":8,"box":{"x":101,"y":801,"width":755,"height":11}},{"id":"caa5dff1-58d3-412f-bc6c-dda18fd22105","block_type":"box","text":"options.","page_number":8,"box":{"x":102,"y":816,"width":55,"height":11}},{"id":"71137430-bc5a-4f8a-a16c-99cd37a82ef3","block_type":"box","text":"9. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":8,"box":{"x":134,"y":838,"width":745,"height":11}},{"id":"da2d7688-9320-4522-8734-44bef61e4b10","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":8,"box":{"x":102,"y":853,"width":729,"height":12}},{"id":"e8d9fbff-e27a-40a2-a211-f10e4717ff46","block_type":"box","text":"10. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":8,"box":{"x":135,"y":876,"width":735,"height":11}},{"id":"bbf59c31-08dc-404f-a315-714be7b0751f","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":8,"box":{"x":102,"y":891,"width":744,"height":12}},{"id":"b5451547-89d8-4b2c-9155-72acd31ee1b4","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":8,"box":{"x":101,"y":906,"width":565,"height":12}},{"id":"cf6b96b2-d319-4024-b056-5965e79927fc","block_type":"box","text":"I-6","page_number":8,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"7353230c-af8e-48db-9c0d-5802eacb45e7","block_type":"box","text":"NM1026U-5985614-8/232","page_number":8,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"b77eef27-544c-4818-835d-bd9e5fe4f0cc","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":9,"box":{"x":102,"y":45,"width":494,"height":11}},{"id":"b17fed91-3f61-415e-a295-094aa5b5390f","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":9,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"0347fc85-7a11-46b3-b254-a88015802460","block_type":"box","text":"subject to change without shareholder approval.","page_number":9,"box":{"x":69,"y":83,"width":341,"height":11}},{"id":"eb219d41-cac0-4ebf-9c34-d68736a436ef","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":9,"box":{"x":102,"y":105,"width":768,"height":11}},{"id":"e12153d4-ebe8-41a8-bbdd-7829d336c318","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":9,"box":{"x":69,"y":120,"width":817,"height":12}},{"id":"b1c546f9-6234-47b0-8de2-93bb038b9d97","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":9,"box":{"x":70,"y":135,"width":817,"height":12}},{"id":"b99b86df-1396-407c-afb9-ae7b3d9b1054","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":9,"box":{"x":69,"y":150,"width":597,"height":12}},{"id":"3ea5b564-9fde-4c51-9308-765721aa2c97","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the CEA and the rules thereunder,","page_number":9,"box":{"x":101,"y":173,"width":798,"height":11}},{"id":"45e06a27-8b68-44b1-a458-a2c58a9721a3","block_type":"box","text":"at the time of the Fund’s adoption of fundamental investment restrictions no. 5, 8 and 10 above, many swaps were","page_number":9,"box":{"x":69,"y":188,"width":824,"height":11}},{"id":"28ff4e1c-aedc-4ea4-a032-db5ef31ce7d4","block_type":"box","text":"treated as securities for purposes of the Fund’s compliance with applicable law. Accordingly, fundamental investment","page_number":9,"box":{"x":68,"y":203,"width":836,"height":12}},{"id":"50711232-1ad0-4d19-bb71-bbcfe4402249","block_type":"box","text":"restriction no. 5, which does not restrict transactions in options on securities and securities indices, and","page_number":9,"box":{"x":69,"y":219,"width":747,"height":10}},{"id":"f4241572-77b0-4066-bf9d-dd87d4bec3b3","block_type":"box","text":"fundamental restrictions no. 8 and 10 are being interpreted to permit the Fund to engage in transactions in swaps","page_number":9,"box":{"x":68,"y":234,"width":816,"height":11}},{"id":"564d8c9f-d5da-47b3-984e-be0add3a1287","block_type":"box","text":"and options on swaps, as applicable, related to financial instruments, such as securities, securities indices and","page_number":9,"box":{"x":69,"y":249,"width":799,"height":11}},{"id":"0a095d44-b1e0-4fb2-9693-359e9b0db42d","block_type":"box","text":"currencies, but not to engage in transactions in swaps or options on swaps related to physical commodities, such as","page_number":9,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"c2061fad-ca42-4109-80e0-96767cceea66","block_type":"box","text":"oil or metals.","page_number":9,"box":{"x":69,"y":279,"width":92,"height":9}},{"id":"e8840ee6-52c1-4966-8b52-8020f2e221c3","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":9,"box":{"x":101,"y":302,"width":795,"height":11}},{"id":"26d9dd1b-bad9-4b5f-b0d6-9be6dc47626d","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":9,"box":{"x":70,"y":317,"width":832,"height":11}},{"id":"6a630643-287a-4ce8-a4be-0f1753a12bb7","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":9,"box":{"x":69,"y":332,"width":790,"height":11}},{"id":"21759e1f-7188-4b49-99f2-dcf201db4f9e","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":9,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"adc95b85-d66d-4670-9c46-95901d82e1ab","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":9,"box":{"x":69,"y":362,"width":805,"height":11}},{"id":"155311fd-bf4f-4bc5-8131-1da9ad43b385","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund/Por tfolio","page_number":9,"box":{"x":69,"y":377,"width":826,"height":11}},{"id":"3d6865ae-5a2d-45bd-8f51-c82b25e1b11f","block_type":"box","text":"engaged in a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":9,"box":{"x":69,"y":392,"width":832,"height":12}},{"id":"44ddd4f4-8a1e-4fc1-9319-934ac43bb55b","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":9,"box":{"x":70,"y":407,"width":830,"height":12}},{"id":"2b2609fc-d26a-47b6-867c-9383670a7e7a","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark-to-market basis, to the transaction, instead of meeting","page_number":9,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"dad7f636-6319-4ec0-9997-c10401dbc66e","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":9,"box":{"x":68,"y":438,"width":840,"height":11}},{"id":"c91be403-dac0-4c7e-b001-d2ccbde8af76","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f-4, and the Fund now","page_number":9,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"2c05986c-4917-4450-8f77-522090e13398","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":9,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"f4f37b47-f5fe-4397-9340-c2b79f559242","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":9,"box":{"x":69,"y":483,"width":836,"height":11}},{"id":"e0cb3cdf-5baf-42c7-94c1-2dc2ccb05a4d","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":9,"box":{"x":69,"y":498,"width":724,"height":11}},{"id":"3e93a4f2-1869-42ab-a578-4e4ed5d9eae8","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":521,"width":768,"height":11}},{"id":"dccde49e-b090-4377-b942-28fef4317b07","block_type":"box","text":"approval, the Fund may not purchase securities of other investment companies, except to the extent permitted by the","page_number":9,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"c54f9fbf-0043-4e11-b855-a39923c092da","block_type":"box","text":"Investment Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open","page_number":9,"box":{"x":70,"y":551,"width":817,"height":11}},{"id":"b3f91b75-b53a-4bcb-8988-814830bee262","block_type":"box","text":"end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":9,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"799ac014-2a81-4b54-9ea3-06d8e85cb57e","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased","page_number":9,"box":{"x":68,"y":581,"width":840,"height":12}},{"id":"c3242906-2412-46ff-93af-9372721f5558","block_type":"box","text":"by another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":9,"box":{"x":69,"y":596,"width":783,"height":12}},{"id":"caca1828-f839-4503-b6c6-2d406d1a0199","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":619,"width":771,"height":11}},{"id":"d110c625-0e02-4dd6-972e-aa080e7aefba","block_type":"box","text":"Company Act, all limitations apply only at the time that a transaction is under taken. Any change in the percentage of","page_number":9,"box":{"x":69,"y":634,"width":830,"height":12}},{"id":"3ae94a39-2848-474c-8dcb-524220388d20","block_type":"box","text":"the Fund’s assets invested in cer tain securities or other instruments resulting from market fluctuations or other","page_number":9,"box":{"x":68,"y":649,"width":799,"height":12}},{"id":"5ab91d1f-2bf3-457d-9a17-e0559b76f4e7","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":9,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"31f8679c-7495-4d5a-a176-a168baa51c04","block_type":"box","text":"that it is practicable to sell or close out the investment without undue market or tax consequences.","page_number":9,"box":{"x":68,"y":680,"width":708,"height":11}},{"id":"c8776754-6d9e-4e1a-9896-fe558a698309","block_type":"box","text":"III. Information on Trustees and Officers","page_number":9,"box":{"x":69,"y":710,"width":290,"height":9}},{"id":"84d104af-76b7-4635-aeea-837a9a04c87d","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":9,"box":{"x":101,"y":732,"width":788,"height":12}},{"id":"585718f9-94ac-47de-9f70-9b234303db77","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":9,"box":{"x":68,"y":748,"width":779,"height":11}},{"id":"c08582a3-46a3-4bc4-9716-699bd1d75cbe","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":9,"box":{"x":69,"y":763,"width":837,"height":11}},{"id":"ef90386e-c372-462b-8714-4e06fc268ed1","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":9,"box":{"x":70,"y":778,"width":793,"height":11}},{"id":"2d64d071-3d91-453d-9e9e-d08cc2d90db5","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":9,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"5a490c19-76e4-4a3c-b95e-0275679e1b70","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":9,"box":{"x":68,"y":808,"width":837,"height":11}},{"id":"e0657f3f-778f-4e96-8b6b-8d89265cef8e","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":9,"box":{"x":70,"y":823,"width":335,"height":11}},{"id":"05afa256-4a8b-442a-bc74-828c30887b2c","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":9,"box":{"x":101,"y":846,"width":769,"height":11}},{"id":"0f793c16-c6cb-450b-9230-887aab5a93f8","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":9,"box":{"x":70,"y":861,"width":827,"height":11}},{"id":"3d15e249-beb5-48af-893b-978308a36b27","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":9,"box":{"x":70,"y":876,"width":821,"height":11}},{"id":"0e41667e-be27-4bb8-81f1-7b3c0d962cf9","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":9,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"c0fb5191-6c67-4aa3-8f39-6d003069d0ea","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":9,"box":{"x":70,"y":906,"width":830,"height":12}},{"id":"9cd06be5-5293-4654-9e0f-87bf4fc9185c","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"64baa1c5-7a9c-4448-9b20-a57add05b545","block_type":"box","text":"NM1026U-5985614-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"e999b9c6-117b-45cf-ba8a-3cf8dc1ba881","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":10,"box":{"x":68,"y":45,"width":789,"height":11}},{"id":"c5f98c0e-ec2b-44c1-983b-51ba340c21a6","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":10,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"0582e2b2-fddd-4eb3-ae00-9876bac317b7","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":75,"width":809,"height":11}},{"id":"37b5117e-c050-41ca-81b5-e5c54d7a97da","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":90,"width":794,"height":11}},{"id":"28c83e9b-7399-49c3-8c2d-a696d909f079","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":105,"width":816,"height":11}},{"id":"5aad19e8-0a81-4286-9296-b4283248e1fe","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":10,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"21439b8c-f9c0-468a-9d2c-5b290906b3ca","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":135,"width":811,"height":12}},{"id":"7ce9b197-da0c-416a-92e5-42ab083b4101","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":150,"width":809,"height":11}},{"id":"deb8c71f-cbd5-4e56-aeeb-54e9db8d9e4f","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":166,"width":825,"height":11}},{"id":"39c99095-d368-4f4e-9698-c7c6f56c85d8","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":10,"box":{"x":69,"y":181,"width":441,"height":11}},{"id":"c87d50c5-0b60-4253-8311-55250ea117a0","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":203,"width":777,"height":12}},{"id":"1e22c44c-b058-4ad5-8785-f78c2e24bca3","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":218,"width":832,"height":12}},{"id":"aaaf16ed-03f3-4452-ba00-ba3ceb93b163","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":10,"box":{"x":68,"y":234,"width":820,"height":11}},{"id":"9b46cde2-fd80-4352-893c-74427e91f686","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":10,"box":{"x":70,"y":249,"width":812,"height":11}},{"id":"29fcdaa9-2106-4c2b-96d1-24cdb2793364","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":264,"width":819,"height":11}},{"id":"854e8ec4-2018-4ab3-870c-ea6a187b5842","block_type":"box","text":"the operations of the Fund.","page_number":10,"box":{"x":68,"y":279,"width":192,"height":11}},{"id":"c3b2761a-059e-41ec-a796-f2b56734ee4d","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":302,"width":785,"height":11}},{"id":"4b6653be-b888-4c87-b9fc-bd12f207eaed","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":317,"width":828,"height":11}},{"id":"303e43c6-6ee6-4b5f-95a7-d9858822a543","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":332,"width":832,"height":11}},{"id":"ad4f2870-785b-4691-b6b0-b8be799d0d32","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":10,"box":{"x":68,"y":347,"width":820,"height":11}},{"id":"d4f5ee23-acbc-4150-a50a-2068986e2924","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":362,"width":811,"height":11}},{"id":"7e835001-780c-4b87-9a84-cbd643e8d661","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":10,"box":{"x":70,"y":377,"width":767,"height":12}},{"id":"33c4af35-06f3-4e54-ba38-166762b8f7db","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":10,"box":{"x":69,"y":392,"width":815,"height":12}},{"id":"dfab8b3b-4eb9-4178-9ecf-c458ba966a8c","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":407,"width":803,"height":12}},{"id":"f8ea8c40-5cb7-445c-8416-9786569bb3d7","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":423,"width":840,"height":11}},{"id":"47ad5173-7e47-47ee-875e-48c564bfb1fe","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":438,"width":812,"height":11}},{"id":"e5e5f34b-2290-4560-b8fa-389b9c05f146","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":453,"width":817,"height":11}},{"id":"f8813a60-eaa2-4102-9fa4-6a013871b8b2","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":468,"width":812,"height":11}},{"id":"88d98188-bb1d-4d70-923f-3e1aa32b5464","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":10,"box":{"x":68,"y":483,"width":818,"height":11}},{"id":"2631bc3e-304a-4efd-819d-0136cf8b1a0d","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":10,"box":{"x":70,"y":498,"width":759,"height":11}},{"id":"270df715-e0df-444b-8b92-c3f138afa7c2","block_type":"box","text":"per forming their oversight responsibilities.","page_number":10,"box":{"x":70,"y":513,"width":299,"height":12}},{"id":"a2d449d6-8d90-48ad-b920-cde4a255532e","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":536,"width":122,"height":9}},{"id":"cb4a143e-cfda-4137-a228-3921653cabc3","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":536,"width":673,"height":11}},{"id":"d01e4afe-f530-4f52-9924-0ada9cfb33b6","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":551,"width":831,"height":11}},{"id":"7f49447f-bb67-4ed5-859d-b1aa4ff43e4c","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":566,"width":820,"height":11}},{"id":"58d831d2-3bb5-479e-bcec-806b88743d5c","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":581,"width":823,"height":12}},{"id":"dfc64193-67ba-4cbd-97ce-52126b0bfd24","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":597,"width":830,"height":11}},{"id":"d0a88887-a837-48c5-8ac0-47bfb9abe4c4","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":612,"width":825,"height":11}},{"id":"ee5b19a8-c9be-4b20-bedb-a402bd2e6c06","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":627,"width":807,"height":11}},{"id":"db04c54c-d025-4848-a736-ea965fbd65a1","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":10,"box":{"x":68,"y":642,"width":781,"height":11}},{"id":"cea8fb91-2fb3-4d15-bad2-d3e0f4ec40ef","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":10,"box":{"x":69,"y":657,"width":834,"height":11}},{"id":"ae15e086-4370-4eea-af3f-1b8a37ab0432","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":10,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"bd50f0f6-8128-4f07-8ef7-f875db1aca68","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":687,"width":825,"height":11}},{"id":"5b6ecc1e-b807-4121-a1f6-45c8893529ef","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":10,"box":{"x":70,"y":702,"width":809,"height":12}},{"id":"6ab073ec-561b-401a-9afd-fa9eda3052b9","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":10,"box":{"x":70,"y":717,"width":815,"height":12}},{"id":"328ca739-4a56-4422-ac3b-839eaa5b756a","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":10,"box":{"x":69,"y":732,"width":774,"height":12}},{"id":"c69ccfef-d841-411d-837a-cd5eac2487da","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":10,"box":{"x":69,"y":748,"width":815,"height":11}},{"id":"f8afa284-84c5-4e61-9946-846cfe966187","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":10,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"2f6dc586-520f-4d48-a6e5-234b77f6aa31","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":10,"box":{"x":69,"y":778,"width":812,"height":11}},{"id":"e024a609-9407-4153-b04e-72bfeb034ec5","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":10,"box":{"x":70,"y":793,"width":574,"height":11}},{"id":"a4b5351e-3791-4343-a40a-5f5a1524f052","block_type":"box","text":"Governance and Nominating Committee.","page_number":10,"box":{"x":102,"y":816,"width":286,"height":11}},{"id":"4f051fd8-e3d4-40f5-b3df-1afee074d6b1","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":10,"box":{"x":394,"y":816,"width":464,"height":11}},{"id":"3c48f483-c0e3-4fef-90e4-0023d256c7ef","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":10,"box":{"x":70,"y":831,"width":838,"height":11}},{"id":"5ddea220-77ad-4395-8a9f-0e476e42b869","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":10,"box":{"x":70,"y":846,"width":784,"height":11}},{"id":"d062ed0f-c677-4b47-81f1-00fd09ea60e9","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":10,"box":{"x":69,"y":861,"width":803,"height":11}},{"id":"2743ac82-b160-40c8-a7cd-832a87f2a8a3","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":10,"box":{"x":69,"y":876,"width":829,"height":11}},{"id":"e495c507-c33a-47cf-ab2a-aff0d57b3cdc","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":10,"box":{"x":70,"y":891,"width":828,"height":11}},{"id":"02ae1f5c-5859-44cb-8025-12eeb079c63c","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":10,"box":{"x":70,"y":906,"width":809,"height":11}},{"id":"078daf1e-6085-433f-9137-ee1c60df031d","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3ec78ddb-4db1-4aef-b141-e150bc7647c1","block_type":"box","text":"NM1026U-5985614-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9266c4e7-0402-4a84-b239-eab9a500e99c","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"e16329c3-4e3e-4c1c-94ab-abe1bae7bdfd","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":60,"width":800,"height":11}},{"id":"da377b63-046b-4e05-8c4c-01e6032e08e6","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":75,"width":813,"height":11}},{"id":"2cef46d7-e7e2-4565-b1b1-5d23bddfb870","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":11,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"1ed04b67-8f19-4d61-94f1-c9760f5cbd58","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":105,"width":804,"height":11}},{"id":"b663f5bf-5e73-4032-ac28-6c1015248062","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":120,"width":832,"height":11}},{"id":"e6e616b3-8394-4c5d-8709-0e28e424299e","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":11,"box":{"x":70,"y":135,"width":801,"height":12}},{"id":"e253f5da-1a2c-469f-984c-65cae89620ee","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":151,"width":799,"height":11}},{"id":"1386e36c-ea61-4eca-a3de-29104513452b","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":166,"width":776,"height":11}},{"id":"2e7f02cb-c2c5-4f7c-9f08-9e29e5e725a2","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":181,"width":821,"height":11}},{"id":"d9c526c1-08b9-4e94-9ebe-c9f8803604b5","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":196,"width":812,"height":11}},{"id":"fd7805b7-6fd9-4ce9-8065-9a63154623d3","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":11,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"5bc164be-fbaa-430f-9a31-f9f8bde73783","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":11,"box":{"x":70,"y":226,"width":832,"height":11}},{"id":"7884e471-f90b-4579-921d-db03a2187a74","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":241,"width":811,"height":11}},{"id":"3255e682-f79d-413b-be78-953923efd234","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":11,"box":{"x":69,"y":256,"width":783,"height":12}},{"id":"4976537e-4101-4cff-b44c-0b4af6fc1c92","block_type":"box","text":"Governance Committee met ten times.","page_number":11,"box":{"x":69,"y":272,"width":274,"height":8}},{"id":"3134803d-43c6-4816-b06d-f5010038259e","block_type":"box","text":"Compliance Committee.","page_number":11,"box":{"x":102,"y":294,"width":168,"height":11}},{"id":"0c2a8acc-b813-497b-b676-2706084dfa9b","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":11,"box":{"x":276,"y":294,"width":629,"height":11}},{"id":"71e9e560-532a-4a77-8b8d-eefa35a34d4f","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":309,"width":828,"height":11}},{"id":"1bd1f7f7-2c8d-4c0f-8fe7-1bd1486b537c","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":324,"width":771,"height":12}},{"id":"e6a98f3c-a3f8-40d2-8cef-0d4d0f93c3be","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":11,"box":{"x":69,"y":339,"width":834,"height":12}},{"id":"85f09861-2a88-40b4-bc8f-cf662a91dad8","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":11,"box":{"x":70,"y":355,"width":754,"height":11}},{"id":"cd9d1821-81d4-42e0-a015-1263caa442f6","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":370,"width":834,"height":11}},{"id":"a3d66ea3-ba2c-4fe1-8553-5849fe3aee4b","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":385,"width":815,"height":11}},{"id":"d1fa1085-22b6-43b4-a97f-1f13b8e299df","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":400,"width":785,"height":11}},{"id":"b777266b-e21c-4693-8f25-ca96d239f772","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":11,"box":{"x":69,"y":415,"width":811,"height":11}},{"id":"b42ed365-ef29-49e0-8e76-afa16c43268d","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":430,"width":812,"height":11}},{"id":"4e2726a3-9921-4a4b-aa40-21248b1df974","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":445,"width":812,"height":12}},{"id":"9cd00f1d-86fd-4ee0-8eed-d7b4c2a16131","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":11,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"756f73c5-e4ba-4edb-867c-fe29d13b28cb","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":11,"box":{"x":69,"y":475,"width":811,"height":12}},{"id":"93913bb4-2239-43c9-ad84-2dbd12898887","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":68,"y":491,"width":502,"height":11}},{"id":"be4bcdc5-aac9-4b73-9f43-f0b61a6ba972","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":513,"width":248,"height":12}},{"id":"83b48fee-4ccf-49ba-b5a9-bb1415a7c7d1","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":11,"box":{"x":356,"y":513,"width":531,"height":12}},{"id":"173d1a23-c232-4ca8-ac5e-73d693bfa04b","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":529,"width":829,"height":11}},{"id":"6de0dde7-fc54-40af-a3a6-2db454f6561c","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"ab533c0f-f5b6-426a-aa4d-a22f83939873","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":11,"box":{"x":68,"y":559,"width":832,"height":11}},{"id":"7b96c6cb-0829-4107-97d1-1bf6740aeed3","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"e5d687d4-6d14-450c-ac7a-ef8a4e9ca31a","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":589,"width":782,"height":11}},{"id":"2145cb07-03b6-493e-8d81-e391ab7baf4c","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":604,"width":829,"height":11}},{"id":"cd3887eb-549c-4d25-83e4-4673a8c38677","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":619,"width":816,"height":11}},{"id":"5f5bdfae-e4c1-470f-8ce7-e87ec549ec92","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":11,"box":{"x":69,"y":634,"width":803,"height":11}},{"id":"256572f9-6478-4024-87ac-c45705392b60","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":11,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"25e3cb05-38cf-4dbd-b272-274f2ec00c62","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":11,"box":{"x":68,"y":664,"width":811,"height":12}},{"id":"adf6b7d0-7304-45f6-83ba-613011b32b8e","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":11,"box":{"x":69,"y":680,"width":757,"height":11}},{"id":"a2d69472-6c3a-4c82-af06-8b45d170fc17","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":11,"box":{"x":70,"y":695,"width":835,"height":11}},{"id":"92589f78-f291-4aa0-8332-2589115c4a39","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":11,"box":{"x":68,"y":710,"width":800,"height":11}},{"id":"9e4bc960-2aaa-4c29-9961-76f8546f9f4b","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":11,"box":{"x":69,"y":725,"width":780,"height":11}},{"id":"73d21f84-bbf0-450d-9ec3-1d1e60dbe7e1","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":11,"box":{"x":69,"y":740,"width":838,"height":11}},{"id":"3560d4da-4d7f-4d9b-96f3-b03956043ca1","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":11,"box":{"x":69,"y":755,"width":544,"height":11}},{"id":"2cb053dd-502e-46b2-9a35-4b6d4caf0373","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":11,"box":{"x":101,"y":778,"width":186,"height":11}},{"id":"51d22e59-ef85-459e-a131-a9d8e3092a27","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":11,"box":{"x":293,"y":778,"width":598,"height":11}},{"id":"c0468f58-dd45-4cef-a683-cc1548d11e06","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":11,"box":{"x":70,"y":793,"width":817,"height":11}},{"id":"6d4988af-6e51-4f31-b88c-2c830dbfeb88","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":11,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"48c1714b-08f9-49f4-b80c-55df87bf3f6d","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":11,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"205c1173-e095-4275-b8c5-2bc00d5a8f99","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":11,"box":{"x":69,"y":838,"width":813,"height":12}},{"id":"469bbf87-f1e6-48e4-b3c4-8e36b56f90cd","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":11,"box":{"x":68,"y":853,"width":816,"height":12}},{"id":"23e12b2d-f703-468e-b8ae-25f4dab5025c","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":11,"box":{"x":68,"y":869,"width":575,"height":11}},{"id":"5016d5b9-fcf0-4a9b-9a45-1d0ce4c99eb1","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":11,"box":{"x":101,"y":891,"width":771,"height":11}},{"id":"aa64d909-95af-4450-9f36-4403cc69609e","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":11,"box":{"x":69,"y":906,"width":827,"height":12}},{"id":"f5b400d7-98c9-4a30-aaa6-2b3fc4171c98","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"ad848494-afeb-4823-87f3-7883dc2f5d37","block_type":"box","text":"NM1026U-5985614-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7b6034b3-fcaa-4bc0-9fd9-e8467ed11c35","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":45,"width":830,"height":11}},{"id":"b08fcdf2-8b93-4ba3-b2b6-444367939f77","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":12,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"9fa769aa-f560-47f4-b89e-bdc24c86af47","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":75,"width":807,"height":11}},{"id":"7ecec480-48e5-40c9-a60f-33c671cd1112","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":90,"width":787,"height":11}},{"id":"6ebdaf68-1e85-45a6-9f80-22cec33d0c9e","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":12,"box":{"x":69,"y":105,"width":805,"height":11}},{"id":"a81b0cbd-4e58-45fb-b9f7-f1814dbae82f","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":120,"width":794,"height":12}},{"id":"c27ef1d2-5269-41c9-96cf-463853429bc1","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":136,"width":829,"height":11}},{"id":"0631b817-6ece-4c48-83b3-547e52915810","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":150,"width":823,"height":12}},{"id":"751eb791-6587-4d84-a963-3bb9015156a9","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":166,"width":771,"height":11}},{"id":"977ed073-83d6-42bd-b490-274c640c4bc7","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":12,"box":{"x":69,"y":181,"width":473,"height":11}},{"id":"6f897ebd-ef9b-427e-b52f-f82009c0f6d9","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":12,"box":{"x":102,"y":203,"width":792,"height":12}},{"id":"21be1e97-567d-474f-9805-b9daf11db6ab","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":218,"width":807,"height":12}},{"id":"ed104eaa-205b-4e33-8be7-5e86db7e8179","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":234,"width":837,"height":11}},{"id":"69258fd5-3b54-4ad2-9fc4-24060fbf29db","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":249,"width":759,"height":11}},{"id":"c68fd7fc-8a51-465c-b0fd-05a2054f4742","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":12,"box":{"x":70,"y":264,"width":685,"height":11}},{"id":"582138c6-53fe-4d4f-a8fb-3484596ad1e7","block_type":"box","text":"ad hoc","page_number":12,"box":{"x":762,"y":264,"width":47,"height":9}},{"id":"ede035a9-d7ee-45f9-98a6-5a091a103abb","block_type":"box","text":"committees","page_number":12,"box":{"x":814,"y":264,"width":82,"height":9}},{"id":"1a6e4612-a027-4209-9e47-aa6cfd03d61c","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":12,"box":{"x":68,"y":279,"width":395,"height":11}},{"id":"83933ad5-1fd8-4908-82df-e3dbf843aa87","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":302,"width":751,"height":11}},{"id":"10583a80-c76d-4a6d-b16a-f43f8b6bf9b8","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":12,"box":{"x":69,"y":317,"width":492,"height":11}},{"id":"3d7b3230-6869-43e8-92e2-3cb78ff01fe7","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":12,"box":{"x":68,"y":345,"width":409,"height":9}},{"id":"c8259e35-aa8f-49f0-a3ff-1bbba334a7bf","block_type":"box","text":"Independent Trustees","page_number":12,"box":{"x":70,"y":362,"width":154,"height":10}},{"id":"0a268361-29ff-4297-aee5-4b4a3965d79b","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":377,"width":781,"height":11}},{"id":"50c3058b-5090-488e-a76e-837a5a6bd5fa","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":392,"width":604,"height":11}},{"id":"3a221496-7593-4e53-9850-bf8a64e3376a","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":407,"width":623,"height":11}},{"id":"2e772ded-1f4a-4935-bfee-1a420385592a","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":422,"width":637,"height":11}},{"id":"3e55fa98-ace4-4c99-aa1d-9aa97bca7e37","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":437,"width":631,"height":11}},{"id":"0825185a-7f5a-401c-aa52-e7dd6ac1f510","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":12,"box":{"x":264,"y":452,"width":626,"height":11}},{"id":"45db059c-d8e4-4bfa-a595-cf2e9869831d","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":467,"width":639,"height":11}},{"id":"c7e98e83-be08-4dd1-bf5d-f7d75d35fbf1","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":483,"width":637,"height":11}},{"id":"9a02c35a-2eea-48b2-a91b-2105556274eb","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":498,"width":586,"height":11}},{"id":"2cdbfad1-1ae5-40e2-aa0a-39b372f4d6bc","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":513,"width":640,"height":11}},{"id":"3399bc26-2213-4d4c-bd63-3b3b5d2c87c2","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":12,"box":{"x":265,"y":528,"width":389,"height":11}},{"id":"ac54bb40-bbce-4431-827b-1e25afbe5e98","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. 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She currently serves as Member","page_number":12,"box":{"x":265,"y":702,"width":634,"height":11}},{"id":"f19fd888-8d25-48bf-b5f1-42719687ddbb","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":12,"box":{"x":265,"y":717,"width":599,"height":11}},{"id":"ea994ed6-868e-4f3d-b411-0a5677904928","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":732,"width":407,"height":11}},{"id":"e5f0fe72-3a0b-4e0d-9796-50afafa101ba","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":12,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"b19e9659-45c9-449d-baff-9d0a5531fb02","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":12,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"bb22caed-518f-4c52-8c2a-7c7160246cfa","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":12,"box":{"x":265,"y":785,"width":642,"height":11}},{"id":"cf0da9b0-7dcc-4531-b844-31c08d1c9a21","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":12,"box":{"x":265,"y":799,"width":601,"height":12}},{"id":"a1334204-9a5c-4560-af7d-e9062b65c0ca","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":12,"box":{"x":265,"y":815,"width":595,"height":11}},{"id":"b8837d20-31c4-4929-b992-0a15b745c898","block_type":"box","text":"perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":830,"width":323,"height":11}},{"id":"65aee13b-ccde-4456-83bf-9f1025bcdb98","block_type":"box","text":"I-10","page_number":12,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b3c4f167-e93c-442a-b942-b06e1449964e","block_type":"box","text":"NM1026U-5985614-12/232","page_number":12,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"005febad-fe1a-4d6a-81f3-7a4e903fc628","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":13,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"b599b4d1-6b8b-4695-a7e4-e7efb110a496","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":65,"width":798,"height":12}},{"id":"fba5315f-3b9e-498d-839a-36cda01aafd9","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":81,"width":631,"height":11}},{"id":"c4565826-1e96-4bca-baac-ed40a60c21bd","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"a14f5c38-74d6-47dc-8581-c7735e937581","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":111,"width":628,"height":11}},{"id":"2eb2bcfc-45ec-472e-9a77-b7a7b9a79764","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":126,"width":596,"height":11}},{"id":"9e57d59f-98ad-47a4-82b9-161defc89f8b","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":13,"box":{"x":265,"y":141,"width":616,"height":11}},{"id":"48383bf8-fb6d-4435-8f10-16f6e307728b","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":13,"box":{"x":264,"y":156,"width":368,"height":11}},{"id":"0af63382-d80e-4ab7-8d4f-98d2fbd45eb0","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":179,"width":777,"height":11}},{"id":"42383682-8536-4d5c-9754-f5baaae3d141","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":13,"box":{"x":265,"y":194,"width":613,"height":11}},{"id":"e858ed71-221e-407a-97f1-2a11d7e639e1","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":13,"box":{"x":265,"y":209,"width":563,"height":11}},{"id":"eeca9483-9203-4261-8503-e6d7a9c85c4f","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":224,"width":607,"height":11}},{"id":"1c5aa4d7-8f1e-466c-9aed-44a8b019bcc9","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":13,"box":{"x":265,"y":239,"width":638,"height":11}},{"id":"c79fc844-8ddf-4c25-aed6-6e370a663643","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":13,"box":{"x":265,"y":255,"width":626,"height":11}},{"id":"fe899015-a48a-4390-a459-bcd094363036","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":13,"box":{"x":265,"y":269,"width":563,"height":12}},{"id":"0617b3b6-f6ef-4cdd-92c4-01ae8c2676f1","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":285,"width":625,"height":11}},{"id":"e9944a64-4438-4350-8616-7c8041393ad6","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":300,"width":625,"height":11}},{"id":"6661338e-c202-4fd5-9670-926e9d28543f","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":13,"box":{"x":265,"y":315,"width":623,"height":11}},{"id":"26a39d95-7e68-4372-bb43-8e3b185485c9","block_type":"box","text":"rules.","page_number":13,"box":{"x":265,"y":330,"width":38,"height":9}},{"id":"ce4a2993-dbcc-4fd4-8f7e-89d8a9113adb","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":353,"width":806,"height":11}},{"id":"c47fa429-04fb-43ce-8270-87c0f73da291","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":368,"width":584,"height":11}},{"id":"34b11c25-7f2e-484f-9d1b-6e9a4e8477e5","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":383,"width":622,"height":11}},{"id":"0109f56c-e045-45c3-b656-b7c583265c03","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":398,"width":638,"height":11}},{"id":"fd460d93-74b5-40be-83fc-b181c8ff88c8","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":413,"width":570,"height":11}},{"id":"29b0d75c-b15e-4bbe-8160-050ecb761225","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":428,"width":642,"height":12}},{"id":"ddf05af3-bfb3-403e-9dec-d72010679b26","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":444,"width":626,"height":11}},{"id":"83df8ecf-18d1-4e47-b3cf-6b2778cd3c0b","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":458,"width":630,"height":12}},{"id":"101103c1-181c-453d-ba7a-c4fafcc3e681","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":474,"width":602,"height":11}},{"id":"17f7f6a5-e6f9-454a-a895-2953a63c6fcf","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":489,"width":643,"height":11}},{"id":"99a7d9f7-1fa2-4b75-9060-2d0869e0d63f","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":504,"width":639,"height":11}},{"id":"24df5a48-f73a-4958-a6b2-682c080a3f7e","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":13,"box":{"x":264,"y":519,"width":641,"height":11}},{"id":"5477a0f7-f6f7-453c-9421-9d3647c80d8d","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":534,"width":208,"height":11}},{"id":"6c6d9107-e875-4662-babd-19de8d8a92e7","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":13,"box":{"x":69,"y":557,"width":769,"height":11}},{"id":"2a690430-b46a-48b2-a32d-ea050b708b44","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":13,"box":{"x":265,"y":572,"width":621,"height":11}},{"id":"861e1135-9d53-4cbe-a1e1-61a2362b5a08","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":13,"box":{"x":265,"y":587,"width":599,"height":11}},{"id":"15f95a09-1cb0-4002-8a81-d250d51c4d46","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":13,"box":{"x":265,"y":602,"width":641,"height":11}},{"id":"e277c3cb-da98-48e4-9d31-9bc7ab1d8cce","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":13,"box":{"x":264,"y":617,"width":602,"height":11}},{"id":"96a186e4-9ff3-4316-906c-e036bf3b6260","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":13,"box":{"x":264,"y":633,"width":617,"height":11}},{"id":"46ad5de9-32ab-4c09-94f7-2fa576749f36","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":13,"box":{"x":265,"y":648,"width":629,"height":11}},{"id":"a613a303-d591-4570-85ef-3d42cd2f1be1","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":13,"box":{"x":264,"y":663,"width":628,"height":11}},{"id":"5e02512f-3b40-4a27-aca8-6fb87ce28bc0","block_type":"box","text":"ar ticles and books on these topics.","page_number":13,"box":{"x":265,"y":678,"width":251,"height":11}},{"id":"65b5a0ac-c3a3-4e6d-9495-d77bb83cb534","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":13,"box":{"x":70,"y":700,"width":764,"height":12}},{"id":"7a3e83fd-3b1b-4b48-a848-18d49c245e86","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":13,"box":{"x":265,"y":716,"width":642,"height":11}},{"id":"a6c4d33c-a696-4b40-8cc5-0749c77cf132","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":13,"box":{"x":264,"y":731,"width":593,"height":11}},{"id":"b9ea5083-a8bd-46b8-98b1-3b5b32ac41bc","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":13,"box":{"x":265,"y":746,"width":603,"height":11}},{"id":"1041b6ba-359f-456e-a954-02e54749d3ca","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":13,"box":{"x":265,"y":761,"width":629,"height":11}},{"id":"aeeabe37-2901-4ec2-a054-e590aae98ae5","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1b323bd5-4541-41b4-b96d-afac8854fd3c","block_type":"box","text":"NM1026U-5985614-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"eccc9f80-bcef-4ffe-a80d-add262a08762","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"5cb61856-a6d8-40f0-862a-4f72ab9d6544","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":65,"width":804,"height":12}},{"id":"5de165ca-d005-43ac-baa1-8d38cff26dd0","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":14,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"6e295186-8d6c-4dc2-adc7-da5a7ceab150","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":14,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"6816ed4a-a501-4356-9950-7ea27b49cad2","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":14,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"933835f4-5052-483c-a611-8d029447c802","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":14,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"d5a71edc-7378-4cc2-8be4-f16545e0f908","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":14,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"5b94c1be-a523-43e3-94d8-fa411b640f19","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":14,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"fcd8973e-05e5-4d1b-ad0e-1c762fbd6b61","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":14,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"cd64607b-699f-4f21-8605-171912a39085","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":14,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"226a2f70-70bf-4501-9ba7-f6e9952839a3","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":14,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"922539ea-c8e8-4a7f-ba03-4de94cc18bdc","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":14,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"a02804ac-7d08-4e0a-9d42-43bd4b50aca0","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":14,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"3e2e764a-1bcd-462e-b5ab-d29f9cccf1a9","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":14,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"e000e6b4-81bf-4dc5-8967-ad7c8ab24aa5","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":14,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"8085d28a-78ea-4c8c-bea2-7179abc4f452","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":277,"width":607,"height":11}},{"id":"d0cebd0a-a685-421b-bde2-593952b71d46","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":14,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"180a2036-37da-4f3c-a4ae-50e55ac399e8","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":168,"width":510,"height":8}},{"id":"288f1c40-15e0-48b0-b24f-c7430acfea58","block_type":"box","text":"None None","page_number":20,"box":{"x":678,"y":168,"width":194,"height":8}},{"id":"fb1518e9-b78c-48fc-88d1-5fe9d9a2c970","block_type":"box","text":"Kenneth L. Urish","page_number":20,"box":{"x":79,"y":183,"width":117,"height":9}},{"id":"c0809b44-14da-4cf8-a67b-58023e1ed6c2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over","page_number":20,"box":{"x":204,"y":183,"width":468,"height":9}},{"id":"1e2fa905-6a0e-47ab-82a6-167938891474","block_type":"box","text":"$100,000 Over $100,000","page_number":20,"box":{"x":678,"y":182,"width":231,"height":11}},{"id":"c6201f06-d4cb-461d-9ffe-ebe2d6470b89","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":198,"width":510,"height":9}},{"id":"8257f0c1-20c8-43c4-8ffb-91e4bbd94cb0","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":678,"y":197,"width":231,"height":11}},{"id":"23a12a91-517c-4907-88fe-66f4dc7a5d75","block_type":"box","text":"Interested Trustees","page_number":20,"box":{"x":70,"y":213,"width":138,"height":9}},{"id":"bf1bac80-e991-49a2-8405-880630443627","block_type":"box","text":"Rober t Fairbairn","page_number":20,"box":{"x":79,"y":228,"width":113,"height":9}},{"id":"7ac526e3-d3d2-482d-bbe9-fca47ea2d559","block_type":"box","text":".................................................","page_number":20,"box":{"x":196,"y":235,"width":393,"height":2}},{"id":"ace28907-5bcb-4f8c-803a-ba021ec35ef4","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":678,"y":227,"width":231,"height":11}},{"id":"97f125e6-627c-4d12-8b7f-5b413fdb11de","block_type":"box","text":"John M. Perlowski . . .","page_number":20,"box":{"x":78,"y":243,"width":152,"height":9}},{"id":"b306af2c-b695-4e3a-a052-01b09adc8b92","block_type":"box","text":"............................................","page_number":20,"box":{"x":237,"y":251,"width":352,"height":1}},{"id":"4b5cbe9c-0701-4416-93f6-afcbf52fe3b3","block_type":"box","text":"$50,001 - $100,000 Over $100,000","page_number":20,"box":{"x":621,"y":242,"width":288,"height":12}},{"id":"4dd84667-c492-4a7d-bb76-6ef72cc43e4c","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":20,"box":{"x":70,"y":267,"width":782,"height":9}},{"id":"f82c619b-e39e-40bc-b5e4-62a146d1e5cc","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":20,"box":{"x":101,"y":288,"width":767,"height":12}},{"id":"67cd241d-004e-4b1c-9919-3f73462a493d","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":20,"box":{"x":69,"y":303,"width":819,"height":12}},{"id":"4b650a9d-4e25-4e4d-9a37-399a5e3ad828","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":319,"width":839,"height":11}},{"id":"a1ed5607-95eb-413e-9cef-172b6faec541","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":20,"box":{"x":68,"y":334,"width":798,"height":11}},{"id":"ff443931-815a-44b4-ad5b-ffe019d44a4e","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":20,"box":{"x":70,"y":349,"width":831,"height":11}},{"id":"ff992aa8-01b3-40d3-adb4-d52969bc2fe7","block_type":"box","text":"entities.","page_number":20,"box":{"x":69,"y":364,"width":56,"height":9}},{"id":"c79ddeda-1691-492b-9b59-7db0c5683462","block_type":"box","text":"Compensation of Trustees","page_number":20,"box":{"x":69,"y":394,"width":190,"height":11}},{"id":"c5ac2255-fad8-471b-b4fe-e4253560989c","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":416,"width":791,"height":12}},{"id":"3c0c13dc-035d-4fdd-b62a-0e0795713586","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":432,"width":810,"height":11}},{"id":"383964fa-df60-4ebf-9e6e-3cb205446569","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":446,"width":838,"height":12}},{"id":"02226dc7-ed75-434d-b243-57dfadd13267","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":462,"width":807,"height":12}},{"id":"d561e000-f1c9-48b0-9d7b-c4ca769ca27f","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":477,"width":791,"height":12}},{"id":"adc8fb68-7d89-4f0b-90f2-da0ec6701dc4","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":492,"width":786,"height":12}},{"id":"556810c7-0b52-40ab-b222-9657fe9d4526","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":508,"width":769,"height":11}},{"id":"b8f71a84-68cc-48ed-81af-eb8e05a3657e","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":20,"box":{"x":69,"y":523,"width":778,"height":11}},{"id":"4f7c8ce4-92b4-4bf1-b65b-1b729d7b67f6","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":537,"width":689,"height":12}},{"id":"b7d52cd9-6605-433f-b4ce-016b28cc7d8a","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":20,"box":{"x":101,"y":561,"width":776,"height":11}},{"id":"224182d0-fda1-4d45-8ca8-fbe9f682eed3","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":576,"width":841,"height":11}},{"id":"325105d6-940b-444b-8618-663363280954","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":20,"box":{"x":69,"y":591,"width":298,"height":11}},{"id":"a60e2ec5-7952-4387-be53-df21b274668d","block_type":"box","text":"Name","page_number":20,"box":{"x":69,"y":652,"width":32,"height":7}},{"id":"c4d446c1-d6fc-4a24-a58c-2f2853f2410e","block_type":"box","text":"Compensation","page_number":20,"box":{"x":589,"y":642,"width":82,"height":9}},{"id":"e2cc1dd6-7451-4d74-bdff-879ea8b5b12d","block_type":"box","text":"from the Fund","page_number":20,"box":{"x":590,"y":652,"width":80,"height":7}},{"id":"de742c97-f7f7-4875-bd8c-06f6cd718b84","block_type":"box","text":"Estimated","page_number":20,"box":{"x":705,"y":612,"width":58,"height":7}},{"id":"37b38fa8-65a9-466d-aa0a-8cf5f3be20a5","block_type":"box","text":"Annual","page_number":20,"box":{"x":714,"y":622,"width":39,"height":7}},{"id":"901b2bf9-9123-44a9-9025-28826e079050","block_type":"box","text":"Benefits","page_number":20,"box":{"x":710,"y":632,"width":48,"height":7}},{"id":"5411cbd7-1b06-45af-be7b-923a97b9c210","block_type":"box","text":"upon","page_number":20,"box":{"x":720,"y":644,"width":27,"height":7}},{"id":"20f6ca7c-6a7f-4824-84d7-e10db08063ae","block_type":"box","text":"Retirement","page_number":20,"box":{"x":702,"y":652,"width":64,"height":7}},{"id":"91d756f2-ce35-48f3-94e2-24910bf8117a","block_type":"box","text":"Aggregate","page_number":20,"box":{"x":822,"y":612,"width":61,"height":8}},{"id":"f5cdd3d1-4afd-44ba-abd0-571e9f2b8960","block_type":"box","text":"Compensation from","page_number":20,"box":{"x":796,"y":622,"width":113,"height":8}},{"id":"42d641b2-d7d2-419d-84fa-5961b40b4253","block_type":"box","text":"the Fund and","page_number":20,"box":{"x":815,"y":632,"width":75,"height":7}},{"id":"377f1266-49e9-4e4f-9c78-dcb872bb92ba","block_type":"box","text":"Other BlackRock","page_number":20,"box":{"x":802,"y":642,"width":102,"height":7}},{"id":"7d6d2335-b19f-4f4d-bb88-18bbca679bca","block_type":"box","text":"Advised Funds","page_number":20,"box":{"x":809,"y":652,"width":84,"height":7}},{"id":"1725dce0-881a-4ac2-8116-45a5b9de4645","block_type":"box","text":"1","page_number":20,"box":{"x":893,"y":652,"width":4,"height":3}},{"id":"f72a8520-06bc-49ef-8a7a-a21e4e91ea58","block_type":"box","text":"Independent Trustees","page_number":20,"box":{"x":70,"y":670,"width":154,"height":10}},{"id":"2f3c8b26-e9fc-4ee9-8009-3e7f95f16222","block_type":"box","text":"Christopher J. Ailman","page_number":20,"box":{"x":79,"y":685,"width":149,"height":11}},{"id":"af7bf1c6-ac2a-4351-bbd7-b65f00220051","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,674","page_number":20,"box":{"x":238,"y":684,"width":418,"height":11}},{"id":"8a68eabb-f7d6-49cc-aa5d-65f03b21219b","block_type":"box","text":"None $445,000","page_number":20,"box":{"x":717,"y":684,"width":172,"height":11}},{"id":"4d1a8930-464b-476f-a560-a13e98977d24","block_type":"box","text":"Susan J. Car ter","page_number":20,"box":{"x":79,"y":700,"width":110,"height":9}},{"id":"74d48c09-ce3e-4168-a2c8-05236720ffd7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,674","page_number":20,"box":{"x":197,"y":699,"width":459,"height":11}},{"id":"f7a2d1bb-8f7e-462d-9941-aa38ee32e597","block_type":"box","text":"None $445,000","page_number":20,"box":{"x":717,"y":699,"width":172,"height":11}},{"id":"bde81fe4-63e9-48b2-bf95-eb9ee5279b66","block_type":"box","text":"Collette Chilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,674","page_number":20,"box":{"x":79,"y":714,"width":577,"height":11}},{"id":"53384755-4e69-477b-85fc-63cf75b460ce","block_type":"box","text":"None $445,000","page_number":20,"box":{"x":717,"y":714,"width":172,"height":11}},{"id":"afe952cd-d929-45ee-b2b9-b09fc8bc0c6b","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,742","page_number":20,"box":{"x":79,"y":729,"width":577,"height":12}},{"id":"b5fcd9c0-70fe-4606-99f5-c3dc31bbc73e","block_type":"box","text":"None $467,500","page_number":20,"box":{"x":717,"y":729,"width":172,"height":11}},{"id":"4c613ac8-a4f6-4aa0-8813-b7e93af80df0","block_type":"box","text":"Jeffrey Jarczyk","page_number":20,"box":{"x":78,"y":745,"width":103,"height":11}},{"id":"6078a4d1-2f5f-4ab9-9566-1fed041b9f99","block_type":"box","text":"2","page_number":20,"box":{"x":181,"y":746,"width":4,"height":4}},{"id":"2eba6b7d-a9d3-43c8-9788-6827a56b585c","block_type":"box","text":"..............................................","page_number":20,"box":{"x":189,"y":753,"width":369,"height":1}},{"id":"b0412765-ac98-4595-8914-b7977b99f49d","block_type":"box","text":"$404 None None","page_number":20,"box":{"x":611,"y":744,"width":260,"height":11}},{"id":"ca1d69cc-b665-45bf-9f98-1e4410596b9c","block_type":"box","text":"Henry R. 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Perlowski . . .","page_number":21,"box":{"x":78,"y":107,"width":154,"height":9}},{"id":"efb931c5-1a26-4ba1-9249-28b582eded82","block_type":"box","text":"........................................","page_number":21,"box":{"x":238,"y":114,"width":320,"height":2}},{"id":"1b38fb69-fdf2-4d73-8633-262302f08b29","block_type":"box","text":"None None None","page_number":21,"box":{"x":613,"y":107,"width":258,"height":9}},{"id":"1c298676-5709-4e4e-99bd-cfa9cc272bbd","block_type":"box","text":"1","page_number":21,"box":{"x":69,"y":132,"width":3,"height":3}},{"id":"8479c0f6-9ec3-404d-b405-8de09aea9031","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":131,"width":786,"height":9}},{"id":"085ba26c-a380-4357-9b22-feb5a29e4f9c","block_type":"box","text":"page I-13.","page_number":21,"box":{"x":94,"y":142,"width":55,"height":9}},{"id":"d60b14de-314d-44da-83d8-0269794ef771","block_type":"box","text":"2","page_number":21,"box":{"x":69,"y":154,"width":3,"height":4}},{"id":"ceb8b572-8a7f-4c27-ab6c-bf67fdb0fc2a","block_type":"box","text":"Compensation includes $404 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":154,"width":724,"height":9}},{"id":"315ed336-a30b-4ae0-9fc3-5902ff5a6670","block_type":"box","text":"3","page_number":21,"box":{"x":69,"y":167,"width":3,"height":3}},{"id":"16ee4b92-e169-4a89-98fb-9f71fc190989","block_type":"box","text":"Chair of the Audit Committee.","page_number":21,"box":{"x":93,"y":167,"width":168,"height":7}},{"id":"bf08c495-60e5-4e7e-a1c5-651218897726","block_type":"box","text":"4","page_number":21,"box":{"x":68,"y":180,"width":4,"height":3}},{"id":"1ecc34bb-5d9f-401b-9208-cf864763cfd3","block_type":"box","text":"Chair of the Governance Committee.","page_number":21,"box":{"x":93,"y":179,"width":206,"height":8}},{"id":"1e8836b8-2905-4843-ac6d-2ab2237ba62f","block_type":"box","text":"5","page_number":21,"box":{"x":69,"y":192,"width":3,"height":4}},{"id":"386cb15e-8fc1-4b71-9990-81eb091f8c67","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":21,"box":{"x":93,"y":192,"width":269,"height":9}},{"id":"f9c2746c-1631-49e5-9956-b4b853daa540","block_type":"box","text":"6","page_number":21,"box":{"x":69,"y":205,"width":3,"height":3}},{"id":"d7c05ad1-4177-4ad5-a37a-c896bfb40796","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":21,"box":{"x":93,"y":204,"width":352,"height":9}},{"id":"34edb28f-5df4-4f64-8a45-524e8099648e","block_type":"box","text":"7","page_number":21,"box":{"x":69,"y":217,"width":3,"height":4}},{"id":"2f6360aa-298a-4f90-9590-d7cfe9f2f811","block_type":"box","text":"Chair of the Compliance Committee.","page_number":21,"box":{"x":93,"y":217,"width":205,"height":9}},{"id":"d665f0df-a883-4b12-9d5d-271b188b8463","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":21,"box":{"x":69,"y":246,"width":432,"height":11}},{"id":"411990a2-a1be-4b68-b1f5-5ee0691bc17d","block_type":"box","text":"Management Agreement","page_number":21,"box":{"x":69,"y":276,"width":180,"height":11}},{"id":"a24ff3f1-4f8d-4aff-981d-51287fdb4733","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":298,"width":805,"height":12}},{"id":"1a6b0698-be39-4555-bbd7-e2d8c95a83fb","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":314,"width":736,"height":11}},{"id":"90305981-8848-4d96-b3c7-f5bcedbe4c69","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":21,"box":{"x":102,"y":336,"width":762,"height":12}},{"id":"4531b876-3791-4755-a842-55aa713c2dc1","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":351,"width":799,"height":12}},{"id":"f2b50ae2-8fbe-43a3-b48e-214f95604743","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":366,"width":726,"height":12}},{"id":"1070aa84-d477-4808-aeea-e1b456e31cb0","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":382,"width":797,"height":11}},{"id":"ee54d4ce-132e-4e8a-9979-6ad65095407e","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":397,"width":789,"height":11}},{"id":"de4b7889-ccc5-4285-b81f-28d098604d48","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":412,"width":810,"height":11}},{"id":"d19066e8-070a-4d64-ada5-8069f53c0a03","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":427,"width":827,"height":11}},{"id":"49a649b4-dcc4-42e1-a55d-251a2fd857ad","block_type":"box","text":"Fund.","page_number":21,"box":{"x":70,"y":442,"width":36,"height":9}},{"id":"ae2d1f7d-fa31-47fe-a478-4b41fc251f6b","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":21,"box":{"x":102,"y":465,"width":773,"height":11}},{"id":"235b7573-2335-4bad-9aa0-37788958a02e","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":21,"box":{"x":68,"y":480,"width":787,"height":11}},{"id":"a352e971-9231-466f-868f-6a8d4e1257bb","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":21,"box":{"x":70,"y":495,"width":811,"height":11}},{"id":"4aa194e8-88e2-4ce8-99d8-8211f137b315","block_type":"box","text":"Fund’s Prospectuses)) as a percentage of average daily net assets to 1.10% for Investor A Shares, 1.85% for","page_number":21,"box":{"x":70,"y":510,"width":779,"height":11}},{"id":"28ec5986-c3a8-4ca5-b351-662625a493e5","block_type":"box","text":"Investor C Shares, 0.85% for Institutional Shares and 0.80% for Class K Shares through June 30, 2028. The","page_number":21,"box":{"x":70,"y":525,"width":775,"height":12}},{"id":"7344a32f-e948-4fcc-829f-16a596e1a08f","block_type":"box","text":"contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a","page_number":21,"box":{"x":69,"y":540,"width":808,"height":12}},{"id":"c02b374a-41df-4fc5-b7e0-e716b1315994","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":21,"box":{"x":68,"y":555,"width":468,"height":12}},{"id":"9312ec19-9472-4184-876a-e60ebde53a18","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":578,"width":784,"height":11}},{"id":"4fef1d54-065d-4c31-863e-2af7c01b89d8","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":593,"width":838,"height":12}},{"id":"7376b99b-19ea-4ec0-bce0-275e749eccdb","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":21,"box":{"x":70,"y":608,"width":810,"height":12}},{"id":"b49e4a6b-e82b-4c14-8a17-8c7b72c47d7d","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":623,"width":779,"height":12}},{"id":"e76a6388-a4e6-4543-8f58-042c84c86172","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":639,"width":827,"height":11}},{"id":"1a8c3b0d-76cb-41d4-910d-01db957bb9ff","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":69,"y":654,"width":486,"height":11}},{"id":"8c221b70-1cfa-4337-a8c7-eafd787e4bd7","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust to BlackRock, on","page_number":21,"box":{"x":101,"y":676,"width":765,"height":12}},{"id":"8c43149e-041e-4d07-bc65-7104a8c0a499","block_type":"box","text":"behalf of the Fund, and the amounts waived and reimbursed, for the periods shown.","page_number":21,"box":{"x":69,"y":692,"width":598,"height":11}},{"id":"dbd09cb8-c935-4456-ad12-a439e00efad2","block_type":"box","text":"Fees Paid","page_number":21,"box":{"x":586,"y":720,"width":55,"height":7}},{"id":"4c31d067-8c70-4d8a-a8ef-1c64144ab81f","block_type":"box","text":"to BlackRock","page_number":21,"box":{"x":574,"y":730,"width":79,"height":7}},{"id":"73bf86ce-cbed-422a-acc6-e474d5cfd65f","block_type":"box","text":"Fees Waived","page_number":21,"box":{"x":700,"y":720,"width":72,"height":7}},{"id":"984b92a2-d482-4b1c-803f-2d7f2a2d6e9e","block_type":"box","text":"by BlackRock","page_number":21,"box":{"x":696,"y":730,"width":80,"height":9}},{"id":"1f0369e2-9e76-4ee1-bd29-71de1518d212","block_type":"box","text":"Fees Reimbursed","page_number":21,"box":{"x":810,"y":720,"width":99,"height":7}},{"id":"788ec87c-a759-4885-9477-1edc40997e98","block_type":"box","text":"by BlackRock","page_number":21,"box":{"x":820,"y":730,"width":80,"height":9}},{"id":"847cb4a4-7fdc-46cd-9020-a9e82a9e47d6","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,421,436 $1,195,678 $1,020,786","page_number":21,"box":{"x":70,"y":747,"width":833,"height":12}},{"id":"37d93de1-f79b-4120-a123-d6596bc6f063","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,131,086 $1,081,482 $ 803,283","page_number":21,"box":{"x":70,"y":762,"width":833,"height":12}},{"id":"286e3670-d0c1-458b-b049-a4fbc2c81c59","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,855,452 $1,151,239 $1,022,185","page_number":21,"box":{"x":70,"y":777,"width":833,"height":12}},{"id":"9dc0af1a-9b94-4e99-852d-af7eb7864e72","block_type":"box","text":"Administration Agreement","page_number":21,"box":{"x":68,"y":809,"width":191,"height":11}},{"id":"bd1de64c-8d3b-4658-9dd6-f5e8a51966ce","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":21,"box":{"x":102,"y":832,"width":711,"height":11}},{"id":"e0179074-eea6-40f0-8919-924bbb463e61","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":21,"box":{"x":69,"y":847,"width":838,"height":11}},{"id":"5d815ee5-9c51-4439-913f-47a481f12d45","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":21,"box":{"x":68,"y":862,"width":830,"height":12}},{"id":"7b63619b-a104-488e-b999-4f73e891b9e6","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":21,"box":{"x":70,"y":877,"width":813,"height":12}},{"id":"bc709a6a-938a-4cfc-bf03-d46efd4146f0","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":21,"box":{"x":69,"y":893,"width":837,"height":11}},{"id":"095e924e-d2ec-42be-9174-d3fdf8107ac7","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":21,"box":{"x":68,"y":908,"width":836,"height":11}},{"id":"0fe0a1ec-c983-4bf2-874b-2d0d74581f4e","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"6175335d-3e8f-46b1-ae89-5d41149dad68","block_type":"box","text":"NM1026U-5985614-21/232","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9aec30ac-c21e-4062-b2a0-67e8964d8806","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":45,"width":785,"height":11}},{"id":"1a3fe67c-6957-49a5-9751-de388f59474d","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":60,"width":765,"height":11}},{"id":"5712877c-aa6e-4c3a-ae8a-990b3490d08c","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":75,"width":819,"height":11}},{"id":"ae5c1f03-3e4c-41aa-ad05-759c25747232","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":90,"width":818,"height":11}},{"id":"4792898e-6004-418d-84c5-81e187bf9fb0","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":105,"width":840,"height":11}},{"id":"7cb48efe-ad79-465f-8671-ca9dd74b4405","block_type":"box","text":"reimburse the Fund for expenses.","page_number":22,"box":{"x":69,"y":120,"width":238,"height":11}},{"id":"5c65218e-f6b7-45a9-a024-982feadb77a3","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":143,"width":802,"height":11}},{"id":"d896a206-4c1b-4a2c-b9a9-81e8b6b7f545","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":157,"width":830,"height":12}},{"id":"1fa41178-2cc3-4e02-a960-e7b34fa5db5d","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":172,"width":788,"height":12}},{"id":"a40810e1-079b-40d3-b1db-14dbbe059fde","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":188,"width":785,"height":12}},{"id":"9f332ea7-8625-4552-b84b-535024d138ab","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":203,"width":816,"height":12}},{"id":"0b750ec7-aef8-4b17-aecf-5af9feea1f56","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":218,"width":805,"height":12}},{"id":"39603424-41e1-48dc-8efb-0a373f0cfb59","block_type":"box","text":"shares of the Fund.","page_number":22,"box":{"x":69,"y":234,"width":137,"height":9}},{"id":"a7494f7b-de8d-4216-83c1-b5efb450179e","block_type":"box","text":"The table below sets for th information about the administration paid accrued by the Trust on behalf of the Fund,","page_number":22,"box":{"x":101,"y":256,"width":799,"height":11}},{"id":"9621ca48-e4be-4a6d-973b-e85b291adf81","block_type":"box","text":"to the Administrator, and the amounts waived for the periods shown.","page_number":22,"box":{"x":68,"y":271,"width":488,"height":11}},{"id":"48d3bb3d-ea8e-43f6-a07c-ca993abadb55","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":674,"y":300,"width":56,"height":7}},{"id":"fe0b7b0d-5be3-4053-8523-ace1cb6b8e9e","block_type":"box","text":"to the Administrator","page_number":22,"box":{"x":643,"y":310,"width":118,"height":7}},{"id":"1e8fb436-e41a-48b3-bf68-4b8de8be0db6","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":814,"y":300,"width":72,"height":7}},{"id":"6822c1c6-ed4a-4a62-9dc1-eca2882668a3","block_type":"box","text":"by the Administrator","page_number":22,"box":{"x":791,"y":310,"width":118,"height":9}},{"id":"573ca39f-044b-452d-8bc4-5cb7d3b3c7c4","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":22,"box":{"x":70,"y":328,"width":460,"height":11}},{"id":"d747c2e3-661f-4d2b-b907-10f169c5cf78","block_type":"box","text":". . . . . . . . . . $1,","page_number":22,"box":{"x":537,"y":327,"width":144,"height":11}},{"id":"0884c8a0-1eb6-428d-841b-686111db3bac","block_type":"box","text":"165,861 $392,652","page_number":22,"box":{"x":683,"y":327,"width":203,"height":11}},{"id":"237eb323-6171-4791-87b8-b79bead8cabb","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":22,"box":{"x":70,"y":343,"width":460,"height":11}},{"id":"d5fa311d-3b47-43f6-af50-30c10c575fd8","block_type":"box","text":". . . . . . . . . . $1,","page_number":22,"box":{"x":537,"y":342,"width":144,"height":11}},{"id":"19ea8adc-ffbb-49eb-9a86-52086515fa39","block_type":"box","text":"144,429 $383,628","page_number":22,"box":{"x":683,"y":342,"width":203,"height":11}},{"id":"573d0b20-a408-496e-91aa-0d8cc66b091c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":22,"box":{"x":70,"y":358,"width":460,"height":11}},{"id":"cc16e303-d040-405f-9e6c-631207625524","block_type":"box","text":". . . . . . . . . . $1,","page_number":22,"box":{"x":537,"y":357,"width":144,"height":11}},{"id":"2aa646cb-7cd6-48f9-b009-7a1b21e58185","block_type":"box","text":"198,772 $404,218","page_number":22,"box":{"x":683,"y":357,"width":203,"height":11}},{"id":"d8c43089-9eed-4e63-9e88-164e7c5458ae","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":22,"box":{"x":101,"y":382,"width":708,"height":11}},{"id":"c67d410e-5c2f-48d3-a6ae-f41d3f63ad36","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agents","page_number":22,"box":{"x":69,"y":397,"width":838,"height":11}},{"id":"0cdb68b3-c8a9-4ef4-b87f-5acbc3d18c9a","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption 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The Trust, on behalf of the Fund,","page_number":22,"box":{"x":69,"y":465,"width":824,"height":10}},{"id":"3cc106cf-cb53-492b-bd6a-e722ab565aa8","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":480,"width":787,"height":11}},{"id":"8ca36d22-c009-458c-9a1e-efbdbd35ff64","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":22,"box":{"x":69,"y":495,"width":531,"height":11}},{"id":"f69fd8ce-60fb-4410-bd83-79520a201a6e","block_type":"box","text":"For the periods shown, the Trust on behalf of the Fund reimbursed to BlackRock fees for shareholder liaison","page_number":22,"box":{"x":102,"y":518,"width":769,"height":11}},{"id":"530398a2-5898-4e4d-94d4-5b7338f795a8","block_type":"box","text":"services pursuant to such agreement in the amounts set for th 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day-to-day management of the Fund.","page_number":22,"box":{"x":70,"y":688,"width":459,"height":12}},{"id":"332b633b-cf7c-4521-a745-1ae5e390e94d","block_type":"box","text":"Other Funds and Accounts Managed","page_number":22,"box":{"x":70,"y":719,"width":257,"height":11}},{"id":"546fd581-a075-4d0c-970a-a86198d9a532","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the","page_number":22,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"16188248-ed0a-4387-97bb-a9af7bcde646","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of May 31, 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$0","page_number":23,"box":{"x":305,"y":128,"width":560,"height":8}},{"id":"abaffc69-11d1-4f0d-bcc8-c5d54d42d247","block_type":"box","text":"Kyle McClements, CFA 6 16 0 0 0 0","page_number":23,"box":{"x":74,"y":141,"width":787,"height":9}},{"id":"1feb86cd-e194-4d15-bf21-853bf59906b8","block_type":"box","text":"$5.10 Billion $2.34 Billion $0 $0 $0 $0","page_number":23,"box":{"x":309,"y":153,"width":556,"height":8}},{"id":"11f18aea-85a0-4476-bd77-70196abdb9c5","block_type":"box","text":"Tom Pierce 2 2 0 0 0 0","page_number":23,"box":{"x":73,"y":166,"width":788,"height":7}},{"id":"b4b1ba55-c712-4b16-93bf-8ef91e5d0b94","block_type":"box","text":"$913.96 Million $559.34 Million $0 $0 $0 $0","page_number":23,"box":{"x":300,"y":178,"width":565,"height":9}},{"id":"966e20a8-8937-41ce-80e7-6ddf16242147","block_type":"box","text":"David Zhao 14 10 7 0 0 1","page_number":23,"box":{"x":74,"y":191,"width":787,"height":7}},{"id":"024a39bf-3e81-4a98-ab65-6ecd2a2db870","block_type":"box","text":"$31.10 Billion $6.84 Billion $419.38 Million $0 $0 $54.95 Million","page_number":23,"box":{"x":305,"y":203,"width":594,"height":9}},{"id":"3e6cab0a-8901-4ea7-93c6-59a17e212ec3","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":23,"box":{"x":69,"y":238,"width":304,"height":11}},{"id":"3aedab9f-c764-48ca-96db-a93943a612d4","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":23,"box":{"x":101,"y":261,"width":656,"height":11}},{"id":"b97eb16c-e137-40af-9949-1cf2676023d2","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":23,"box":{"x":102,"y":283,"width":774,"height":12}},{"id":"2e9653ab-35f8-41e9-b8c8-eca1fe5e2013","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":298,"width":837,"height":12}},{"id":"2653caa1-f6cb-4f96-a151-6b367f72e66f","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":314,"width":823,"height":11}},{"id":"a9c8839f-9998-4ba7-8687-13099a3f3842","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":23,"box":{"x":69,"y":329,"width":799,"height":11}},{"id":"00a9fb7d-4a1a-493b-a6b2-86853cd63c0b","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":23,"box":{"x":70,"y":344,"width":670,"height":11}},{"id":"df25c646-e8cf-46cd-87d6-820a1485d8fe","block_type":"box","text":"Base Compensation.","page_number":23,"box":{"x":102,"y":367,"width":148,"height":11}},{"id":"24d2eae9-7800-45e9-9278-f39ebd422b7a","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":23,"box":{"x":257,"y":366,"width":640,"height":12}},{"id":"4b81c4c0-0c8f-4429-b8dd-7e065d4f0aaa","block_type":"box","text":"firm.","page_number":23,"box":{"x":68,"y":382,"width":32,"height":9}},{"id":"9ff01e2a-13a8-4fd8-9b41-46997dd86f0b","block_type":"box","text":"Discretionary Incentive Compensation","page_number":23,"box":{"x":69,"y":412,"width":277,"height":11}},{"id":"d08b2f48-2b89-4f16-a347-2f2b3181a1d8","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":23,"box":{"x":102,"y":435,"width":763,"height":11}},{"id":"87cc9cc2-a593-458f-a881-b6381ab6a487","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":23,"box":{"x":68,"y":450,"width":832,"height":11}},{"id":"a4aefafb-80e8-4e57-8dae-c7c1bd946a59","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 1- and 5-year","page_number":23,"box":{"x":69,"y":465,"width":815,"height":11}},{"id":"e552c9be-c432-4719-b497-15a09a72be63","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":23,"box":{"x":70,"y":480,"width":757,"height":11}},{"id":"7e6c63de-82c2-43e3-b40b-71b72165e74e","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":23,"box":{"x":69,"y":495,"width":814,"height":11}},{"id":"bf0012ef-5e33-41b6-a050-888b7438b73c","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":510,"width":780,"height":11}},{"id":"3218a585-1fae-4b23-a782-b3606db3e1ed","block_type":"box","text":"per formance of the Fund and other accounts managed by the por tfolio management team is compared and the","page_number":23,"box":{"x":70,"y":525,"width":791,"height":12}},{"id":"e31341ba-e555-494d-869e-fdaa641f9195","block_type":"box","text":"period of time over which per formance is evaluated. With respect to these por tfolio managers such benchmarks for","page_number":23,"box":{"x":70,"y":540,"width":823,"height":12}},{"id":"d7eab7c9-7101-4299-b53a-be3cd4e0d029","block_type":"box","text":"the Fund and other accounts are:","page_number":23,"box":{"x":68,"y":556,"width":236,"height":8}},{"id":"cd71df66-c24d-428c-af7e-dd4ce1eb3398","block_type":"box","text":"Portfolio Manager Benchmark","page_number":23,"box":{"x":69,"y":584,"width":261,"height":9}},{"id":"9682e122-8f4e-48d0-9eba-9c89405df7c6","block_type":"box","text":"Tom Pierce","page_number":23,"box":{"x":68,"y":600,"width":78,"height":9}},{"id":"4abc0bc0-2492-4564-b805-4049d62f617a","block_type":"box","text":"David Zhao","page_number":23,"box":{"x":70,"y":616,"width":77,"height":8}},{"id":"12b471ce-6622-4416-a538-f052c44a3b63","block_type":"box","text":"Cem Inal","page_number":23,"box":{"x":69,"y":631,"width":61,"height":8}},{"id":"1de301bb-5aa8-4d21-9cae-059d8b34b574","block_type":"box","text":"FTSE United States in GBP; MSCI All Country (AC) Americas Index; Russell 1000 Index","page_number":23,"box":{"x":265,"y":600,"width":615,"height":11}},{"id":"5d76958d-af0b-4854-b0b5-179932ca9813","block_type":"box","text":"(GBP); Russell 1000 Index (Gross Total Return); Russell 1000 Value Index (Total Return);","page_number":23,"box":{"x":265,"y":615,"width":631,"height":11}},{"id":"1aa3bfca-a827-4f77-a8d6-54f9e689283b","block_type":"box","text":"Russell 1000 Value Index TR in GBP; Russell 1000 Value TR Customized Index","page_number":23,"box":{"x":265,"y":631,"width":560,"height":10}},{"id":"5da235c8-dcfe-4309-93d5-bb0c3f604791","block_type":"box","text":"Per formance Benchmark JPY; Russell 1000, expressed in EUR; Russell MidCap Value","page_number":23,"box":{"x":265,"y":646,"width":611,"height":11}},{"id":"81fb279a-b377-4cff-8c56-d021d95e7afc","block_type":"box","text":"Index; S&P United States MidSmallCap Index; S&P US MidSmallCap Index (GBP)","page_number":23,"box":{"x":265,"y":661,"width":572,"height":11}},{"id":"0b4b05c5-a292-4271-a5c3-4ebda8d6a9e5","block_type":"box","text":"Kyle McClements, CFA No Benchmarks","page_number":23,"box":{"x":70,"y":683,"width":306,"height":12}},{"id":"d40e0d2f-6864-488c-90fd-52bda9f998c0","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":23,"box":{"x":101,"y":707,"width":759,"height":12}},{"id":"f30e4b5a-3c83-4581-a9f7-1a84cd55535a","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":722,"width":798,"height":12}},{"id":"fab71b46-b25d-47af-b58f-e9016cc07124","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":23,"box":{"x":69,"y":738,"width":814,"height":11}},{"id":"02f21c35-15f9-4cb6-8fc5-fcb781b94670","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":753,"width":798,"height":11}},{"id":"90669574-5221-4130-93c1-55a626db2372","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":23,"box":{"x":102,"y":775,"width":389,"height":11}},{"id":"f74cd731-1bd3-4246-b119-4069df8049dd","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":23,"box":{"x":499,"y":776,"width":383,"height":10}},{"id":"67e95aa2-1511-4890-9c9e-00e697edf765","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":23,"box":{"x":70,"y":790,"width":815,"height":12}},{"id":"8832c5c6-2417-4343-b8fb-876f0bf65695","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":23,"box":{"x":68,"y":806,"width":522,"height":11}},{"id":"065d73bc-2159-420c-b3be-0adf3e755526","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":23,"box":{"x":102,"y":828,"width":760,"height":12}},{"id":"a7dc4f17-c7dd-40d6-abb6-bf9ff560334a","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":23,"box":{"x":69,"y":843,"width":795,"height":12}},{"id":"4346df70-03c8-4861-a778-e2097f24bf2e","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":23,"box":{"x":69,"y":858,"width":805,"height":12}},{"id":"0d929e4d-3850-4d0f-af0d-b7ad81b2a1ed","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":23,"box":{"x":69,"y":874,"width":822,"height":11}},{"id":"fe1f66ac-be1f-425a-9287-f38d08a4ed5f","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":23,"box":{"x":68,"y":889,"width":839,"height":11}},{"id":"9d7f8b44-4ee8-4bf3-bf43-33a94eb28fcf","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":23,"box":{"x":69,"y":904,"width":802,"height":11}},{"id":"3b0a1f06-f8a2-4e74-87dd-2251fc5c278c","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"77e5acce-6079-4baa-b683-63d40bc298b9","block_type":"box","text":"NM1026U-5985614-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8beff2fb-bb24-42c8-a401-da8928151fa9","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":24,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"9e2cef92-bb0d-4133-928b-7789acd97886","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":60,"width":801,"height":11}},{"id":"76d98188-d798-4136-82a0-492da798fa8b","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":24,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"51f956f6-1377-48dd-b544-7252143cbe80","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":24,"box":{"x":69,"y":90,"width":479,"height":11}},{"id":"dfe6e916-11b4-41bd-8542-59a453a27935","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":24,"box":{"x":102,"y":113,"width":785,"height":11}},{"id":"1ce9b193-73d5-46a9-bd1c-b544f8819b15","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":128,"width":836,"height":11}},{"id":"3725bed6-4b32-440c-b4ed-15548da0581e","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":24,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"fbea8e9c-9100-47ee-9495-fcdb84679d75","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":158,"width":829,"height":11}},{"id":"da2290c1-ab9c-445d-8aa6-b9ade1599a92","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":24,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"f7eb707b-a962-4fae-a51d-cbfb674f90f5","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":24,"box":{"x":69,"y":188,"width":414,"height":12}},{"id":"1e8f3f64-43db-454f-9ed5-268928aa0348","block_type":"box","text":"Other Compensation Benefits.","page_number":24,"box":{"x":101,"y":211,"width":218,"height":11}},{"id":"7da687e3-f01c-4872-9add-988feaf7e5d9","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":24,"box":{"x":327,"y":211,"width":552,"height":11}},{"id":"c00c9d99-046f-49cb-91dc-9e1139526db8","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":24,"box":{"x":69,"y":226,"width":582,"height":11}},{"id":"8e47fa74-66d9-4451-a435-16058b603c5b","block_type":"box","text":"Incentive Savings Plans","page_number":24,"box":{"x":102,"y":249,"width":167,"height":11}},{"id":"a4a2bd90-28ec-4de6-b5ea-881a9d88f98f","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":24,"box":{"x":274,"y":249,"width":614,"height":11}},{"id":"da7dfab5-ac87-41c4-93ab-85f2c4928c84","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":24,"box":{"x":69,"y":264,"width":831,"height":11}},{"id":"3321b78c-f0f6-4298-83eb-156cff8e6275","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":24,"box":{"x":70,"y":279,"width":785,"height":11}},{"id":"ec7f7d17-d075-448d-8b80-8ec5e19160db","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":24,"box":{"x":69,"y":293,"width":830,"height":12}},{"id":"0eda704d-4187-4e7a-8617-391ebaf65787","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":24,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"c18934b8-1fc1-4dd6-b8a0-45e4f9d63925","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":24,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"90dfc3d2-7c50-40f4-b290-7fea9aaa5085","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":24,"box":{"x":69,"y":339,"width":798,"height":12}},{"id":"67dfa067-ec1c-4ed7-9a6e-9a4dd1c4d252","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":24,"box":{"x":70,"y":355,"width":809,"height":11}},{"id":"61e19573-b68b-41de-8121-05ede1607c08","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":24,"box":{"x":68,"y":370,"width":793,"height":11}},{"id":"916a0f9f-fceb-4071-a0e3-b8b3c3e1795f","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":24,"box":{"x":70,"y":385,"width":832,"height":11}},{"id":"817d7457-f0a7-4a26-9193-17070faa42e9","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":24,"box":{"x":68,"y":400,"width":805,"height":11}},{"id":"33c542a0-bad2-404e-bfe9-6af6942b9fc1","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":24,"box":{"x":69,"y":414,"width":808,"height":12}},{"id":"a8b9e881-ab56-4ce8-897b-58a8d077ba7c","block_type":"box","text":"par ticipate in these plans.","page_number":24,"box":{"x":70,"y":430,"width":185,"height":11}},{"id":"081172c4-e4ef-4a78-893b-4f5985c5ea9c","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":24,"box":{"x":69,"y":460,"width":268,"height":12}},{"id":"6ea0a1ac-9b3b-47a3-9d8f-c140c5673d17","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":483,"width":731,"height":11}},{"id":"dd7c956e-0df4-4161-afb2-e27616a6e0bf","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":24,"box":{"x":69,"y":498,"width":519,"height":11}},{"id":"223746cc-3771-49eb-ab3b-8e04c852a7eb","block_type":"box","text":"Portfolio Manager","page_number":24,"box":{"x":69,"y":537,"width":105,"height":8}},{"id":"cb82e268-a161-48ac-a7a6-24b27c9984b5","block_type":"box","text":"Dollar Range of Equity","page_number":24,"box":{"x":759,"y":526,"width":129,"height":9}},{"id":"030bdf88-3b2a-4053-85dd-539bad9582d5","block_type":"box","text":"Securities Beneficially Owned","page_number":24,"box":{"x":736,"y":537,"width":173,"height":8}},{"id":"c5c3f04c-857e-4c67-af62-07a515a8c65e","block_type":"box","text":"Cem Inal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":24,"box":{"x":69,"y":554,"width":772,"height":9}},{"id":"1710fb8b-4690-44f8-aab4-d64955955430","block_type":"box","text":"Kyle McClements, CFA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":569,"width":635,"height":12}},{"id":"2b8e21c2-9b2a-4b9d-8c15-e505ad844c95","block_type":"box","text":"$50,001 - $100,000","page_number":24,"box":{"x":749,"y":569,"width":148,"height":11}},{"id":"33f244cd-b522-49f2-b39e-6cef73bcdc59","block_type":"box","text":"Tom Pierce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":68,"y":585,"width":637,"height":8}},{"id":"0ef3e3d2-befe-4c13-a864-bd63f66e774a","block_type":"box","text":"$10,001 - $50,000","page_number":24,"box":{"x":754,"y":584,"width":138,"height":11}},{"id":"9a23a465-8b32-41bb-8023-68dbd76e06d9","block_type":"box","text":"David Zhao","page_number":24,"box":{"x":70,"y":600,"width":77,"height":9}},{"id":"8d022ebd-c685-4d7f-a0ab-7d859843b31e","block_type":"box","text":"....................................................................","page_number":24,"box":{"x":157,"y":607,"width":548,"height":1}},{"id":"5b2b0f9e-311a-4871-bc68-8326b2b262d4","block_type":"box","text":"$50,001 - $100,000","page_number":24,"box":{"x":749,"y":599,"width":148,"height":11}},{"id":"f6d6b786-3c70-40ff-bcf8-195ffa951e33","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":24,"box":{"x":69,"y":631,"width":403,"height":11}},{"id":"b0f8d14e-ed41-494d-8178-bbea31bbf43b","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":24,"box":{"x":102,"y":654,"width":727,"height":11}},{"id":"de34afc1-3405-4f8e-9a37-fe857755d7a7","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":669,"width":814,"height":11}},{"id":"a00f1df1-fd9d-4fe7-979e-e9fcb083241b","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":24,"box":{"x":70,"y":684,"width":837,"height":11}},{"id":"3c59eb8f-1be2-4242-af60-1a9b74fdfb0c","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":24,"box":{"x":70,"y":699,"width":810,"height":11}},{"id":"a92e3b55-5bbc-4d63-8f10-a44d94ef6fe4","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":24,"box":{"x":69,"y":714,"width":782,"height":11}},{"id":"c38f5a3f-5bc2-4b38-bf85-2f49c5b78611","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":730,"width":830,"height":11}},{"id":"0f0bc7eb-8cb7-48ed-984a-da9e9db03471","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":745,"width":828,"height":11}},{"id":"12d23421-9604-4968-b654-7b4893e65632","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":24,"box":{"x":68,"y":760,"width":834,"height":11}},{"id":"7e47dd5d-62aa-482a-81de-e5b15f18b354","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":775,"width":777,"height":11}},{"id":"7e66b3c8-6a28-4cae-b797-f927d5fb4c4a","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":790,"width":821,"height":11}},{"id":"20c22315-91a3-452c-96fe-4b6161b98b61","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":805,"width":819,"height":11}},{"id":"6f11fd57-0e27-4147-bcde-6388a2089497","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":820,"width":832,"height":11}},{"id":"b79a9be1-f9af-4398-957d-f0b348222a86","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":835,"width":804,"height":11}},{"id":"64fcc058-7143-4f90-b315-f5e59288ea0b","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":850,"width":760,"height":12}},{"id":"b87b38b5-01ef-494c-b5fa-d094aeb53720","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":24,"box":{"x":69,"y":865,"width":834,"height":12}},{"id":"e79e9420-e7ab-4f57-a44f-9bc4ba42331b","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":24,"box":{"x":69,"y":881,"width":836,"height":11}},{"id":"e3011ea3-428f-4a1a-93cb-bd6af1869353","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":24,"box":{"x":69,"y":896,"width":822,"height":11}},{"id":"398d5244-a3b9-4380-88b3-904b8a43bab3","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":24,"box":{"x":70,"y":911,"width":835,"height":11}},{"id":"63462acf-7bd6-4208-a0b1-36ff45f791d0","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"406a47ee-2f7d-4a78-9a13-b568785e79b1","block_type":"box","text":"NM1026U-5985614-24/232","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"773fc66d-e0cd-42db-b074-6a4d63ea7dca","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that a por tfolio manager may be managing","page_number":25,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"fa338e3e-16e9-4245-9459-19e59c07e6e2","block_type":"box","text":"hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only accounts,","page_number":25,"box":{"x":69,"y":60,"width":811,"height":11}},{"id":"d05c7577-90f7-43de-9d73-2d00d19f01fc","block_type":"box","text":"subject to incentive fees. Such por tfolio managers may therefore be entitled to receive a por tion of any incentive fees","page_number":25,"box":{"x":69,"y":75,"width":839,"height":11}},{"id":"6e5082b4-d60e-4f4f-a240-7b5d0f7eca34","block_type":"box","text":"earned on such accounts. Currently, the por tfolio managers of this Fund are not entitled to receive a por tion of","page_number":25,"box":{"x":69,"y":90,"width":791,"height":11}},{"id":"44856a2a-06a1-48d1-ba2d-e451596fab68","block_type":"box","text":"incentive fees of other accounts.","page_number":25,"box":{"x":70,"y":105,"width":231,"height":9}},{"id":"8c8f8b3e-ca06-4649-af9a-9b092570101c","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":128,"width":788,"height":11}},{"id":"9a96b01c-7858-4cd7-815c-bb5c91e8fd68","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":143,"width":839,"height":11}},{"id":"23de7448-1d4d-4b6b-958a-b34c8cfee8e9","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":158,"width":823,"height":11}},{"id":"5a59b965-9b12-4680-aae3-51cace3e7145","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":173,"width":812,"height":11}},{"id":"de64dca1-b87c-40ed-8763-f71e8daa13ef","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":188,"width":777,"height":11}},{"id":"b164c075-9568-4f27-8b8a-d333c0476bd8","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":25,"box":{"x":70,"y":204,"width":826,"height":10}},{"id":"a71ae82f-7029-42d8-91a7-1d11572d7145","block_type":"box","text":"Accounting Services","page_number":25,"box":{"x":68,"y":234,"width":150,"height":11}},{"id":"0e0c7730-4434-4f61-b2cc-94cc15d744fb","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”) serves as the accounting services provider for the Fund. BNY","page_number":25,"box":{"x":101,"y":256,"width":762,"height":12}},{"id":"6aab021e-e4bc-4a79-af1b-f6f67ad17b2d","block_type":"box","text":"Mellon records investment, capital share and income and expense activities; verifies and transmits trade tickets;","page_number":25,"box":{"x":70,"y":271,"width":804,"height":11}},{"id":"49313064-6434-4b5f-867a-a0d158b19231","block_type":"box","text":"maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":25,"box":{"x":69,"y":286,"width":761,"height":12}},{"id":"0cadd01b-cef2-4a16-88db-9204dae4ddfd","block_type":"box","text":"custodian; repor ts cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains,","page_number":25,"box":{"x":69,"y":302,"width":821,"height":11}},{"id":"bced68df-6573-4fd2-8ea2-86c5a57973f2","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and repor ts net","page_number":25,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"770608f5-0cfd-48ac-b2f7-cfa78264a9aa","block_type":"box","text":"asset value. In connection with its accounting services, BNY Mellon also provides cer tain administration services.","page_number":25,"box":{"x":69,"y":332,"width":812,"height":11}},{"id":"b27127bd-669b-4f6c-a5da-0c011f15ee23","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the periods","page_number":25,"box":{"x":101,"y":355,"width":765,"height":11}},{"id":"f2c20447-a42d-431a-9911-1fa01e3c7d0c","block_type":"box","text":"shown:","page_number":25,"box":{"x":69,"y":370,"width":48,"height":9}},{"id":"57c9d2d0-cfe5-47b9-b3ae-504eaede9c6d","block_type":"box","text":"Fees Paid","page_number":25,"box":{"x":840,"y":398,"width":55,"height":7}},{"id":"3b8a80bb-473b-40c4-b8c5-9750b2915df8","block_type":"box","text":"to BNY Mellon","page_number":25,"box":{"x":825,"y":408,"width":84,"height":7}},{"id":"5818d6d3-442b-4e84-aa6c-54be8ede3e35","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":426,"width":317,"height":11}},{"id":"81c37521-bb09-49bb-aaf0-e81f6db3ad6f","block_type":"box","text":"..................................................","page_number":25,"box":{"x":393,"y":433,"width":402,"height":2}},{"id":"7472cf96-f83b-4899-8619-c79768244e41","block_type":"box","text":"$142,361","page_number":25,"box":{"x":832,"y":425,"width":71,"height":11}},{"id":"e49ff301-18da-4e11-9d34-3a2687f6d66c","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":441,"width":317,"height":11}},{"id":"bc274dc4-e6ba-4c93-ab55-7344e0043c7f","block_type":"box","text":"..................................................","page_number":25,"box":{"x":393,"y":448,"width":402,"height":2}},{"id":"7b29a416-cc7e-4273-94c6-9822434dc008","block_type":"box","text":"$141,829","page_number":25,"box":{"x":832,"y":440,"width":71,"height":11}},{"id":"542588fa-0c8f-46c7-91bb-b1a4ce92de1b","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":456,"width":317,"height":11}},{"id":"f0e1776e-4ca5-42e1-91a8-808a2af2078e","block_type":"box","text":"..................................................","page_number":25,"box":{"x":393,"y":463,"width":402,"height":2}},{"id":"6efaef3e-d18d-4e92-8f4c-6fcb29e45a57","block_type":"box","text":"$146,718","page_number":25,"box":{"x":832,"y":455,"width":72,"height":11}},{"id":"331aed99-4629-4e17-ba7b-4bc76da479f1","block_type":"box","text":"Custodian","page_number":25,"box":{"x":69,"y":488,"width":72,"height":8}},{"id":"c12dca4b-9cf6-4728-bdc8-22d746b65971","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, NY 10286, also","page_number":25,"box":{"x":102,"y":510,"width":758,"height":11}},{"id":"3c240762-6b2f-4fab-9e47-8f5fb2b34952","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":25,"box":{"x":69,"y":525,"width":810,"height":12}},{"id":"96b1b9e3-61e3-4c34-901c-6ea9c9302d9a","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":25,"box":{"x":69,"y":540,"width":815,"height":12}},{"id":"cb5317ee-f8e0-4198-befc-9179cfc4f172","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":25,"box":{"x":69,"y":555,"width":824,"height":12}},{"id":"b7aae0a8-75e9-4960-a9a4-9d27dc2353c6","block_type":"box","text":"the assets of the Fund.","page_number":25,"box":{"x":68,"y":571,"width":165,"height":9}},{"id":"0d0a3be7-e84a-45ba-9725-2d3d895a18d7","block_type":"box","text":"Transfer Agent","page_number":25,"box":{"x":68,"y":601,"width":107,"height":11}},{"id":"a7998fe1-8a3f-4aee-b9d4-50e7f89e056d","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":623,"width":764,"height":12}},{"id":"26799309-b5bd-4c6b-9d36-c05042e97c9b","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":639,"width":792,"height":11}},{"id":"081eec58-0cdd-48b1-8ec5-9baca41c6c56","block_type":"box","text":"Credit Agreement","page_number":25,"box":{"x":69,"y":669,"width":129,"height":11}},{"id":"cf3a1e1c-b489-4ef5-a3ec-17b680af2d88","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":25,"box":{"x":101,"y":692,"width":758,"height":11}},{"id":"67b266e9-faa5-4ac8-a531-f03f20e40721","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":25,"box":{"x":69,"y":706,"width":817,"height":12}},{"id":"7f86fd1a-f6e7-4da2-905e-92f2c1b007a5","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":722,"width":743,"height":11}},{"id":"df981208-969b-4d11-a307-fa446ffac228","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":25,"box":{"x":69,"y":737,"width":825,"height":11}},{"id":"c523ab24-8b2c-427d-89fc-ef982bf3e8d2","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":751,"width":818,"height":12}},{"id":"8b431d14-0995-4619-be55-24610766b65f","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":767,"width":761,"height":11}},{"id":"5e05be43-84fe-46ef-afe0-df41f82922be","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":782,"width":768,"height":11}},{"id":"667b6e3f-86ae-4ef9-b174-539a7c6027cf","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":797,"width":825,"height":12}},{"id":"26048123-375b-44f8-b4ee-fb73a737d2f4","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":813,"width":805,"height":11}},{"id":"693c071d-f1fb-4904-9498-54c6e77ea746","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":828,"width":838,"height":11}},{"id":"5648f0af-d89a-4b83-bd82-e492cd466aa9","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":843,"width":801,"height":11}},{"id":"c80f0422-5c35-4928-92f7-826e8b7c94ac","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":25,"box":{"x":69,"y":858,"width":833,"height":11}},{"id":"044ca913-7b98-4dfa-a017-6c548f7efd0d","block_type":"box","text":"charged interest at a variable rate.","page_number":25,"box":{"x":69,"y":873,"width":245,"height":11}},{"id":"25b7535e-9546-46e9-961f-0867c2b056e9","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"2275d0b9-d79d-4f86-91a5-41cc12452d06","block_type":"box","text":"NM1026U-5985614-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"696e3e82-1c2e-4261-89ba-5c2e9d2f7530","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":26,"box":{"x":68,"y":45,"width":491,"height":11}},{"id":"2cce95ee-0e34-43dc-aaaf-128d87639165","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":26,"box":{"x":102,"y":67,"width":773,"height":12}},{"id":"9fbb3232-74b9-44f3-9b0d-a9737222eadb","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":26,"box":{"x":69,"y":82,"width":804,"height":12}},{"id":"06c4e7c4-62fc-46e7-ba9e-7316a0ae18e7","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":26,"box":{"x":70,"y":98,"width":656,"height":11}},{"id":"52e7b848-c43a-4ec2-953b-a4ae8e3f3d13","block_type":"box","text":"Investor A 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by","page_number":26,"box":{"x":606,"y":172,"width":69,"height":9}},{"id":"37d36d81-9d72-4e1c-be26-d8da26490c00","block_type":"box","text":"BRIL","page_number":26,"box":{"x":627,"y":182,"width":27,"height":7}},{"id":"e5babc34-4109-4bd0-b2d4-705a116da270","block_type":"box","text":"Sales Charges","page_number":26,"box":{"x":711,"y":162,"width":84,"height":9}},{"id":"1156d480-3e44-40bd-8c1f-2a203b921f35","block_type":"box","text":"Paid to","page_number":26,"box":{"x":734,"y":172,"width":40,"height":7}},{"id":"32eaba61-48a1-4e9b-8ff3-202583adf976","block_type":"box","text":"Affiliates","page_number":26,"box":{"x":727,"y":182,"width":52,"height":7}},{"id":"ae4baaf8-53d6-418b-b5e6-7f25674de9d1","block_type":"box","text":"CDSCs","page_number":26,"box":{"x":847,"y":142,"width":40,"height":7}},{"id":"642bffa3-5309-4338-b31b-2e08436a1608","block_type":"box","text":"Received on","page_number":26,"box":{"x":832,"y":152,"width":70,"height":7}},{"id":"fc347138-60d5-4698-8290-255615e06a52","block_type":"box","text":"Redemption of","page_number":26,"box":{"x":826,"y":162,"width":84,"height":9}},{"id":"2be9fb1b-ba16-409d-9f89-b7c55a29d0a9","block_type":"box","text":"Load-Waived","page_number":26,"box":{"x":832,"y":172,"width":71,"height":7}},{"id":"27c55de6-15b9-4055-a120-6919c1206793","block_type":"box","text":"Shares","page_number":26,"box":{"x":847,"y":182,"width":40,"height":7}},{"id":"ef397ca6-0960-4d4a-b40c-589580b792fa","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . .","page_number":26,"box":{"x":70,"y":200,"width":305,"height":11}},{"id":"07d06a4a-977e-46fc-a203-6e1902e01b4e","block_type":"box","text":"...........","page_number":26,"box":{"x":381,"y":207,"width":84,"height":1}},{"id":"f9ec2597-69d3-4801-a420-e4412aa77861","block_type":"box","text":"$531,879 $40,563 $40,563 $4,131","page_number":26,"box":{"x":496,"y":199,"width":397,"height":11}},{"id":"3b180e43-8a50-405f-8772-2138acb5ca4a","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . .","page_number":26,"box":{"x":70,"y":215,"width":305,"height":11}},{"id":"5b4f8512-073b-4fa3-9d66-cb37d6d8bc96","block_type":"box","text":"...........","page_number":26,"box":{"x":381,"y":222,"width":84,"height":2}},{"id":"baaf07b6-bf9f-4ba8-9794-4a229f8b5cdf","block_type":"box","text":"$378,856 $29,263 $29,263 $ 309","page_number":26,"box":{"x":496,"y":214,"width":397,"height":11}},{"id":"f094df64-4e3f-4ee4-b262-37111030b125","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . .","page_number":26,"box":{"x":70,"y":230,"width":305,"height":11}},{"id":"e853ddbf-b052-4212-b6b6-5c9b157da65f","block_type":"box","text":"...........","page_number":26,"box":{"x":381,"y":237,"width":84,"height":2}},{"id":"fe1243d3-c7b4-415f-8ea0-0e1f8608bb66","block_type":"box","text":"$601,851 $43,206 $43,206 $2,118","page_number":26,"box":{"x":496,"y":229,"width":398,"height":11}},{"id":"bbe8b7a3-e233-416b-9851-7234cf5b4e72","block_type":"box","text":"Investor C Shares","page_number":26,"box":{"x":760,"y":275,"width":103,"height":7}},{"id":"291f6b49-0073-4e18-9b09-3e3526d176d3","block_type":"box","text":"CDSCs Received","page_number":26,"box":{"x":713,"y":290,"width":97,"height":7}},{"id":"e2b8c798-3921-486c-9605-7f0ab02c57e8","block_type":"box","text":"by BRIL","page_number":26,"box":{"x":740,"y":300,"width":44,"height":9}},{"id":"bd5f0818-585d-444c-bb22-b4e4b6f7726d","block_type":"box","text":"CDSCs Paid","page_number":26,"box":{"x":840,"y":290,"width":69,"height":7}},{"id":"fb742677-ce48-4eb5-a703-2bf03a6ff40a","block_type":"box","text":"to Affiliates","page_number":26,"box":{"x":841,"y":300,"width":68,"height":7}},{"id":"353c0c42-29a8-4d7e-b9b2-c49602ec0818","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":318,"width":474,"height":11}},{"id":"28facaf6-bd84-4a59-9b16-b7e0678b05f2","block_type":"box","text":". . . . . . . . . . . . . . . . . $2,720 $2,720","page_number":26,"box":{"x":550,"y":317,"width":351,"height":12}},{"id":"2a864a96-1909-4bbf-a5c5-44ae6ec5c3ed","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":333,"width":474,"height":11}},{"id":"aea78869-7be9-484d-95ac-16c041fd2a58","block_type":"box","text":". . . . . . . . . . . . . . . . . $3,058 $3,058","page_number":26,"box":{"x":550,"y":332,"width":351,"height":12}},{"id":"95d85c9b-9b30-46b0-bd7c-cdb5ddc9c8ce","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":348,"width":474,"height":11}},{"id":"938715a7-dde9-4a08-a80e-3f0b54503c21","block_type":"box","text":". . . . . . . . . . . . . . . . . $4,105 $4,105","page_number":26,"box":{"x":550,"y":348,"width":351,"height":11}},{"id":"29a9fbd1-6f7f-4f0b-8d88-146af32ba899","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":372,"width":805,"height":11}},{"id":"a6b7cea5-f089-4a39-a8ae-088586058129","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":26,"box":{"x":68,"y":387,"width":796,"height":12}},{"id":"c5d61eeb-1172-442b-98a4-9226fae8b6f2","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":402,"width":826,"height":12}},{"id":"dcbf2f60-9c62-4d40-bbd7-9a3e7a89580b","block_type":"box","text":"activities and services for Investor C Shares.","page_number":26,"box":{"x":69,"y":418,"width":318,"height":9}},{"id":"3186f305-86a5-4e53-a022-01bd8c0aa223","block_type":"box","text":"Class Name","page_number":26,"box":{"x":69,"y":456,"width":68,"height":7}},{"id":"a2a8d681-cf37-4e07-b200-e56760f30d46","block_type":"box","text":"Fees Paid","page_number":26,"box":{"x":845,"y":446,"width":56,"height":7}},{"id":"ef1b636e-5ad8-469a-bba3-79ca0e2caea8","block_type":"box","text":"to BRIL","page_number":26,"box":{"x":851,"y":456,"width":44,"height":7}},{"id":"c98ca5b5-f7f1-441a-86fe-9e80b9517b80","block_type":"box","text":"Investor A Shares . .","page_number":26,"box":{"x":70,"y":474,"width":140,"height":9}},{"id":"eb59c5c4-a9a4-4dc7-b5f4-67c59b84b39c","block_type":"box","text":".........................................................................","page_number":26,"box":{"x":217,"y":481,"width":588,"height":1}},{"id":"ea232f5d-3d8e-431b-ad69-b9ca4249dc7e","block_type":"box","text":"$767,804","page_number":26,"box":{"x":837,"y":473,"width":72,"height":11}},{"id":"8e5fbb27-2c41-41b2-a887-c2daf3d75885","block_type":"box","text":"Investor C Shares","page_number":26,"box":{"x":70,"y":489,"width":125,"height":9}},{"id":"a2ba7675-814e-47e5-a8aa-e804fa8cae92","block_type":"box","text":"...........................................................................","page_number":26,"box":{"x":200,"y":496,"width":605,"height":2}},{"id":"b71a5ed8-f23c-4e2a-ab77-a47a942ec1ff","block_type":"box","text":"$644,141","page_number":26,"box":{"x":837,"y":488,"width":72,"height":11}},{"id":"c1a5a83a-164a-4139-9234-b80e6d6253b7","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":26,"box":{"x":68,"y":520,"width":318,"height":11}},{"id":"1c15de1d-f3b1-466d-9ce2-284f2c998144","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":543,"width":805,"height":11}},{"id":"3b931e08-22cd-415d-bd33-83a3615c2f4b","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":558,"width":827,"height":11}},{"id":"04fb4bff-f519-40b1-8d14-32a014473eac","block_type":"box","text":"for th below.","page_number":26,"box":{"x":68,"y":573,"width":83,"height":9}},{"id":"3eacb2b8-44fc-47a6-bcb4-4dfe0a718fa3","block_type":"box","text":"Investor A Shares","page_number":26,"box":{"x":805,"y":601,"width":102,"height":8}},{"id":"62adbe85-ddcf-47d2-8133-46f8ced4cdfa","block_type":"box","text":"Net Assets","page_number":26,"box":{"x":70,"y":619,"width":76,"height":9}},{"id":"224069aa-a9e6-44f3-ba46-fd8beb0398a5","block_type":"box","text":".............................................................................","page_number":26,"box":{"x":150,"y":627,"width":621,"height":1}},{"id":"b96923b0-4515-41e4-8811-c7c13d5d09f4","block_type":"box","text":"$325,227,244","page_number":26,"box":{"x":803,"y":618,"width":106,"height":12}},{"id":"bc7bdb48-b9d4-493a-a0df-64de23d7c433","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":26,"box":{"x":70,"y":634,"width":245,"height":12}},{"id":"384bc62c-8c25-487e-aa7d-a75cb29b3bf6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":26,"box":{"x":321,"y":634,"width":524,"height":11}},{"id":"d51d2a5f-8a04-492c-b94e-961c0bb9a0d7","block_type":"box","text":"452,891","page_number":26,"box":{"x":847,"y":634,"width":62,"height":11}},{"id":"9812470a-b140-4743-b530-0ea99ecb5e04","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":26,"box":{"x":70,"y":649,"width":571,"height":12}},{"id":"a3616ff1-7334-4a16-946e-4aa3be000779","block_type":"box","text":"................","page_number":26,"box":{"x":647,"y":657,"width":124,"height":1}},{"id":"333f4b33-aa78-4ffa-8476-24e9d1cc291a","block_type":"box","text":"$26.12","page_number":26,"box":{"x":857,"y":649,"width":52,"height":10}},{"id":"3105b92d-97bf-4da5-a61a-cdb72b4d5b7d","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":664,"width":534,"height":12}},{"id":"24171a3e-0b32-4fae-a209-d7d98e2469c0","block_type":"box","text":"1","page_number":26,"box":{"x":604,"y":665,"width":4,"height":4}},{"id":"7d18eb64-03b4-4c03-a1d9-c91869d4aac5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . $1.45","page_number":26,"box":{"x":623,"y":664,"width":286,"height":10}},{"id":"886924ec-9db2-4f36-81eb-3eabdb5eabd5","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":69,"y":684,"width":702,"height":11}},{"id":"330ac6c0-0464-417a-83c2-85dbd73fe7b4","block_type":"box","text":"$27.57","page_number":26,"box":{"x":857,"y":683,"width":51,"height":11}},{"id":"5cafcaf1-38f5-4853-aadf-5d55b84c9d7c","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":716,"width":3,"height":4}},{"id":"2898a51f-bd12-4697-949e-d1ed871f3844","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":26,"box":{"x":94,"y":716,"width":541,"height":9}},{"id":"e85f920c-dd94-4dd4-bb7d-3d38a092ef83","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":737,"width":796,"height":11}},{"id":"208eff8f-6f3b-4992-bbfb-5849be32a3dd","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":26,"box":{"x":69,"y":752,"width":833,"height":11}},{"id":"ead48c78-847f-4f67-aa03-ddf5f4836c8c","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":767,"width":813,"height":11}},{"id":"4dc1d5e0-0538-44f7-871c-c6fdff2d58a7","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":26,"box":{"x":69,"y":782,"width":377,"height":12}},{"id":"7bddec6b-1a34-435b-ac8a-897920473ac3","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":26,"box":{"x":68,"y":813,"width":302,"height":11}},{"id":"2c4db336-ed21-4d2c-b098-c850c79bfe44","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":26,"box":{"x":102,"y":835,"width":609,"height":11}},{"id":"805f611a-a791-4872-8c7f-8227b6e29cee","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ba8bc965-19fa-48c9-b322-7d647b180cf5","block_type":"box","text":"NM1026U-5985614-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"58716681-55ce-4125-9633-723f7309c165","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":"1b4787cb-70e5-470c-9998-4c561d6d8884","block_type":"box","text":"the periods shown is set for th in the following tables:","page_number":27,"box":{"x":68,"y":60,"width":380,"height":11}},{"id":"c47580cc-6db1-41f8-ba09-f8a7c40c6c2d","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":719,"y":98,"width":60,"height":9}},{"id":"e8765191-5fed-4369-b006-0342e797c755","block_type":"box","text":"Brokerage","page_number":27,"box":{"x":720,"y":108,"width":59,"height":9}},{"id":"27fc64ea-4c6f-4bed-8e91-f5ec2b043a87","block_type":"box","text":"Commissions Paid","page_number":27,"box":{"x":696,"y":118,"width":106,"height":7}},{"id":"aab2a488-499b-4084-8952-587f5b27edf9","block_type":"box","text":"Brokerage","page_number":27,"box":{"x":841,"y":88,"width":60,"height":9}},{"id":"30c13176-8c09-48c8-ab03-fe14865b3503","block_type":"box","text":"Commissions","page_number":27,"box":{"x":832,"y":98,"width":77,"height":7}},{"id":"fec52b3b-05a9-4a02-b4d1-16b5b175e7b4","block_type":"box","text":"Paid to","page_number":27,"box":{"x":851,"y":108,"width":40,"height":7}},{"id":"3c631b50-449f-4a3a-b685-db6fbff11820","block_type":"box","text":"Affiliates","page_number":27,"box":{"x":845,"y":118,"width":52,"height":7}},{"id":"4e2ea3f3-82c8-4c91-b736-dab353a97a91","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":27,"box":{"x":70,"y":136,"width":230,"height":11}},{"id":"47193e29-799f-48ca-b806-471ea6779f06","block_type":"box","text":"............................................. $","page_number":27,"box":{"x":305,"y":135,"width":409,"height":11}},{"id":"21b62aca-e1a1-4aba-8387-e9cf18bc25c7","block_type":"box","text":"998,582 $0","page_number":27,"box":{"x":730,"y":135,"width":150,"height":11}},{"id":"a24a5694-8f16-4a01-b413-b0385e700426","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":27,"box":{"x":70,"y":151,"width":230,"height":11}},{"id":"2cafc8af-1177-4345-b7cc-d16e85311f2a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":27,"box":{"x":305,"y":150,"width":423,"height":12}},{"id":"a621e15e-8104-4013-adbe-447e218aee08","block_type":"box","text":"327,337 $0","page_number":27,"box":{"x":730,"y":150,"width":150,"height":12}},{"id":"85c239f7-dd3a-4ef9-81e0-a972dcbf0372","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":27,"box":{"x":70,"y":166,"width":230,"height":11}},{"id":"25fcf814-3538-4ccd-b71d-50d00eab0b1b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":27,"box":{"x":305,"y":166,"width":423,"height":11}},{"id":"d120b46a-f2fe-4b41-b09a-12ebc8f9ff5f","block_type":"box","text":"124,913 $0","page_number":27,"box":{"x":731,"y":166,"width":149,"height":11}},{"id":"fefaa591-2436-47a9-a20c-defd7946a968","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":190,"width":770,"height":11}},{"id":"145f1120-6d44-4d21-9603-c30a7c648ce1","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":205,"width":814,"height":12}},{"id":"103006a6-abfa-4a6b-aff2-b9e211dbd241","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. 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D","page_number":27,"box":{"x":227,"y":427,"width":439,"height":9}},{"id":"b4432897-3636-40ec-8b20-1a0222ed8f62","block_type":"box","text":"$89,482","page_number":27,"box":{"x":799,"y":426,"width":62,"height":11}},{"id":"67fd4a01-744b-4608-b887-01e5257db6a3","block_type":"box","text":"SG Americas Securities, LLC .","page_number":27,"box":{"x":69,"y":442,"width":209,"height":11}},{"id":"7c76a6ce-554c-4f91-ac98-21cd14cc4ba4","block_type":"box","text":".................................... D","page_number":27,"box":{"x":284,"y":442,"width":382,"height":9}},{"id":"90c2e600-deb4-4aa5-9102-38e5803563b9","block_type":"box","text":"$77,015","page_number":27,"box":{"x":799,"y":441,"width":62,"height":12}},{"id":"1c1b72bb-21a8-429a-a7a3-7b1c41892a42","block_type":"box","text":"Mizuho Securities (USA) Inc. . . . . . . . . .","page_number":27,"box":{"x":70,"y":457,"width":273,"height":11}},{"id":"cc769d17-b16b-4af4-95f8-ad8e97cd5178","block_type":"box","text":"............................ 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To the extent that the Fund engages in securities","page_number":27,"box":{"x":69,"y":693,"width":813,"height":11}},{"id":"7e252901-a53f-4820-90ce-6ff360748b3e","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":708,"width":838,"height":11}},{"id":"96bafb38-fdbd-45c6-ae55-82e922cec5b0","block_type":"box","text":"overall supervision of BlackRock, pursuant to a written agreement (the “Securities Lending Agency Agreement”). BIM","page_number":27,"box":{"x":69,"y":723,"width":831,"height":11}},{"id":"70a18a88-b944-493b-bf19-04c628079960","block_type":"box","text":"administers the lending program in accordance with guidelines approved by the Board.","page_number":27,"box":{"x":69,"y":738,"width":614,"height":11}},{"id":"8ba11029-dd4b-49db-968b-6241eddd6934","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":27,"box":{"x":101,"y":761,"width":735,"height":11}},{"id":"fce99465-0f30-4ec9-99b8-18421b09c22e","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":776,"width":834,"height":11}},{"id":"f07e1d22-93b1-4815-8f82-1fc2ec3c07c3","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":791,"width":822,"height":11}},{"id":"3d61ed9c-b47f-46b2-b385-03242efa3669","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":806,"width":787,"height":11}},{"id":"74163173-c5e7-4698-9579-f2cb80ce8c40","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":821,"width":783,"height":12}},{"id":"29bfc15e-5b93-4689-abc9-f2017271f62e","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":27,"box":{"x":70,"y":836,"width":816,"height":12}},{"id":"1ce60084-f71d-43f4-84e2-1ed0dae2d327","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":852,"width":813,"height":11}},{"id":"5bd277ae-e26d-415f-abe4-b0c9597a2bb6","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":867,"width":830,"height":11}},{"id":"d7a48d49-1102-49d3-9e62-8b37c4321d45","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":882,"width":773,"height":11}},{"id":"191a93c6-e02b-4ecf-bf16-84e3a3278213","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b66f1a0c-6bad-4fb9-bfde-cf96606f4f61","block_type":"box","text":"NM1026U-5985614-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f766a818-0b73-4fb7-acdd-8a28c299ecd7","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":28,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"ec14f31f-4abc-4b27-bedb-8e41759af572","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":28,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"43b1411e-a7df-4616-a299-fead4cc61ad6","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":28,"box":{"x":68,"y":75,"width":812,"height":11}},{"id":"15c08869-1016-4123-97dc-24f4f38aea48","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":28,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"5af51279-6030-434c-8d74-80c31c589eb3","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":28,"box":{"x":68,"y":105,"width":835,"height":11}},{"id":"802bc813-dbc8-45b4-9d32-fba373c22774","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":28,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"a20aef11-0408-43a7-b840-22b08c9b5dd7","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":28,"box":{"x":68,"y":135,"width":789,"height":11}},{"id":"21eb8f1d-8a9e-4a02-ad0e-13ed85b6e2d8","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":28,"box":{"x":69,"y":150,"width":829,"height":12}},{"id":"20c50b09-ee95-4ccf-9462-8bfe6a7f735c","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":28,"box":{"x":69,"y":166,"width":839,"height":11}},{"id":"9cf887a2-6b6d-42b2-8c3c-e400f48b8b5d","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":28,"box":{"x":69,"y":181,"width":802,"height":11}},{"id":"6f68932b-f057-411f-9421-9deab8bf56d0","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":28,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"241dd7ec-6e59-433c-a374-35323302781d","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":28,"box":{"x":69,"y":211,"width":838,"height":11}},{"id":"063c0a45-a6fa-4bb3-a7b1-d1f48f4af887","block_type":"box","text":"Fund’s returns on securities lending.","page_number":28,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"b34fc1cc-3c95-4b80-9566-1e7df3f58f5f","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":28,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"6fc93fb3-e5a3-46f7-b7cf-c701b85a0fc8","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":28,"box":{"x":69,"y":264,"width":794,"height":11}},{"id":"985798fc-61da-4fd1-83bf-6e4fa85b12b0","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":28,"box":{"x":68,"y":279,"width":809,"height":11}},{"id":"262840f5-98a9-45bf-a360-c342946c7747","block_type":"box","text":"Fund and BIM.","page_number":28,"box":{"x":70,"y":294,"width":100,"height":9}},{"id":"7e6c1efd-4202-47e0-908c-4885c2332cd4","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":28,"box":{"x":102,"y":317,"width":783,"height":11}},{"id":"a16b1e62-8167-4e26-a995-aedcbf5c84c6","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":332,"width":815,"height":11}},{"id":"6386d7d1-cf47-4dc4-b672-d99a0b7ff948","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":28,"box":{"x":69,"y":347,"width":463,"height":11}},{"id":"8e42a1af-6eb8-4b4a-ae3f-6d971ecd7d11","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":370,"width":753,"height":11}},{"id":"ea2fd098-7fdf-4c48-9133-a584ae665b1b","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":385,"width":778,"height":11}},{"id":"fdf0d093-a1b0-43c8-a18a-bb763aa2d82b","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":400,"width":817,"height":11}},{"id":"c3005ef3-a681-4714-a6e3-4ab7bfeec1ce","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":28,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"e371d5d7-415a-4a5f-bcce-2172bdb62b14","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":430,"width":825,"height":11}},{"id":"589b43ac-d82b-4a3c-9f4e-5fa1cab6ac3b","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":453,"width":683,"height":11}},{"id":"1ac4e62f-3102-4a4b-af1c-b2e2717787ae","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":475,"width":803,"height":12}},{"id":"369c6f19-b753-40dd-85c6-cfb474314f10","block_type":"box","text":"the following:","page_number":28,"box":{"x":68,"y":491,"width":93,"height":11}},{"id":"5350e548-0c23-42b0-8298-42a28685411c","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":511,"width":818,"height":11}},{"id":"0863751b-1670-426b-8fc9-0a9fd7b3eaee","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":28,"box":{"x":102,"y":526,"width":333,"height":10}},{"id":"0600de6e-4506-408f-be79-ba47276cf1db","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":28,"box":{"x":69,"y":546,"width":538,"height":11}},{"id":"befb231a-ddcd-404a-a484-c8955e83852a","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":28,"box":{"x":69,"y":566,"width":330,"height":11}},{"id":"13c3361b-432c-48d3-b3a6-bab02d8958c4","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":586,"width":834,"height":12}},{"id":"fe7db076-53e8-41e8-8e51-a86525654d6a","block_type":"box","text":"of excess collateral, as necessary;","page_number":28,"box":{"x":102,"y":601,"width":246,"height":12}},{"id":"093ddd61-d216-4e94-86b8-fde018ece60b","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":28,"box":{"x":69,"y":622,"width":562,"height":11}},{"id":"eb6612c5-1599-4f6b-b656-ddcb7ff189eb","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":28,"box":{"x":69,"y":642,"width":665,"height":11}},{"id":"6ff1cd7e-c4c1-4b04-bbca-807125373d75","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":662,"width":822,"height":11}},{"id":"a652819d-c126-4608-b241-6ac7a85be8c7","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":677,"width":803,"height":11}},{"id":"543f4554-4456-4d2d-96d2-dfa357c57f6d","block_type":"box","text":"of the loaned securities; and","page_number":28,"box":{"x":102,"y":692,"width":203,"height":11}},{"id":"caf10b7d-2179-4173-a75a-94db23e247a9","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":712,"width":808,"height":12}},{"id":"95996713-c4c3-4d8a-ac20-f052f341857d","block_type":"box","text":"I-26","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"16962db5-3497-4ea6-bc8a-2cdc0a5ddaa6","block_type":"box","text":"NM1026U-5985614-28/232","page_number":28,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e2899120-032f-45db-bcf0-a12aeaa5f773","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":29,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"0b1360a3-ed9a-42e4-a082-a8480d0bd204","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":29,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"51acce15-fca3-46f0-9fc1-b8d4f8c19b3b","block_type":"box","text":"Gross income from securities lending activities","page_number":29,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"27353e45-eee3-4105-958f-7cbb9da4c60b","block_type":"box","text":"..................................................","page_number":29,"box":{"x":414,"y":95,"width":401,"height":1}},{"id":"079a8132-4efb-46c1-88fb-9c7df7e2627f","block_type":"box","text":"$243,235","page_number":29,"box":{"x":837,"y":87,"width":72,"height":11}},{"id":"0eebba27-9046-49ba-a994-6f19ff4739a3","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":29,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"2fd7fcb4-db4f-431d-8beb-73e5dd7186b4","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent .","page_number":29,"box":{"x":79,"y":122,"width":565,"height":11}},{"id":"b7bc5fe7-42c7-4881-aa7b-a85f335c0575","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 2,763","page_number":29,"box":{"x":650,"y":121,"width":259,"height":12}},{"id":"a8388efe-714d-4ccf-bd75-d9cb010dd9cb","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":29,"box":{"x":79,"y":137,"width":679,"height":12}},{"id":"8fd5c837-cd3b-437c-a086-4cfee499c011","block_type":"box","text":". . . . . . . $ 2,324","page_number":29,"box":{"x":765,"y":137,"width":144,"height":11}},{"id":"5073dda4-f56a-4745-8370-55599f5ca9bd","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":29,"box":{"x":78,"y":152,"width":519,"height":12}},{"id":"72a452e3-1fe8-4328-aefe-963dc0bfd9ac","block_type":"box","text":"........................... $ 0","page_number":29,"box":{"x":602,"y":152,"width":307,"height":10}},{"id":"3a7ca8a9-d44d-41ae-8e56-590c446033cb","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":29,"box":{"x":79,"y":167,"width":526,"height":12}},{"id":"01571594-fad3-4f6d-a95d-415b1ab9c021","block_type":"box","text":".......................... $ 0","page_number":29,"box":{"x":610,"y":167,"width":299,"height":10}},{"id":"887f6bb4-22e8-4b61-bc09-d01ceeab90fe","block_type":"box","text":"Rebates (paid to borrowers)","page_number":29,"box":{"x":79,"y":183,"width":197,"height":11}},{"id":"7fab3a45-df94-457b-a9f9-41b226f12df1","block_type":"box","text":"..................................................................","page_number":29,"box":{"x":284,"y":190,"width":531,"height":1}},{"id":"19bd8b98-7eeb-4cf3-a29d-b2a5c7a5e21f","block_type":"box","text":"$225,760","page_number":29,"box":{"x":837,"y":182,"width":72,"height":11}},{"id":"fdc2422a-02be-4d6f-816f-2801f13b1c2f","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . . .","page_number":29,"box":{"x":79,"y":198,"width":532,"height":11}},{"id":"8f87d7f7-c395-4613-81f6-0cd165010454","block_type":"box","text":"......................... $ 0","page_number":29,"box":{"x":618,"y":197,"width":291,"height":11}},{"id":"f2e34634-69ef-4b62-b0af-fdb144fa2c1a","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":29,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"87079e7b-4c21-4e12-866a-78e491557109","block_type":"box","text":"....................................","page_number":29,"box":{"x":528,"y":220,"width":287,"height":2}},{"id":"14f8fb4f-d86c-4b51-a164-c26b089209d4","block_type":"box","text":"$230,847","page_number":29,"box":{"x":837,"y":212,"width":72,"height":12}},{"id":"d5630888-7c66-4276-8e12-ec6476675d6e","block_type":"box","text":"Net income from securities lending activities","page_number":29,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"a7f8158f-6292-493a-a956-388f5aad4c95","block_type":"box","text":"...................................................","page_number":29,"box":{"x":406,"y":240,"width":409,"height":1}},{"id":"699ec85a-1a35-46ba-b14b-c4cb83e9300a","block_type":"box","text":"$ 12,388","page_number":29,"box":{"x":837,"y":232,"width":72,"height":11}},{"id":"fdf89757-ff6e-40b8-844a-4f26b4f04260","block_type":"box","text":"VIII. Additional Information","page_number":29,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"6c02b7a1-fae4-4bd9-a310-6f6fd78b7168","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":29,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"f1d3da6c-ae60-4252-b4d8-b08118a74879","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":29,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"74f07564-c507-422a-8857-fba9d1604387","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":29,"box":{"x":69,"y":306,"width":772,"height":11}},{"id":"b6a83fbf-93de-4361-b98c-4addf047c5ea","block_type":"box","text":"Counsel.","page_number":29,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"c938d9f1-ac2c-4020-8d21-cf265eeba036","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":29,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"80209ae1-f5b4-4b03-b940-f79453074f59","block_type":"box","text":"the Fund’s counsel.","page_number":29,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"2b6c9339-df78-4985-ac93-8dc3af7acf1b","block_type":"box","text":"The Trust","page_number":29,"box":{"x":68,"y":374,"width":69,"height":9}},{"id":"eb75e9cc-4497-4b6b-93f1-65e0bdf56506","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":29,"box":{"x":101,"y":397,"width":807,"height":11}},{"id":"3ca6644e-8393-42ee-9fa1-d169d403db5a","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Fund is diversified. The Trust is","page_number":29,"box":{"x":70,"y":412,"width":800,"height":11}},{"id":"03e0610d-8c9c-4c5b-add7-c798199a9207","block_type":"box","text":"authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share, which","page_number":29,"box":{"x":69,"y":426,"width":827,"height":12}},{"id":"2e4a8771-4fb9-4aa9-9156-7fb0ed728225","block_type":"box","text":"may be divided into different series and classes. Effective on December 27, 2017, all of the issued and outstanding","page_number":29,"box":{"x":69,"y":442,"width":832,"height":11}},{"id":"9c42aa19-e9cc-4c3e-ac9b-41a94a4b5c88","block_type":"box","text":"Investor B Shares of the Fund were conver ted into Investor A Shares of the Fund.","page_number":29,"box":{"x":70,"y":457,"width":577,"height":9}},{"id":"f6f1174c-9799-48b4-90ce-4c135b788e8d","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":29,"box":{"x":102,"y":480,"width":734,"height":11}},{"id":"a40bdb79-10c8-4aaf-8383-678fb8dbff19","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":29,"box":{"x":70,"y":495,"width":822,"height":11}},{"id":"f236fa77-6a02-486f-bbd4-2b53e8ab4bcf","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":29,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"7aff740d-88a1-4d46-a6eb-fb187af17199","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":29,"box":{"x":69,"y":525,"width":794,"height":12}},{"id":"4a4c4c7b-716a-434b-a317-301be16e44da","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":29,"box":{"x":69,"y":540,"width":824,"height":12}},{"id":"e46be4f9-40d4-4052-9353-675b30139b67","block_type":"box","text":"provides for indemnification out of Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":29,"box":{"x":70,"y":555,"width":804,"height":12}},{"id":"831b3c2d-a020-4461-b6de-c60673001092","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":29,"box":{"x":69,"y":571,"width":830,"height":11}},{"id":"2aa4ea3e-65c0-4bc8-8393-61d2c251a6d9","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":29,"box":{"x":68,"y":586,"width":807,"height":11}},{"id":"7b72b81d-3fe4-4f83-8abb-80ac197d67b1","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":29,"box":{"x":69,"y":601,"width":719,"height":11}},{"id":"b28f626d-33ce-46af-b616-c7fa6d211c07","block_type":"box","text":"The Declaration of Trust fur ther provides that all persons having any claim against the Trustees or Trust shall","page_number":29,"box":{"x":101,"y":623,"width":777,"height":12}},{"id":"f18dd0a5-456a-4c7d-bb2a-dfc7901f8a10","block_type":"box","text":"look solely to the Trust proper ty for payment; that no Trustee of the Trust shall be personally liable for or on account","page_number":29,"box":{"x":70,"y":639,"width":828,"height":11}},{"id":"abf88f65-adf6-4be1-bc41-46ce5f8d08ca","block_type":"box","text":"of any contract, debt, tor t, claim, damage, judgment or decree arising out of or connected with the administration or","page_number":29,"box":{"x":69,"y":654,"width":827,"height":11}},{"id":"68b5a196-d680-4d27-b5c7-d683c8b0c05d","block_type":"box","text":"preservation of the Trust proper ty or the conduct of any business of the Trust; and that no Trustee shall be","page_number":29,"box":{"x":70,"y":669,"width":762,"height":11}},{"id":"970b755b-2dc5-46df-bebf-9cc8c9c9ff69","block_type":"box","text":"personally liable to any person for any action or failure to act except by reason of such Trustee’s own bad faith, willful","page_number":29,"box":{"x":70,"y":684,"width":836,"height":11}},{"id":"4bc3bc79-3b32-4875-b417-0271ecc6f7c1","block_type":"box","text":"misfeasance, gross negligence or reckless disregard of his duties as a Trustee.","page_number":29,"box":{"x":69,"y":699,"width":567,"height":11}},{"id":"d2900e4b-a3b6-427b-8d95-38c0c8b08496","block_type":"box","text":"With the exception stated, the Declaration of Trust provides that a Trustee is entitled to be indemnified against","page_number":29,"box":{"x":101,"y":722,"width":792,"height":11}},{"id":"09f988ce-b1c8-4009-adfb-53b6b807d144","block_type":"box","text":"all liabilities and expenses reasonably incurred by such Trustee in connection with the defense or disposition of any","page_number":29,"box":{"x":69,"y":737,"width":825,"height":11}},{"id":"4753fd44-2088-4a66-a6de-cfb6602c6fcd","block_type":"box","text":"proceeding in which he may be involved or with which he may be threatened by reason of his being or having been a","page_number":29,"box":{"x":70,"y":752,"width":824,"height":11}},{"id":"c08820f3-6e8f-4afa-8a0d-f75fe7830f16","block_type":"box","text":"Trustee, and that the Trust will indemnify officers, representatives and employees of the Trust to the same extent","page_number":29,"box":{"x":68,"y":767,"width":811,"height":11}},{"id":"63af1316-c0f3-4fc8-b607-fb5402726de1","block_type":"box","text":"that trustees are entitled to 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Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":31,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"c252cd16-99c0-42f5-86aa-608b5fd83fc8","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":31,"box":{"x":69,"y":559,"width":785,"height":11}},{"id":"1b9f3a07-4777-4d41-b06c-c2b7cf2ebeca","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":31,"box":{"x":69,"y":574,"width":836,"height":12}},{"id":"fc4c088b-7061-4e8d-8ffd-dfc5351d3f15","block_type":"box","text":"I-29","page_number":31,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"e9619d61-b0fd-4b80-bfee-0de23a7fe9d8","block_type":"box","text":"NM1026U-5985614-31/232","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b7b54ece-7df0-4b6b-9e6b-e12efabc4a0e","block_type":"box","text":"PART II","page_number":32,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"b53e82c0-268f-4bd0-bc24-e93b5de46f8b","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":32,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"c4068cde-5de2-47fb-9e21-45f932f2ba56","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":32,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"f439d7a2-9318-4649-9a10-341811ae4cfb","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":32,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"27e2e33f-0035-47a6-9f2a-bfd8dd681c7a","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":32,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"ec051321-b411-49f8-a2d4-7bae4882d82a","block_type":"box","text":"statutory trust. 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":"f8fa94eb-e3c4-4daf-a748-804939230d2d","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":"68e5a73f-f303-4579-a452-efb6d8dc9ab2","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":"1a39ba40-82d8-4043-9917-e14f1df5f872","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":"9f43fa6a-4683-4a87-aba7-a07d9604ae1a","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":"71d41272-3394-4530-aa31-b09dd0833084","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":"cae78b83-c980-479e-b8a2-4d7d0f70f65e","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":"4f72ee48-b0b7-4e93-81b4-2d91185579c4","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":32,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"f801ccc0-e888-4593-874c-2420bb6d6647","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":"050c2d38-5e4e-42f1-8905-02bf29946ab3","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":"4b468ac2-660b-46b7-9a76-544e99a18d93","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":"ac632bbf-ecc5-4ded-b1da-aa1c9d803dd6","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":32,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"74e5092a-9ece-49c6-8f0f-37ae4bd47d54","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":32,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"0db2708d-9a3f-4d9b-a32e-25e26d628561","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":32,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"28c10b3c-756a-47a1-ba13-ae3447ca57ad","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":32,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"b20e8c81-d860-4866-a88a-ce49f48ecc81","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":32,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"21014fd6-a99c-4b33-9d3e-a415dda4ae71","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":32,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"b1f1cc46-ceb8-4c63-a5bd-f54db26bef96","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":32,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"5688046b-8456-4e09-b0ec-6994f73ee725","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":32,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"408e8fd6-c57a-475b-ae7a-2406e2e5214b","block_type":"box","text":"par ticular Fund.","page_number":32,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"91abcede-4bd8-4577-8e4f-334be0736a62","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":32,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"232123ac-8846-4aa2-86c3-255406e12cca","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":32,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"e883ca57-d9be-4c90-8d3d-1155fcffb971","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":32,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"325032f0-6b34-4a0e-85de-2f500ec815bb","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":32,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"5e9af223-37c6-4a6f-ae2b-45d786a04357","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":32,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"60e47f46-b459-413c-916d-f6906a8407fc","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":32,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"5c481a10-d5b9-4dfb-92c1-66e8ebebbb0d","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":32,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"4823821e-5182-49e6-8b51-6f2e44fc5c81","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":32,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"56d54e2d-e940-49dd-b89e-0bd5b0f62c78","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":32,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"62c42151-6b71-404a-9588-334c45762edd","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":32,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"4ebbd40d-c021-4215-bbd4-c90519db0e5f","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":32,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"415689f8-daa8-4b96-8649-0eca69fd7f6e","block_type":"box","text":"Asset-Backed Securities.","page_number":32,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"aa93de7c-2ddf-4e76-9279-5ba414371e60","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":"b40ae81b-66cd-4eb2-b1a4-aec2979cb80d","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":"317b38eb-7f3e-4452-9b05-7c0ddd41bdea","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":"9da1bd9f-c9fe-481f-bf57-dd4d61c3be9b","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":"dd2a0b86-7ba8-4fb5-bed3-68ee8cee6abb","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":"0b009457-382e-4a44-a723-7954de54d8a8","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":"295af4c4-a41d-4f5c-ae5c-046911aa54c7","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":"92311c6d-1089-41db-b51b-1ea999002bcf","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":"50fcbb60-9e30-49e4-8161-c62795959cb9","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":"62b8fe8e-9668-4cc7-8bcc-8ca807a0a2ff","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":"a230b845-865b-4940-a167-3ebb3109cca7","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":"6d2eadbb-6f55-4290-81b2-59fc5365f521","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":"48a2e305-8e98-47fe-8866-bc23dda497af","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":"f6ee474a-90d9-48d3-9e14-4ddf7550f13a","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":"d2490988-7faf-401f-b7ea-52a23e050cfb","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":"fd376b08-5e94-4b47-91fc-c7d9a7c58b3e","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":"8702c6f2-66f8-4cf3-aa0f-3cb831afef16","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":32,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"09580ed7-5015-415c-83ef-edb769dc5ce4","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":32,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"07bc5007-2ba9-48f9-a7f9-b13d0438f028","block_type":"box","text":"II-1","page_number":32,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"0d30d484-5c6c-4fcd-b928-755b7101061c","block_type":"box","text":"NM1026U-5985614-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0ca485a4-dcc3-447e-a2bc-6494c498d7f7","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":"19b01100-0719-495d-9d82-93d142a82b53","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":33,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"05ca4e91-dee2-48de-b8cf-4a1963b09a28","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":"cc5f7e7d-2310-4316-a999-184350fa6fb8","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":"e5bcdce6-f609-4365-84c5-0eb289b8f386","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":33,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"7931c9db-4fc4-4bc5-9c39-ff7f3c7eca87","block_type":"box","text":"Asset-Based Securities.","page_number":33,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"5fbbfee5-0391-4b78-873b-14106e922258","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":33,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"3f802783-3688-417e-b0c0-e2a5475c2cc0","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":"e1f84376-9327-47de-8cf7-d80c42a17d8f","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":"2458953e-6e1e-4ac6-a60b-11b45975c34d","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":"c274e241-bd7c-4b2b-93a5-50b5138c8951","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":"f0b9c641-bcc8-4166-af88-5fb9ca7dc373","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":"5dc2f9ce-2446-450e-8932-b19ed9ddf94c","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":33,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"06ff4ffc-135c-48c4-a706-4bfc14e3347a","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":33,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"0e48c342-75f9-49b5-85b4-582c4dd1260e","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":"38eb4a9c-7954-4af7-b713-ef73923009ec","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":"ac2ab2e8-42b6-449b-af85-48623a3ff200","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":33,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"e0a9a34d-a217-4a42-9294-1963c1e25bbb","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":33,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"3d2841e8-c555-4b2e-bbc8-7008bdc4a7bc","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":"f4d149a8-3b2d-4513-a0fa-1e49c800da09","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":"29c21431-d4d7-444a-9008-91ecb7847191","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":33,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"38128f5a-ad7d-4d0e-9246-da71c74fa7ff","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":"2c38ade1-ed48-48cb-8e28-103d9d01d7ca","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":"578e1044-b1dc-4eb8-8528-cded3400d660","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":"26ac2e6b-867a-4591-8b5d-b6563f575646","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":"1aedb102-1d91-4d20-acda-010c12eb3cac","block_type":"box","text":"appreciation in the underlying asset.","page_number":33,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"763a475c-ff25-4334-b901-6c4027801999","block_type":"box","text":"Precious Metal-Related Securities.","page_number":33,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"ad8cbe6c-dcc9-48e9-80f5-5b759baca149","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":"e542da1d-af2b-4ba9-9963-a5219b45fb6a","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":"5f5e522f-0856-4561-875f-8aaaaea4f502","block_type":"box","text":"e.g.","page_number":33,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"3b250d99-11ed-4709-9bb3-3ea1846cb935","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":"58cbd1bc-246f-4aa6-8c5b-840ed84d1860","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":"03386742-cc07-4413-89a7-16f4086595b7","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":"b85ef5ae-8066-49ec-848b-3ca38758d3ff","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":33,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"c7cdc709-b466-461d-b17c-06b792c0fa11","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":"3570b2d0-ece1-4efd-abf2-f6ceb738d3de","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":"2ea9ca0b-9a97-46cf-8b41-f8949001b8f9","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":"ed2a1732-779e-4422-90de-7e4a24df9195","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":"09095bf4-49e2-4773-813a-8a294b99fabe","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":"2db1da95-abee-44bd-b998-32d05091ee89","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":"0ba17ce0-fd07-47f8-8ecd-833d26e687da","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":"afb2e422-1c7c-403d-9939-99d56b740b7b","block_type":"box","text":"South African gold production.","page_number":33,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"02460d36-eb39-4f04-8d68-8520477eb6c1","block_type":"box","text":"Borrowing and Leverage.","page_number":33,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"5c5812bb-cd6a-4bd3-8f06-c59f86d37206","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":"7680f0f9-c4aa-47ec-86e7-2b48c802fe38","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":33,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"14bcf162-5e37-48af-ace5-eaa46e3da4b2","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":"02a9a95e-c443-41f5-a3b6-16c78ad21775","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":"19d6d01f-e5f7-4d4b-8a58-3ae068463cb7","block_type":"box","text":"other securities transactions.","page_number":33,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"494de772-5324-43cf-98e6-442e93be3d3f","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":33,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"8c4549c1-d597-4443-9d74-cddf4fcc1e5d","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":"75df3221-e8f4-40e5-81f8-7d380319af6e","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":"af9eaee6-f59a-4736-8221-b0011e91708c","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":33,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"574aa1a2-2012-4863-a51a-58a820a4db9b","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":"06e5fd5d-9373-422b-b5e6-03d7b63e78ff","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":33,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"41cc96e2-8a0b-4712-be0f-adffb349a668","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":"9ace4cab-d631-42ee-91bd-06882062f04f","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":"b2c402c8-d23a-47cc-8ab8-6d154e4c3af1","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":"c88d34a3-c1f1-404f-b9b7-807495e5c2b6","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":"218462e1-6217-475c-827e-52d13982c295","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":"5da260a2-6f74-457e-b639-29b7c95c3197","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":"2cdfd825-6d06-4c32-b24c-337030923170","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":"e2f0cb80-756e-4891-808d-588a6b13acf2","block_type":"box","text":"II-2","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4830614b-27c2-44da-8e09-f70a2fbe1a00","block_type":"box","text":"NM1026U-5985614-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f3f7b7ba-4d34-4ba8-ac23-759ebcb81758","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":34,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"58f0b859-0cec-4500-b305-2d5168c1ca1f","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":"2e38a42f-b7b9-408c-ba65-76e4931aa475","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":34,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"4178b8ea-5013-412e-ba5e-80610ec2b18c","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":34,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"6f6db2f7-551f-447e-8022-31cea1507db5","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":34,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"31c34d72-c849-4b27-b568-455a0c45959c","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":"7c4cbbff-d4f5-49e6-833b-e7ca9065be4d","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":34,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"3975169d-387d-48c7-9d9f-d08c5b34bcf1","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":"767242ee-d7f2-471c-ab5f-428b612484af","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":"4bca8bc6-b270-4b6b-9a7b-4d64da0f0e9c","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":"f1042db6-7eb9-409f-b5f4-2708a3713ce3","block_type":"box","text":"Cash Management.","page_number":34,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"b11b4a35-a97e-47c5-b4b7-d71fa73cb1b6","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":"13b02c11-2f4c-41d4-99c5-b91bb581efe3","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":"81d60ec5-2115-4c8f-8e7b-bedbc4ec5cf3","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":34,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"353306f9-a0b1-42c1-b5b4-623d6c2a42af","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":"d2714a29-3940-47a6-9671-32e28639c3c7","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":"0fb29e98-da2a-4d26-9aa5-12a037ea94e9","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":"7fa79a47-afca-436e-8057-f8508cd15f4b","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":"da8b4c4d-786b-426e-979b-6b12a9db64ef","block_type":"box","text":"cer tificates 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":"a8438c02-1e5c-4944-b02d-be546eb0b4dd","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":"3758c3c1-edd9-44dc-a29f-e8b39c286e6e","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":"326dbcef-1dee-4f31-ba28-effa6e7ebef3","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":34,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"8a77cc54-d8a7-4ab8-b727-b1082021006f","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":"addda3f3-814a-45b0-a9b5-c8f0053d33ea","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":"63ac412b-7f3e-43f8-bd26-fbf67ade34e7","block_type":"box","text":"Collateralized Debt Obligations.","page_number":34,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"520b45a8-5ce0-4f39-853e-281c99cb4aa4","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":34,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"ea61ba51-2f7f-4e32-9273-aa5e6848b15f","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":"4d7a6063-a7db-42a5-bc97-05594e799cd1","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":"e438b7bc-3bf6-4b24-862e-78d307041639","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":"205a2138-8e38-4918-b7e9-0b54cc3b3cfc","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":"b8c4349c-145f-44b7-b406-14e8149dd969","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":"8c2c471e-5850-41de-b868-6afba7350392","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":"975358a1-60c8-4ac8-8ae2-98b1c5e2e595","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":"1a7d6d12-16b8-4519-a374-2d43d6e820a3","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":"a27cdf68-174f-42da-a904-0e65eec4ffa0","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":34,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"e7299547-9b05-4f08-a94d-94dd07b2ce48","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":"098f0ae5-5677-4606-abf1-80875f0bd3fb","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":34,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"8a5a8b31-436f-469d-80e6-981b622d3290","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":"d8cb60c1-664c-4202-a520-7b29a1bccf63","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":"2d0b5fb5-3317-47aa-a223-d803df82a7fe","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":"13aefa18-0b0c-4add-a35e-141f8c779388","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":34,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"f5523717-622a-4d64-b1fa-b92abb4bf235","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":34,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"3cd59227-ef8f-4b78-80c0-0ce64369557c","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":"8754bd2f-c6f1-4a79-b46d-75731ce17dc1","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":34,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"71104d2f-5312-4b8f-9b89-a1288bff7f8d","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":"920dce69-b67a-4465-bf57-49bb966f956b","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":"9f1a6723-2f4a-4923-b9e7-136059bf9bce","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":"74f969f5-671d-49ff-801f-21d0d2b9c905","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":"59758b7d-14f3-4bfd-b132-dcb96855d169","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":34,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"e28870b0-e9d1-41df-9895-5bd9c5fb819f","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":"a3511e6f-0969-4061-9c0c-40aa3f328de0","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":"b851ea08-00af-4a26-a17e-a4385b206bd2","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":"3c6eda70-f143-41f0-95bb-cadc56041f8c","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":"94c608e0-2a44-4146-b28d-3b548cd8ae5f","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":"c7c0373e-85eb-4975-abf8-46c8ba454be9","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":"044e9b68-4169-4bcf-a2e8-fa93d3567275","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":"fe7d4e0e-9da9-44f2-b8aa-9dec8907172e","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":"7aaa6be3-fd6f-44bd-b374-129ec7b86926","block_type":"box","text":"II-3","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6c91d861-d40b-4ea2-a960-290a680efda9","block_type":"box","text":"NM1026U-5985614-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5b8c24b4-8160-4482-9688-40ebd9cf8222","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":"dcdb2eed-ed24-46ca-a9a9-8913bd3e2d87","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":"386f3b24-dc85-4210-8b37-8df8a949dd03","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":"144103aa-6722-46ce-84ed-99af92e44de8","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":"b351e80a-b427-484e-8729-6cb8bbd2a7df","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":"fa865d63-d0a5-4307-a8a2-4092f363d4ad","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":"b07a399b-571c-45f6-8345-41e9d7eb0394","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":35,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"4026d64a-03ac-4288-aea8-f4e75c6049c3","block_type":"box","text":"Commercial Paper.","page_number":35,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"54301b36-30e8-4fe5-813d-86422ecd908f","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":35,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"339970d0-a01b-4c14-bd20-6d2026e39782","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":"563d3d57-345a-4826-9cc6-d1a3bac1e3b2","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":"3c2466be-7cbb-4488-87e2-b910fe358fe4","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":"3cd32d02-4a2c-4be9-9921-9880010dcaaf","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":"4adc8fba-a87c-4771-bdde-62c34352cf9e","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":35,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"150b53a9-22a3-4b99-a546-f095caf74601","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":"186884a1-8b41-4552-aec6-6089e6fc24eb","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":"983ee671-b711-4ccf-ac32-45337604890e","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":"608a2ed5-461b-4104-92ca-3f3706d89679","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":35,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"d6339741-94db-466c-85c9-29a93264ca3a","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":"327d946e-70f3-4aed-8aab-18562b1f2f02","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":35,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"c02d688b-a3c9-4862-8c4a-513fae2213e2","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":"1f8bcbd7-d360-4e94-9c8d-4dde29b7cfd1","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":"e1d933e4-a6f8-47cf-804b-eb57627f4e40","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":35,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"186a49a3-4b6e-477f-a627-83ebe8f4c52c","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":35,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"37371ac8-c7d8-4053-8961-95e1a707e368","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":35,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"97c67973-4fd6-415d-9186-8b132e4297fb","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":"f4123a3c-06d2-4cac-ba57-b5b6a20dcba6","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":"2de15f28-8dab-4708-b0b0-95c73f186951","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":"eb2a8006-1198-4b4c-8863-ebc2ac0c4478","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":"e64115ea-a9d8-4eb5-8034-f949c197cdea","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":35,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"81fc2210-354e-429b-b644-5169cdd3d422","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":"835e56c4-2ebd-449a-b75d-38c9cec06704","block_type":"box","text":"variable.","page_number":35,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"bcf04190-8838-4f8f-b185-c43e98390586","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":"773b7e9c-ee53-4996-bda3-2fc535d444d5","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":"79b1e454-2aef-4dd2-8ce9-41311440ee1a","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":"d4d8bad4-443f-4735-9442-82bb53df7c25","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":"3754eb51-06a9-46a3-a509-733a9a355653","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":35,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"0cb3dd9f-63d1-4b2f-935f-0234ebe9294a","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":35,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"cba64231-4f6e-4396-8b03-874fa541bfd2","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":35,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"a8743751-0530-4453-b1af-1c34f1882167","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":35,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"d40f2e57-b371-455b-8019-9bfc3585871a","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":35,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"5bb184fe-c606-40e9-b98b-6534ab08fc08","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":35,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"50a58467-7949-4251-bd76-b6e4a3a76300","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":35,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"08299fa5-a7b8-4fd4-8e1f-b892b01810bf","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":"96b68e8a-74f3-4d2b-a06f-2b3384a73921","block_type":"box","text":"correlation with stocks and bonds.","page_number":35,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"397a6729-98de-45bf-bf1b-d7bd6a8cd6a3","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":35,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"ce5e565e-8aa8-4f9a-9929-936f63680afd","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":35,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"77bb0493-fd0a-4eba-9272-462295bdd49d","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":"3e058062-5629-4acb-9e3f-58559d650796","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":"06eab9ce-59e6-4bb4-8c1a-0be9a05a5690","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":"ed7f23df-43c5-4ca5-b17f-dc6468e9a405","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":"15764b22-2f0e-4796-b160-dac5c3f2062c","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":"8dc400e2-5ac8-4f37-897f-139daccc14c0","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":"5a1cd707-0261-4e18-8ca5-c3e65f62026a","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":"61e98ac9-9208-451b-a614-8297eb7b0153","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":"5ce54cd1-1199-4091-a78f-12201d89f11e","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":"ce2e5fb0-2e2c-477f-8157-8c3a838351d3","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":35,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"407caa38-7c82-4f1a-83e3-6220eef1cb9a","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":"c102a9d5-1133-4f1e-b875-7ad37fb7c739","block_type":"box","text":"II-4","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b4be9e48-072c-42de-8d0d-24e9c7151c77","block_type":"box","text":"NM1026U-5985614-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3c6cf285-d18c-4d17-bc14-f415101aabb4","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":"586c7a79-3736-4ddd-9a4b-569532d650e6","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":"3ee58306-7965-4cd1-8844-1fdccd2a3140","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":"1b6b675e-0a47-4d3f-80c4-43cece3ec103","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":"48e4a960-b408-4a72-b323-82c84c068342","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":36,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"bf2936c8-ee13-4b25-8de8-44a35ff656d0","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":"4810e092-19ba-41bb-87ad-56c549eb2323","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":36,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"f6ce4734-d5cb-4d2e-95c7-257b193d2da6","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":"f039663b-4030-446d-a41d-28e2fc60efcb","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":"a0f4fa27-cf0a-41f8-adc5-412db926203c","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":36,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"44e48d9f-cbc0-4726-a73b-8610c780c0b6","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":"7e88d9ac-66de-412f-947e-01ba1bb70d35","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":"709d5152-9de3-4890-a67d-96d085a209f0","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":36,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"df2fe088-e195-4d51-a6e3-370bd8f44dad","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":36,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"881e792f-ee7d-4b5a-a20b-9453ad9e3e6f","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":36,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"11def4a9-5625-4f13-a9a2-2660c813e1ae","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":"9a771ab3-04e9-4929-990f-e4104d72ad2f","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":"d32a67f7-046d-45a9-b66d-0a9fe296eec5","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":36,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"a4f867db-4142-4c1a-a77e-9ef7ea80c2f9","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":"b6171d96-c348-4d53-bcb0-b43a11a5700d","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":36,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"3fe22135-98ba-44cc-b6c6-89d313124c7c","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":"63cee455-1fe5-464a-9f7b-f4125c483efc","block_type":"box","text":"the Manager believes are relevant.","page_number":36,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"27fa7043-97d7-40c8-8ffc-8c8731b5443a","block_type":"box","text":"Limitations on Leverage.","page_number":36,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"81785782-1f81-4f98-bde4-7e1c3844e1a9","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":"45ac7096-37f0-4737-88a5-46899917d03c","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":"30598ca6-9507-4c23-8682-cdf32d44fd12","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":36,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"704806c4-0cd9-48ac-add1-475fb38c6034","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":"a2c11b5b-0d21-4bd2-8c9e-2c9ae1b19f64","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":36,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"2e9217b7-5acb-4131-9cf1-93e3e9dc8beb","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":"4b543ece-0097-41a3-9dd9-82efbcf47a24","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":"239b6ff0-b426-4b42-b1ed-6c71f8b606f7","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":"ebdd5898-3752-40d7-8bae-37b50b7cf27a","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":"f5b0e4e8-600c-499b-bd98-008c5a7b027e","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":"41ea6c2b-85e8-4665-8467-dd5a83bd1ea6","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":36,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"b9f20a93-2f76-4519-b4ee-fb56f05919fb","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":36,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"36242580-7719-4eb1-b717-8e8ca3e8b03c","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":"859a9a89-2d43-4aae-9981-7a36908d1adc","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":"1f246190-693d-4882-976b-843b2fdb9ef1","block_type":"box","text":"Counterpar ty Risk.","page_number":36,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"7687a3ed-0f20-4702-87e2-8b2f0485372a","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":36,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"3ed0d87a-a3f2-4cbe-9937-e41dfb36472c","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":"017f84f8-a241-41d3-8ab0-996c40aaf798","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":36,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"7983552e-5dcf-4622-852b-62cac016c8ff","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":"accb60d0-66a5-416f-88a9-f4c7d88623e4","block_type":"box","text":"e.g.","page_number":36,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"0c4b1dc4-dd62-4c3f-862a-005c0d6d2479","block_type":"box","text":",","page_number":36,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"a67e7899-c5c5-4682-887d-3a12c8e11d24","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":"e0de48f5-9fb3-42dc-804d-10040128d3aa","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":36,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"c91d2fba-a66a-4e36-94a1-39d39a13a495","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":36,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"95b5cd6c-78ff-42e7-9d14-8f8ac4a26799","block_type":"box","text":"obligations under the structured note.","page_number":36,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"36cc37b4-798a-46fc-ac27-5087349b1435","block_type":"box","text":"Convertible Securities.","page_number":36,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"5c6a037d-ef1c-44e5-ab46-3f46f709e115","block_type":"box","text":"A conver tible 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":"18a8eda1-38f3-4c1b-8fcd-469a1755ae8f","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":36,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"29f187d8-8445-4800-9ba1-0b83448be149","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":36,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"be7e2a9f-8dff-4489-9ba6-fce686ddfaf4","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":36,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"3cbd66bc-38a8-494b-b938-a2d4c784fd60","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":36,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"dca23ddc-55a1-4be0-aeec-8ab040342db8","block_type":"box","text":"characteristics similar to nonconver tible 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":"1a9a0dd0-2d5e-47a6-a767-becb8e9f6d58","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":"27480db5-8583-4368-bbfb-c877346a1c7f","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":36,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"831bf7b3-ca5d-4ad4-89e1-09157565e83e","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":"d38bc519-f444-4e18-a9f7-8aa188bff57e","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":36,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"a612e623-2700-45ad-8148-d30cf8978b62","block_type":"box","text":"Conver tible 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":"5eb551ca-752b-4ff1-8b02-52f9e29db689","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":36,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"61cf404d-7d66-44e8-9686-bf9e410e57d1","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":36,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"3e526f8c-637d-4e04-9215-bdd9e7d8a694","block_type":"box","text":"II-5","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f4b9f0f3-3b6c-49a9-9f59-571f7adb7003","block_type":"box","text":"NM1026U-5985614-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8ed930e3-1715-4a02-9d2b-1d63e0111121","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":37,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"e63b3f5b-d327-47e4-a337-7cf5c48bbee4","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":"7c1dbf7a-4e06-4c2d-a549-4e0748e81ec3","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":"2ab9bb13-cf53-4791-8bfd-57da45e68e0f","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":"8f8da229-2ab7-4f19-a92b-f34d990ce2f5","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":"a59f6e02-46e6-4f91-a102-577a1e5a9e2a","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":37,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"729701ba-d2c5-4f32-a43d-fda25015fe30","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":37,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"691f27ea-63e5-4a8c-834a-baf73526b1f4","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":37,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"70fddc3c-368c-403a-8c37-9b885629182c","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":"45a0a992-c054-4635-87d5-0f89a02b2553","block_type":"box","text":"things.","page_number":37,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"7d3a27ac-f910-463d-a940-08e884236e8c","block_type":"box","text":"Conver tible 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":"56a655d2-ec77-4117-8447-20c1f7cb9cb8","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":37,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"17a3e478-05a7-441d-9d7a-4d5b4658c6a3","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":"85e9eb1e-75f1-4178-9280-ecb6672d66d5","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":"3e19c4a8-09ac-48d9-a8e4-d352d1f483ce","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":37,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"a0b3ecfa-fd7e-4cf9-b9db-109109ecb1bf","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":"e2c2cb09-6361-46d6-a6c9-4b8a5cce4a99","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":"4fe652ff-dc78-4948-9b2b-697055b04bf4","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":"d3e28366-0cdc-43b4-93a9-65b87595a2d5","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":37,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"024dd1d6-b0da-4045-bdeb-6085214ac7cc","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":37,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"ddf12421-6e5a-4caf-945d-6106de4508e2","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":37,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"f378e584-cb60-4cf5-88c8-a7ed6343341b","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":37,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"353b8c86-25fb-43af-af5a-6e8845c4fd70","block_type":"box","text":"i.e.","page_number":37,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"be9d08df-a6e4-43fe-a450-3158509c22b6","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":"b53c3594-7175-4fbf-8473-f2ab871baed9","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":"167dbb7b-47d3-4fd6-89a0-e9f2f3bc6e91","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":37,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"9e5251f1-08a6-454b-a3a1-2362e6e5c1cf","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":"b4dc1f7e-d6e1-4d65-b8b0-3287a605c8c9","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":37,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"1e93c2b6-41b8-4579-96b1-1e54763d483c","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":37,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"53fa6755-7b16-499b-8d68-0c809d8ba2ae","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":37,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"0cfe772a-d6c9-4fbe-96a4-dea91b80bba4","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":37,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"7b712d0d-07d0-4b41-9c17-3d733d573d4b","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":37,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"3f822e94-2792-416a-b086-681107e1d0e2","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":"1c63375d-02f3-4a0b-afa3-23bc2c15737c","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":37,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"10b6d487-3b56-4a68-868b-461c6d878afd","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":"ad9dbf1f-61ff-478d-b9aa-4329300a7915","block_type":"box","text":"than the securities’ investment value.","page_number":37,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"604c97f6-8dc0-47a8-a6f3-9f3794d4fe8d","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":37,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"7107b9a1-b198-43c3-8a21-96683a339ded","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":37,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"a578516d-07d1-48df-93bd-c4849bcc37c8","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":37,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"eed42df2-cb28-49b7-a6e6-3239f46f9aae","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":37,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"eafb0cfa-77f8-4dce-b602-ed76ba9012d7","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":37,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"57ec45e7-4312-44dd-b001-dc720afe1532","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":37,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"a161719c-93b6-458d-9114-71215bf6a0c1","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":"259bcf2f-a0e1-4ced-8035-482260fa32f6","block_type":"box","text":"security under cer tain circumstances.","page_number":37,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"aac11068-e092-4cbd-99a0-1e69f59d31d9","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":37,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"de0325c5-442a-4690-a2a4-542b4524b91a","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":37,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"3fdcac7b-a2a0-488e-bc4b-ef971b7da170","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":37,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"d1cf8b70-407b-4674-abd6-19cfa4b932f0","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":"5333def7-6f87-4c21-8150-372e658d4d02","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":37,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"3b7fda70-224d-4878-acd7-730e5a96afcb","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":"c2634dbe-6264-4482-bd00-e1d38826df9d","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":37,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"e5e21e5d-25eb-48e4-972c-a5129ddbd627","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":37,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"48788f38-09b5-4488-87fb-c82f6008d356","block_type":"box","text":"i.e.","page_number":37,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"c7fdee23-0ead-47be-b2a6-69a5a333b5c9","block_type":"box","text":", fixed-income (“fixed","page_number":37,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"08560558-2927-4d71-ba2e-24e03d8148f7","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":37,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"226df4c7-147c-4850-ae60-3dfd836e3257","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":37,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"a2669704-30aa-43b1-9463-d152520ed88e","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":37,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"68930838-d1f6-4609-9af9-4b3350dbfd7d","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":"dcd179c1-2994-419a-be2f-b8da33a6728c","block_type":"box","text":"II-6","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d6c67300-a195-46c1-a870-8c4c62ab0b71","block_type":"box","text":"NM1026U-5985614-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4bc8e5f6-9608-4246-8036-1dafdf71352d","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":"5520141b-51bf-4569-8b36-abd51e222092","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":"a4f701e5-c427-4f45-9646-f2022027c5ca","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":38,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"46b21f79-ed4b-4679-96e2-54b3d90f679d","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":38,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"801936d7-99fb-4493-9f10-b17889175d66","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":"a1cd9088-dc13-4e5c-aa14-0672e28f08bf","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":38,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"0acc4ae8-0c01-4ce6-ba0b-cbfaf6ad028e","block_type":"box","text":"component.","page_number":38,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"7a9a782f-cd55-44a1-82ff-88525bbbab02","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":38,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"d497bb72-8a91-4246-be74-9dc35efdd1cd","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":38,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"ab4fb934-b9bf-4b35-bb54-2351bb06ac75","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":"5ecf60a8-8e8b-40e6-b02c-810d49b0f1f4","block_type":"box","text":"to create a synthetic conver tible 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":"71cf0867-642f-4643-a59b-f0b88e075cb1","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":"ef12df01-932d-44b7-a23b-de35821c0093","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":38,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"f9ee195b-f167-4cd6-80b4-090f5c6e46dd","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":"b41218d3-f8ea-4fb1-9183-c890f1f1cd6a","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":"e86c1f36-9966-45fa-a9f7-73122525ccf3","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":38,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"9d1a5dc6-102d-48db-af22-311d4affb0c1","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":38,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"678b5921-37c8-47eb-b0ef-93670d8dc2a7","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":"c366bc4e-7c08-4894-8cf1-036915332b21","block_type":"box","text":"Manufactured Conver tible. 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":"8ba54388-9ade-4e04-a630-92f9f9eb724f","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":38,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"a96ce024-8c27-499c-8dfb-4aa8d1c804c7","block_type":"box","text":"favorable market conditions.","page_number":38,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"73c81a08-054c-4b19-a3c2-549207260518","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":38,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"c8ea6bb2-20cf-496c-85d5-abb01b890907","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":38,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"45776054-67a6-41be-b483-423c93be67b2","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":38,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"6b5b1dd0-af52-4b49-8f7c-118efea5b077","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":38,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"1e5d6d84-de15-4f9a-a201-0efc7deac291","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":38,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"446214a0-45f3-4c85-a166-aa729858bffe","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":38,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"bb2b3388-b555-4b73-84f7-dbb6dc16f3a2","block_type":"box","text":"Corporate Loans.","page_number":38,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"3c28b58c-2cb6-4235-928b-37145cd33ea5","block_type":"box","text":"Cer tain 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":"c5e925b9-e636-4a14-bae2-a1d7efb04762","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":38,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"cd51e193-e21f-489b-81a0-64f9f1733dfc","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":"98b1fb08-66c4-46b2-81d1-99fc88d0c7b5","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":"f3b37a0d-67bd-43d1-9fb9-89b344b6f51a","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":38,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"78e1bb73-5997-4c21-a79f-926460e55e1d","block_type":"box","text":"from third par ties (“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":"cbd190f0-f025-419d-8ce6-d741bf622996","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":38,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"85e883fa-3703-4a94-ba1b-2315b2a2a057","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":"1f41f543-ed57-45a4-974b-38b77ae3686c","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":38,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"79346da0-26b4-4a5d-b83d-94682f10eef5","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":38,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"dfe95dc9-0d93-4394-af23-a3d08378d09a","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":"da9471a3-38fe-43c0-86e7-e649480e8503","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":38,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"befe462c-dfd7-47c8-9389-c892156d3513","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":38,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"2cd5358b-ad89-4087-afa1-3772fbdf5257","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":38,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"8aef732e-e59b-429e-84b2-e3dfbc7d5ad9","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":"c2f010a6-9d7b-4e75-a761-0bc8bc73918d","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":38,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"cf5d5b51-a13d-4ed8-bd1e-cb2d4baea4b4","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":38,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"91632a28-4319-4f98-bb74-92394d600ba9","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":38,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"2d388893-6d98-4c7e-9bd4-91f35e18e4a1","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":38,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"54f0cc3a-21a7-4a8e-a66d-2bdaef054912","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":38,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"5d02a47c-009b-4de2-aab1-528b260d0412","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":"efcaeb0e-6d56-479a-84cb-9622d9c21716","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":38,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"0e08b407-1f67-4420-ac93-7eaab314900b","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":38,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"be61c77d-1814-4c31-9ac9-035b7acde958","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":"65e7ed64-309e-4f46-a1b0-854ebba98ca2","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":"1284d689-ac34-4412-9de7-5ec180d3ba3b","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":38,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"a3e9802b-3f7b-43f0-925f-509c952b131f","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":38,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"649071a0-c9e6-4b91-83e3-9dc90cbabc0d","block_type":"box","text":"of the borrower.","page_number":38,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"f9b88dee-f0e1-44d9-8750-d5d2b779e717","block_type":"box","text":"II-7","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d28dbe9e-5c76-4f63-bc3a-8a6f0435115b","block_type":"box","text":"NM1026U-5985614-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"48e88ff9-f204-4318-a7e4-5616faad98a3","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":"18c53f02-b254-4a3e-bd89-573f11b254d0","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":"d6d29a2f-38ab-47d1-bb5d-4c1b08e08da6","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":"cf1a85c8-0f93-4548-a24d-37e1aea51ba5","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":"f252c347-44c8-4799-a914-65424de3ce77","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":"f0ae8f19-21f1-425b-a87a-cd8bd3872a6c","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":"a995c61d-9a29-46e4-9416-35e610ce83eb","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":"5d1aa109-8efe-485c-831a-39bc4236aa97","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":"35d86b84-2bdc-471e-a5b9-a4c9cf13f0b3","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":"18ff8ccc-36fb-423b-b935-8a64705624c4","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":"d267e7e5-bddd-4f21-b5ec-ca546afca5a2","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":"7cf41267-7833-4157-8747-4ad1ba63e016","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":"e7638fbb-a25c-4364-b037-68a8762caf56","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":39,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"9b62ccdc-87e9-43b2-a50f-33189b5e4882","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":"54d93c2d-1c93-4d6f-b8bb-e2950b467906","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":39,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"dba7a060-e71a-4436-8938-3b73049b7950","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":"570089fe-059e-4783-89b5-026344849db3","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":"c9fa05c1-d665-4fd1-8d85-74d9099e8065","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":39,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"e194704e-01f2-4b14-9b8c-ddc4c38f2ec4","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":"b09715bf-dd04-4f44-a224-06e95b594d42","block_type":"box","text":"state law.","page_number":39,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"dc67fde1-ba57-4b47-aaa2-78e69faaa614","block_type":"box","text":"Direct Lending.","page_number":39,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"d646dd46-0088-43fb-adef-496fa61c60cd","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":"c5ed4a63-cbad-41f7-a8e2-f7cbd14b6b8b","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":"a289dd91-cc3b-470e-881b-e02c11369262","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":"b5e48602-2764-43b5-8360-a3c45f033c7d","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":"dc6b0afe-713b-4c95-93f3-37b7507e4415","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":39,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"db56abb6-6766-4b71-9fea-81bf26de2084","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":39,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"14d982e4-edca-4aa4-b863-5649276de347","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":"6681ab08-f99e-4406-a7a3-0b7aa8c41ef2","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":"a51c5774-211f-4b52-8940-2debb8d89476","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":"21eacd03-145d-475a-9966-5423dc5b8cd3","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":39,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"ac8a3daa-e00d-4128-9364-f3be1f8c991c","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":"cd034ebd-8466-4719-8664-ce089c3d8628","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":"d7c4b477-7215-4284-b53b-3927c2fade44","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":"7963b2b6-7038-44d7-8365-6b2b57bad5a0","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":39,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"5218fe0e-961d-4dd9-802c-4c93faf5603c","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":"9f133b8c-8e2f-4cf1-96a6-df223a87ffd6","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":"1aee58ae-7453-4d1c-8777-bc9a3b83e586","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":39,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"16ebe78e-5664-48ed-833b-2051b81a2c5e","block_type":"box","text":"As par t 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":"768b157f-1084-4c0d-aada-28e6b959f194","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":"58c7f3ce-e558-4802-8c94-d2a058c2fc66","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":"0654693a-3a22-4aec-93a6-49bd9be18762","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":"0e1c5ffe-2a09-4021-8d9a-c848652e2706","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":"c031a453-f28b-4da1-b238-2283586f704f","block_type":"box","text":"Credit Linked Securities.","page_number":39,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"a11ffe7d-6d23-4985-9f47-2ad2477226d3","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":"6064fadc-f77f-4f94-a3b3-a89d861414f2","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":"9eb13804-8402-4ec1-818a-4aa6a3c5d2c2","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":"b5caac97-897d-40d1-92bd-25313a231286","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":39,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"8ed26240-5434-4aa3-b956-853ccfadaa72","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":39,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"4257c84f-725b-44bc-b24f-e4657543b1fd","block_type":"box","text":"traditional income producing securities are not available.","page_number":39,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"2b6ccfc1-7ee0-45f4-86c0-07f283f82597","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":"947770fa-51fc-4021-a9ed-794620f01fa5","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":"a457fe8b-d568-4a93-8b2c-24f2dcbb7a05","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":"f681fd15-0b48-4d0d-909d-5b4b8d6e4350","block_type":"box","text":"obligations to, the counterpar ties 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":"82f41378-d342-4c62-af59-fc575d232f4f","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":"75eedec6-fc74-48ff-86f0-7e93926e07fe","block_type":"box","text":"II-8","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"68240d18-5e11-4f4a-bc76-857ed95851e0","block_type":"box","text":"NM1026U-5985614-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9aa9b307-0ea1-4e84-bb6a-dd147f8bfab9","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":"9e789c8d-4cbd-4673-97f8-07e593f21669","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":"bc324736-c7cd-4bea-bbf7-c901a93c90bc","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":40,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"8dcaf469-70de-4bdd-a6f2-e97f6f4e28ba","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":"6ecb20b1-3b7a-45d6-bebd-db01c1c2526b","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":"bac51fea-e669-4e06-8cc7-cfab974409c5","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":40,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"1d458154-0b60-4758-beff-134e557f2c73","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":"283d89f8-be9e-49d9-9b67-8c00b79e6519","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":"b6e57026-8c81-4aa0-943b-6553486edd9c","block_type":"box","text":"investments.","page_number":40,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"4400452c-8632-4bc4-bfd6-febc2debed5d","block_type":"box","text":"Debt Securities.","page_number":40,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"a702ee25-eac0-406f-bb17-c94b533c76b1","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":"4e1604e0-7f3b-4d2c-840c-61ac55b1db1b","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":"44cac426-27cb-4826-8f65-728ac11edbb1","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":"a8a8d1bb-418a-4bbb-ba09-d10febfa0cd8","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"ba76aee7-6516-4ef1-b8da-a1d34d539253","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":"e57822da-dee7-4f07-b425-df89b5e166c0","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":"77842a93-12f1-42ff-8f21-40e92e991814","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":"72b7bee9-3855-4d62-bb7a-a51b4b75e14d","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":"619a0fb6-b081-4732-9871-989061278ddd","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":"e13a989d-5212-4f43-af6d-1bc31557d7ea","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":40,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"4d5c8b36-17d2-411a-b6a7-b58678599d8f","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":40,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"8cd25512-d82b-434f-84e4-2abae5f78dad","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":"f12319e8-d0a6-4516-b292-ae74e43f5d9d","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":40,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"b2a39691-ec8e-4753-9871-9485ee44e653","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":"5dd7b8d6-4847-4e13-85f6-e70bab04ddfa","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":"c24aa8b2-7026-4d74-b7a0-2d7dc2f8e166","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":"a3e409cc-6b6b-4cc1-a03f-b3afac5c1cbe","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":"717f1cb1-df86-4e44-b279-af30e1846613","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":40,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"a30836ec-2519-48dd-8022-f3dc358dd3ec","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":40,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"f37f0121-05ea-4db0-9c8c-ac4376d51f54","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":"21502f00-ecfd-48ec-858a-7e271927d93e","block_type":"box","text":"Floating and Variable Rate Securities","page_number":40,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"38b4c641-b1b1-4433-b7e5-bbb4048a62cf","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":40,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"675f3c96-9bfd-4f49-88bf-40f9dd8f33b4","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":"8652d843-cbc7-4ba6-8241-a3bf32666938","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":"f3337d77-661e-4409-bc1c-32628f2a5a4f","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":"9479022a-17d8-4923-9eb7-f9b65209d21f","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":"f39bd96a-27db-4c12-98a6-1b0e05872117","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":"8d3f3bb0-c85d-4667-8a1b-7c83505bcbef","block_type":"box","text":"market interest rates.","page_number":40,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"f7c372ab-97a8-43dc-8119-18f456147511","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":40,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"a9cb806e-81b9-41fd-acf4-7c1d4e3bb8eb","block_type":"box","text":"Cer tain 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":"6062b4dd-d0e8-4b52-84f5-7900fd739ca4","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":"ee4f1afa-4f3d-4592-b39a-4daf9a63df5b","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":"6204a6a1-c05d-4118-9d20-86112cbdf2e4","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":40,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"aff4269e-2c73-4a94-94e9-323d21ba38f9","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":40,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"7c3c6839-14de-4142-ae19-b46bc9c8bbed","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":"ae11d2ce-2000-4a0c-b376-696dcb8b96ee","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":"4b621aaf-631d-462a-8f57-2fd9824f203b","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":"b5e8714e-4488-4446-b5ed-49ba63c2dcc5","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":"13d8211c-d6e9-42e5-9e4a-e4a199ed9fec","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":"d710d0bc-e365-41c9-b382-2d4dafffc093","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":"5a7f8b8c-4431-4320-87cf-26c435c34b79","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":"2f04752d-d089-45af-810e-cc2567c51ac5","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":"e3e05330-6f74-4e01-b6ce-c93beddf1e93","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":"fc1aeb3c-ccfb-4840-8316-a693a600e889","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":"b2da9a1b-238d-41e2-bd26-a35cc939069e","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":"510a46ee-322b-43b6-9b11-5311a501ba68","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":40,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"f81c5c5a-1817-4cfe-b3fe-b11faef64039","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":"66850974-f9b4-448d-8e3d-0de839d54ecd","block_type":"box","text":"II-9","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"759cdcdf-efe5-4a9b-9c54-b985a38aec4d","block_type":"box","text":"NM1026U-5985614-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a540953b-77f7-4912-9f6b-710736d00d62","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":"7c5b8212-96bd-4c68-9039-87d84ed93bcb","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":"21bd25d4-c36d-41ae-acdf-0ceb2643f74f","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":"97d55c08-f7c1-470d-b6ab-59acb2f26d4c","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":"5b088170-a6d8-445e-b879-732bbc9066b6","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":"fdf35390-711e-4373-b0d7-89e13bb3be94","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":"3f79871d-afc5-4413-ab9e-f9da586fda7d","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":"15b2f1d0-3764-47be-b7e2-fc335bb3dbaa","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":"3ec45cfe-c94b-4ca4-a89d-1a708b37ed67","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":"f3d2b8e6-bfe7-4468-8095-8b365a493412","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":41,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"2759a1e4-e3fa-4c74-befb-177fe58f074a","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":"36b3390b-76bc-48a1-aa29-4e483058ed61","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":"b3c68b56-4ad8-4bf6-916d-a8b4a364c14f","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":"800a7216-6bf0-4c9a-b8f6-72d136859b0c","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":"678f1f6a-db66-4684-be44-3aa5348fac7e","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":"4b313f7e-5080-440e-9201-4a9cc56aeba1","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":"d748902b-62c9-4a65-9329-f055886fd1dc","block_type":"box","text":"food, transpor tation 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":"95aca66c-aafb-4070-a06f-325054300dfb","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":"21a35183-0625-4d0d-87cf-9da6d0903df1","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":"025178f2-6fa3-41c2-bc91-bba88d4a3d6a","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":"da58ed70-df74-4380-a8e6-34bda3c3fe48","block_type":"box","text":"United States.","page_number":41,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"4d659f0f-c9da-4d2b-8f2a-8ed488c948c1","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":"387b61a0-0c71-487e-9f99-fe302e3cab80","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":"a65f22f9-c9a3-4397-971c-0967c5d5f641","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":41,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"29090fa3-b76f-4cb0-b341-2f99fa75dbae","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":41,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"11797f5b-e3f2-420c-98d8-61be22d74c02","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":"5a681755-ec50-44a0-a6d2-d2fc4d6eb32a","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":41,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"e8204a77-5809-404c-ba71-39963e5b6c8d","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":"a0eaed54-26ca-43ff-9584-1e41f09be000","block_type":"box","text":"i.e.","page_number":41,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"d2123da8-15a0-4a06-93af-e95bf5ba4f53","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":"c03665ea-36d1-4186-a16b-d3bc781bda13","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":"9696c332-1dbb-4a34-bf68-3f2955313909","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":"0a08deac-5d97-425b-a0b7-f5d38cf61a37","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":"7f6d3ed6-609f-45dc-abad-90bf8cc4c89b","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":"36111e00-737d-490a-92c9-d8337080cb17","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":"5d75f9b0-dd19-4164-ae2f-7a58ef2be2d0","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":41,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"b758e236-98e2-48ab-88a3-412be235203e","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":41,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"424fb43d-2db6-4977-939f-f2bc7c1fdc8a","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":"e886c184-dd51-48a0-8f8d-7fa3738002e7","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":41,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"a6d7fb2b-99f3-40da-9450-c9292dc8e676","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":"6a6b5764-bd9b-4149-bbc6-2b76dbb6063c","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":"fe4b37ae-8209-41ab-97fd-d2ed609c8738","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":"e56fbb01-874a-4e96-98e2-23e062c40eac","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":"cbfacbb4-d0d2-43ea-9ab1-b6a9a3bc139e","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":"4ec1687b-79fd-4cbc-835f-cc3b04f5f9e4","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":"fd83c7fe-871e-4ba9-b0fe-41f7c066470b","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":"d0edd9b3-5c20-4c37-9859-e371b2ff97a2","block_type":"box","text":"risk than higher rated securities.","page_number":41,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"c7f43bb2-e848-4741-adbb-445d17b840fe","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":"8c2f845b-b3fa-479b-861f-bc1b9ad0b4b1","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"bfe2fa97-c03e-4d18-b314-38b6488e4311","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":41,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"b1b03485-83f0-480c-b086-ac4b2d08724f","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":"478df4ad-3bf4-43f7-a00e-90953b16d78b","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":"22150984-b889-42a3-880f-92e621800e5d","block_type":"box","text":"unavailability of additional financing.","page_number":41,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"ffa6181e-dcd1-488b-b743-6fc79623196e","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"db9ac1f7-00b7-4f4b-936a-fb2580b075be","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":"7713f482-0ea7-42ef-b2b7-758306503c9c","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":"89ddb6e0-5596-4d3b-af5d-6b35817ad93c","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":"6d686153-4d4c-4913-9640-73ff48d9af04","block_type":"box","text":"II-10","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f976d592-0ed1-41a9-bf27-4ee6d7b22247","block_type":"box","text":"NM1026U-5985614-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"82b6bac2-894a-49a8-8030-c39a493b0029","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":"dac5acbe-038e-441c-8983-740a8af7cd37","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":"1a145a07-ee8f-4e37-853e-6b58e773a2ae","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"c6f15eed-a74a-41df-8389-caedf88fb3c9","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":"e2afaebd-7116-41dd-8734-6d42380b34f4","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":"be53e8b8-f367-41e5-bc8f-249650fa47e5","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":"7f90332e-63a4-46a6-8349-50aaed607abf","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":"3871aa0c-16f2-4dc2-91cf-555b37a4b258","block_type":"box","text":"investors in higher rated securities.","page_number":42,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"642fe1ad-a708-4953-ba19-8f90dce8f60d","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"432e3041-ff43-4c46-9cfe-92795adfb563","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":"cfbf8186-459e-4c58-a641-05afacd09313","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":"e8ce0ea5-14a7-45d6-acf7-55d20171fb7c","block_type":"box","text":"lower yields and may lose income.","page_number":42,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"db8703f0-d0dd-4a5e-9577-62f6738e2349","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"075f8626-35d7-4284-84aa-2e41dc93d938","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":"658f4d95-a7a4-425e-ad34-1fcf2b1e979a","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":"65c19626-20a6-4d49-8bde-3e6fe6c15f29","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"75fd0049-62bd-4486-ba6c-383c51d63b3f","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":"c06ad433-a4ab-4fa8-a414-20cc5d1ab5c5","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":42,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"d3e55e80-6400-455c-a33d-7265bfa1847e","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":"19be7165-022d-4f63-833b-c0037a532a04","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":"6bbf2801-8e05-4bb8-b087-9f679d953df1","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":"2df11ba3-4bbb-4637-b38f-c75466325f9e","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":42,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"aec8e56f-40c2-4641-8de2-80fb60eb576d","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":"1937d043-49e1-4117-a383-5bd56c577f0d","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"874c8d92-64c1-4c01-96c3-4c9095b05946","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":"263e8a50-b18f-4a10-9831-03846a212226","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":"a35740a2-82a1-467c-948b-9ce7e201e1a4","block_type":"box","text":"par ticipants 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":"e49ab86d-5443-4184-a8ff-9a852e731b00","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":"63611620-cc68-41bd-8246-65485d6913a9","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":"4a5d4f06-4882-4dd2-912e-fcad3a69e0b0","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":42,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"b63e4e67-20e5-4ff8-9e04-ac157680bcd3","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":42,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"dbc6432c-c912-4045-9c0c-d9981dd1411a","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":"0b31b2fd-a289-4b89-be0e-9e21fffc41c3","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":42,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"30f02999-2003-4b72-bdfa-956ebcbad2cc","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":"96fb60d9-ec72-48f9-96da-65fc208b1dc0","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":"7f2d202e-69c7-4fe3-9259-81840d8dd717","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":"7f836618-6bbd-48a4-9100-c33372fc75b1","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":"c29e2c17-b02d-498e-ae2a-419da12797bf","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":42,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"072d0479-14ea-4f57-8e94-b78bb279641c","block_type":"box","text":"role in determining such valuations.","page_number":42,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"3823e77e-5dab-4602-ac19-f7e23f2907e7","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"7272e44c-3103-4d60-9a36-dc4e5df2e2e6","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":"6155fb7a-6c75-4563-ad16-0953bb9e642f","block_type":"box","text":"a defaulting issuer.","page_number":42,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"d1bfc179-3b29-436a-98b0-2c463a7c4237","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"a15b90f5-4bdd-43f4-929c-c1067504e3c2","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":"4363e4ac-dc30-473d-a139-21525026f45b","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":"9577e68c-5793-44b2-8c31-72b0e92e3be4","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":"34bdd3df-5123-4ef2-9f01-62d30d11fc81","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":"4c4b1ccf-94cc-4ff1-a61f-01410af3005a","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":"a0858c54-3f60-4019-a017-a5ba2f19fefc","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":"9d73b27b-c69f-4a40-beff-c461ee983b00","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":42,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"429514c1-7890-4375-8b84-40fe9d854568","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":"42858dcf-3799-46e3-bf9f-9b9f981be8f7","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"cb7dfe52-4bf5-4b30-a628-f19f83691ed0","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":"4b2d8a00-27d7-42f0-ad22-a95877bf4863","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":"d902fc6a-635d-4af7-a5ed-e7a13c7c17d8","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":"c7fa447f-2e21-47ce-b4df-b3d9fe752926","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":42,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"ba8ece5c-8e49-47f8-bc5e-a3a4433222af","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":42,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"e79e4f57-96e5-4482-997e-a791d44ab4aa","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":"80ac9e39-19f1-4440-9644-301d0f882a63","block_type":"box","text":"higher-rated securities.","page_number":42,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"0e661af7-bcc8-4be5-b8c1-840a49982597","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":"3f3d7b3c-79b0-4d5b-a166-5af91d55900a","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":42,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"414ca9b5-a750-436e-a32a-95dd57b90731","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":"04da34d5-c1b7-4760-880f-e3e57df8cb58","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":"0c7ddaa5-a250-45e1-9b4e-f0a10d570917","block_type":"box","text":"II-11","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8496d1b8-9dca-45e0-9106-c3fe5629a9ab","block_type":"box","text":"NM1026U-5985614-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c339c83b-e39a-43c6-a9f0-ede7d3d21be7","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":43,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"31be5475-33f8-47b6-87af-21fee392713f","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":"d3f63973-dbf0-4b9d-a9d7-74d8e358c03c","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":"ef85c7a7-22b3-418d-8c4f-d448c10a1b8e","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":"80e730f9-9917-4b0f-99fb-5149e7ce018e","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":"3b9b6c5a-7623-454f-9f99-2d8f2b0f82bb","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":"fd885cab-91d9-4c23-ad16-d560293bf25f","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":"62246237-f4e8-475e-b419-589a3f2a92a5","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":"28be715b-1443-4449-b465-c77a1cbc24d5","block_type":"box","text":"Mezzanine Investments.","page_number":43,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"347690f6-319e-436f-bfb5-bfc27a8a6663","block_type":"box","text":"Cer tain 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":"758870f3-d596-485a-9232-d10815ebc212","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":43,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"7eca1f28-b239-4719-b3e8-a435bcbd4053","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":"7c06678a-f733-44f6-8571-e2eae8075d64","block_type":"box","text":"e.g.","page_number":43,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"e461e07d-c295-4d30-9231-5af6238b030f","block_type":"box","text":", with","page_number":43,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"8b59464f-0309-4cf2-8280-8a0a84e9fe91","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":"6468f1d5-7aeb-4553-ac4a-2c67a5f70f8d","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":"ad241725-f007-4d4a-9df0-08706c88fb13","block_type":"box","text":"life is significantly shor ter 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":"5a01a2da-9deb-4c38-92dc-0f5f3b9dc245","block_type":"box","text":"other obligations of the issuer.","page_number":43,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"799562eb-a434-4737-b617-7a69d18aeceb","block_type":"box","text":"Pay-in-kind Bonds.","page_number":43,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"d7a49212-77bf-4140-bf55-342f5868901e","block_type":"box","text":"Cer tain 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":"d9922e64-9f58-408e-a7e2-19e607996cd4","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":"69d36f36-6145-492b-8103-9ff26208e758","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":"c7f1fe2f-64c0-40e8-bc72-483833e3d87a","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":43,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"791a4ba6-74da-4d86-add4-403e6323ee20","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":"65bea799-8bfb-4872-bee6-eb8a00c8f71d","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":"60dc8bd1-4fd1-475e-8176-44a20fb68f16","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":"b0880290-7ebf-43fb-b997-e9e9d59ea381","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":"1518d505-fce2-4afb-ba63-400037f96bea","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":"713f146a-08df-462b-b814-a14f975d156a","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":43,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"210c9816-f30e-44f6-a962-effbbe2c7bbc","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":43,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"b9c61f30-fde5-4895-b384-18b457924c2d","block_type":"box","text":"Supranational Entities.","page_number":43,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"a124a608-1beb-4f68-8e1b-1021025e5b12","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":"2d965e5e-9f26-4109-9065-4e163ad05ac9","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":"1e8f89b0-ad65-40a3-b7cf-c7b8d973fdd6","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":"b26069cf-cb5d-4d79-b50a-916e52a46037","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":"df079adc-abb1-4fb3-bafe-66e6cb1ba296","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":"2cedf19f-50c8-4586-876b-0b6c390e23c2","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":"e7e93b4a-cdb4-4219-a962-a8810ccf77a2","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":"acae2512-917c-419e-aa4d-58f2e2344802","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":"e7c9b740-9c40-4ec0-a94c-05b1bc1a0ea1","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":43,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"2c8fe536-9b96-4e56-8101-b9c73eb8e8f2","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":43,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"a919cb39-b710-4888-ada2-187558b900bf","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":43,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"0cb7e7c5-59a4-4899-ac63-8e0fc5a23123","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":"f4c6d16c-9a7a-4be2-8e47-03c1ceba5aaa","block_type":"box","text":"conver ted. 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":"6dbb3b15-6874-472d-bd46-9059bf44ec39","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":"a40ec0ff-b64c-4486-8432-ec10af105426","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":"2ea448ba-f96f-480b-bef7-4bfb6a849700","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":"689e66c9-8b25-42d3-86a8-63829b5d5427","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":"c1378727-a7e7-44b0-b2d6-76532d9112be","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":"a0903e9b-db69-4d2a-989f-0fc5ed7d828a","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":"6a548790-1dbc-44c1-b449-8281c3533bc1","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":"60d8cc14-97ed-4c09-b0af-5c2473f8a05d","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":43,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"b34cf209-6add-42f2-83f7-7f1354b7c2aa","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":"dcb67162-dca4-4908-b7db-517434cb9724","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":"8eb1d208-24a9-4af4-b8fe-7bb844d79bc4","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":"6303ce0f-b2f7-4e97-a2c6-38f9f5d4da79","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":"7c3177b7-d3e1-4ee0-b42a-e2e22f7d7a2b","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":"1baaeb2e-3bc3-4682-b47c-225365ff2951","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":"34ddb5b1-7b08-4ecf-b6e7-bda81bebacd4","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":"8fbf9f5a-a1b0-480a-9b10-aaa7b268d9e0","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":43,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"1422f27c-6eff-4aaf-8b9f-00efdf492dd4","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":43,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"5ac4821c-c9f4-472f-9bf8-b0ecc08d56f8","block_type":"box","text":"II-12","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2de9ed2a-2e26-4e5c-bd48-249321cc1cf9","block_type":"box","text":"NM1026U-5985614-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d4034917-eeae-4f8d-a3da-c2d62d8943f2","block_type":"box","text":"Derivatives.","page_number":44,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"4ce27a0e-ee86-4893-ad64-4068a046d27b","block_type":"box","text":"General.","page_number":44,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"b50ddea2-5523-4110-96be-cdb630f6f89c","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":"8769020c-e116-41f7-9c31-46fa28a54df7","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":"a66d3316-db08-4cc4-88b7-aeaee8fae2f0","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":"93a8f5aa-8066-4696-bafe-701c7cfa29bd","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":"2ff7070f-d67f-4648-8ba2-12d72e710f12","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":44,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"43336f18-03c0-407f-b5b4-0267a5abf027","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":44,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"e826befa-e700-4a4c-b823-64b15b8be672","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":"f4820939-d8b3-4c79-b588-25e0f2404ee8","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":"5a638e29-9615-4d3f-963b-bdb39eebb0b4","block_type":"box","text":"i.e.","page_number":44,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"0099574b-5b28-4a89-977b-d6c40c3df37d","block_type":"box","text":", the payment","page_number":44,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"b6770d0e-33f8-4a98-8573-230392538198","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":"6a1404f9-f02e-462b-a13e-6079a85b5477","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":"7bd91444-256f-479b-a016-ac729f9def92","block_type":"box","text":"Hedging.","page_number":44,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"682f59c7-5b5a-476f-9e12-6b60ef022bbb","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":"96337a54-39e5-4f8f-b7dc-4b9e626557d1","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":"86e54ad5-bc8a-41e0-9692-8bcc0f4ce304","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":"7510c906-8797-46ac-b5fa-6c20f4fc7c34","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":"227a1900-906b-4875-b846-71b0a98a0f11","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":"bf769b0e-3f7f-4d29-a85b-4b9e95da30ec","block_type":"box","text":"correlation risk,","page_number":44,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"46edc843-3a1d-439e-a6ec-bc8e6fc5b36a","block_type":"box","text":"i.e.","page_number":44,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"3a689e19-9bdf-42ae-9b8e-64c0a29c323b","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":"50ac12c1-f0cd-4a3c-a1e9-77032fbe3be8","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":"c4acc1ed-1681-4639-83a7-2a084c5bff6d","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":"fd0ee631-a4d3-40dc-94ec-76fe6fdc4582","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":"7b42be7b-8ae4-4ac6-9104-9961a02c56ec","block_type":"box","text":"Speculation.","page_number":44,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"9a8ba1ae-a225-407e-a6c1-02118334a0fd","block_type":"box","text":"Cer tain 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":"9f9d4f06-5298-46de-9196-34a056f9e41f","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":"597d880d-d7c1-43c9-8ab0-0a1a882aa781","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":"626b0e55-ec14-4be6-8129-04be0d3ada75","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":"b59e729c-4094-4af9-a231-8883539e2769","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":44,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"8c33a7cb-acdf-4323-a9f9-22e5ad0d5a31","block_type":"box","text":"Regulation of Derivatives.","page_number":44,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"9ed19560-b9b5-44f0-a8b9-478751f24e9b","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":"8258e517-8646-436e-a620-ad69d1065905","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":"50433848-8b0c-4cc6-8498-c2c0d91e51ca","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":44,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"110923cf-d532-4600-a4c3-2d8ad65c9b99","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":"094e4a09-ebb7-40f8-a656-4db8136120f1","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":"419000ad-d119-47ff-9ee6-1a97db3ffd30","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":"a0a2f67a-8c39-44de-9d8c-2c6a5d32664a","block_type":"box","text":"coverage”).","page_number":44,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"2d2d4a96-33cb-4a87-bd09-f91fc4b72c8f","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":"c4fa00de-9220-4b61-8638-b357cb83bab4","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":"24ebd23d-d7dd-4418-ac0a-28c43ac87ad3","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":"bd5a55df-be93-474a-ba32-d57cd42ed92e","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":"1d97b5fe-b77e-4a44-a884-85d3df750c8a","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":44,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"e49676a5-5625-4c00-bb07-1771ef62b2cd","block_type":"box","text":"financing transactions (","page_number":44,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"37930653-3b4d-46c9-b826-763a6d30f6a8","block_type":"box","text":"e.g.","page_number":44,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"fd019e78-c75c-4bd6-8632-0d5c750da6bf","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":"ddac5e7d-77bd-43d0-8005-cea838b9e10a","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":"d2912988-cf59-4075-a283-499c4ba02425","block_type":"box","text":"securities (","page_number":44,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"d78afb70-a3e6-4c03-a7b2-cfd6deb56ca5","block_type":"box","text":"e.g.","page_number":44,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"1baecdd8-15b3-4493-be87-c757ad8e88cf","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":"61ec1400-50ed-4164-8de0-d7e3ff907797","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":"99385c33-77b1-4c18-a3ce-9e6a6b7cca79","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":"a6e002d4-ab2f-4fe4-b13b-6a97a286eaf6","block_type":"box","text":"Commitments”).","page_number":44,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"39147771-ca51-454a-bbaf-61bb21dd1b64","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":"e23e0eb3-acec-4c00-8d3c-c93b0fac9e71","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":"1ea6f547-d2fa-4de4-bfa0-cb07de7e70c8","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":"4e603579-16b8-4c60-8aba-4229131cb668","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":"e745b432-bc83-4ebd-8aad-b35e44c207a6","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":"45aa92f4-b1f4-4b5b-b8bc-1d349c565b0a","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":44,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"f62b84cc-6322-46bf-a523-a15abaa9693c","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":44,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"b6225d17-21db-46bd-b9be-732e4d37c89e","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":"9b6afa0f-09d0-40b5-b3ed-36810dbd8cac","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":"c07c7e5f-40d0-4a4e-be41-9fa1aadf618f","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":44,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"99fc5597-9159-423b-8947-8ae3d4659000","block_type":"box","text":"II-13","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"851c7fde-469b-4c94-b0f0-1774e0bedda4","block_type":"box","text":"NM1026U-5985614-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5d43fb30-cc00-48fc-9bbd-3cff906945a0","block_type":"box","text":"Dodd-Frank Regulations.","page_number":45,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"114055f6-7fa4-40a9-99c5-ba7f67a82f28","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":"f3501af9-8297-4e19-a2ea-500f560b854d","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":"f0659fda-1990-43e6-a9c4-e1aa7b5b5547","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":"83214246-1451-4e5b-bec0-3672c397799b","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":45,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"8fdd2452-9bfd-4c0e-83c5-2c7907c46573","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":45,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"eea72e25-8ab6-4238-8cbf-977addceeadb","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":"2b33d10b-4a29-4969-b8e2-46ca14ed197a","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":"0691f2fc-fafe-42bf-90af-6cc1fae7ea27","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":45,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"cb23448d-f2be-436a-84fb-66a83f89f72d","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":"787b9e26-a5ca-4468-b63f-46a98e0a66b1","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":"7e33b8f5-5f29-48e6-a099-22618fe1d3a4","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":45,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"432ce9c2-bcc8-4d47-bde1-bf3599d2a0f2","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":"17bdcc97-0f7f-45c4-81af-b57004c9db4d","block_type":"box","text":"similar requirements on cer tain 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":"40265830-485a-4074-8825-8202449600d1","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":"2facc704-8e75-4d90-b4c3-d888369036c8","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":"c2ed80af-157e-43fb-945c-5fc0bf23cc01","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":"e0b0b409-f7d4-4488-80b8-70ed9341f2cc","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":"fbe0e205-8b8a-4d07-afd2-3e2d694f9cd2","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":"f310f162-49e4-4961-aa55-f0068e122b2c","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":"71931aab-7094-488d-b5dc-59548e1c1096","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":45,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"1abb35ac-0cba-48f6-ba20-a85f284dcf34","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":"de219989-f0f0-4e89-9383-f5d69e7344da","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":"ca6ceda4-fb42-4fe6-8166-187b9529a4fc","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":"f2a1581a-11e9-4368-b881-23d72ba776d2","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":45,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"87eaa634-dd2c-48b7-a3cc-45c8228939c7","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":"e17a3047-7742-4ec2-83d6-ee333130e93d","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":"7cf4d788-922b-42ca-ac69-c37b6bca0497","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":"82d22b63-aa2d-4920-a2dc-a7ba5ee93f12","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":"81bf4052-8bc8-404c-89b8-6529b52a5f56","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":"2cc83b75-8736-4204-a20c-5513af1d8fb9","block_type":"box","text":"member.","page_number":45,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"93665a77-a00e-4350-9a53-864a0832e47c","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":"95c61903-cb63-4c66-b8f5-994e023ef1ea","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":"b9cfbf5c-338a-487c-b925-a82ebf810623","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":"10137445-6e11-4f2f-a5f2-327405ad0365","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":45,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"afe17e5e-64a7-4678-a076-2709f23dbf69","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":45,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"dc04230f-430f-4974-8d3c-fec9080ccfa2","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":"231b44ae-ff71-41ac-8f97-c998c9e56547","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":"dbcc1aab-cebb-455f-99d6-e69854636e9a","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":"7beb74a7-1424-4cd8-9568-501f7cc8d7b7","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":45,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"65a65e17-2757-40b2-86b9-910dc6d87d9b","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":"93b80992-58e0-4753-a71d-35d4dc0585e6","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":45,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"cea32238-9830-447d-8938-6e63d03e265c","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":"072aa30c-9fcc-4ab4-8bc8-75dfeaca2342","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":"55138cc6-61a6-47c6-b665-584ed7963fcc","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":"90d3d433-7982-44e9-b7b1-73b122947b9c","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":45,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"4de13f95-a8c9-49da-bcb6-b6f854802d45","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":"b6688a39-e43b-4d40-9084-4ea91d0b3cfe","block_type":"box","text":"The CFTC, cer tain 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":"4fb57a44-b48b-4f0a-adf7-78421028cbb3","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":"ef8f7cbd-20bb-4795-9777-bfc16060ec50","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":45,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"886e4e64-d85e-48ed-aae1-795a17f5b84d","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":45,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"9ee5dafd-c75b-4d6a-94b2-d8069ab96917","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":"140c9866-9a68-469b-8ba8-942522b10ce3","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":"b17eff4f-7f40-4cd8-ad06-282aa38a17e5","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":"48bf180a-94dc-48f6-9383-51e4d8a21379","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":"0b9da085-e26e-45ff-a5a0-e2e3bae75a9b","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":"3148d887-5f87-4f35-883d-881c8bae8eee","block_type":"box","text":"II-14","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d5fae3bb-5b16-4ba7-9ea7-a2038550bb86","block_type":"box","text":"NM1026U-5985614-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6b6b3c04-fef6-466a-9275-1a1dc9dac78c","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":"4213c974-3fea-4269-ac4f-8bd1c37b22ea","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":"e22c28f0-dd2e-4899-829c-af58ab59dcc0","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":"1a7ec383-4f08-4eff-beaf-15f9b48d5af3","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":46,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"9759f462-ae30-4cf0-86d2-8800996dd638","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":46,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"4eaeb510-cfe4-4f66-a4f4-7bd9432f83ff","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":"29cb8b02-1c72-46ac-ae81-8bc1aa078d70","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":"f1b331c7-233c-4782-a874-06956d1bc9f6","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":46,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"3b9a58cb-c650-4a61-baf1-4b3b2a32d2c2","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":46,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"045ea3e8-3c3e-462d-b0e4-4efd5a416fa8","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":"9a50444d-10ea-427a-a4e8-7727a759bec0","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":"c6be1a83-0346-421e-b0d3-8a1fac982e5b","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":46,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"47ab3368-274d-4bc9-8a08-b872414068f6","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":46,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"d1964dba-03c6-4dcc-af43-6156c2cf7827","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":"406116ab-9003-429e-82c7-18041dce7a33","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":"c6c354d4-131b-4aee-944e-107dc67f1164","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":"a344ddf5-6899-49ae-9b14-20fb958619ef","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":46,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"99120540-31db-4b14-8b22-10be43b39a5e","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":"06c27836-d03a-4e4e-bf49-0ab1a811c3f0","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":"1f5ca206-f7e5-406f-bc65-97516eb87b98","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":"2bd874af-ab4c-4271-814b-7a5fba4d4069","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":46,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"92577643-bfdf-4b38-9ede-d1e6c9c3b7d6","block_type":"box","text":"regulated entities and cer tain 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":"4b125ad4-a54b-4ade-be30-692abea3102e","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":46,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"a2b924f1-eb9c-48dc-ba1a-068cacb30606","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":"cf7eac72-f292-4613-a1a6-8fd2857dd645","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":46,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"3bac69ee-b3f3-412c-9a2d-87ef0a3b1b25","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":46,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"d4716ce4-08bd-477c-8874-a7278715d8a9","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":46,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"e472605a-121d-472a-a492-b7a123ff87f1","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":46,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"60457e26-7ec4-472d-be1b-09769040ac40","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":46,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"06968148-ef38-4fc2-b077-3f3c9112f8b6","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":"b1aa88f7-d94f-4efc-b4f2-59ed14b5244a","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":"0f77214a-4880-4654-9ce4-ecfaee8ffe81","block_type":"box","text":"collateral received under such contracts.","page_number":46,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"92309bf4-30d3-407e-8a1a-f018bc4f1cab","block_type":"box","text":"Risk Factors in Derivatives.","page_number":46,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"2dff9958-f6ce-4d71-8113-d718b56e82af","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":"d0b76786-4f10-4100-8192-79873de8566a","block_type":"box","text":"Correlation Risk","page_number":46,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"b02f3982-54a2-48f8-a820-155261688500","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":"fab04ac1-8df8-461b-a263-56c7a4fdf47a","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":46,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"95ca7d8c-72d0-4188-adde-a98b90a6363f","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":"e9b8e57f-59ec-4248-94eb-0e3fdc1d829a","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":"9538e9fd-e304-481a-8f51-2a7690da0c82","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":"aa7c22f6-ff3e-4593-a396-2608a0074057","block_type":"box","text":"Counterpar ty Risk","page_number":46,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"8fcdb630-c851-4757-9573-759b3efaa27a","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":46,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"83504267-78c2-4225-8009-730257e3bceb","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":"3dbfd22d-b172-4118-b067-200e475158eb","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":46,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"dc06f6bf-7b06-4839-ad59-2a0bdf6fa32d","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":"2c9cc7ee-53cb-49bc-961d-9bbe005b5c5f","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":46,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"0203543e-5187-4f8c-a2e0-d2a1df650ff8","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":46,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"032fd696-9035-415b-8fed-df55a9dfb63f","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":46,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"5b13048c-45bd-4229-9a5d-41d667d51f55","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":46,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"b87ac915-864e-4b37-9079-699d12e9fca2","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":"873a18c4-4fd2-4b03-9c6f-534ff3d50135","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":46,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"f63b87d9-5031-46e2-8da4-7a3078bf480d","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":"2add27a7-db1f-4c9d-82e5-e0aca26e064e","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":"3575b74d-e923-40e2-84c4-16f7533c168a","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":"3f366069-d031-4239-bba5-bcd841f6e364","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":"2fd59d4a-3102-4778-9fc4-88f0bb3e3351","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":"e431465b-a301-49f5-9da2-74a8f874e622","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":"4fec9155-63bc-40ad-801b-81f4cfd6414c","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":"e31339cc-0f89-4864-928f-3739c1c683e5","block_type":"box","text":"II-15","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"79f4768f-ae6f-45e4-8f9a-ff1b7b9de37c","block_type":"box","text":"NM1026U-5985614-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"200b74cf-80ab-4a82-9e42-6baab5493e1e","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":"2be859c7-1d20-49f6-ab8c-d31ed09ce3d1","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":"c812d6dd-4ff9-4712-aa56-8f5774f39257","block_type":"box","text":"by the clearing member.","page_number":47,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"b960deb8-c7b1-445b-86a9-f5eae348b865","block_type":"box","text":"Credit Risk","page_number":47,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"768e79f6-aca3-4d6f-95bf-a44af6a42c3b","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":"9d20e172-fadf-4fc6-8dab-54ef91c94faf","block_type":"box","text":"honor its financial obligations.","page_number":47,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"54c86611-d6ab-4a60-8921-871373f61176","block_type":"box","text":"Currency Risk","page_number":47,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"9f7fd073-d2ce-48ce-9c2c-efb966ac7258","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":"2305f541-6302-492b-9374-a7ec1a3b2c6c","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":"57162b82-a75b-40b1-8ca0-ab546cb91f0f","block_type":"box","text":"Illiquidity Risk","page_number":47,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"fc7b1236-3101-4bb5-b96b-6f7a54931937","block_type":"box","text":"— the risk that cer tain 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":"5e91d7da-337e-4cf5-af20-af321b93b9bd","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":"e90a53a2-fce2-439d-9141-f95f52f42424","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":"91780b53-d891-4c1e-9a92-a61fb68367f2","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":"630a9eb1-99f7-4b28-af2f-0fe2375aa2a0","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":47,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"33255e3e-80c9-480a-acf1-eb0733ff0113","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":47,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"3f0a51eb-d56b-4035-96e3-e2ff775401aa","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":"b48d4494-fcb8-4a93-add6-83c46009cd76","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":"7e803ba9-d3af-4ba5-a8f4-936332d0b575","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":"50d7a900-ae0c-4c5f-8d59-6fbdbe6b786f","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":"fbf917c9-65eb-4caa-8a7f-48ec5d0dfdbc","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":"3bbc44f7-e132-47b2-917c-5924ffb7a0fb","block_type":"box","text":"the par ticipation 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":"1451dcd9-2ed7-4d19-b6a2-32d93332102a","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":"4979314e-6c18-4243-a475-b1e0f7ccdd3a","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":"a4a280bd-3cbb-4c16-b7c8-3d4c4a437c97","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":"1fa7894f-941e-44ac-b2dc-7af9df0b0261","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":"dd284ffa-7cc8-4a3c-9936-990bbef122ab","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":"f95e5dfb-7364-4ac6-ba38-f6bf6fd86dde","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":"ef48728e-3940-4281-9a9d-0ebd8c3b6188","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":"e09eea1e-231a-48be-905c-e16dddb41855","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":47,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"3698784d-0dde-4be2-9750-b43e683eeb4b","block_type":"box","text":"may be disadvantageous to do so.","page_number":47,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"4959bfde-1735-4f10-b495-45258d753272","block_type":"box","text":"Index Risk","page_number":47,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"9ffc5cee-857f-481e-8922-d17cd963b5e1","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":47,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"9c3ecbec-034f-4834-88ee-1008dece08f6","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":"57b8e686-f0f7-4171-b322-a26981c39e85","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":"a5701ca6-83f6-4144-81a9-a9a059ed3975","block_type":"box","text":"Legal Risk","page_number":47,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"716daa5d-bdef-41d8-ad1f-1037257ce7fa","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":47,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"3ed9a17e-12b5-4f6b-a717-d282defe6cf5","block_type":"box","text":"or enforceability of a contract.","page_number":47,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"70e9b698-d358-47f6-a4dd-4a57c9924f83","block_type":"box","text":"Leverage Risk","page_number":47,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"914a7a8f-c0f1-4020-85d1-0075d97e13c0","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":"fc571916-58f9-4c29-a272-d8734f2f6e83","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":"772f7475-6511-46d9-b9cc-5cba9c3f8b16","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":"f58d31b4-c594-4f3f-9978-2b58838beb94","block_type":"box","text":"Market Risk","page_number":47,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"04cdb3ee-a1d2-4aac-95a6-ed9e680b7da6","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":"f4bf27e8-abe9-4eff-9e7e-a78450e4edea","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":"01d26a2b-9b84-4f21-849f-0c12c9c2ed49","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":"88958d87-f3bc-41c4-ae63-1f2da2c19348","block_type":"box","text":"affected.","page_number":47,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"9071a894-af5c-40c7-b823-f8edf06343d1","block_type":"box","text":"Operational Risk","page_number":47,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"6346b0a6-b68f-4cad-8bf9-cdcaa4678604","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":"031d6ac1-bdc4-4cb7-8079-7b5ad6f24da3","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":"501312b5-3816-42f4-9693-a8690ab3b72b","block_type":"box","text":"Valuation Risk","page_number":47,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"234c8553-ec86-4ca6-8714-9757d97e0ce9","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":"dfc21deb-7f66-4acc-81cd-030df55ab06d","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":47,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"b21b025e-231a-4827-832c-773579cdfca3","block_type":"box","text":"complex instruments or quote prices for them.","page_number":47,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"3be7e5bc-97bf-4408-a149-21ed83cdcc70","block_type":"box","text":"Volatility Risk","page_number":47,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"11bb1fe1-e9ea-433a-ab30-62e5b8400b11","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":47,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"521b289a-504a-448a-8ca9-d0dbc330173d","block_type":"box","text":"Types of Derivatives Transactions.","page_number":47,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"2b6024e2-87d8-4692-8698-867ff3921e56","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":"9aeebedc-a260-47e6-8a21-6ec3f2e71229","block_type":"box","text":"including the following:","page_number":47,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"3eba1f12-ffed-417a-b66e-98f0d22d55d0","block_type":"box","text":"Futures.","page_number":47,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"88e12f7a-4136-4ee9-8176-c32a006ff4c1","block_type":"box","text":"II-16","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40329d05-af7f-4774-b832-01ff74380ab9","block_type":"box","text":"NM1026U-5985614-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"37f2e348-6953-4517-8789-69d4738de581","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":"427d37f5-8857-4506-9aa3-7ac4425b81e8","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":"f7f45409-98e5-4efe-bfc1-da1839bc93fa","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":"1329d434-0969-4061-bcdf-e35d060bc57a","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":"9a91ceda-c570-4b6b-a72f-87e0259b691d","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":"5f65adf9-8e78-42e4-80c9-19c60aa4dade","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":"55fbec12-f8f8-4234-bd3e-de2c0954a4c2","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":"3060e508-c6e8-42f9-aa9e-dccb4df53e0f","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":48,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"d1cd9a99-c21d-4589-987e-236c7d9ffa5a","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":48,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"5dddce1d-0835-47f5-ae8e-2f94841bec66","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":48,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"1628d268-fe2d-44b2-bcd5-7b0d6a59547b","block_type":"box","text":"of the futures contract.","page_number":48,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"1045c440-7da6-41e2-80f2-e3cbb784d248","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":"338efc75-e30e-41c8-91e8-83611beecf75","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":"262f8054-01fb-4a29-9953-bd2221986c7d","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":"d299473c-5f09-45ca-bda6-2ceb178f8636","block_type":"box","text":"relating to the futures position.","page_number":48,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"bd47e762-3b50-4694-b456-b8bc66d613bf","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":"68fcc5bb-0b3a-4f32-96ae-3ddd2c76b04d","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":"efa29f63-cb05-4e1d-ae4b-5631647e170a","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":"4b17ea86-f494-4e7c-9232-7e6f1152ce41","block_type":"box","text":"Regulations” above.","page_number":48,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"78d17156-bfcb-4762-9bfe-65e3d68e7343","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":"921a69a6-64f7-4f2d-86b8-abb2e978e404","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":"7cfcddf0-15bd-436b-b075-80c5ffd43d40","block_type":"box","text":"(","page_number":48,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"211064b1-606b-4c8f-aa4a-c86ebead162b","block_type":"box","text":"i.e.","page_number":48,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"f1da3195-05d7-40fc-bf98-0debea3a5efd","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":"8f400dc9-a762-4c71-92f9-faed180eefae","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":"3669185c-abbe-40b9-a95f-ea63b240f52b","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":"157853f8-e6b2-462b-bd94-6b78cb8a63c6","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":"429e2728-39e4-4521-911e-2a3ae75fb929","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":"4934b137-cce5-482d-89ef-e95a4c68e8f2","block_type":"box","text":"Fund intends to purchase.","page_number":48,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"ebf14020-104f-4217-98e7-e126ead6c8a4","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":"b532a2fc-8460-425e-bf20-124a56f3869f","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":"a48680cf-9050-45d4-8d5f-ac42824ba266","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":"51c26ebb-c4b5-4cc4-b0d7-e460ae53a60e","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":"ff473142-3ce2-4c30-a396-ef7783be3a24","block_type":"box","text":"illiquidity.","page_number":48,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"51751a2d-1a2e-4467-aa15-e099cdf9d797","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":"40d4b386-94a9-4352-b4bb-f76739b0ff2f","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":48,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"b56cc279-a114-4f4a-9988-d2e2483d83ec","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":48,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"36f2b800-227e-4cd1-93c2-6d7d4789fd4c","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":48,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"1f8e7956-e846-4254-ae6f-d2a1ab731a41","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":"beb96c00-7bbf-4e22-8044-932bf9dccd4e","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":"010ddd34-2b88-4db1-8510-fa47147f15d3","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":"0a5530f3-bc58-4692-a100-4f9c72c22082","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":"0479c116-b6a7-4907-b4f6-d5a820a04d7f","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":"6fe2a5ac-da16-40e5-bd4a-f22b08ace661","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":"439ce7c3-cad9-4f39-a21f-f482d1c7dc9f","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":"d053a40a-a573-475d-bc74-7ddb97ca2936","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":"c372ff2e-273b-44b9-b610-98bf646009dd","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":"fe132731-8f3d-48ec-a56a-fcd5907a91ff","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":48,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"dabc5bd6-b763-4a71-a655-01514b820717","block_type":"box","text":"Swap Agreements.","page_number":48,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"491a46c3-87ad-48d1-9327-4c3d8f94b6d9","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":"f0502d4a-d866-46af-b0cd-7a8a377425bc","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":"ed7d91de-1205-4516-ba7c-342de3002908","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":48,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"f80db96f-ba10-40d8-9c5f-80e5f97f5b36","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":"3ec08bac-6290-454e-94d9-c485694bf1ef","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":48,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"8e7d3731-5b54-4516-bbde-e38e018a37ee","block_type":"box","text":"a “notional amount,”","page_number":48,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"f55ac3f9-aa2b-4c3b-8204-031b01df59ee","block_type":"box","text":"e.g.","page_number":48,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"3af4bd01-32d5-4e7e-9df8-3db0808080d6","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":48,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"d31394d1-0940-4a6b-9124-bcae69bf0d93","block_type":"box","text":"II-17","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb6830f6-96d8-44a3-bdb8-8c2c97b4b09c","block_type":"box","text":"NM1026U-5985614-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1dfd6ed5-ce1a-4eae-bdbc-89fe59462d2a","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":49,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"63dbb9ac-df10-42c1-bf73-bc80d28bcd04","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":49,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"4c39abbf-7988-48b3-906f-ae3b7f29ec47","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":"549abb05-c0fd-4fbc-b61f-ce2803fd9ffa","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":"2ed527ee-8fe9-4777-83ed-870cb6d48f8f","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":49,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"797b6a9d-6a7d-46f1-acb6-9034901f77c9","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":49,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"7c6be818-edc4-427a-82f9-7aca76f76f37","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":49,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"a9859c06-d776-4ee7-a129-16473518f5d3","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":"98685728-0a50-4916-82c6-d36ca431f289","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":49,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"88183d17-213a-4007-87fb-8e0e4d5bebf3","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":49,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"fdd39f07-1a49-4619-95d2-05e3b96657c1","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":"ddbb6f8b-a3c8-4ff5-ad27-ddcc15a48d0c","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":"1ab5e870-6804-4506-b5ed-9f3787566f43","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":"5c2f0744-ac33-4f31-81f4-8703b7176519","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":49,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"3694b742-8105-45db-9848-738ada2b8289","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":"cf580ffc-cbfc-419a-83c5-f841e599009e","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":"b74efa13-191a-434e-a0f3-0bd39f5938b9","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":"35c73e39-22d2-4f4a-98e1-ef47035be43d","block_type":"box","text":"index CDS.","page_number":49,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"29cfa87d-f2c6-4d82-9b18-fb5cad4a4236","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":"3243695a-2c10-418f-9dcf-79e3dde8d552","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":"a28e9eba-e8d0-4073-8076-16b42ead6150","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":"f7a7ae33-8eb6-439a-9a69-75fd7fe884d2","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":49,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"86604475-97af-4850-ae21-26e4df5c2b01","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":"f65855da-edc5-4e7c-b6ec-d850b66509e2","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":49,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"66a238cf-058a-4bdc-a3d5-e06e44170dd2","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":49,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"95988d33-35de-45fd-81e2-4cf80435181f","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":"c83d9e75-c23a-4599-9cc8-e8e048b2ccd1","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":"6a1e7d5a-d7bc-4ee4-8a7f-cd837f5f0dda","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":"1ef85603-dd91-40af-adfd-e2c2fd0ced50","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":"3b083400-88a6-4386-9a4a-da93dff4c86f","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":49,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"79c73150-62ea-42d6-b8ba-12c38d2c857f","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":"8af8d725-1949-4e2e-9b35-910a8e4258c3","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":"73b73f1c-3604-4f48-9fc3-3bc0307e35b1","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":49,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"8d4b3d4c-971a-4b69-92e4-2de255ae831a","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":"2e72a772-5c97-4230-924b-72506c83ca46","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":"af8e9c8d-3fd3-48be-b11b-8813628c858a","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":49,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"a1eed6f6-e5a8-431d-a6eb-0ba625ac584a","block_type":"box","text":"into cer tain 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":"b20539a2-f68f-44ec-bf15-f85973f7438d","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":"55dcf2d4-c354-49af-a747-4c742e30282f","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":"0b380212-0a71-4c07-8f0e-ec2b1eaa0a44","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":"0a18ec60-6cd3-4bcd-8230-2f19fb2fba9f","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":"589eee3a-a44a-446b-80c7-077696e4a8ca","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":"91b10099-00bc-4e8b-ba0e-b930114e1073","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":"d509a7a6-d850-4f88-8e87-90c819780d84","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":"2c01a704-31df-46a4-9fc2-60cc937da02b","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":"71f76570-9037-4a76-8aee-5ce772837b08","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":"db44f89a-f43b-4a29-bea6-03076d3698d7","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":"53a19d30-1d40-4fd2-9c5d-33fc087c67e8","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":"fca099fe-4453-4ea2-9be0-c30edff6d948","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":"7a94b40d-38f6-40b2-82a8-2648f8f037e1","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":"d66e022d-578b-4c3d-ba6f-29b6a9604aac","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":"7219ccf0-f648-419d-83bd-b650b5c3b8cf","block_type":"box","text":"conditions.","page_number":49,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"28209114-c8d6-4d0d-8977-81bb96edc60e","block_type":"box","text":"Dodd-Frank requires that cer tain 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":"d3272e4a-dc59-4426-9c33-b2b15fbc906f","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":"e6e95312-59b0-4c2c-8f45-6dfef45ca3ac","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":"1403ad5a-230b-4982-ad4f-f2349c829c6d","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":"534c1e30-f69e-4b2c-a04b-71e9cceba9e4","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":"bb083266-63f0-490f-91e1-a21bf89ae585","block_type":"box","text":"II-18","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d48b3797-b3a7-4cd6-8ee5-3f01011768c4","block_type":"box","text":"NM1026U-5985614-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"501d5a4a-393c-4f52-acf5-22e2156eb625","block_type":"box","text":"counterpar ty 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":"646c5bd5-761c-4c41-b86c-56c246ac3a9c","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":50,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"cb6d2d37-5fa5-4737-9d6d-bb058c49fd87","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":"4750a6c4-0a7e-4f0e-957f-63a676e3f71d","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":50,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"f0862a61-93d6-4897-acdd-86caa378db2a","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":50,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"428a0c76-0946-45c1-b143-65ec8a42db61","block_type":"box","text":"In cer tain 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":"6bc7eb2c-883c-4e71-ae38-1bd56e810b72","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":"4a9a0a34-dbdf-44d5-b4f6-f451854fba87","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":"bd770b90-cf3e-4df3-b5c5-9230fd8ae599","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":"0eeb0da8-0d9b-446f-b4e1-d1344a63c100","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":"22ec6a0b-b6bf-4d80-a2f9-1628d023165d","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":"df1be32a-1d16-4a8c-a948-93493b54053d","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":"69015bd6-db21-4cdb-9312-167a4a6ed950","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":"b7ab317c-85d9-443b-9cd7-cd9e1fcb4cfc","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":"fa1af82c-0074-4595-9460-1fb8b99d0b65","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":"09165264-dcc6-4255-9e34-f33d48ae738f","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":50,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"2e2c876e-0f85-4474-adc6-2c8a9cb8ee85","block_type":"box","text":"Cer tain 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":"94ad0cbb-e184-4b51-a763-953a24fc9ecc","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":50,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"0da155c0-74b7-4d1e-b6d4-f845cc3be2c8","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":50,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"43d6acd5-1fda-4334-a102-49f65800cd3f","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":"88cc2b48-1d1c-439e-97a9-0b87e64d882c","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":"0fe37e21-0dd5-4310-b2bf-1472419f847a","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":50,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"fed9de39-81c4-4d76-ab68-500e41b3a6b9","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":"3f3eb8c1-711d-40a1-a221-fc8273230fa5","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":"d9c5b1fe-701d-4447-bc8b-239b239a4ad5","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":50,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"60c97f9d-d2f2-4f51-acdb-d7e78afe31b4","block_type":"box","text":"cleared interest rate swaps.","page_number":50,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"98ec8599-ceb5-46d2-9bec-f6ce81639b96","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":50,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"0302bb89-0495-43fe-b41a-93d7b2ad08cc","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":50,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"5fae5d27-b7fe-47d8-83ca-9ba95081a246","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":50,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"4396562a-f42b-442e-9d77-a141cd085241","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":50,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"55af80ce-1ca9-4511-be6b-374a36103868","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":"9e0a1e89-17d3-4828-908c-f201b7fb424c","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":"f41e67c6-eb71-490a-bd25-ccaee2911f30","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":50,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"212a741f-1b04-4d0c-8422-a58ea9ab55fe","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":"3ff8a727-cb65-4d77-93eb-aff1d720f161","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":50,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"6fb0f0c1-efe5-4804-a479-4d50c71dd419","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":50,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"f2d4ddd5-bedb-4605-896d-98d0296e5977","block_type":"box","text":"or variable interest rate, index or asset.","page_number":50,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"e51ca2de-4677-451b-9d45-d32dfb049db8","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":"1aee50bf-e7fd-4651-8a76-5b95c4b7eaf5","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":50,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"a6199dc2-6393-4131-a9b8-5d3b4b4c69fd","block_type":"box","text":"such interest rate floor.","page_number":50,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"2601f60c-6380-462a-a91f-ad6102d841b7","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":"40f06e7a-fb0a-4778-8520-16a9c7fae412","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":50,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"dcdc9690-2cf4-4728-a906-e64dc0e49bab","block_type":"box","text":"such interest rate cap.","page_number":50,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"703e1973-ee43-42b8-8b44-2262e71db1fd","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":50,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"ef36400f-628e-411e-aa12-e171bb51c77d","block_type":"box","text":"commitments to pay or receive interest,","page_number":50,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"53bf9283-7f96-48df-940f-850b4ce33ed6","block_type":"box","text":"e.g.","page_number":50,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"6902ada3-a82d-4666-9013-3e7638e7214a","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":"53e02fa2-fe8b-4c24-a838-c3a59ec95f48","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":50,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"72f2fb64-77de-40c6-86eb-65cd88ab04c9","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":"3a91e332-5e62-40bc-a182-a3e908046e87","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":50,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"9624512f-321c-435e-b619-2f0551007e06","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":50,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"8d159335-bdfb-4e1e-b2ab-c6c1195e952e","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":"d017c6c4-b5e4-419c-851a-ce35bd4786a7","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":"3020cbb1-be3c-429e-9b95-d557c8394337","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":"e4d59509-a3b9-4d5f-87b8-dd9f4bf4302b","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":"b6daaa1e-1ed3-4caf-80bc-d780010a24d4","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":"1a4171b2-f962-4661-95e3-57f8d263f35b","block_type":"box","text":"II-19","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dfa118c9-fe24-4e68-8534-373c4e5bcd72","block_type":"box","text":"NM1026U-5985614-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c3c40398-de76-4727-83dc-cd43ed590d66","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":"1f48c8da-6966-408c-be43-b776cb991638","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":51,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"aa7e4dfc-6c0e-42f6-8030-7ef5d5b6aa9b","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":"45f920c4-d331-4ffd-9fad-b0cdac904def","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":"423fb76a-6ae1-40ec-bc1f-bce579233347","block_type":"box","text":"Total Return Swaps.","page_number":51,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"187f1133-e6f9-4925-a5c3-5563351bd740","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":51,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"2079187f-d029-4886-a94b-931117fc6a47","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":51,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"c7ce02ed-3834-4e7a-b5cb-fa58871e66c5","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":"173317e7-a85f-4349-af6b-9e925e33dc61","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":"540a34f2-672a-49cf-a96e-4e37c31a77bf","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":"6e06c95a-60cc-4bef-946c-e1c9ac90fcbb","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":"0c255079-2a0b-4751-be89-b910e8a411a7","block_type":"box","text":"“contracts for difference.”","page_number":51,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"04a0bc15-93e9-40fa-b8bb-198568d42b33","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":"995e54b3-52aa-4858-a91d-da9a7abd07d6","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":"2cedf5b2-2ce2-4f8e-8254-5fd810c55ee6","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":51,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"516d2094-2a52-4289-845e-de7d3c74d019","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":51,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"3d336a46-5f0a-4b4f-a127-6800c496eaf0","block_type":"box","text":"the notional amount of the swap.","page_number":51,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"d545777f-866d-4dd2-8fd9-eda4c122ca5a","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":"da112bbd-7d44-4b29-8c57-7852f0e7d63f","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"9a1635fc-f7e3-4fc0-a76e-41aee5e79e30","block_type":"box","text":"Options.","page_number":51,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"3c50d225-d4b4-416d-8d47-ec5dc080c9c9","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":51,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"a282a764-e3a4-4b22-9558-71391ad0a0c8","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":"b79239ec-f792-4caf-aaf8-e01a081c9753","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":51,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"58308d01-604e-421a-a7a2-e839c5565a60","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":51,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"b380076d-6608-4f10-8f8f-4dc7a1702408","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":"bfe87a3c-726b-4858-90fc-61feab60bd1b","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":51,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"12bcacb9-7d70-40c6-bec4-57aeabdb1ae1","block_type":"box","text":"par ties’ 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":"cf0ac267-0eec-4e39-a8e6-a462f373966c","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":"82034fa7-41ce-46b2-8a3a-2a19592743c7","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":"73bb4e60-7620-4d63-8aa2-1d0edaf3d8e5","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":"163077c7-a26f-4bb8-abd3-bb3ff9657344","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":"6b3c5f34-2669-4f07-9ca2-44b91b799077","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":"3f5bd055-1964-4d3a-89e6-f257e3fad736","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":"7a61d4cd-df5b-4a2b-b0a3-776bb77788a6","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":"eae1860c-8e30-481b-b667-dc824caa4113","block_type":"box","text":"OTC markets.","page_number":51,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"12ed3449-7d17-48e0-b03c-2b504ca32d6e","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":"9791bd7b-f758-467e-945a-1f6d48d4e67e","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":51,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"2bc4bb7e-e4a1-460c-9841-92c5e6593eed","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":"caf67381-3d7b-431b-983d-962bc58f1d2c","block_type":"box","text":"par ticular 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":"ddba5543-2b8a-41d6-9938-6959e5d860cf","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":51,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"47f07f02-12e7-4ed0-b545-76d4cd99af7e","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":"37c4dd4c-bf0f-450b-bef8-893e1d9fd7c3","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":51,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1dfc28fb-deb5-419d-9300-bcd02224f34e","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":"4f113837-9fcd-4068-a558-64982c80ac73","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":"fe59733d-abd1-40f0-9199-b5aae9a0aa23","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":"f222dba4-fa6f-4ed9-a8bc-e3751f289a68","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":51,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"076c300a-e7aa-4214-a433-f682d1739c85","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":"27237a88-fd75-48eb-9097-a1fab31e6caa","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":"9c814995-cbc6-45a4-9498-642a008fe4b9","block_type":"box","text":"terms.","page_number":51,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"0589923e-9989-4e89-9eea-6eaa7e506e72","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":"b701b281-e041-4cfa-bc13-9e8d1776ef0e","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":51,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"755a34a7-acb0-4ba3-a7eb-b8a7d159d5a0","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":"4262d09c-08f2-4a76-bd7f-73f16be5fb6d","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":"e87505ab-f697-45b6-b531-236ef3ce7f5a","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":"07855285-ec6f-4812-b13a-40b77e8d98d7","block_type":"box","text":"II-20","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"49d86927-855d-44fa-b481-2ae6164621b5","block_type":"box","text":"NM1026U-5985614-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"db0298bd-123c-4feb-8034-ed331a773aa7","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":"1b1de03c-9243-4400-99af-be294e46d812","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":"5fd3fa87-ead5-4146-bd2e-3e1a3c8bdaf1","block_type":"box","text":"Call Options.","page_number":52,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"9d77cb8a-251d-45ed-b5a9-7c2b754b517c","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":"93a97414-0dcd-4d8c-a60c-b6ba2127079c","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":"2f5e72e0-9f64-4efd-a5cf-4dd941dcabd5","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":"5585539a-19bd-4bf9-a321-2c5445d6cd18","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":"31571cbd-4fe1-450e-98d5-3f93a26a3bb1","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":"6b6326dc-9e1a-4b06-9aa9-98bee3c24c4b","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":"79ceb853-42bf-412d-94a6-024e071e6f35","block_type":"box","text":"of the option.","page_number":52,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"2a05c448-c3f1-4ae9-a46e-ad78ca843ba7","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":"3154d70b-111f-4872-a59f-bde133669938","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":"1c67ab80-ef84-42bb-a468-a2b24a975292","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":"8d300cf0-fb17-4d08-b6b5-e0d8262e738a","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":"f5fcf3ad-766f-4152-b465-948592e1a5cd","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":"f0cca280-797f-4a22-b2fc-7d978996f1ac","block_type":"box","text":"A Fund may write (","page_number":52,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"976fb407-6a19-42f6-afe8-94db8e7795d0","block_type":"box","text":"i.e.","page_number":52,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"0eec287b-42f7-411e-af20-4712ab3a239f","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":"181cf68a-f6a8-4726-9216-b2093e96e9d0","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":52,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"63dc3f4c-07a4-4011-b269-08fb938b3f6d","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":52,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"ccb474fb-0392-470d-a3fe-1b3ce83b29b7","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":"93b3227a-c810-421a-87ec-2b2abe595075","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":"a8cdc977-387b-4a89-ae24-a59a2f7f5f7f","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":52,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"9e8bd309-e6a4-4001-aff1-c90874f555cf","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":"c572119c-07fc-4446-aff2-475c2dae4371","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":"842d7c92-d168-426e-9ee9-ae4a510c6d60","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":"74682df7-84f1-4049-bdb6-ec03996f8856","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":"42f594d3-7984-4145-96b3-4b71c1690252","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":52,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"55b1f020-c7d7-454b-947e-8e810ced9230","block_type":"box","text":"A Fund may write","page_number":52,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"322ec052-0334-47be-b4b0-ac88a4a91936","block_type":"box","text":"(i.e.","page_number":52,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"c2822fa6-099f-4545-bc8d-a3903cbe0a5c","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":"45fc4a8b-926e-4eed-a32c-7ebe230139a1","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":"42e17171-05a9-4659-b468-c2f8c9961ad6","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":"86ee1e39-3258-457d-a104-1138ec3a48b7","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":"0d69da88-8ebb-47bd-8ccd-81129e90d6c4","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":"caa87047-4473-46e5-aa29-4e7045ba8f33","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":"b17036e6-c86d-41db-a5da-29f97ac2aa06","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":"2b55597b-7c06-4cf4-89a6-fbb6b8dac429","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":52,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"4cd27428-dac0-4c47-af07-c20d5ae53b07","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":"a467f758-e337-4315-9888-a2b6ca10cfea","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":"47a8753c-0fd6-4619-aaf2-6f6c508f41b8","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":"c9344467-3854-48be-b497-c3699d81d5bb","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":"05227ad9-209f-49b6-b08f-9bf2be8ae817","block_type":"box","text":"Put Options.","page_number":52,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"32d5a4c3-eb4c-4797-99c2-88a4812ae26a","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":"e0e30527-e6cd-440c-a022-892f1de54c7d","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":"b84b8872-bf62-438a-9dc2-c789f65d8460","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":"7ff1d156-aee0-4631-8b73-d4be34921ffd","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":"05716249-9723-48a9-b270-b92528cb8b2a","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":52,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"82ceaa7b-aabb-485e-bb12-4761d76d40c9","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":"73532e9e-21fa-4cfd-a73f-1f245c382833","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":"d233d57a-470a-4f7a-ac1d-fb81d0f3572a","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":"6749a559-3a4e-4d0b-988b-3833dd5c22ac","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":"3620ac71-e23d-46ac-823d-21cb1916f8fd","block_type":"box","text":"purchase uncovered put options.","page_number":52,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"a198421c-cce7-42c3-b396-f7c832d05477","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"8b126e2d-b0c6-40ce-aae7-f38de8d3a511","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"14bc402e-15dd-4b6e-8abc-4900ffe3a76d","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":"93194816-ea7f-4413-acdc-d2cccab6eb74","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":"9562d462-bec7-4985-9fae-2b414a3f3107","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"5dc1db5e-1c7c-4973-ab43-f9a5d9a5cc8c","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"cf04ab37-1bf9-4abe-baeb-2c4d8529554d","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":"56c09e5c-8483-4ceb-931a-60f33a6a064b","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":52,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"240dfb2b-4663-4589-b070-8511501a5500","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":"1fe5a361-035b-4c38-bedd-dd41b5ca9995","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":"61dbdd85-fd00-44eb-9f5f-fa1f958adb43","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":"173c4798-79e9-497b-92ff-119b884c68e2","block_type":"box","text":"II-21","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7be18ae9-22c8-429b-9534-8e64a0d6ce82","block_type":"box","text":"NM1026U-5985614-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"aae0047c-6e63-4132-b89f-45cf52b6ba7e","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":"5b4ead0c-ee03-4884-b62c-8249dbd9acd6","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":"d9f3f2f9-a7c1-46b5-a108-23384274c02c","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":53,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"14c1fd79-9dd2-4344-bd67-124a0ea8b569","block_type":"box","text":"the exercise price.","page_number":53,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"98ccc0fe-20b1-4f09-a618-d71797952aad","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":"e2f9aa16-8ace-44a2-8198-fcc87600ec9a","block_type":"box","text":"The following information relates","page_number":53,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"de535860-46b2-442c-a5e7-649b58f50810","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":53,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"60b73f9d-859e-4a6a-9973-c2ce440c2a74","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":53,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"51dc2bad-13a5-465e-be36-20cdbb3b3ae0","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":53,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"eba9093f-c1d9-4ae9-805a-e55e04b6a411","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":"0ebdbe80-5b61-4e26-acac-cd833f5857a6","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":53,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"a10de796-613e-4ef1-b5fa-e73f04807cae","block_type":"box","text":"market in order to maintain its “cover.”","page_number":53,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"b3a9e81a-4d4f-4a98-ad8d-fad41146d618","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":53,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"3f4c0243-e6ec-47e3-8319-5a673763fd3a","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":"093a5b40-aa96-4b0b-b999-212a63cd2299","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":"17569d5e-1dad-4147-8bd9-d7a2561c3306","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":53,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"b094865f-6ce8-48b2-9f6f-425ad1089997","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":53,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"66c35e63-8e00-4cf5-a887-3f2cefa6a3d5","block_type":"box","text":"and incur transaction costs.","page_number":53,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"b4ae612c-35d3-4478-87e0-0ada48ec5e8e","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":53,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"43655e2a-d123-471f-97e3-077a6d6db886","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":53,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"904b6a0b-e775-4360-a50d-b3e890be8757","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":53,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"4a75dc78-59b1-45b6-ab9a-d7fa55a997ed","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":"35b28406-3e6c-40f6-a8b8-6e237edeb0fe","block_type":"box","text":"i.e.","page_number":53,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"cd14e0a4-fa5b-4d34-a1df-9f02276bc05b","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":53,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"4d783d4f-b319-4d55-abff-68de9ffaf513","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":53,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"789fa726-f0e2-4523-a1e0-cca1423dff69","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":"6fd0fe6c-3e77-41dc-b02a-59b22a94fab7","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":"d640d998-1cec-4320-9da9-e1c96d4c62fa","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":"61a6a335-521e-4fdb-9f27-cc79ffbea1b8","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":53,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"47a58fcc-a125-4a03-a20a-203c6622a5b3","block_type":"box","text":"required, to be cleared.","page_number":53,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"c52d93bb-57ab-45ee-8aa9-4d9663b1cad8","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":53,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"9ccdcf1e-a69b-46f0-9d9c-4d4600072a2a","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":53,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"87ff7945-008f-45b0-9031-d2810a1b5aa1","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":"42ba6298-2e8b-4433-9369-3e68ee875747","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":"85c73b91-12e1-4df9-902a-03933ae7117c","block_type":"box","text":"Derivatives” above.","page_number":53,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"72109b3c-6206-458a-ab6f-1b95b49f9396","block_type":"box","text":"FLEX Options.","page_number":53,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"ad07549d-ac44-4d31-af47-be04ba12ab95","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":"71ff02b1-6abd-4d42-8642-94a053501fed","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":"1d982dd6-e72c-437e-bdc6-1dd7400b24e2","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":"c4b0195b-a2ba-4b8b-a6b1-3a3d10ae2de1","block_type":"box","text":"exercise prices, exercise styles (","page_number":53,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"1c8aa846-05f1-4c2b-96fb-fbce0345c936","block_type":"box","text":"i.e.","page_number":53,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"e0645ad7-bd34-4655-8bbf-65f1af714705","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":"2e8e3c78-ef5e-4097-9c00-34d790824031","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":"0a2f58bd-0148-4f8a-9dc2-17b68a439576","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":53,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"2598ea41-ca34-4070-b473-872630d04aab","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":"79a769c7-6435-4e78-93fd-33ae80764b7b","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":53,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"aa76d65c-0e69-491f-be24-d15c3e1a91fb","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":53,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"4e539f3c-238b-4bce-b861-f44c994c6727","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":"a3c58a41-abf4-4a6c-aea2-be769b4cff27","block_type":"box","text":"FLEX Option’s expiration date.","page_number":53,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"c8b22318-714e-4112-9129-e0f4a102dea0","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":53,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"27ce7f8e-ae1a-4857-815d-bab29b8944df","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":53,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"6cd11db6-6411-4228-9862-3f1926345b4a","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":53,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"b50554a1-5f90-41e2-bac2-f808c89945f7","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":53,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"cba6fe62-78f3-47be-8791-2182b146d285","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":53,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"ce39c074-68f9-4d39-a249-a2512cf91438","block_type":"box","text":"FLEX Options contracts.","page_number":53,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"2e91f5f3-820d-4ed5-a953-54a2aea2f32c","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":"7d34076b-d4bd-4fed-b5e0-58a5886ece67","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":53,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"cf46f674-ed4c-4e01-b2d8-8afd54bab826","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":"083c3820-024f-4ce6-9884-8d3904592311","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":"8df353bc-265f-4911-95a7-75429a0af67d","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":"b367d31d-1e7f-4469-b9f7-c4f0731171e2","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":"ac202750-d817-439a-a464-93c0941f7aa5","block_type":"box","text":"II-22","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e467629-a323-4f5d-b5d9-2a9d33f7a61c","block_type":"box","text":"NM1026U-5985614-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"adec8d03-5e73-45e5-9511-c78d230ebb67","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":"f8e99ac3-3cb9-4978-a032-009c676f2562","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":"9151a235-7bc5-4bea-a417-276c0ce82245","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":"d109b85e-0f70-41ee-9dd9-30eb302bdd95","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":"ed157ee8-8ad5-460f-86e3-54097017919a","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":"ca45f26e-fcfa-4616-adea-ea905a51a30a","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":54,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"b74e0475-f89b-4215-9b21-8b257ea14c9a","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":"5940b752-6756-438b-b3a0-da7d17c1979c","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":"9fd8e26d-18e9-4cc3-9f35-c88d6ba36e02","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":"73eede53-07f0-4df2-8f33-866e4daa03a5","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":"869752c3-b00f-4fbf-a861-5a1707b2fa17","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":"1a97f38f-2d05-4473-b65e-64f086a0a891","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":"bb9d77d0-4c6b-4ba8-b5a3-f7df2578434c","block_type":"box","text":"expire unexercised have no value.","page_number":54,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"696f147f-5e12-490a-868f-0ff58774d04b","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":"e1727be5-190d-40b7-a9a3-e8916afb415e","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":"2785fa3c-2e8d-4238-b5b3-9ebce1dfa60c","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":"2819b3ee-e43b-4de9-bc8a-2b4470cffd74","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":"dc7b485c-9a1d-4e24-8ccb-2b3777da0c82","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":"6623e0f2-cdf9-43d0-a857-bed4efc5e293","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":"aaefe3fa-72de-474d-ab5e-4c9e4ede6da0","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":"fec1ab67-47b6-4832-9d9f-d704bc189fa7","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":"107f150d-52e4-4c9d-992b-c64c6c8efaa4","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":"b05b6c9f-7ca5-4fc8-a9c3-5c19e013cf46","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":"569895e3-768d-473e-9067-83db4239c376","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":"7a71d56e-b64b-4d18-8ba2-7013b3557750","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":"238b9ed3-0f99-42aa-b780-88d166f6637e","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":"c435fd51-bd4d-403b-8535-010bbd2557c8","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":"68c495c1-29bb-46cf-8e6e-ab16bd1d39c9","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":"a0abddfe-a226-4eae-8848-0a572ecc623c","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":"098faac4-4af6-4700-89ee-f381495ed628","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":54,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"4a2d5e8f-86f7-428d-bc73-b2f19c0af32f","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":"6878400c-b2ec-482a-bb88-f11f0b4dd66a","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":"9d40918b-118e-4972-bab7-9e4f152729d2","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":"611c5b0f-9c09-49cf-9888-3932b6e4493a","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":"65e41987-acad-4b2c-99c6-48b086bb8181","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":"ded0d473-024f-46b2-a656-8c71f82e3caf","block_type":"box","text":"Foreign Exchange Transactions.","page_number":54,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"2d622b15-44d9-4779-b2be-86c023e06bcb","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":"c35cbdc4-2d3f-42bd-afe4-f7861c3bdbaf","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":"30ef88c8-88ac-4ab1-b7d2-f886f4a1839d","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":54,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"5580466f-1f34-4240-8175-977bec794f8f","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":54,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"a06c080c-a5a7-4734-bf8f-d78145af090f","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":"8dd5a28f-247d-4b8b-970c-a428901cba03","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":"8e882289-ab22-461a-b908-fd70dd96f631","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":"29c978d7-878f-46b2-a411-f31492fec63d","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":"9a6bd610-5e44-4890-88cf-fe4196ec1bbb","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":"d5732723-8fce-4db2-b51f-f3c598fbcaaf","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":"184bcfdb-b1e0-4d47-bda4-75e8cfcdba80","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":54,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"8ab8bf08-8491-4276-800e-2e7c2809bd8a","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":"6e036385-cbe4-4cbd-8cb9-03867308d342","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":54,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"09cc1645-ae58-4a90-985a-21018102a970","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":"83bee7f1-02e5-48a8-827f-af31078177c5","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":54,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"37e8db7b-0ecc-405e-bcf9-3cae79fea445","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":"316dd488-644b-435d-8b02-28642955d646","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":"2f981992-e531-4b45-bfc1-3ec69a47b68f","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":"8c006c0a-b3ef-425e-bb09-529f750feeb9","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":"dc670c0e-dec8-4291-bb83-40b9032023fc","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":"632211d8-f8b9-4ef2-af44-e59e0664c000","block_type":"box","text":"II-23","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6041ee0-aaa9-4577-8f9a-1d4ad4c20fcf","block_type":"box","text":"NM1026U-5985614-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b56bce7b-5df5-4191-96b0-a3c981d74c3a","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":"3f491de0-381f-42e3-9d9c-e40de25b05fc","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":"5b34176c-7ed0-4316-a85e-dd2687b3b276","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":55,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"eab5caed-0559-4f5c-a94b-0b641f5bf1a6","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":"13180e35-b53f-4020-9c56-c917ddfe3260","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":"64434b7d-2521-4ecd-b103-5cee1d499118","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":"9e27e65b-cdbf-4d03-a7e1-f73116aa7936","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":55,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"441a0911-ec79-401e-a04a-ca6531010b86","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":55,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"6b350f4b-ebd3-4498-b340-4cd661d473f0","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":"fbe9ac6b-1122-4aef-a066-8813c55c49b7","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":"47dde2dc-88e1-4155-a0e2-23b0f5b3a0fa","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":"9e070460-302f-40b0-97cd-6e12080d8af1","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":55,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"52153ec7-808f-44aa-80ec-6725428cbbb4","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":"b2fb10f5-ced2-4a2b-9bcc-4e17b75b74ce","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":"c0644170-1c93-4589-8219-be107e35a054","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":"d2203262-5ed3-439c-abdd-c08dcf58fe89","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":"f93cf0f4-ce4c-4873-8d78-52f34db96b1e","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":"e8b76c2e-ce6e-4055-ad5d-a804fd360adf","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":"783b4f86-c322-4284-ab41-51b790a6507f","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":"72d1b614-6065-4734-be73-790a5604fffe","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":"eecbcd2e-ca15-4f2c-b9a2-c170ef81f21b","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":"e133ca94-c83e-459e-95dc-ebd7299e10b2","block_type":"box","text":"involved.","page_number":55,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"c6951648-c683-4c7e-b4ff-fa593db8589e","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":"26d265bc-05a6-48d6-9959-63745d618b2a","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":"39a845e7-94af-4850-96db-913c1b9e7a63","block_type":"box","text":"denominated in such currency.","page_number":55,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"c6ab1f7d-7921-4800-94f5-37c08bd99f68","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":55,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"5f96f67c-21a3-4c2d-9999-de8f7aa8d67d","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":"20b43255-9ec4-4d8a-a1fa-cbef984341cf","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":"ed763218-e1cb-4899-8103-20e153425f96","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":"3907acea-5686-4ce0-98bd-550bc2c38f0e","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":55,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"a155b902-98d3-4f53-ad15-644b4b2843a0","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":"b163d89c-03a2-4067-957a-f991160a8cd0","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":"9a381051-551d-45c5-88d8-ab1cf9557437","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":"0175f878-8cc1-487e-826e-f3cbd345420b","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":"aad39fbe-445b-441e-aa9c-169912637dc8","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":55,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"d402d79a-71a2-457b-9ca5-ad4bc7292255","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":55,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"f8aa2b0c-cbf7-401e-90b8-1097f33c67c8","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":"77a6fc4f-9ab2-4f75-8bb2-57d755c49d37","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":"75b03a6d-7e62-4873-82dc-1c06662d251a","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":"d417bdd2-23d3-4e9f-bffa-c22779494602","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":"f76f2256-ff67-477b-a6b1-0aefc3fb11a6","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":"e6a1e63b-117d-4c7c-9e61-5fe7e172903f","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":"15f52247-c24e-4d43-975b-bc5cf707b86e","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":"d453b32a-97ba-41f9-8f4b-de8cc34897a9","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":55,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"b5d461c0-c737-4b7f-9687-83cccc1b1113","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":"3d6472b5-4168-4818-9c72-362886b0fdc1","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":"4b46d5ad-ecf5-4757-841c-5af90186abbe","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":"e4f0e6b7-620c-4727-87a4-fbb144ae2c42","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":"b4648e22-390b-43f9-a684-0ea786094c3e","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":"46ea39f7-3209-4392-99dd-9e65b1b7bf36","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":"ec0b0842-49b6-4fce-94d2-4d818f0f0b78","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":55,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"31513718-58be-4806-8312-a45f00f817bd","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":"e0c2c6bf-bc7a-49c1-8ff7-1ae9d2e0e18f","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":"b7eb1560-7eaf-482c-aee4-88d44055abbd","block_type":"box","text":"have por tfolio 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":"a96addf4-f35d-4305-bbd7-724faa7a18c8","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":"54dec82c-b48f-4d72-bb35-1326fe4fb556","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":"2bab2741-e986-4869-ae9c-8b67dde3ca2e","block_type":"box","text":"II-24","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e915bf9a-dd22-451f-bef4-328a02a18768","block_type":"box","text":"NM1026U-5985614-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"726917ad-3677-4b0c-979b-5bd2ab89dd1e","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":"3fff618f-e75e-49ff-b81a-e449618de68f","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":"2f5cdabb-f6b3-41a5-a844-0290ecb1cfc4","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":"e7381711-40f0-4678-971b-40c5a0f8d6f0","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":56,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"79052a69-cc2e-49f1-8eea-40c384be9b5d","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":56,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"6cebf5dd-9a5d-4e8a-bc38-6d5e3c4b2a20","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":"5ed9ae9f-ea74-436f-8cb9-fb59a6744d96","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":"576ee579-54ce-4569-aaf0-3207ca1434ed","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":"faa6ec5b-580b-4dd7-a53a-dbed16b4a86d","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":56,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"aab0d4df-0f52-4866-85e9-91d18be46a8d","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":"5a42f9ad-1e8c-4d52-b93c-24e9ddbb761d","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":"a1f5cb2e-e368-4f1e-a98a-47782689c1a5","block_type":"box","text":"traded.","page_number":56,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"ff5b8a65-35ce-4681-bc3a-39664c874a62","block_type":"box","text":"Currency Futures.","page_number":56,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"981aed3a-6e72-4d25-80b6-10e91683471b","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":"b931f28a-b3cf-4503-bf24-4e88774e2247","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":"110d1f0f-17e2-4275-b541-2feb9c938021","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":"12758e85-e52d-4cd6-a356-b5c28fb27ea7","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":"04279c28-0f4f-4cca-a3ca-5bbbdbfafb3d","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":56,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"9c59ab35-61cd-4529-a20e-b06735710e7a","block_type":"box","text":"Currency Options.","page_number":56,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"3b2f3a47-d0c7-4a73-b852-66f75cb9cfcb","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":"e0a5ec3e-8816-4f92-be06-dcb029b26545","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":56,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"02e3f0db-5b4e-4faf-8424-a89cc18dae6d","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":"91cfed9f-c05d-42b5-8cb6-66bc1add6b37","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":"df695c58-0bc4-4202-ba8d-0c17366d7163","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":"1fe10615-bd3f-4457-bce3-781e64f10d4c","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":"40dc8145-3f65-4feb-b611-cdd7e2c04f60","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":"1c655dfe-f75e-4f88-8ee9-49582f8810df","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":"7177bf10-ed0a-445f-baab-45461249f784","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":"e72dc00d-2589-4f1c-8784-522af885e174","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":56,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"79c4a9d7-73ba-43d3-ba09-1943b83a65c7","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":"07e399f8-7126-445f-b80e-0a39b0b08e8b","block_type":"box","text":"Currency Swaps.","page_number":56,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"9c405ffc-cd8b-4886-9ad6-70947b438bed","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":"b63581aa-39ad-425e-b28a-5a71d1d1b8eb","block_type":"box","text":"hedge por tfolio 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":"63793bba-9ef7-4d7a-b80f-fd9d46b42e23","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":"01ddcc47-8e07-4c97-a588-09243dffb147","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":56,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"35f86a0e-e840-4e92-b1b5-5ba9c93beb70","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":"68f657ae-d173-4af4-b3c5-c280fa6b03c5","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":56,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"f5a34857-b853-42e2-9388-df8215aec9a4","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":"e90b6921-c86a-4756-af5a-efc2fdb1bd8f","block_type":"box","text":"Distressed Securities.","page_number":56,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"bb19e281-b79e-43ba-b0ab-303bcf760ca2","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":"4a4d41ba-ee5d-4599-b33b-0a0943b2308c","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":"807f7466-4a15-4c6f-bcf3-e6e9fd7bef1e","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":"a82e7712-7297-4d51-80a3-5eee9b0f9436","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":"e3db8e12-bf01-473c-8520-bcec1c9ae444","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":"4c9d8a42-b352-4455-bd9f-5507cb126d7a","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":"080d3783-0f0e-4413-8da4-48203522bf3d","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":"16b86ffa-6d4c-4fb8-94cd-8f6f5d5b1a81","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":"84c98df2-5adc-4086-9237-be62e96fb1c4","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":"20d6f2bb-8ece-49a3-abf3-e4dac2c3aef8","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":"e8639974-891e-4127-af33-d3f741658b89","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":"7b2d9933-c442-4e6e-a2a1-fda74fb69e03","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":"b2cacc84-0eac-408d-b970-3a836cd7a5af","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":"93ee63ba-470a-4e82-b129-c5acf1d7fb27","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":56,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"59d31f9e-ddcc-4273-a2c9-631a2cbcd4a8","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":56,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"3e7a4062-4e16-4a68-9a78-60c555db33b3","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":"2b2a8e74-d883-4993-be1e-540bc9fe49b8","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":56,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"73ce7dc0-84e6-4723-9945-b86b18450d4c","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":"d825b2d2-7a5d-4b6a-b9ea-bb6082192f1e","block_type":"box","text":"satisfied (","page_number":56,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"32f405c3-4634-42da-9acc-82b0b49979f6","block_type":"box","text":"e.g.","page_number":56,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"691fdc1f-2cc3-431d-9542-2a77a0f7ff70","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":"875a5b2f-a7e4-46aa-9767-d0439700bb44","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":"8e38ea8e-a5d3-4d35-abdc-c571a9ca7886","block_type":"box","text":"II-25","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab87b069-dde3-461d-adb4-857359f21712","block_type":"box","text":"NM1026U-5985614-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"78bd4bf7-6844-4c61-8c44-50946f7f23f5","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":"0aae4160-8f82-4958-b6a5-bce42ebbaa53","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":"31baf7c7-35a7-4ad8-b6a9-8c6114afedc0","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":"cccbf49f-0656-4be9-8345-8db464ff6303","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":"77e087f4-6574-4e98-be6e-7a245a56726e","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":57,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"328ca20b-5881-4d5d-b069-f73905e36f8c","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":"97e3901e-5bce-45a5-b3a2-f5283a9e74df","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":"330d4c5d-4e94-4a90-be23-a08d95016abc","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":57,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"306c9d1e-9c55-4962-a0cf-04b6e9a5f6db","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":"a0b980ad-b20d-48fe-9696-f9869dc4de8d","block_type":"box","text":"affairs.","page_number":57,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"7f0a037e-3b18-4962-a293-3fda1508a0e5","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":57,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"7e584196-ea74-4a67-a854-9286aec73b16","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":"d116b020-29f2-4ac5-9331-60e563d7f48f","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":"f3937d16-bf4f-44a5-bc66-e6c165b6efa5","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":57,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"650049be-2600-42cc-abf6-43dc43c47220","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":"01051bca-7f59-4af1-8b7b-e7a8f44ebece","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":57,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"9463758e-fcb9-44be-9f8a-0eae337f1069","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":57,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"e832d7ba-7074-44ed-8778-4f9484284443","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":57,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"a0895533-4d05-4ee0-8455-a6c79964998e","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":"e80e03b4-9519-44cf-a5dc-4ad91aac785f","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":"3debf38b-6cbb-475f-86a4-4ff742ec4b94","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":57,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"b066ca7c-8ae2-479e-87ec-a0ac5356ee4f","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":57,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"a44f9737-d34a-4fa7-af87-22e394e8b3df","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":"76ee34fb-d416-46d8-ba55-3411ecc37e50","block_type":"box","text":"Equity Securities.","page_number":57,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"963533d7-df47-4feb-9bc1-29244dd0b8a4","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":57,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"8e42b354-e66a-4ca3-aefd-1c97b56b9cb6","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":57,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"c75be811-b39b-454d-981a-428a277d24a3","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":57,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"5cea4ff7-1da3-41ad-98a0-4469bc795eea","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":57,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"c8c30f12-e72a-4ada-b78f-5936b51d5b41","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":"acebad9c-e2a0-4912-8489-05a37c9611a0","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":"414e1b77-a79b-452f-9cd0-947ba59d8c60","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":"aa6a5ebb-7619-43bc-be54-73e6da3072f3","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":57,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"ed97e0d9-2dae-4b29-baf1-5df7d74f50b7","block_type":"box","text":"shor tages 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":"87879ba5-e80e-401c-a9f0-83ebde234031","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":"6be30ca9-3c4c-4d71-bd2d-8f5b8941e20f","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":"bb084333-5c4b-4484-91f2-6826e4b5b1bf","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":57,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"57fb06c0-0be6-48b5-be54-5b6e701f8caa","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":57,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"45cec9b2-643d-4d67-9ba8-a4570a090edb","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":57,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"13f69e1b-36e1-4178-bf8e-61336baaa414","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":"d7cdcf40-6b1d-4280-b809-b5ab21abf06a","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":57,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"74559f9b-97f7-4a3e-bd95-bd93b5f1a7c9","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":"b3cd4821-23f9-4286-b6e6-79813b3e2b79","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":57,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"156dcc2f-1408-4c05-9137-6676c7537210","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":"dbf0f8c5-1d5d-44a4-90fb-4e2598babb3a","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":"51b607e1-319a-4393-bb55-5c5c1509d0c1","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":57,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"87a5fd1d-5fb6-4855-9b3a-7681f6571c2f","block_type":"box","text":"initial public offering.","page_number":57,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"3a9e8fc4-1e7b-45a9-8bf1-c72b0a0958f0","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":"5fc77241-4465-45cd-9cbf-7373510b4f0d","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":"6a294e34-efd9-4475-9631-e5865d4c544e","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":"2c5a28bc-db9e-47e8-801c-7e049ab95ac6","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":57,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"c758b493-d507-4b0d-ac6f-40025d352137","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":"dc3a5423-800d-4e20-827c-1d4af82e9377","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":"7aa1aa00-eb63-470e-85d6-3abe19ad97bc","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":"d268df0b-be96-4c8b-bbfe-51a242964724","block_type":"box","text":"more established companies.","page_number":57,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"9cc43445-d5d3-477e-a65e-c0e89fe2cc67","block_type":"box","text":"II-26","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc2ea69a-16ee-4b93-a904-23f69291c4e3","block_type":"box","text":"NM1026U-5985614-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f88763e8-d80d-4cfe-8b52-a29c34daf244","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":"50470787-7e6f-443a-8bd3-12529d5ade43","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":58,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"768d5ec2-c362-4494-a1e7-d0e9a9345dc3","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":"dcb86a52-5328-4975-95c2-a325b8c7d506","block_type":"box","text":"below.","page_number":58,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"c8bbbf44-beb5-40d7-a0dd-22752345e5e0","block_type":"box","text":"Real Estate-Related Securities.","page_number":58,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"47eaa507-f5e3-4b1a-82e8-6ded8c45dcf3","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":58,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"7a5273f8-2a00-4149-a01a-7a34c425635e","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":"ff6ea5de-a612-486d-906a-93db01b20221","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":58,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"fcffeca0-27d6-491d-a66e-03cf8a5ff79d","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":"8028d606-e56a-4cd1-9f78-2ca8ec3dc8d5","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":58,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"c3d1dedc-a296-4c49-98d2-40593036faec","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":58,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"d50336ed-b9d3-4d4f-bd6c-10c1b02408cc","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":"7ff17f8f-7628-4ad6-8626-6116395201c5","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":58,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"14312ba7-ce94-4b24-a2b9-9bec4ec2bf5d","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":"21c1976f-9517-40a2-8626-7bcd8b9601e4","block_type":"box","text":"ear thquakes 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":"ef9fca87-d5ac-4c2d-a3fc-89c25d7c49a1","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":"7c93ee54-810b-4373-9f11-9b4a40f1960e","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":58,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"68f01242-b25a-47ad-af77-d98bc4887bb0","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":58,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"bdc90835-2c14-469e-8aef-102086614d16","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":58,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"69e468b3-24e6-4a74-8a81-3790192a5be2","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":"12c06e22-47e6-48a2-9079-ae0e5be3fd46","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":58,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"fda9ecc5-b8dc-482e-bc2b-8a9bb2b542d8","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":"b2f72442-4c89-4b11-8858-c8a019763a92","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":58,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"78249863-e319-400b-b657-a73870886bfe","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":"f1730fc2-bd82-4260-b62d-0be24101497b","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":58,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"4fd3eb42-3414-449d-9400-5e48a23d6b35","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":58,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"1409587d-68c9-477d-8fe0-51203f456415","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":"2d29cadd-1dab-4efc-b7a6-88e0f1aa24ae","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":"4922a4ee-6e00-4c69-88df-ee93454bd83d","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":"556ee89c-114b-4cf3-8497-d5ce54052cee","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":"621a04ac-6366-40f2-a8cb-77dc47a6516f","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":"07a6a8b5-0ec8-43cd-aff2-e6ade947d334","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":"37abe588-733f-4056-80cc-f7f1e6fe7b9f","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":"a6d4301f-6570-4380-8b3a-5f31a3917219","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":"76e693c7-6a48-4d67-988e-9bccdc212fa0","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":58,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"ef881f3c-5b21-451f-8bbf-b21a5732491e","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":"2c5ade41-ea1e-4c8d-8a67-25324984d06b","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":"cfa6bc5d-71e1-4836-a3e8-376fa3fffacf","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":"fdd63819-e63d-4a8d-9008-d3b07e00642d","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":58,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"344302d8-dd68-487d-aaae-d60d3019c47b","block_type":"box","text":"promise but lack cer tain 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":"240109c2-0199-4847-87f4-b77c546c25ba","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":58,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"fb9956a0-427c-4c7e-865a-7999e0d2c386","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":58,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"a42d97a7-18bd-410d-b19b-bed8c370c4d9","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":"82c15dd5-fa64-4ef4-894c-025353d0811d","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":"d80abcae-ccab-45f6-a017-09ac16fbbffe","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":58,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"ecb515e2-c5dc-4168-9a87-72ef2c80c073","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":58,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"4ba2ad17-82fb-4101-b146-1a4d4b0140af","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":"84cbacc7-b4d1-4fc3-8a15-f61102385674","block_type":"box","text":"cycles.","page_number":58,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"6db8e38a-31ee-4609-942e-2987dc0b59f4","block_type":"box","text":"Tracking Stocks","page_number":58,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"72593469-9180-45ff-a0ea-4b8a20e8989e","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":"8ff7585d-86b7-467e-b2c5-d49c2dd33a76","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":58,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"465184a7-e499-4753-bc81-cdfff845c3d4","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":"a75bda52-2053-4448-af5c-40a31b24a396","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":"8a18ed10-4ba5-495e-99df-52aa971ac4f4","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":"83834385-3561-4e8f-934d-68fa506ebdd2","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":58,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"f8a9da30-2d3e-4b2c-8da0-b9f997e03c34","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":58,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"85568352-2b20-4f2e-a8ff-6d7e044a87b5","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":"0b562c73-6425-483d-9de5-0af85342ce5b","block_type":"box","text":"II-27","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e03eb27a-7fd1-4f8a-bdfd-6763d0a7d2a8","block_type":"box","text":"NM1026U-5985614-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"77ea34ab-fae4-4323-8ab7-f7a2a01a4780","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":59,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"6f7a1ed9-0a96-453c-b124-0eb742f8c6f2","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":"7a8af059-4779-4709-b581-dd0f6ee6ade1","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":59,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"15df67ad-568a-4569-816e-2e0a357f1fc0","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":59,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"13c594a2-41be-4e6b-8aa8-11ba29691dec","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":"2abda89b-148b-4ac7-9269-bf13469ee864","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":"db0da0ca-ebac-47bd-8f6d-500d1526210b","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":"43c38f11-cac9-4474-a674-6753ec55eaf1","block_type":"box","text":"per formance 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":"24defc35-28cc-4604-93b0-e6d547949ee4","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":"d5efb802-e882-4e2a-bb38-9317e598be34","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":"074f9d61-631d-4d69-9f83-a67984d50681","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":59,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"9ee3a67a-6f73-4d3d-b294-4b8ef3331ff6","block_type":"box","text":"ETN.","page_number":59,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"5dbe7ab9-8d09-4e91-83f7-71b9814098e2","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":59,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"cddc1e92-98fc-4e71-ba9e-843872d8f063","block_type":"box","text":"ETNs also incur cer tain 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":"8d4b3811-5e57-4726-b95f-956a939d65ad","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":"51e9ad61-5630-47f4-873c-5f705c3eb543","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":"30fe31b4-c05f-4e40-82e0-2121d27007af","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":"130402b2-4c3b-4ead-bd72-00873335a112","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":"a4ebf6d5-4e7f-403d-804e-c19866a41b64","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":"65c6330d-cb36-444a-93c2-694f1d01bd69","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":"bab161f8-1fb1-45b7-85c4-6b3ea32a6277","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":"84a2f374-8bbf-407c-a450-ed047e90b00e","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":"dee6743c-80f7-418e-ad9a-85bdc98e4440","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":"7acfc81a-78d6-4564-bc6b-8176a08d813f","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":59,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"c6e8640a-d63d-4c78-abe3-fc24751f6e34","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":"bbb5ca16-0dbd-4e65-9e1c-5b77a6c98f2e","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":"c596129d-5505-4543-8753-ab7455f196fd","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":"995bbea7-1a13-470e-8d68-acf5df4aa967","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":59,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"3d67a447-bf9d-4fb6-bb24-63d31d059db9","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":"5e2d0e39-23da-4bec-afeb-fb40ace29ca7","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":"acab47e8-c553-4d84-b9f5-7530ea431a21","block_type":"box","text":"Foreign Investments.","page_number":59,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"8d1b3afe-7a78-4e58-b3cc-4343bc17299e","block_type":"box","text":"Foreign Investment Risks.","page_number":59,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"0d6ebfd8-2f1d-4149-8d5c-80c05c00f5a7","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":59,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"9d4d8a33-8a1d-407e-923e-e88d02293b21","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":"24ef3b93-0d35-4736-beab-ca7713e4ffc3","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":"eb8beb0c-2d4f-42fd-b7a1-98780e54fea9","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":"a4cb9e2b-44d1-4dc5-8232-db895a900589","block_type":"box","text":"Securities issued by cer tain 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":"d7b3cac0-ee2a-44fc-8e5c-85f242bf4c5d","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":"f65c9fae-5fac-4c1d-a80b-9942554545be","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":"706958ad-0f06-4c37-a701-d0625975e742","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":"de831fa3-873f-48c7-93e9-b933558a08a1","block_type":"box","text":"benchmark index.","page_number":59,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"5d10b0f1-ae3c-46de-bcfc-ea0b6a87b789","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":"93d9348f-78c6-474c-a3aa-31cd4aa0be07","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":"17d51ec8-8f5b-45dc-ad07-fb785b310f79","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":"be563c9a-f928-4231-aa1e-37ce96fabf45","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":"3632bf70-b6ce-41a4-891c-9052543f7543","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":"1c923284-e9da-410e-928f-7d95740df052","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":59,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"6f4dabf5-7121-4061-ae83-0641a9d6745b","block_type":"box","text":"securities and zero-coupon securities.","page_number":59,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"1777dd3c-2e5e-4205-8340-87ff5b6ce6ec","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":"5b0088cd-b4b5-42c4-b794-400fd239666b","block_type":"box","text":"taxes.","page_number":59,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"1d57dc64-e3a7-4b5f-a896-109054bc9ba5","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":"856437c9-65eb-49c9-bcdb-7e3136cf59c7","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":"924719fb-11f9-4086-ae07-6bca8b65e08b","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":"3b755d1c-bfd9-4c00-bac7-b38b00d02295","block_type":"box","text":"II-28","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56e867c7-8025-4f28-8761-05d7221aa216","block_type":"box","text":"NM1026U-5985614-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1aece48b-a36e-4da6-8b44-d15f87b7e6db","block_type":"box","text":"underlying security (","page_number":60,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"844fb201-a344-4abe-8597-b5b71bd8bc41","block_type":"box","text":"i.e.","page_number":60,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"0167423c-f4b2-4f28-a377-e596c195d342","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":"7476afe4-a5db-49f4-831c-2976dd71073c","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":60,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"4cc853d3-0392-4e65-9073-8ef9a202d69a","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":"01c382cf-85ba-4a96-ac80-8a33137e1be8","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":60,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"426e817c-89a2-43d8-a9c0-86f0eaed8f15","block_type":"box","text":"Foreign Market Risk.","page_number":60,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"cc5e5c3f-166e-4018-96c5-028a3da44067","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":"7b263d67-94e3-4988-9fe5-ba94644abe26","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":"ff65d4a5-ab5b-417a-afad-4c4e924d358e","block_type":"box","text":"always) per formed 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":"5abd4891-84d2-43c9-a0b8-9407e3d8d6c8","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":60,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"8e0271aa-1e24-46fa-b102-b551f05ef82f","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":"3f4f2f99-1569-483a-a2d9-cab01a34fcda","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":"2c0bda6a-6e1f-4d86-8bab-b7b0bcfc7311","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":"80c0e60b-bdd4-47b3-882c-bba100d4f05c","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":"5b90e0aa-8316-46a6-a543-e37ee7c11a95","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":"db876f66-ea4f-40b3-b243-25d1cbf942b7","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":60,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"d0218ec6-22ff-47ef-beeb-6ceae947fd7d","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":60,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"ff52f440-b4a3-4de2-95da-6aef966b2f13","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":60,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"5e2148e4-32ce-40f7-862c-8bc96f3f0e42","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":"eea74b1d-027f-41d0-93c3-d8a0e3657f8b","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":"cc078dac-63dc-41f8-8a00-f40afc88f383","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":"3cf0457b-605b-4ed9-8cca-53b89935dcd6","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":"23993c73-0c0a-4b75-950c-64bd9c201268","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":"30f83d0e-1f41-44b1-8136-5a6675124dea","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":"8ea5b067-ecd4-4576-8df4-d2a62bc927be","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":"e934dc6d-4ac0-4eb2-b0a9-4de210b47371","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":60,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"83f5203e-03fd-469f-a6cf-73a57baf5103","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":"1742c306-fd51-4b6b-8c79-a2628024c2a9","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":60,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ee37891f-7e7e-4029-815d-072d4a59e43a","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":"1b7d993f-6ba2-44a3-b137-2a86a17fd230","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":"2b9af52b-2729-488b-aee2-8a7cabc2f062","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":60,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"459ced61-bbd1-483b-8665-01f1e54c5562","block_type":"box","text":"Fund’s operations.","page_number":60,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"d4446904-4cba-4382-b608-0541fcea2854","block_type":"box","text":"Foreign Economy Risk.","page_number":60,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"c34a39c0-a7a6-4020-b40f-80c617ae182e","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":60,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"84c1b9da-aa74-42d0-aa68-6c34db993e8b","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":"0b895493-7fa3-42e9-a921-e0cccb0b0ab7","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":60,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"aad8058f-5328-4fe4-ab4a-78fe6e15d7ee","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":60,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"024d3bd9-f231-46df-8151-1a9ddcbd0eae","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":"fa6f2ad3-178d-486a-b300-d09d928c9307","block_type":"box","text":"measures.","page_number":60,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"8604bd5e-776c-4d8d-bc3f-235e2003d0d5","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":60,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"abecc19c-45b3-4e6c-accb-b1179cae8ca1","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":"1fe7a8cf-53dc-4b8e-b072-f8aa430f92bb","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":"afb448d0-c2b0-47d0-b537-059f726c73e6","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":"6b23b424-95a8-4e28-8d03-a3e3b36a90b8","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":60,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"2d394e1a-858c-473c-b883-b07bbb79373c","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":"66a03106-369d-4efe-9161-e201072943ba","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":60,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"0f8e3038-888c-474d-b310-67cee063f095","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":"4cb91708-be72-4d18-a0d8-811c646033c2","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":"14259e40-e7b2-4024-907f-2d42751bd77f","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":"b932c63c-c4cc-4d28-9ebc-1483d171a1b2","block_type":"box","text":"United States or abroad.","page_number":60,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"940d3cc1-a4e0-48b0-b345-fc97be8439ee","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":60,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"f81ef320-e7cb-436e-b1aa-18f72c273417","block_type":"box","text":"Many foreign governments supervise and","page_number":60,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"7955a874-5038-4c98-8791-bf1e5e26ea3d","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":"2481e80a-9342-4a74-9746-1fd62348e5bc","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":"7059a0aa-5239-4146-a167-50f83e496bcb","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":"7ed7cfe1-4288-48cd-90cd-d9dcdb2c5663","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":"dce5275e-89d6-42e0-a947-c90a3002b59d","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":"5a4a76b9-c83c-40fc-b56d-438d13880930","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":"0b7228c7-35c3-4ce2-9722-fcb91390cb4e","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":"7dd03d7f-4ef7-43ee-83ef-1c47e1010a8f","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":"e44eb400-fc08-48bb-8838-e99bb508bddb","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":"9c0b878f-bfba-4a69-adf3-9bd1aaa42149","block_type":"box","text":"II-29","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14a7ea10-d9ba-4de2-b6bb-63a4e651f647","block_type":"box","text":"NM1026U-5985614-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"20b6c080-deed-4986-9495-9e5015a8b7f0","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":"1f54d60c-d802-40ba-8557-80c9e0d03d50","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":"9e481b75-5739-4069-a478-85b6fffe747e","block_type":"box","text":"investments.","page_number":61,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"d3274093-46f0-4ede-bf18-59a1d7068858","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":"5e1f9950-885f-4a03-b0c7-8df8cb48ea5f","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":"b82c8a27-ae7f-45c4-80e5-c8f2d1975bcb","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":"99da24d0-015f-4f95-abc4-a7ed27248191","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":"6054d29e-4dd1-43f8-9edc-d8711aed6c51","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":61,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"d41f70af-8051-4ad3-90ee-af6090907ec5","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":"8aaf1b97-5f7e-458e-a5bf-4fc276b201ce","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":61,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"1c4c03b2-b5e1-402e-bb81-385dcffdce04","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":"11c5eb43-da2a-4173-a8c5-45490cd351e1","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":"ac119d5a-98fc-41b3-9c3b-c2f7f941eb8a","block_type":"box","text":"States.","page_number":61,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"516331a0-d90e-432b-8143-aff1c4bc9a8c","block_type":"box","text":"Publicly Available Information.","page_number":61,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"1551885f-95b2-4690-898e-3f3d65acf905","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":"46192daa-6ab3-49c2-a161-cdeaf80a317f","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":"2736e81f-8a0a-4dab-a66a-c29726c0ccfc","block_type":"box","text":"accounting and financial repor ting 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":"a2a463d4-e7d4-499d-a772-356987ca8a52","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":"efe91acc-9c70-48d1-9366-75758f9ed7f9","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":"848ca13b-f8cb-4e65-82c2-f6a4b8b976a0","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":"3eeae079-c5f7-4bc9-9014-b4e210ecd483","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":"fabf4b10-42dc-46c7-b5aa-dcb39a69c859","block_type":"box","text":"United States.","page_number":61,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"8fac0dcb-ffd9-4ca4-9b04-14880902b764","block_type":"box","text":"Settlement Risk.","page_number":61,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"b1f2d14f-ac9d-4345-8e78-14737e0d797d","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":61,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"8b0d8293-c591-411e-bcaa-6cf821df260e","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":"5e2d54ec-13ce-4ea2-9f7e-2483ebc298d9","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":61,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"fca7c4e4-90b9-47e3-9060-e038c54837db","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":"49d8d0dc-f0ad-4cd7-b59d-421a27c77cad","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":"86e0c0b8-132a-487c-bf50-51eea3e19144","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":61,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"0b41dfec-addf-40bd-9de6-064cd3c4d964","block_type":"box","text":"Settlements in cer tain 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":"fd15aa69-94d4-4163-a160-2e6b5b9ed854","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":"68ed7d25-8d10-4bed-ae58-1bde7b7cd412","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":61,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"d11470b1-2d71-4151-aaec-0eefa85b7200","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":"e54f21bb-1d78-46fd-87da-3dc839af22d4","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":"dd753da8-8a43-435a-8422-9b68843c60f0","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":61,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"56e1d0c2-2a06-42ce-9788-2c499cdc8a9e","block_type":"box","text":"Because of uncer tainties 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":"2dc6b761-9cf5-44ae-a93f-4929a812ea0a","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":"2b99fad1-e29d-41e7-847d-13b5fffed7f8","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":"18fefe38-8ac5-48ae-a126-53bfd38615b1","block_type":"box","text":"Sovereign Debt.","page_number":61,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"154db30f-93b6-41e5-bb06-77e556268e4f","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":"52cb44b6-c295-403e-a229-109e9fba463c","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":"51e56338-2436-4a85-8fd0-e25b35454cb7","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":"11398673-f89a-4045-9b33-ac18b2756b1c","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":"8925f07a-ef31-4080-93a7-114ec64f78eb","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":"45d70f45-af81-408e-8da4-b2569d326c3d","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":"05048f19-af88-4975-ad76-1022fa056c99","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":"f8ef1d8e-9d51-4fed-b452-b774bdc80d35","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":"2c36e2b5-d6aa-494e-b3e8-2f3ce76eb2f4","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":61,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"526fb811-c7e9-4f17-a74a-fabc38063eca","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":"1f9a53c7-a314-446e-85eb-d01b9f674e94","block_type":"box","text":"economic per formance 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":"b227c9f8-0363-49ad-a798-522acc5f490c","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":61,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"f8b0c081-ffd4-4ee0-a437-160ab14dc069","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":61,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"c6926dab-f353-4a23-827a-966606c1423f","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":"feaa5774-4d5c-40c2-8a08-aaf166e605f0","block_type":"box","text":"debt.","page_number":61,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"778c2c87-c60e-43ed-9f3c-b89f081141d8","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":61,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"22f2fa1c-3b26-401f-b086-c2941ff13d84","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":"c92d892d-abdd-40b8-9a8b-c09a29376ac7","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":61,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"2447e440-13f5-4952-aedf-0e495113d3ee","block_type":"box","text":"II-30","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe48ede7-4bac-4dfc-8408-cca00b4cd6b4","block_type":"box","text":"NM1026U-5985614-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"15cbf9ac-7a4f-4e80-ba42-e764eb04570a","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":62,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"34bce196-03d1-4781-8105-bab2b46e0f2d","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":"33edddcb-549a-45ea-bb58-044f2707000d","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":62,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"32041b0f-7689-4db9-b5ce-3862b9ca7bed","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":"afc6b151-6386-41c0-8051-3bd853f27b55","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":"3c95696c-4e0d-4e18-81db-e9db2c8fc25b","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":"fb1537b9-ddb3-4539-b7c3-af6311434d8d","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":"77ff52c8-ff54-4840-811a-7cbafd69629c","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":"cf226725-37f9-411f-b332-7434215395b4","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":62,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"9fb1f08b-dffd-40e8-8686-644bb5566cbf","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":"f97dc1f3-6fa7-4839-aacc-5ccb0f693e9c","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":"37246e4d-2e48-40f9-bf41-dde139aa9374","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":"da79d4cd-f207-4dc8-8e69-46198716f312","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":"9981bd87-5635-458c-9cff-669298738d86","block_type":"box","text":"in the Fund’s net asset value.","page_number":62,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"86aa69cb-c23a-4fa4-aef7-8841f58cfc6d","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":62,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"dc1b8dbe-32cd-448a-a3b6-dc235a48b2f4","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":"2b2c29b4-bd27-4c18-831a-40d387fb846d","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":62,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"91b34bd1-b3aa-46fd-9543-6c85eb8133a1","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":62,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"957b5225-724a-4788-953d-753275f3643f","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":62,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"d5307ee1-5033-4fb1-b46d-8de7950c463d","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":"1c074c6d-1860-434c-9404-dee31d197c78","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":"0c7139cc-1943-4836-a75b-0ce5f373367d","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":"a3d3a417-5926-499a-99e6-7e5ca4be0543","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":"bb39f5ee-3ede-404e-9aac-4fb483a1361f","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":"ef5a24f8-4c84-4a54-a26f-24091e7eb1f9","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":62,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"71a18820-8682-4646-85be-6a1dfe796ba3","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":"de4c1fa2-0c1e-4c93-99bb-30394aad6942","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":"9c1cc434-8152-4b5c-93a7-c64781914dfd","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":"21e7c6ee-5b14-4fb5-82cc-e17297e12965","block_type":"box","text":"Fund may invest.","page_number":62,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"9f629e06-6fba-4463-8554-b3f1114d51e3","block_type":"box","text":"Funding Agreements.","page_number":62,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"33be4297-228a-4639-bac0-57afd5394dc0","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":62,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"61b8ef8d-71f2-4fe4-baa9-f6ae984b1402","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":"879317f8-3afa-48d4-af5c-e78ac7154a9f","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":"868fb85a-09b4-46ef-b712-ed5463d7d78b","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":"136090de-3896-4b23-a500-94923bfb850e","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":62,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"0047b12b-1169-4763-a404-a94c3d4e9c82","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":"d2513cea-2ba9-4b53-9249-1a7803c31b64","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":"701bb666-fcc5-4720-8908-3a4b0b834780","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":"ed90a507-4962-4d38-918a-0b7b73eb4fe6","block_type":"box","text":"Guarantees.","page_number":62,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"d8148264-1aa4-4ca5-ba83-c3768b7f1696","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":"98100bc2-e09f-4604-aa37-664e7e35b3a1","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":"6fae5dab-5816-448b-bb8a-cbc15b415f35","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":"77b31b7b-261a-479e-bf3e-520cd37cccfe","block_type":"box","text":"Illiquid Investments.","page_number":62,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"1de61aa6-877b-439f-8e24-75e6f762ae16","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":"633bf97e-b8cd-48ef-aad7-5e2f26367975","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":62,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"dfb51d45-14cd-4ce0-bb2e-39ec88b3592b","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":62,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"7c44c259-2432-45c1-8211-88dfb8b4443a","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":62,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"d2b6ffc1-dc08-410d-b9e8-caf6daf3ab4d","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":62,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"59469a65-2e6b-45db-af38-e14178de5d26","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":62,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"e801b173-3a7e-4770-9b36-5893c5f0ba25","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":62,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"4b5fc9f5-f3c4-497e-a6c9-466826de8702","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":62,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"00c367da-cdea-4b33-81dc-cd8328cb1dc1","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":62,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"ab5feb1b-fc72-49df-8d08-9ae5fca11d10","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":62,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"e53382b5-fa5a-45f5-b1d2-d7af5f8841da","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":62,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"142b968e-1e46-4ff9-91dc-592d87d159d7","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":62,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"91610a79-4cfe-470e-9dc8-45a057d5d1f2","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":"7e5387f3-8568-4c93-8aaa-1433db57f260","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":62,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"3f5d7722-cb81-4d03-ac03-e1a037cb1fa7","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":62,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"a36d3ed7-60e0-4994-8e66-2ba5ff951337","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":62,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"8084f640-03f7-4bce-bb3f-298e70e87910","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":62,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"cf16a7fa-0b4b-4cc0-a39a-512bda20f3e6","block_type":"box","text":"II-31","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dfa00bdf-19b6-4799-8bbc-8edf15633788","block_type":"box","text":"NM1026U-5985614-62/232","page_number":62,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2aad026e-6c38-4150-849b-f1b038fdf86f","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":63,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"4c971a45-83c9-421a-8233-3208a44d6106","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":63,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"8ec49d47-6021-4afb-a4e3-233f0027316e","block_type":"box","text":"Index Funds.","page_number":63,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"43d018eb-d732-4c85-96e5-2b3e3ea88175","block_type":"box","text":"Cash Flows; Expenses.","page_number":63,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"9e85fe32-8c64-4d2d-94bf-fa3f1cf3af59","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":63,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"3d7b6cf3-3431-4dd7-8953-f3d714ae5e5b","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":63,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"3c3b9b85-6792-4310-b164-220099ac3ba1","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":63,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"740586d9-e4aa-4341-9801-3a052ee67817","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":63,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"5ed375d5-e8d8-44ba-8481-86dbaba4cfeb","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":63,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"5e17e0a5-70e9-421f-9a69-8e1488587381","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":63,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"dad8af42-c0c0-43c3-be6f-3342f6a68040","block_type":"box","text":"(","page_number":63,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"fba85a64-7043-4bbd-a711-70ca928b1aa5","block_type":"box","text":"e.g.","page_number":63,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"da12b018-0a7b-491e-83b3-e75a4547beb2","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":63,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"3afd8957-de1c-4508-8619-a40d115042f6","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":"5c6e661d-3342-4043-acd0-914c167fff86","block_type":"box","text":"par ticular security as an investment.","page_number":63,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"5c58eb5d-0ca9-4f0f-8d92-dfd24a8db627","block_type":"box","text":"Tracking Error Risk","page_number":63,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"672de327-10d8-436f-849a-e820474329e0","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":63,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"f110cb3f-2a01-457d-899a-99dbdb72ff7f","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":"70da1448-5306-4ccc-a83f-7ea450fb5fc9","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":63,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"3c0d5350-f711-49be-a2c5-2a64a7081538","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":"ee4f81c0-9ba7-4a7e-9617-6083bb88b1d1","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":"a10bf20d-510f-4ed3-be96-005f0d25ee97","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":"44b6b714-e658-4c87-a5b3-0a89b26b3b34","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":63,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"db638082-3bc9-470d-acab-5e101d311a45","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":"a08c55a7-76f5-48c3-a99e-3f97f9167209","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":63,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"fd42fe01-f31f-4b03-a4c0-60bc8db2c979","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":63,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"fe17f18e-9353-48eb-a57d-204bbc56e7b0","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":63,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"896d082a-1d71-45ce-a582-f4d31121dca9","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":63,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"d4f0e7f4-0174-4886-85ae-5a2b91299d38","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":63,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"e41b4ad4-3a30-4898-b3bf-cf3a3787b16d","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":63,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"2fae78b4-27d2-4688-bf02-43bcea4f0159","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":63,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"b7df799a-c553-48e3-bee0-82bf889d0efb","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":63,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"d4ba3a4a-8bf9-49e9-8765-daef3697f444","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":63,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"916dd6ee-4575-4e25-9109-011075117de5","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":63,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"c2dd8a4b-b4be-4bee-9c45-d78fae2ff45c","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":65,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"36532e34-6a98-4170-8590-573e24213d78","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":65,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"146b5b48-f1c2-48bb-830e-1c0084db421a","block_type":"box","text":"ICE BofA Indexes.","page_number":65,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"41f28f8b-c664-4975-8c49-90918ebb933c","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":65,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"43c0e209-0d5f-443b-8814-9a41c5b76269","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":65,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"621d5574-b69d-43f9-b5f5-dc60e75e2759","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":65,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"738afdf3-bbc2-4538-b77d-4506c6710cf9","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":65,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"6c1f9520-f117-42ed-ad1c-5bfbcf2134ae","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":65,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"c2be5a68-6828-4d60-b166-19677d0b7cf3","block_type":"box","text":"completeness, or otherwise.","page_number":65,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"d938467b-c26c-4221-8940-250968f647fd","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":65,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"9d00ef85-d658-49fb-a655-b90555d44318","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":65,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"2aa80cd0-26a8-4fbf-9ff1-63740d42ef0c","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":65,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"8410a9a2-d072-4005-87c7-712aba776e22","block_type":"box","text":"Indexed and Inverse Securities.","page_number":65,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"f5008ad0-67af-422a-aed2-58da4c820464","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":65,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"dd5f8afd-2794-4900-82b1-16e4b6a2bdc2","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":65,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"b858018c-0f8f-4c0c-ac9b-fed477598183","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":65,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"ea5fc51b-709b-426f-a393-f84ad5612726","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":65,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"aff64a84-93b3-4841-96c2-ce49821a739c","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":65,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"119deb4b-2c28-4abd-8be3-f8072025e19c","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":65,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"6d7aac34-536a-4009-bfc2-57e294f23d51","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":65,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"0e9843bf-5e10-42e4-93a6-b7aa0bc2e8b0","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":"47da81a1-c94c-4dac-88db-a640e3d5a673","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":65,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"7fffa96b-21c5-4318-8605-b1172b6ee4fe","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":"bd17d459-f794-4cc6-9e14-915414cd8a4d","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":"44f1612b-72d5-48a4-ad28-1ba7266fbd9b","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":"b649b205-c82f-494b-b988-441ff9f51fdf","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":"08af9206-499f-4b75-9f43-a808026fb73b","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":"6e0d00ce-d6dd-47c2-9e33-878e9017167c","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":"778505f1-0dba-4764-b911-39fdda997eb5","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":65,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"60562b56-72f4-43fd-9650-7f56cc6c0469","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":65,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"78ef3dcd-1407-4b0a-9129-fe7a18250c35","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":"fbbc6e06-ccae-4aee-a7e8-0ff2d1a92062","block_type":"box","text":"por tfolio 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":"2e7528de-adc2-4de7-9cce-91bbba924c9c","block_type":"box","text":"por tfolio 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":"de183ea7-d808-434a-a380-f88db36e03a2","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":"c4594779-d3e7-4f34-979b-33c7bae23864","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":65,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"e6fbfec0-c96e-43d5-8245-262f0c234349","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":"a40e7bc7-9c1f-42d7-a555-03bac7d569f3","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":"80b5cc95-7227-428e-a16b-1a6d30ec9c09","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":"7ce82927-9cee-4ae7-a219-079265d62eec","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":"b4e41f48-32be-4b21-8758-3c4621d3efde","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":65,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"7602235b-4915-4ae5-b150-42d9fc61b52e","block_type":"box","text":"when shor t-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":"9623fa75-554d-4ed5-b58d-abf2745d5738","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":"72c02e97-6223-4ec1-b6c7-0615e0d64732","block_type":"box","text":"Inflation Risk.","page_number":65,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"88242e5f-c8df-4505-bca0-a18dfdd3e897","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":"f61bcb53-4fa5-4502-94ef-54ff5d3232a0","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":"8ff78b16-3062-4fbc-97d0-8ffaf2a207b0","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":"f7124175-562e-4bb4-9a0b-a22d37ca00d3","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":"5e92ade9-0bff-41fb-b0a5-fce2e57fbbbe","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":"0c220bbc-2e05-4fb1-8da9-f2f27636cdff","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":65,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"72542be2-f95f-44c1-90e5-681ab492fc35","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":"d46379dc-5b02-4d0c-8f1f-7b048e133214","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":65,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"4c0a87b5-0fd7-40ec-844b-6f45be090c1a","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":"ad5d2744-3ba2-4af0-a637-bc3d64cd65cc","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":"5b9fc516-7c8c-4f3d-a4dd-44a7235b303f","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":"56144adb-f11e-4f9c-b1f4-f344e6ddf864","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":65,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"e5ae8b99-df0a-4ebe-992c-3a24355bd81a","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":65,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"536b1f44-35b8-49ca-a850-0a2de7825a4a","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":"d3c7c830-b0f6-47f4-b166-7a4c37c94a41","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":"a8ffd90c-5743-4d31-bded-7ffa1922d2e4","block_type":"box","text":"II-34","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76e5cf45-310d-4536-85aa-bfe261bc1d48","block_type":"box","text":"NM1026U-5985614-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ac63b6ee-b118-4109-8622-0f37a9f0a021","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":66,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f77d8851-3e15-4d2e-a195-93e8df7c668e","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":"c29d5059-718b-46fc-a3c5-7d699c5d41ce","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":66,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"8ccd4a7d-c989-4d71-856b-cb9d037a8c7b","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":"fefdd008-dada-49f9-87b9-51878b2ab7f8","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":"adb6cbcc-cc61-4449-91a7-5593c3b45882","block_type":"box","text":"be available for very limited periods.","page_number":66,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"4fdfe371-6750-4dd9-a8ca-2e8b4280309b","block_type":"box","text":"Investment in Emerging Markets.","page_number":66,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"58070a33-0292-45ab-80f7-9e1ce9ea3f0b","block_type":"box","text":"General.","page_number":66,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"4301fa2b-2c10-495e-8e76-f0644d34bc55","block_type":"box","text":"Cer tain 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":"7a142026-a283-473f-b333-a4ee67bd802e","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":"ab2c204d-cb10-46a4-8c29-6253fbecb113","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":"6368bde7-bd47-4e21-a6c6-18b04d426904","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":"028fed5e-668c-435d-b8a8-ac6275a96c00","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":"29b32b72-f27c-4f8a-9df9-01e8906b5a77","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":"d1140023-a8bc-4935-a6ca-cafe9317cef2","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":"4ca9dc5d-2323-4971-8e67-feea9e8a0def","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":66,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"ccbe9ac7-32b0-420a-8bc6-4b5856c9dd60","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":"f7d6624a-1f88-4ab9-9763-51d888fccf3d","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":"0868bb85-2f62-4b37-bb98-65cbfd7abc52","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":66,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"cfd6006b-80d8-4772-b18a-b78da840f6a4","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":"25cfdc78-c7e1-463d-b71e-0152b4c27d69","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":"17eec0dd-5059-47c3-bfc1-f3a6a1102600","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":"317c43c7-88e4-404e-9270-f78771c2ba58","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":"1efc9292-8d4f-4d98-b5cd-82102f34f361","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":66,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"9030ce01-45d6-4a08-be6c-540b1c8fe296","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":"7be9f6b1-750b-49f2-99da-951c19e57896","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":66,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"b40145c7-893c-4626-a08f-d95a65b44de0","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":"b7ffc21e-eb26-4026-956a-8462fe1aa418","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":"5f9c240b-14bb-4454-9f63-977cbe91f581","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":"2317f8d1-7de7-4e81-b6f3-d5466f8f8130","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":"cc141e78-9fa2-44a1-8384-9bd44b5c3c81","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":66,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"ffa09ab5-cdbf-4132-bd5c-780e84b94fc1","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":66,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"e15e3bd5-2b38-4e9a-ad58-6bea3f3062c9","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":"8064546b-fc89-42f2-be04-1e5b28af0941","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":"0003950e-dbeb-4864-a49d-2aa4c72fb8a6","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":"f1ef19af-2a5f-4879-aa21-3ab2e3f3c430","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":"aedd6a9f-7c56-4def-b391-c88f860533b5","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":66,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"411e446a-48d7-438d-a757-84da9f34cb2e","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":"93e7d3d2-1730-472d-91ba-8dea78912d08","block_type":"box","text":"volatile than investments in more established markets.","page_number":66,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"48a0b615-5742-462e-b355-f0acb8a8bd4d","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":"12355194-cd8b-4d10-b369-803c944a7dc9","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":"72e937c3-3cc6-4ba0-babf-5465037e5a07","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":66,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"06910ce8-0e48-48fb-9a77-9d2b2ea39464","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":66,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"fe448aef-d175-43c3-b81e-cea12a33f325","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":"f10f8abe-f0d0-4b86-ba44-d6c59ebb618a","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":"1fc88143-311c-4c3b-b5ed-d914f4017c53","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":"4850ad29-4cef-40e4-abca-af23f4d174ab","block_type":"box","text":"acquisition or disposal of securities.","page_number":66,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"d8dbdcb7-a33b-4c2d-809f-c6e2dcd9bc1a","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":"2974cb20-049f-482f-8aa5-c50c7a2cf5e8","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":66,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"6208f95f-a4ea-4cb5-ac97-53c634efd56b","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":"ffd86ef5-4ae3-4e54-9e6a-6cb27fe96716","block_type":"box","text":"negligence, undue influence being exer ted 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":"62016c58-8100-496b-b68d-8ef639f3af2f","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":"8c99aa2c-629d-4d4f-94d6-d1e3a7e13c97","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":"5ca03cfa-a131-4353-93ed-dc00bc161e23","block_type":"box","text":"II-35","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c5db4a4-e7ee-4321-9a01-2b5d0f2390a5","block_type":"box","text":"NM1026U-5985614-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f3aab5f8-2b78-4703-b88c-6909dce28753","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":"fe33ff45-75bc-43d7-aa5a-d0d7a4701c4c","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":"0f9f10b7-d5c3-4946-8b3b-fb115197253f","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":"ec4ad8ce-90f4-4080-9c6a-c3c6c61dae2c","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":67,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"07fae290-078e-4c5b-8411-20dddeac1228","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":"ad4627d1-b814-491c-9b38-4e9c1e132d6a","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":67,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"414b57ac-574d-441d-b9d6-65d473f646a7","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":"6bae5fc1-c3c2-43da-9408-180127c0b0e4","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"854003eb-3297-4c32-ba11-3e22cbcb1bfc","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":"7720de45-ee58-4ecf-ad22-17212c054c48","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":67,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"05287ba5-364e-4b7c-baea-9db0ab565dbb","block_type":"box","text":"additional or specific risks. Cer tain 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":"ac102eed-cde0-4ad0-908c-8b729e438f28","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":"571e3d69-7612-4b73-bd5d-ebb7bd5a58ef","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":"ed3b5940-9b53-44b0-95c5-2c752db2e7bd","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":"46cadaf2-544d-4491-ab9e-43dd63dcccce","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":"35994825-26fd-4541-9265-86d70d8195a7","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":"56e33c9b-cd76-420e-8bbb-8b803121f65d","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":"4f53fc1d-8c07-43eb-a482-5ada96991bf3","block_type":"box","text":"in potentially fewer investment oppor tunities 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":"5d8b85e6-e893-4c19-88fc-7350157de8c7","block_type":"box","text":"per formance of the Fund.","page_number":67,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"b77b73fa-c00c-4729-92bc-4a75e528e370","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":"e8383ffc-c672-4d3b-b2ac-b79644572dad","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":"db2c0680-66f8-45ef-90f0-33333171bcee","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":"b13d34a0-95bb-4864-a7c8-ce7a95cccd00","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":"c8251691-14bf-4247-a232-59a1ac671773","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":"54bc49e4-b86b-4809-91a0-8d48080b316b","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":"db370a33-22b9-4c9f-87b7-2825bcb57de4","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":"4e0d68cf-6ecd-4b18-8125-40721aeb9d2b","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":67,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"ba0ed3af-7c62-4313-aa2f-4b105d6341c6","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":"1ad32f42-a825-4e5c-822c-f8a3c81aece7","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":67,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"ec9873c1-5a4a-4625-a52f-9dd37e8c5f4a","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":67,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"487fe1ac-af9a-4f31-b7c9-63efec16f5b0","block_type":"box","text":"affected by a variety of factors.","page_number":67,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"905f723e-4e50-4027-b1ff-fd6f1b4b4032","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":67,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"7d18a479-8a84-42b4-8e71-ed8549db05ae","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":"27b7e1c4-d990-47a1-8725-f1e24fa7d6cf","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":"cf6ae161-029f-4b2b-a5ba-dc0c30bc7ace","block_type":"box","text":"clear in cer tain 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":"9cd1266b-801f-4ed6-9b27-d3b11d8475a9","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":"ca2a548c-806d-4718-9d79-10f5eda17421","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":"a59d3bc6-3bee-44bc-98a5-f62781e886fd","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":"8868847f-a878-4ced-adb3-f36724f7ce88","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":67,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"477f0777-f889-416d-b203-120bfa41b083","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":"d71d8796-222d-4ff7-96ba-1f552d9cda4f","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":"20dd7129-438c-46bf-bdd4-2007c74c0241","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":67,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"8f2d3bfc-ea58-4aec-bdfc-92df22c3e15f","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":"33d8241a-367c-4f7f-a3de-9a74690a5e69","block_type":"box","text":"nations.","page_number":67,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"b60bf268-71a9-41f8-b238-2c9446b6450f","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":"2a6542ae-162e-4b6e-a40e-d21a8af45b3b","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":67,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"0fb92314-7b9e-4b2d-8882-3f91c67d455e","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":"42c821f8-808f-487c-ab61-6589f9cb335e","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":"eecb514b-819c-403b-b02f-a50d2756df33","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":67,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"a0b701a8-d924-4310-aabf-f36bbffb1f0d","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":67,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"22b5e207-16d7-4ec1-85eb-49be89932dbc","block_type":"box","text":"market Asia-Pacific companies.","page_number":67,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"f72f60fb-65e6-48f2-ac25-c0c0e237edf3","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":"31115eff-2707-4918-8cac-b9b9e63478d9","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":67,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"751d52ae-6548-4cd6-9062-f020ea997c70","block_type":"box","text":"services for such securities outside such countries.","page_number":67,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"ef4b4acf-bd1e-4fb7-b28a-04b766941e9b","block_type":"box","text":"II-36","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"89ea546f-bb59-4ed3-bab4-2c8baac4d4da","block_type":"box","text":"NM1026U-5985614-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2c1eb30c-be52-464c-9862-1325fb0736b6","block_type":"box","text":"Cer tain 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":"2a69a390-9697-4cb5-9409-b3b0b1cb0e69","block_type":"box","text":"to commercial banks and foreign governments.","page_number":68,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"8b24f1d6-a95d-48a8-adb0-61f46a95d0d0","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":"6914a5a7-e28e-47c7-ac87-6590c2e78dde","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":68,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"3bba4cd9-6099-4b5d-b2b7-2a16292155f5","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":"65fc4784-2f61-4b03-9752-6ed4e7528c43","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":"4d625e37-4920-4c0b-b79f-e8c77066dbcf","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":68,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"c8f1838b-6397-42e4-a523-526ea37b1a2f","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":"4d5e227b-b9f9-48d1-814b-a8d3b0c9a6e3","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":"2f54de50-c5d3-46bf-9877-13e2a7955a46","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":68,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"89a0986f-c790-4e58-9b12-b1d944fc640a","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":68,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"bbe852ce-c88d-4027-910b-38d444160673","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":68,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"0858adda-e379-42e6-8e16-87b918ad91af","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":68,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"b93c6cfe-9185-460b-9d1b-c279f4dedb39","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":"4d2dbf1a-9367-45e4-aec8-8c786e473c11","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":"f5cfff23-39eb-4cfb-976a-83765069d604","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":"0e3b884d-49a6-483c-a25c-c146c825dd79","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":"0ef062cb-fc43-4f0a-8766-8c4083b6a82c","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":68,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"132485d8-6052-48fa-b378-b04880be4ef1","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":68,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"c92d83c3-627e-4127-b178-a3c5817d09c3","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":68,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"7094434f-be92-403f-b90d-d379242fbedf","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":"ebdd2dfe-e88c-4138-97ec-cfb31680c2a2","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":68,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"adb99ba1-a31d-415f-854f-820836f2a7cd","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":"bbeeb234-a6a3-4afb-b19f-5e28c5a32b7a","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":68,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"c6336d1b-8770-4a4e-8158-82b77d16e95f","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":68,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"15e1d4b5-d27a-4b04-917f-63b486f4fa17","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":"e3a7b0d8-3fbf-4e31-b13d-8cea0c83e833","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":"9dcf5a07-1e36-4ea3-af8e-51613bf0af49","block_type":"box","text":"investment at that time.","page_number":68,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"a8522564-6401-4745-8856-c2da5069d896","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":68,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"7760c50d-811f-49e4-a791-01ba350d2e46","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":"e5b9ec4d-ea1d-4729-953b-f3c76026ae36","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":"9939f79e-3d1a-45f4-932b-b7c8a5b15ed3","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":68,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"08323048-f262-44f5-a637-c99864fd2439","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":"119a57f4-b511-4f36-9038-9878e4ff358a","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":68,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"b0f7528b-9343-48f4-a1c7-f7b1a1d37873","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":68,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"f57ae129-b856-4efc-a02c-1d65a5106927","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":68,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"cd44c938-aafe-4ac3-bafe-a988a1e8d06f","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":68,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"3e540504-b172-4356-b38e-234c74e3b61d","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":68,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"b4652b14-9b74-40a1-8027-3d38d7fbaed0","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":68,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"38628b06-dded-4d31-b923-80a48e2856ab","block_type":"box","text":"government).","page_number":68,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"9bb1e117-598b-40b1-a724-4cab2ae932c5","block_type":"box","text":"In cer tain 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":"cce3513e-3490-4ef2-9aea-d973c63b27c4","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":"3558664d-7010-4875-a479-28e0e48f7d16","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":"ee58e7ab-6927-4114-8c93-eabf1f78595d","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":68,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"5bb05883-919a-4df7-82e1-5e68fe7bb8da","block_type":"box","text":"foreign banks and other financial institutions.","page_number":68,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"792f00ce-ae1f-4ef6-b9b3-231ed8ceb6d5","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":"353d098f-3bde-4cf6-9ec4-ed209ca35c03","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":"da90fb52-7bd1-4bea-a27a-599b6d4990d0","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":68,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"56005c44-3309-485b-9af1-db90df49fd76","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":"418ddd3f-77f0-4752-a637-4918fbe8fd06","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":"72ada370-bad2-43c9-9aa8-04fa1439c6d0","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":"358735da-6856-4b0b-b8b0-61bdef247a96","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":"b79abdce-8391-4ba3-9d7d-07d06aa998d0","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":68,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"8b2b69d2-e03d-4f1a-92bf-801d44e4b217","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":"1b417551-df14-458c-b5fa-f8df834912a9","block_type":"box","text":"II-37","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd8c6f79-219a-41ec-bdad-bf35e9279910","block_type":"box","text":"NM1026U-5985614-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4858302e-75c6-4fd8-9e5c-eefbb756c265","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":69,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"41dbcd0a-b4f7-4e77-9cfc-0c293ca8a49c","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":"d43bfbe9-37dd-4b74-b9cd-18e2ce74a3a9","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":"6845aa21-612c-43fb-a89e-e5bc01f29620","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":"5da283dc-e151-41dc-b7c1-d3161359c9ec","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":"c7bbe437-9249-44a9-9547-c9cacd4921f7","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":"20048638-ced8-4e2a-bc1c-2a91d0e25d11","block_type":"box","text":"foreign securities.","page_number":69,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"573ab05b-a261-4897-98a2-e301935f93ef","block_type":"box","text":"Risks of Investments in Russia.","page_number":69,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"181a4488-c004-49db-b73c-101a03588ea1","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":69,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"aa333510-6da5-430b-9770-07aebf252b1b","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":"288b96d6-61ec-4cc5-9c24-44f6f82752a8","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":"c7f14845-1b50-473c-b858-387687861816","block_type":"box","text":"and a substantial por tion 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":"45f0b186-842b-4930-bc55-f43d0b740919","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":"3e1fb12e-c4af-4def-bae1-cef60429bbd4","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":69,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"bc7e2454-1605-4c92-81e1-35887dcb898d","block_type":"box","text":"developed markets.","page_number":69,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"d0b9cf3c-bb47-4b42-bdb1-a5981ad06b9f","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":"75a228a0-2749-4473-b058-c27f3af2fbeb","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":"32ad5a6f-75a6-4f57-80d6-d292c767adae","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":"db2667dc-d7c3-4159-94d6-de210ad666ec","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":"d99fe190-7f06-4dbe-82eb-5442567a5991","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":"86358f8b-d4bd-4f0f-8119-33d8d5a58cc7","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":"044ed7ac-8dc7-4c9c-ac20-df3c311de664","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":"222312fb-fac0-4da2-a46f-251acdeedcba","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":"a23d894c-fa4d-4b29-b4a8-f29f49e9730e","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":"496a177b-8241-4f02-9289-d1633e72dce0","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":"44a6f7a4-82e5-421d-afbb-31c26edd902e","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":"6139c522-2666-4535-8f88-044a9cb1d279","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":"b6995040-f9e1-4cc6-926a-7695f6bde298","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":69,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"a3f2514e-ffb3-40d0-93e7-ebd266d4f914","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":"a6dff5d1-528e-4970-aaa9-75528132a674","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":"345421d5-1d1a-4ce7-9df2-3940b4cc99e3","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":"45fd3cf9-a0c4-4170-816c-6de31c9f6d06","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":69,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"a77f5936-ce48-4691-b247-0e05b5810984","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":"d04f1a7c-f282-4bc9-addb-8fbd438a976c","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":"a89296b4-8bc6-4f86-833c-cfec2399e63b","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":"8f43de17-041b-4c5b-a2ac-a12f4ca413b6","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":"ac409816-89e7-49d7-b2f2-6eb8150e92e3","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":"97b5b3b8-c272-4dc3-bcb0-f9e2ef88f33a","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":"d941c1ce-8b1c-48e6-8a98-8b3e25c882b5","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":"d872d001-33e0-4834-be15-03658f6927eb","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":"f128e0ea-cdd6-4958-8a43-1485580631b8","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":"3047660e-03c4-481b-b042-4eafecb409e4","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":"970492f0-37e0-4c3b-8bd6-b826714add5d","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":69,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"3dc1803a-a162-4b66-a7d5-2020cfd44a9a","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":"97fc60b7-9979-405e-ae06-56dae921a919","block_type":"box","text":"sectors globally.","page_number":69,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"8ea3aba6-6bfe-4e06-8328-e9a15d1d4604","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":"5807cb2a-1cf4-448e-b51d-8db698c113dd","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":69,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"4b6d5ee5-bbfd-4038-a0de-a454c06ed08a","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":69,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"93e49f17-f20d-4869-b6a1-a14e918f0f58","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":"d9f5a66f-9b46-45d0-8779-f9a711bc04ed","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":"e25c4026-039f-49d0-9c8e-6271da7e1fc1","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":69,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"b7435d77-fc2a-4e62-a8d0-9ffa67356d42","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":"287e317f-4893-4d03-9a2f-764a31d6aac2","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":"774a3b84-824e-4123-9d50-8e73925f6dad","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":"30ce2f73-8389-40f4-9598-4d6b4c03c0c7","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":"4097c28f-9302-4b6c-a85d-ecddcf95b347","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":69,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"c1c7974f-8032-4d46-a21f-d73f8e6289c7","block_type":"box","text":"II-38","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8db9cdd6-15e8-472d-855b-319668a6eb90","block_type":"box","text":"NM1026U-5985614-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0f802030-2049-4b20-a236-a87956aef5e9","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":70,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"64886bd0-ba89-46c5-bc02-49832524794f","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":"9747013e-8b4f-46d6-8481-2a3f85764095","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":"e1107bbf-76c4-437a-aae6-251fc6e4cb45","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":"03c811e0-6700-4e6b-9a67-7ed5cfa09ba0","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":"101787f3-c548-4b1c-925b-fdcb5a991f5e","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":"c4a0a8e1-e8e8-4909-a16f-4d0d9dc151b5","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":"a19de9cc-31f2-471b-9ca5-ef7f0285b54c","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":"6f731edd-48ee-4398-acdf-8c23cd43e35a","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":"d72bd8fa-38e4-4ce4-b7e8-a89cf41c7af7","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":"08c59708-293f-4feb-83a2-d5fd8f449a02","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":"048a56c9-7f98-4b4d-9bbc-d593f699f0f2","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":"a5c7f9c2-937f-4cdb-8acd-97d047403bf6","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":"4d9bd20b-bc9f-437f-b65f-094bb8eee54f","block_type":"box","text":"of assets and proper ty 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":"1ec56469-02e4-4cf4-bc74-6e83d1ac6eea","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":"549c2a35-a665-4de4-b564-f40ab218c783","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":"76c2b2c9-444e-4a5f-9f0e-8ca18aea1be0","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":"c98281ce-70ab-4312-9566-efad564f5ee5","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":70,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"920a2ca3-5d9a-40c5-a910-1388c519c7a4","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":"61d03cf0-4d46-44ea-9138-468b0622007b","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":"9b46d585-c0b0-4ffb-91ca-73d3b41eeed4","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":"36caf486-3af1-46d1-a388-95184a01f978","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":70,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"967bc7a5-f20d-48bf-a7a4-9eb30af7421a","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":70,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"75bbd8f6-c4af-4a49-840a-a58dd39b97ed","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":"5d43a08a-5538-4073-8695-f8cfe52a92bd","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":"82fe4007-a6d0-41e2-81f1-39cd4b03025a","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":"e959fb0b-13cc-409f-b943-e17976218031","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":"70b6fb2b-35b5-4e06-b314-44130db5a286","block_type":"box","text":"impacted.","page_number":70,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"46fc28e1-6f9b-4664-a020-48769f9afb02","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":"1e906c22-bad7-407f-8b01-871584e6b726","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":"e9d263da-7c4f-4464-8b3e-31f227301573","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":"65e76e0d-9b89-46ff-b841-6d70972cdcf1","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":"704ee182-7e65-4d40-8779-11f29cf0fdec","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":70,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"7d021455-13db-4be4-b8b2-a0ca7ad0b6fe","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":"d67f1c77-7904-4920-8c52-e60695d76c62","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":70,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"b4d1301d-8bf4-4313-9dd3-511334d2a7a7","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":"f1783c25-ad7e-4c53-a9d8-2def2357de84","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":"60de999d-9d08-4f83-9b84-2922e7a63437","block_type":"box","text":"por tfolio. 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":"bb46797f-41c5-45fa-b652-b20027d3006e","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":"f7ad32c0-90e7-4570-847a-8a19f49a0210","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":"851dd863-fc1a-4e84-820f-41797e49a4d0","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":"65868ef2-43a1-45f1-ae21-856176d8e1e2","block_type":"box","text":"economy.","page_number":70,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"f67f37e2-f61f-480e-bd1a-d455e60ebaec","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":"bc67b799-a946-44a5-9f9a-3b63e22b205f","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":"d35085dd-a0f0-4ebd-9521-dc47d4a69156","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":70,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"b656c6c4-7691-4e26-9ac2-d0a8872aa00c","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":70,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"80e6d23c-b06b-42be-b19f-3411d525d9d6","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":"638f4334-0dcc-4fce-94f6-cea9a2fbef33","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":"6d151d10-301f-40e2-a92d-6d882a1add07","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":"ffeb20f8-7934-4ae2-a7c6-e071576c00ea","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":"ee6c03b1-b82e-4646-82b6-ef7bacfdb492","block_type":"box","text":"typically the case for investment managers.","page_number":70,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"da6c7cd0-82f3-4ad1-bd9d-89444ab57525","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":"7b6d849a-aa81-41ed-8576-bfdbc9b15b3e","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":"5d0359ec-e3c9-4038-b7fa-5113a80aed41","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":"ad7c6884-b2df-455a-bfd2-4fdbae48d713","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":"0cd16acf-a757-4122-84ae-0b9467b76c39","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":70,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"4c41037e-b13d-4257-b7c7-c75617660e77","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":70,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"7269164a-1474-4fcd-a9e7-6e6c86475b2c","block_type":"box","text":"II-39","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5304f03-626f-43f0-8df4-082e49528485","block_type":"box","text":"NM1026U-5985614-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4b55f6f8-a1ba-414a-80b1-0c62d91f854d","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":"2a5cab88-c7de-4883-b96c-57515068cee8","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":71,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"e5fc7b31-0513-424d-abca-a73b0b3246ff","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":71,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"7635985f-7a70-42cc-85ac-e661bd266379","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":71,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c644c23e-42e9-49dd-8091-f30c2d457aed","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":"c9a0db99-241e-485e-8f37-2e6e6018fd1f","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":71,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"70287c54-0a53-4fc4-ba98-25c9476f6290","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":"8dedc874-02ef-4461-afe8-68af41f04aeb","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":71,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"35d61a0c-7ddb-4d72-a033-6a82e350577e","block_type":"box","text":"Cer tain 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":"0249e86f-69fe-42b3-ab38-ecd81d71470e","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":"66399a9f-76e1-4e1e-aff9-6376b3b45e1a","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":"430aeac0-491c-47b9-8879-6a429820e7a3","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":"79c0098f-5dda-4469-aae9-48c983dfb497","block_type":"box","text":"will be indirectly subject to those risks.","page_number":71,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"790ce11c-f686-45d3-b7ac-a3832d4478a7","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":71,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"5d4b80a5-66e7-4989-a634-341254329878","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":"20359d36-5027-433f-add4-8715dc1a9b00","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":"98db2d6c-9643-44e7-9128-89eac889b090","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":"27af206b-c676-4317-ac7a-ec3a042fbe1b","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":71,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"46d74a82-2424-4ff6-8900-9ec0f807ba87","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":71,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ffb9df9e-94ea-400d-84f1-0fd3b43b6e1d","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":"0d3e33b8-7eba-4e78-9f2f-aa586106c471","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":"850a6751-3d6c-41c3-8fb8-6e8fb7915bb0","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":"3e4d178f-8de5-4f15-9cc3-5a794d240f9a","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":71,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"9cdf54dc-3f51-4334-b038-c282951317b5","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":"3f8996c5-132e-4c24-b039-2c71819913f0","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":71,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"e7b79531-aee9-4230-86fe-3a1f8a5d6b80","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":"6073788a-d7b1-4762-8853-2f8f09dfeeb0","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":71,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"611836cd-cb08-4c1b-889e-fe07d8320976","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":"379d5660-6f4c-497a-81c6-eb302f16b863","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":"7621bf69-76cb-469f-b647-8ca336ed847d","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":"2f8c45f7-ac97-4684-a9b3-e75942cc3680","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":"f629aba2-d62b-43c9-b4e7-fe83e5dfae13","block_type":"box","text":"impact on a Fund’s investments.","page_number":71,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"c0101449-fb2d-4d0f-b5f7-20f00954c349","block_type":"box","text":"Brady Bonds.","page_number":71,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"3fe5b945-84e1-47cc-90c8-3a2015146714","block_type":"box","text":"Cer tain 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":"63b059d9-d677-4d94-b039-a50bdef47755","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":"a14abb33-3906-40c3-b76e-ad61d41aeccb","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":"931c9d8d-09f5-4ea0-b0dd-2929781479eb","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":"0008d390-2b8b-4935-8851-e1dae4517d51","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":"2b198915-96a8-45f5-923d-8ceec511ad70","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":"2ecb2db8-5d9b-43a3-bd16-7ecec2b64efa","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":"fd71830b-cac0-4dca-a396-8f0289a7806f","block_type":"box","text":"2000s, cer tain 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":"912d5902-759f-41ed-a9f4-25f976f23383","block_type":"box","text":"Venezuela.","page_number":71,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"adfac0c5-b0c1-4eba-b630-5c6431d5bb4c","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":"9cf0c7fc-3d1d-4a82-b317-c0144e202f03","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":"592bfe82-e473-4892-adba-3fa65667069b","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":"17711bce-e32a-48f0-8db1-f03973263a40","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":"fb8e252a-86db-40ca-bd64-a8ec7ce6a83d","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":"68f248d3-13ad-4fbd-9ba8-f69ce7bf7468","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":"9165df4e-53de-46f7-9311-f0c41f58ac81","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":"b26d5e6e-f36a-4b37-84ca-b49f0df11bb8","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":"e12ee88c-fd81-4087-b578-17b24d12fe96","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":71,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"868833c1-7d90-478d-92d5-c956112dacc6","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":"82b6730a-f928-48f2-9efc-11b76f6867dc","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":"2fa7f154-5f61-4c15-8089-add09c4f53a6","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":"b64748be-1efe-4b26-8792-f0063e40e19d","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":71,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"06490f57-4e4b-439d-be23-ae7b80c14e0d","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":"24b7b10b-e861-449b-b899-3daa7e6dbe0d","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":"2f35eac2-53e1-403a-91a2-0ed053bdda4c","block_type":"box","text":"II-40","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"abea15d9-f7f3-459c-905f-4a9781f604de","block_type":"box","text":"NM1026U-5985614-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a13341ce-2fb1-4d4b-9a69-d7d935f493bf","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":"37508ded-5a53-44c2-a8cc-fb38af509e6f","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":"e29648f8-d939-46c9-befd-4f6994c27fec","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":"a949488a-297c-447b-85a9-54ea3cc97265","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":"8d195507-61b0-437b-b2b2-149acd64ffe8","block_type":"box","text":"China Investments Risk.","page_number":72,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"a90c4274-8eac-4fa3-9a2a-00588249e526","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":"6590a607-a93d-41ad-8ec7-c9473ca3d16f","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":72,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"b5f97e4c-4580-483f-ac7e-2192ab20e5ea","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":"6ae770bf-deb6-4d46-befd-4fc34a17e227","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":"82bb2d56-93d4-4eeb-92b9-7870153ce2dd","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":"7a15e992-9c65-435b-862a-7c2655347a9d","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":"ee72156d-5d7b-47a4-afac-0816cc0c1d85","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":"57da22b5-e462-4af1-8a4d-97467e696dcc","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":"cf5bc3b5-2c80-44be-b1ef-78244e708305","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":"79c7853d-5da7-40dc-a4ab-6c744cb31825","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":"099eca6e-08f4-4e8c-a2d6-a9a3e3b4713d","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":72,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"4dd69293-66fe-43d4-9aad-cf7e43ac7286","block_type":"box","text":"Kong may cause uncer tainty 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":"c8e244a7-0ff1-4b5b-8d41-64839aeb9945","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":"67c638a8-d92f-4ed7-9f07-606fd54daeca","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":"c8788a64-0adc-47d7-bd96-79a513ed0fa6","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":72,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"74baed7e-55fd-441c-8f09-218a0dcfb0b8","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":"8387b06d-b9c7-4820-8c11-eb0119e79361","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":"ae0b3d3f-da34-4f2d-9c99-5c364935e9ec","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":"0a8e0343-87a2-49b6-b378-b00fff9b3cff","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":"7e12d8d9-8f2a-4c22-9910-a7dbbcda0f9d","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":"060656f1-d089-415a-afc9-ddeb1b89080c","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":72,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"6885afef-bf88-4a72-862b-985519680cb8","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":"5f9f6b44-bc5f-491a-882e-bb11a8b0329e","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":"6a2d0a32-cf03-4107-ae04-1e3e03a3c8af","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":"f51442dc-0675-48f9-bdb0-520c57b91072","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":72,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"6fc500fc-6892-478d-a12c-58d2e5fa2166","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":72,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"09b79c72-94ea-410a-8e49-51e87ff3b5b5","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":"4352bf91-2c1b-4279-b3e0-7005cd35ae4f","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":"018b40c7-0981-4fef-afc7-52abcde61e93","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":"aabae11b-52d4-43d3-888f-087285763a47","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":"67fde674-b393-4374-9828-5cdd01e822ce","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":"6a9ba897-0be3-4e11-8929-a3989694802e","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":"ee9a63cb-5ea9-4921-b8cc-990b8ac89778","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":72,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"bc7f090a-3be7-45ed-a507-f07b17b90eb8","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":"db0c468c-6e20-4695-9502-7d25cd5ba247","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":"29835a58-4b36-45e1-9c86-1d9a4b1ead80","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":72,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"364a0726-7975-4539-8805-126b68b8c29e","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":"f4ade03f-b2fc-41d2-96db-52e131fd6222","block_type":"box","text":"Funds. Fur thermore, 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":"8758e296-f5b1-48b9-8f6f-eb395d292b2c","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":72,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"bd193712-215d-4bbc-a83f-8ed557b73632","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":"24ed3108-8ac4-4c7e-a310-75823214761a","block_type":"box","text":"brokers and other par ticipants 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":"5c9356e4-022e-4d47-9282-cf5c9a2b3ebd","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":"0288b411-8e26-4e5f-9fdb-9acbb7a7b729","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":"7b329f0c-36b4-4e4b-a9a5-af8c33c2671f","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":"9c2e66d2-fed9-4299-9481-bb22713d99da","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":72,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"777e0a40-fa74-4ed0-8f52-4833125769fe","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":"56844fcb-5d01-4bcf-a86a-505122e69b36","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":"7de0bd6f-1f78-400e-89f2-f789d3c57c43","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":72,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"37bfe231-f6af-4005-8245-d5a340ab3bec","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":"67742c50-2d4a-4d7d-b3cb-f3e07ab115d2","block_type":"box","text":"sub-custodian.","page_number":72,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"5a537114-6e5f-417e-b090-db0da4061747","block_type":"box","text":"II-41","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76fe6715-327f-48ab-bbb8-984ff9a67002","block_type":"box","text":"NM1026U-5985614-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f0a37a92-b061-43f1-8e99-f3140611608c","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":"d45442d2-73e0-48a0-84e2-1726cdeaaf1b","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":"4d188ba4-b26d-44cb-a977-a4bc69c7940b","block_type":"box","text":"on investor protection considerations.","page_number":73,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"1589a8a4-d931-4e42-8728-f2b8b7e375a2","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":"6748c56b-4fda-4179-b768-f72a97b95099","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":"561153af-e9f0-4d00-b47e-b4dd0576ffdf","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":"e2f22c29-fd6a-4180-87c5-e11504cd20fa","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":"36bc801c-5874-4e91-a35c-3c5ea2278f34","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":"ac4347aa-677e-4528-8b8b-4a5d1e3d43c6","block_type":"box","text":"headquar tered 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":"c63470f9-201e-4d63-861d-15a69061ebc2","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":"b544ff05-f974-4989-a4b6-cec2976e1283","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":73,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"ae1ee0cd-5401-4434-8b37-d2a0fa8c136c","block_type":"box","text":"per formed 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":"2553a6ba-7355-4f67-aaa9-c552166d60f9","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":"380d7b8c-8c55-47a6-accd-ee06370a557b","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":"cdd7dcb9-4960-4f24-93f6-929754164967","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":"d6d82fdc-ec81-4012-a81b-44c7c3db8e7f","block_type":"box","text":"accounting firm.","page_number":73,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"8a2ea264-2013-4492-be61-8e53014f015e","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":73,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"c44cf75f-9c7a-4e34-9745-e95c1b7036a0","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":"0c24316d-6e8b-4a09-8b82-a7dc088f4e2d","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":73,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"fb250668-b226-4acf-adbd-97bfdb38e6f3","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":"d4b4859f-b6c3-45f1-a56c-b7d9b0e85108","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":"6eb0ece2-d8c2-48b9-ae7b-0dc981acebab","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":73,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"8bd29fa9-2ebe-48de-a95f-815bf26610b3","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":"c0d1838a-ca2e-4989-9c18-438970a0636d","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":"549aa724-d1b1-4571-a970-0070d63b4043","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":"321e32db-706d-4849-b4a7-77f3badd7cf0","block_type":"box","text":"RMB (“CNH”).","page_number":73,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"5aaa8e4d-8b41-4a17-b668-74b326c3a82d","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":"fb449ebb-8625-4f26-9ac3-29f927132eef","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":"595f3a9e-efe8-4c58-8cc3-4794221c7faa","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":"185d761c-4190-477b-9805-6463d1668056","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":"e1ecbca5-22e9-4bf3-822e-cbc093b645c9","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":"409454bd-6af7-42f0-8856-4539db8a29fa","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":"310e9fdf-2427-4d8f-bca2-f0d5ffc7ebba","block_type":"box","text":"represent equity ownership in the operating company.","page_number":73,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"aa6e4414-450c-466b-8f75-1559c857e820","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":"710806da-95e0-488b-aa27-f203b3a111f6","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":"eee2a559-b24b-4fa9-b925-f680461a7d6b","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":"cc7a63fb-033f-4726-b196-fbe4c78d47c9","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":"51492ee0-9e6a-45a2-8170-0dcf96e059ba","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":"0d4db31c-38f0-4a9b-acc9-0d88931c7881","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":"20ef038a-9316-442f-94f8-fd4359178c6c","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":"dce434dd-e2e8-475c-9708-fc4174413bcc","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":"c76a6834-3291-4eed-ad86-afc7634ef3d7","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":73,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"55e5fc78-6e7d-4a1e-99d0-bb97d9a8a274","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":73,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"de68f47f-5291-4b26-922f-42f53bf52efc","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":"00a3a4db-a557-491c-9b2f-78b17662f48d","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":"46b8b13f-c217-4224-b360-67ebf43e7680","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":"2341a786-e241-446a-833a-a8fba3545c66","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":"13ed9c28-b62a-49c5-bc7f-24658bcb60c1","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":"f9fc95b7-cccb-4697-874b-b8edc7791bdf","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":"53fe6138-a45b-467f-b2fc-5b8e7618efdd","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":"56a9caf9-a56b-4a5d-a8c6-971409d2c838","block_type":"box","text":"losses to a Fund.","page_number":73,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"0267e54e-d1d1-467f-a242-bd61f1bdc8a3","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":"2a8f4962-0121-44d1-a032-c81567e44a45","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":"3ef6d49b-98d5-4efa-b3b2-18affcae8b92","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":73,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"a0324ec2-3da8-4079-bc41-20be133dd054","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":"86f91403-0307-4109-bd3e-bf3a61b5f062","block_type":"box","text":"II-42","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a64b9c4-5824-452c-88c6-0c28c0be5b70","block_type":"box","text":"NM1026U-5985614-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"02eefa1a-bb4d-40c1-835f-03acd611a0b3","block_type":"box","text":"expor t 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":"a4dd320a-dae1-40ca-adac-d728f211bbed","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":"c24790e0-c46d-4d3e-baba-4f8da64c091e","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":"d6960932-fb67-43b5-bb37-5742f885b839","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":74,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"c36ce78a-9800-4a8f-ad89-00c09d2faf1d","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":74,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"3151f714-8333-4ece-9dd5-0c74714753c0","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":"4c011200-c191-4226-8859-e26e73ea2fb8","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":74,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"6e8404dc-04ec-4f0c-b931-7214ecfadb91","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":74,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"836c971d-5460-4de4-9448-b95417ab61e2","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":74,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"8fd7d0af-2729-4373-9071-5f1a4d50a689","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":"8880aad5-6c67-4656-8aac-7ee6a7928392","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":74,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"b3525d65-7b45-4690-8aa8-3c623517118a","block_type":"box","text":"or cause market disruptions. Cer tain 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":"e7a9d51d-9a49-48f2-897f-97e6ad0b6b81","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":"ba60a36b-cd3d-481b-9611-44f91a223051","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":"7a994a3f-60a2-4216-85b2-5a6eb3c431c0","block_type":"box","text":"such companies.","page_number":74,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"d00ae440-7005-483e-993c-dde235f055db","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":"ecb8800e-fe50-48f8-8934-a7d89dae6a5d","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":"963c51b1-4705-4bbd-9b63-865a742b6ad7","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":"5c541ba1-3a1f-4620-a56b-8498d89a322a","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":"8f29a3da-c6fe-411d-b98f-6d3e7ae4d09d","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":74,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"2711474a-ef03-4296-973a-d7e60fe04249","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":74,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"5c63d672-b9fd-4173-87e7-a965178bddb8","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":"7bee8508-6014-4b1f-9f5d-a3a71b07ff80","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":"a9f62a94-e255-43e3-8209-82110e666b43","block_type":"box","text":"standards.","page_number":74,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"f94d6be3-4950-458f-929a-088eb9934695","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":"05edfd86-90e0-48a0-95ed-721fd470a250","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":"50e5bf91-c83c-42f3-9d23-47acd2630eed","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":"fdf9c748-e52e-40c0-bdd0-58776f64bd98","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":"dc27b959-cccc-497d-bc9e-6a40417a8707","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":"1286d498-8f87-43f1-8fa5-85fa9cb82415","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":74,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"2334afe0-05de-4985-ad04-502640db1393","block_type":"box","text":"General","page_number":74,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"58919763-941f-438e-a760-15b83066c783","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":"a95487a5-820c-435e-897f-4613e8a09743","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":"4e6e9b7a-0500-4e85-adf4-6573fe96b8aa","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":"ac0d0ba9-4485-49d4-bb0a-502b31c13f6b","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":"e23b80f3-f783-4630-9022-a50c1c21b93f","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":"e9e6a576-8a43-4c22-aad4-cac9b24f1ed3","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":"5a22a073-b5ad-4762-a293-28a41a9911e1","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":"c44a51e9-67c4-4aad-ad38-60516d69494d","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":"26519c89-691a-49b0-94e6-258f8b665dee","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":"57c397e8-a889-47f6-8981-98c220468c9d","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":"33c850ae-ffd4-48ab-8a71-0d75f790cf29","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":"df05bda6-9483-4a8f-b2fd-484a7c57075c","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":"d2bf2c0d-5d37-4d28-b70d-c7dde9ef8563","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":"5c12e01b-ba56-41db-a5b7-acea6cfbdc54","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":"5d533d6c-5b09-4885-8549-ed598db727ad","block_type":"box","text":"company established by SEHK.","page_number":74,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"ac34440b-8f05-4784-ba4d-21494beaf7f6","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":"fe7d2ea9-41f0-4ad3-b25c-55ccb9afceac","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":74,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"1505a02f-0601-4420-97c7-aaf3bb5d41e0","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":"9f640460-8ad1-40ab-8d3b-7f5d0aad5bdd","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":"e33741de-f947-4ac8-ad26-f1b5c974ed2b","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":"314dc15d-6309-471a-8da9-96a4c697d16c","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":"25419656-936d-4c97-b079-9212097b8c9d","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":"829ed62b-ad33-40d6-819b-271496f74ca9","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":"8c900e00-f79d-4e99-88e3-86b775616f59","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":"f838c5cf-a0ac-4eb2-bc8b-4c52d591e2d4","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":74,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"405a1725-1c12-4fa3-bc8d-21c9011eaaf3","block_type":"box","text":"II-43","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1e4df74f-2267-4815-bdd5-d9a3ba233076","block_type":"box","text":"NM1026U-5985614-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a0b15301-e168-4720-af0a-e21f13bdf66d","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":"e2a3dbe8-b572-4437-a287-eddd968a7700","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":"aef47738-d715-4290-9945-36aa4cc7139b","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":75,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"66fcf838-ae46-4b31-aedc-010bb2a1c83f","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":75,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"4b2cf41a-51cb-4fc6-963c-f1dcff835b45","block_type":"box","text":"i.e.","page_number":75,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"f997c6af-437b-414c-800f-cddbd7bd3c22","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":"2fe6e7d7-20c7-4a9e-9717-5867e95d6649","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":"5334bca6-7fd9-4c88-a577-aced06cd6053","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":"f9136d63-957c-4f2c-b897-fb340d98f10d","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":"62f7e8c4-622b-4028-b620-05ac0220780f","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":"6877ca9c-a095-4c26-8c1e-89b0efe13286","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":"7e1415fc-8443-4a85-a865-6bd54c93983d","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":"d2fd8a93-4fe2-4575-8e4a-5326d7e72385","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":"cf006495-9d5c-4248-8c18-88164f468e79","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":75,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"e974546f-73cc-43fb-bbd7-c58cc9ece159","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":"1ae82df3-6044-4dd2-9cfe-d05724448ffc","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":"47844790-fbc0-4c66-88f3-94d8d92f2603","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":"64de62ff-294d-44e6-ab89-a71b1881b86f","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":75,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"499a7dc2-caae-4f92-a96a-410e61d8ae83","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":"453223e4-7cd4-4067-afa3-83d6bd760855","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":"8a7b241e-e882-4ee9-8dc8-bd9126264ffa","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":"6d2fcc2d-6b0d-4a10-9778-069ef81d0e83","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":"7c7ff512-bdb9-4e6d-93d1-b8c1a9b9dd23","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":"f885285a-dd8e-4c49-8d61-30fffde85493","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":75,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"298f50d1-ddd5-4746-8f0d-4cd74ae29138","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":75,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"53cc412b-4710-4af6-bff9-623f95e5f1d5","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":"b387c909-2d89-49f7-af21-ecca681f4b9e","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":75,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"d196bc57-9136-40cc-9f78-71f4e97b02ef","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":"adfd1a9e-b125-4344-90a3-64662388e33b","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":"20bca553-e1c1-4fd0-a0e0-ce77c72a2852","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":"d582e511-b1eb-4ee9-8d32-340b0df9aacb","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":"8f723edf-3005-4f6f-ae98-3d5d0661d52f","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":75,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"26d28759-4eb8-449f-aca5-362bb65ae25c","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":75,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"51d8d8d7-4fc4-4fe3-880a-6b98ee118cc3","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":75,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"2540b635-26d2-4f1c-a1ae-d7efc0b4293c","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":75,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"6d449f30-1b17-4714-99f4-c6bccd186ff7","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":"ec5e005a-22fd-4ca7-a2b3-229652a31ccf","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":"63639cc2-c9bc-4c5b-ae63-313e506c4e43","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":"0bd3bd3d-22ef-4c46-9770-934e6191012a","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":"3d7400e9-b22c-4b22-aaef-7618e244afc0","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":"ce46e558-dd19-4cbb-9919-4af7de334b8e","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":"4eae7645-658b-42c7-bbf8-1df276cbc76f","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":75,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"9cf77762-571c-41af-855e-c8c76c4ed9a9","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":75,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"69bdbd0c-03a2-437a-b704-448e95126fda","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":"c81821a3-f619-4818-9ead-079e491a5609","block_type":"box","text":"PRC.","page_number":75,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"83a08ef4-3d2f-4759-8385-17edc69cd50e","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":75,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"0b2609da-960f-4852-a546-4a1aec890603","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":"337a1a36-ad44-442e-88c1-ef2f15269b7e","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":75,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"55f36531-cb22-4558-8724-756d22d8347c","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":75,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"9cd01dc6-3d95-470b-8a2f-82300c8302c5","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":75,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"f8ca689c-1542-411b-99b8-38ff05f54dd2","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":"e51b19b5-7fcd-4590-b286-1bf6d4567235","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":"58ad9411-f89b-4359-9ec8-bf5d320ade5b","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":"5921ffc6-d270-4252-b4d2-dd0d7aad246d","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":"de8f78ad-db62-42bd-9f65-64999d1f5029","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":"687b9b41-65a2-4e10-a8f5-d72b94539c67","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":"76496874-da2e-41f2-97ea-3a6b1288b83c","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":"71ab6ac3-99cc-465b-a894-285465db51b0","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":75,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"75b00ef5-47be-40c2-a310-180fd28528df","block_type":"box","text":"II-44","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a5b4c94-6f02-46d8-ab48-1e84dd82c10a","block_type":"box","text":"NM1026U-5985614-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5deda6ca-d298-4c76-8283-7f9a0d68fbde","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":"f0a5cb77-fb97-40e5-9bc7-1a5324053405","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":"e1d05ec3-2e77-4d1f-b080-ce5432971f8f","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":"ccc680d9-fafc-42f5-b9ee-efbdf70659b1","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":"1360c41e-3c58-4995-a48f-43f3693e5ccb","block_type":"box","text":"other restrictions. Fur ther, 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":"897dc9bc-69eb-463f-9cbe-1b1ac9a66872","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":"6af67410-d8ac-4a44-b6cb-f51317b69811","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":"094b938a-3223-446f-bf50-d18e1ce0f8fd","block_type":"box","text":"Suspension Risk.","page_number":76,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"3e5a31c0-acbb-4823-a155-10a595628245","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":"8dac11ef-7a4f-48fe-9ad4-9cfe506f96c3","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":"a70b20c1-3217-4c90-b8c3-b3e09415de03","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":"cc9776b8-1ad4-49da-8989-d94d096b7301","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":"eef29e9f-706a-4759-8d61-934778e0f8b8","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":"c61dde12-6816-4e41-bc32-375468e80935","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":"3fa8e54f-157a-43ec-b9ba-b627460d7ae4","block_type":"box","text":"Nor thbound 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":"8244fe02-291e-4b0d-a045-49cbcfc1c5a2","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":76,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"33ff6a7e-d13b-479e-a34e-859b2430e796","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":"95558c95-00bf-4524-a9cd-d44f5ad8ec85","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":76,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"a8a15833-70c3-4841-9934-72e264963397","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":"a5d18a43-e045-4567-b175-153e79d6f713","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":"0ef4a4e8-0b90-4298-9dfd-e4137ca0296d","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":"e1d2d100-09ff-486f-981f-bd5058d8070f","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":76,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"330d6adb-b12f-403c-abec-dd9ad56c0954","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":"b8005578-d09d-414e-92ec-6f813cd994a2","block_type":"box","text":"A Fund may invest directly in the","page_number":76,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"036bc315-ebce-4f86-b0ac-a69b47c5e58a","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":76,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"a06bbd76-6967-4142-a9a1-e0c50c6c0fec","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":"07f11f15-c2b0-4df5-a72f-7158bf14c203","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":"a09ae1e3-b4ab-4d27-a1d8-7ff59b1e122c","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":"a46ffb33-3f09-44bf-807a-261cb1c09940","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":"f5f33423-277d-4aed-b4e1-57ebeb3d8c4a","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":"4bf5991f-e032-44a3-8584-c8ff6f9bebbf","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":"153c253d-a53c-4634-b9af-94d7176e110e","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":"a4e2cbbf-e4cd-444a-8e5e-8aece3cb73ac","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":"42c643ff-2871-486e-928d-7183d8b8ca16","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":"9cb0b7d5-b2c6-4909-8e25-7a1a76f825d8","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":"592e8dff-a51a-4146-902d-6a8de6235a91","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":"7daf625b-7aaf-4b27-b7c8-dc69106ba7ad","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":"7f9cd3ee-1fad-41c9-81e3-31f5dd8dca48","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":"0a54cc2b-5357-445d-92f1-7f7487e059bd","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":"69f9f432-c10b-4917-8339-2699d4dafc11","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":"7d95914d-da31-4cb3-927e-e25d63f199a2","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":"6e8c7823-75b0-42d1-b51c-c7fb07b28bd7","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":"84874c35-0d1f-4bcc-a22a-66ed9ef50312","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":"2110ae1c-f77d-417c-bbfd-d845cbdef88f","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":"200e8087-abd9-4951-abd7-5c9e1ee96926","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":"5122c27c-005e-4e3a-9229-2dedc7667aaa","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":"77f8ef0e-a7f7-45c0-bfb2-7120f81c08d6","block_type":"box","text":"i.e.","page_number":76,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"e704a662-8135-4518-bcf5-5ff06b4bc8b8","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":76,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"b327787e-3943-499f-b9dd-24686b9490f8","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":"5e206d84-4ba8-4d84-83cf-e18525ca2c23","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":"bb128072-b538-405f-9e18-18171046cc28","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":76,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"73846ee6-e891-43ae-a445-b7e3977d4c79","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":76,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"aaa81701-3bb3-4505-9a5e-96eddf36cdc4","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":"33e0a6a0-c480-4371-8fd9-93893e49cadb","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":76,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"448e5493-c939-438e-b00d-ed7500ae06ea","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":76,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"298539cb-d89c-4412-b761-4b42be7457bc","block_type":"box","text":"par ties.","page_number":76,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"10d02fc6-08c3-4b8b-88b1-3a5d3115598c","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":"f2968b78-7d1b-4d64-bfd1-60185e120abe","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":"59136ad8-4163-45b4-9abd-38c670e6c099","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":"844eedc0-b083-4e54-9113-04e25a5175f7","block_type":"box","text":"II-45","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95be988e-547e-4082-a98a-856dfa091145","block_type":"box","text":"NM1026U-5985614-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1b4643eb-b79c-45a9-878f-7fbead5e12ed","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":77,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"7fadaab0-65ac-4668-93af-4ee7b0da6890","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":77,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"47e9dd55-b179-482d-a991-84724af59f8d","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":77,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"92aa271f-9482-447b-9e54-c9d416401ab2","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":77,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"eeb5078e-5961-44bb-9ff4-437515286fb7","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":"4b991a1b-8100-4215-8fc9-6b3d146d22e1","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":"a75a6e74-cdd0-471a-8df7-abcf172b5444","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":"9dc43fc0-8309-479a-942b-937e84609721","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":"f420914d-69b9-4483-9a01-b5aca359e362","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":"f91a350e-401f-455c-8e8e-3c4f920053f7","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":"cbd282f8-f0f1-44ae-95e9-2e81b17ee47f","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":77,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"76b7b976-699f-4ae6-8bd4-5e8c3dfbcf99","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":"9e330bb2-aeb4-4b11-a0e3-c3a4e7370d1b","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":"617d0974-8535-4c59-b820-95325eb16481","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":"cb832f97-39e1-47e4-8a2c-56d0709096aa","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":"db290f35-c7a8-40fc-bcf4-4eb25a7f6a98","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":77,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"0ef9c255-edf1-4e74-87aa-caeaae7d1c02","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":"642a8092-f675-4d86-8000-c7f74790cfe2","block_type":"box","text":"per formance.","page_number":77,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"9d2099c0-57b2-4bab-b040-b542e8127072","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":77,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"d5a820fa-076b-4695-849f-1c335086ecc6","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":"b7219424-4586-4753-a4ef-b1ffdaab86c7","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":"485043f3-b740-4132-ba27-2fd01121de5e","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":"6cd1337c-83d4-42d7-a14b-ee8ff2a68f03","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":"0b80c6c2-d2bd-4f18-8854-64094bcb9df9","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":"38babbb3-c602-4546-901c-1c885bb177f6","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":"aca36afe-60bd-4c15-9b64-e53862419215","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":77,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"293decf2-7d33-49ab-92c2-3cbec082b11c","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":"b581abc4-fca5-4c9d-a894-8425a405f59f","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":77,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"3a3520e7-ab8c-4e03-81de-4a90706c1a4f","block_type":"box","text":".","page_number":77,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"00cb0e76-a7b8-4f00-b3fb-ae193db57ad5","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":"f68c8691-bdec-4ccd-a059-6b7fd62a2f53","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":"d0a84ad9-21b8-45c7-84a0-a3dd7221e186","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":"177b0f49-5f7e-4766-a4f2-6713a18b60bb","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":"eeff47ac-9e59-4749-8e3c-a782ba0dc8ab","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"5d054d22-2e3b-4f17-97bb-d85cf125b7c2","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":"8810f9a4-3c3e-4c58-b412-f3519f32926a","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":"1048f7b6-6904-4140-b6dd-e0fc4324e641","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":"978afedb-768b-4b2c-b4f5-fbf3f3847f28","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":"7a919480-54e0-4c72-9aea-9c3ebd07ae3b","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":"a09e6ed1-b585-42c5-91c6-d1f7d7805fa7","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":"046d79d4-3e87-4b75-9a81-1443ccc9d9bc","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":"5da2297e-4c99-4cc6-a7ed-206139705987","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":"f687c8e6-7e20-45aa-8cb9-3e9fc814e3f1","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":"d6796922-2210-4efe-90f3-88de3c856d97","block_type":"box","text":"without notice.","page_number":77,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"945632af-743c-4ab9-88a6-c187d47e16c4","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":"d737ba2e-7f2c-46a5-a30b-893b40475dde","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":"f424d9a4-ecf7-40c5-a19a-038241251e47","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":"1836eb6c-ebe7-4990-b4a7-e9b96e426e69","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":"dddef6fa-0a7a-4881-9504-8778d2b13655","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":"4a406b09-8d87-44ef-82a2-9932503924f4","block_type":"box","text":"December 31, 2027.","page_number":77,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"1cebdc96-79f1-42a3-812d-edb936bba3d2","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":77,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"de7a7a9c-dcc1-43e8-acc5-63cc502f99c4","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":77,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"4e4c3e56-de35-4a21-834b-ec2cd64c3f5d","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":"32629227-b51b-4ad3-8772-4b0ab64ebe89","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"ae629f59-d609-45a3-8718-f2fb604c5516","block_type":"box","text":"II-46","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16a70c4b-0ea1-4ba0-aaea-385d5ce9ad90","block_type":"box","text":"NM1026U-5985614-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e36e586b-6e85-4035-a4e5-71f5e9d3218d","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":"5382069d-62dd-4613-8153-86c3c3278497","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":"c66341c5-e849-4867-9afd-611d6eb6553b","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":"01d347c2-7680-4172-9796-9f46d28eb494","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":"c665af24-d86a-4c12-9246-527c8ca85358","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":"4704823c-1c53-43fe-8f19-ae68cbb8e0bf","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":"6ef94152-28b9-4dd0-a20c-8fbc40477066","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":"29482859-c1f9-464f-a713-ca11539f88ba","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":"c27d7828-7f7c-4241-955e-f9634ae2cd96","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":"fdef4fe9-7c73-4bad-a69d-69435791f580","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":"bbcac03a-d470-4429-8005-ab81f002791d","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":"15907a9d-17eb-4aab-8798-87bf60c6fc11","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":"5544d4a3-1325-4b71-b9ea-0813672308b5","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":"6e4c9b96-aa9c-4969-8f64-34bdb7283028","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":"23b024e8-e366-4ff4-b1a6-6c32dc1568b8","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":"f9b551c2-72d5-4965-b7d8-96e249c99f30","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":"48fbbe8f-b68d-4da6-a476-e45b07a6de68","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":"0be33110-a8ee-4213-8785-d66fd4aa7a34","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":"80deaef1-82ba-4095-aeea-c92d680f3e58","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":"552aca9a-dc68-4256-8160-449793a88728","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":78,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"9b33e7e4-fa95-46c0-90a8-d5c11ad0f21e","block_type":"box","text":"the PRC in notifications.","page_number":78,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"abc81973-c313-4616-8f8a-f20665f8e1b1","block_type":"box","text":"Investment in Other Investment Companies.","page_number":78,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"18e1b3fe-28ab-4217-bd60-9f96c8347d7e","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":"c0a27a10-1106-4352-829e-0336064b0744","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":"3fb2cb64-2243-4ccd-9b97-d5f7c65552e6","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":"4c2199c9-10f7-4c6b-8227-6544e62eaa84","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":"b0a79d21-0481-4441-bd41-75741851cde6","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":"54698279-313d-46a4-af42-f353f85bd85f","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":"3c05e19b-6f30-4329-b0db-d9cfdce8ec7a","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":"31c65b1f-b6e0-4d18-898c-2882b2a9a40c","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":"6a1b6484-c5f5-4a12-b25a-75a44b7f7844","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":"7395f53d-115b-4c35-aced-4f15f12ee3f1","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":78,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"0156c0bf-0d6d-4bc2-ae93-e01e4faacfb9","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":"b6d9a9f3-f557-4bd9-9af1-b3be28554ee7","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":"841d77c6-e077-4fbd-8aac-69002f4d81f9","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":"64bdcf8e-ab98-4455-b403-745f758b9ae4","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":"18ece839-3c2c-474a-ac48-4168229ce183","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":"f0f69105-6136-4c5c-a56f-b9e6d23e3447","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":78,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"7f150ae9-a85f-44f7-87b7-300f94296306","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":"b1b9e0bc-efea-4d1e-a005-7c49110207a8","block_type":"box","text":"subject to cer tain conditions.","page_number":78,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"86016d6b-e952-4a4d-a5ef-256d307a8f09","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":"61dd1d6c-4555-42a5-a15f-8fa365d60492","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":"ab568559-7a3d-4bb0-a9b1-5a1de150892b","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":"ef5917fd-ce01-4b26-9a74-38101bb58a10","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":"ff58915c-8b58-4552-b4f0-88f55186cf35","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":"9de2441f-eca1-4891-b301-9b8b1b167c5a","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":"95fdce40-c257-4767-9442-b6f6c9d290a9","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":"8ea1d6f0-46a5-4861-a8df-245a13738cef","block_type":"box","text":"loss.","page_number":78,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"6e794540-781f-488b-ae00-1d0dffb33bee","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":"5e90db9f-310a-42cb-9c63-c0b1d7b5891e","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":78,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"274948cf-789b-408b-bf38-d64c27c52d48","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":"d42431d7-1eca-4bd3-816b-8407b6eb62cb","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":"2c4366f3-7da9-4988-9912-ce4a3fab0ef1","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":"65b04770-d994-4777-b245-ab1c17f9997d","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":78,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"879fd220-7bdc-45a5-83ae-005b2c0d28eb","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":"3c878184-0bf3-4d0d-8f6e-36ef567ce108","block_type":"box","text":"II-47","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bfc531c-6a5c-4403-ac2c-434dde5e4fcb","block_type":"box","text":"NM1026U-5985614-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"df929362-17d8-4828-ae97-fb9c8732fbe3","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":"1c1d7f4e-0832-400d-a35f-c929026ba97b","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":"0dc0de9d-aba8-4b8d-b275-5f63631fc5ec","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":79,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"711d49af-31c3-47b0-b8da-ca8f4abfc0be","block_type":"box","text":"assets.","page_number":79,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"de4a9bfd-c38e-44a1-9bc4-b3567d852fdc","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":"6a8ca254-8d54-4fec-959b-a928d4b25d5c","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":"7c0a6b3d-3cd1-4c5b-bc24-e7fbf52c7fc0","block_type":"box","text":"e.g.","page_number":79,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"b018da0e-51d3-4831-9777-3128915d603a","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":"04f0c827-0df4-4b7e-9779-a3cbb4f31793","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":"276edd3f-0067-4788-a785-5d4691336bc2","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":"8f2f4f1c-c8a3-48a8-872e-d8032b8c6590","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":"002571b0-659d-40c3-b38a-bfa1d666211d","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":79,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"08f3de04-bd58-4279-a98b-d9e8fd30b291","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":79,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"37d71313-d12d-42f8-bf40-b520f57da5f9","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":"898130ec-7e05-4947-929a-9d0d759a0144","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":79,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"9485952a-063e-41c2-a3bb-11d16f217734","block_type":"box","text":"countries.","page_number":79,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"5c0a3a7d-04ec-44bd-8c22-21a35c04123e","block_type":"box","text":"Issuer Insolvency Risk.","page_number":79,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"40135be2-6793-49ab-a1bc-7fa9e7d0c1ff","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":79,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"418a4377-b3ee-4476-8242-889462d6b30c","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":"8941614e-71ef-4556-9252-6ebc28b074f7","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":"4dd3d8b6-f86d-4898-941c-cd44e96bb6a8","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":"c7a262a4-8309-4e64-917b-06d08493dbf8","block_type":"box","text":"issuer uncer tain.","page_number":79,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"1fa0464c-b9cf-43a8-afef-526644494d93","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":"2aea1e05-18bc-4b3a-aeef-4cfa7701aa0b","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":79,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"17cbaa87-6f4f-43d7-9050-eebc4ff6b236","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":79,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"63860906-95be-4a2b-9108-cb608b4d5c4b","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":79,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"2853ebe2-c0fa-4de5-aac2-915e2409c800","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":"9fe3ca73-5d51-4700-bfa7-a437e75e4ef0","block_type":"box","text":"eventually be satisfied.","page_number":79,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"fd0eec33-e126-4b1a-8970-5a1bb0e925e7","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":"dba60a3a-7d29-4d75-8f50-67a91aba2563","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":"70f2a078-dfb4-4e59-80c0-883c1adba964","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":"69eb330d-b28f-468f-b8c1-fccac493753f","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":"41761ea2-32f4-40f3-8cd1-ad60dcc542a1","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":"cb9f9b2d-ea61-4297-8489-1a4281942267","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":"8481c05e-1122-4d8d-8761-54f251c0a7c5","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":79,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"450f9707-5cf6-4cf5-8ad0-9befe4833145","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":"5bcb3999-cf23-40af-9b2b-a878d0048ffa","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":"627f7911-7581-4b2e-9d52-c79ad10c140b","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":79,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"182fca4e-76b0-4e71-ab35-0e1f3a4b3ba2","block_type":"box","text":"and debentures conver tible 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":"4aa6ad6a-6d11-4f60-9358-156109e7b04f","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":"5465c85e-691e-495d-88db-5b2b3231b96d","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":"aedafc1f-eee6-4fcc-b65c-856e72bfe56a","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":"11f41810-6ae0-4a88-a673-687eb8919da5","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":"5f8fc75f-3e2a-4093-80f8-587b89bd0495","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":"a69415f3-03f3-4931-a24f-cf5fbbbaf428","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":"1cb40fce-48e8-4853-9a5a-2f5d836308df","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":"3b88ad40-ee78-424c-9f1d-7c1b5335a995","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":79,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"2e30f0f4-b46b-4ccc-afcc-df25b00691dd","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":79,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"6f3ee84c-5028-4916-8533-a50cc0c39f1e","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":"e2e3f0c1-9e18-4f82-9497-09590f4d7ffe","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":"e556badd-74f5-475f-ba62-4b56ead8f418","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":"ee0911c2-0505-4533-8fa5-5681ce15fc9e","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":"8df63f1c-b934-4ed7-8f98-cb0d85b462d4","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":"ca4324c8-2000-46ab-9d3e-7c293c5f76f5","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":79,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"534ac010-52e7-4b06-a13f-fccdac68fd3c","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":"a0edbc0b-7ae6-4432-ad8e-29cad8d7ed5d","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":79,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"e443dd5b-b38e-4f15-b7cc-47f5518a409a","block_type":"box","text":"that assumed generally by an investor.","page_number":79,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"de59cdd2-0e4f-46a4-827b-e21945f35de1","block_type":"box","text":"II-48","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d7dfa1b1-e3ea-47c3-aac0-a28cd8f048fb","block_type":"box","text":"NM1026U-5985614-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d8e6cbd9-d099-4d94-902e-589cff9b944e","block_type":"box","text":"Lease Obligations.","page_number":80,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"3d4176f3-e0aa-49ae-8013-1a31a6cec695","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":80,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"30682b83-6562-4cac-98ea-6788514465df","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":"c285ce15-bc8b-4452-8202-0ef1199d6cda","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":80,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"d66d0cd4-348a-4000-b769-1236c54b5c86","block_type":"box","text":"Life Settlement Investments.","page_number":80,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"d591a5fb-46fc-4645-bee9-ce64112271b3","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":80,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"65b1a7d3-6ebf-4acc-9c42-a3a751e22d15","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":"bf2f8e3b-ed3f-4493-ae82-a6b77e3b9da9","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":"39f2ee0d-6938-415d-82fd-0e220e74b68f","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":80,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"e37b20a2-303a-4f09-aa13-3b6450b9f567","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":"0b37a83f-cc9d-44e8-b5c5-3f4270fa08e5","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":"ba97079a-a21f-4c20-a919-66ecb40c5a9e","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":"37c40446-965d-421c-be1d-c245b52b7923","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":"8f48445f-2c84-4839-b5e8-23896632febb","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":80,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"ed56f97a-c227-48d8-ab6a-62825eac4f63","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":"9eadea66-7636-4f14-a399-5c2515542e09","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":"61f67dca-cc73-46d0-b98e-75e15bf56b16","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":"f1d27bf4-2839-4a55-9c90-5fea07aa68a8","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":"de88a666-6dbf-419f-b564-ede7e5475380","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":"361fb803-659e-4350-a0cb-f6d61d6c1574","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":"bd41ed2b-eac4-4cdf-bb8b-4366397c6907","block_type":"box","text":"Liquidity Risk Management.","page_number":80,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"5a3f2c1d-04c1-424a-bad5-071286fd4d81","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":"431c4e56-7311-4a5d-9935-f5c8d7ad10f0","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":"28a1fc1e-9cc6-43c3-8ac4-b317a40cd0e6","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":"37771301-5f42-470d-8c0c-e3e8153d5b78","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":"c96eb3c7-acb3-4762-8f41-cdf88ab14a14","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":"3fa40a05-4ee2-404a-990b-e23f8d8c2541","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":"58fa1a9e-3675-43a8-b5ed-14376507af52","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":"5cd6c74a-194f-45bd-a69a-6efa2c57f22c","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":"734b1d72-06a7-43f0-b3ac-20d45cb0f82c","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":"b78b2340-e7f6-4389-b95f-15ff164cfb84","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":80,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"00dbef85-4e0e-4953-a8d3-dc004c35d459","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":"d9a7909c-0089-4415-98b2-5104e521b67e","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":"574980f2-0805-452d-8e8c-6bc9aed413f9","block_type":"box","text":"Master Limited Partnerships.","page_number":80,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"e480d509-bc66-480e-a364-c048b3c81fa8","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":80,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"e4973ab9-2d2c-4fa7-a0ac-bc1f6b7df85b","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":80,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"69104ed6-12b1-48e3-8467-1cb064704baf","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":80,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"bd6e3bbf-4b5d-4691-a21d-e3efd1f856ea","block_type":"box","text":"pipelines transpor ting 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":"d7fd9328-0e28-4b2d-89cf-a9d5f959d3c7","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":80,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"bfe002a8-1851-4561-a83e-3ab41cc9cbe2","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":80,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"986723aa-93c8-48f0-8067-0fb3a3d3398a","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":"2701406f-3c02-451c-9af5-17b28e823330","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":80,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"a80b1a05-6f7a-4c5c-84ee-b3c026cad5fe","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":80,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"6f1eb663-90bf-42ca-9262-6933daca1bd5","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":"2961b709-b928-4284-a8c7-6e6905dcd207","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":80,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a49c9122-6853-4a5e-b719-bf3e8ac593bc","block_type":"box","text":"in the par tnership’s operations and management.","page_number":80,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"db6eee3a-700d-42ac-a9ed-ac596f6817b4","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":80,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"1c309e71-b95a-4a72-8622-4f530dabe7d5","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":80,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"82046297-b87c-46c5-bd90-23ecc4974f99","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":80,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"71f78335-9edb-4439-9954-72c397e2f500","block_type":"box","text":"Once common and general par tner 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":"b8e0562a-74eb-4aaf-a44f-37071c2a9782","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":"f87390ef-2a10-48fb-8f8f-e01e0874d1a9","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":"66dabbb7-a600-4fd6-b0df-2ce1da3ddff9","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":80,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"be66a3ca-7c0a-470b-aa69-36a71f27dbf2","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":80,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"a169a6b8-fad0-4a44-a332-0c14f6bc62b1","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":80,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"6236b6a1-cabb-4e0b-9d3c-5493d76872b8","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":80,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"db39c5d9-88ef-457a-a080-c42c548c0cd7","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":"68590442-83da-466b-9739-e1f9d40d8010","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":80,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"0fb93f52-aa04-403b-9e79-8b9a73c678ac","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":80,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"6917559b-fe05-4c82-aba1-26285e68fa6c","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":"7148aaed-1471-4bf3-ae20-719024a63768","block_type":"box","text":"II-49","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46c2b157-91b2-4639-ab88-c1a663d0072f","block_type":"box","text":"NM1026U-5985614-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"abb80848-3725-4130-96a0-8fb847b6699b","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":81,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"953cd6d6-a299-490a-9bb7-9220f96868d4","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":"9a22c572-2700-4e26-b4c2-efc5d819a28b","block_type":"box","text":"success of the MLP. Cer tain 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":"cfe5a2e6-67d0-4dd9-8a99-bd8986a02444","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":"20ec4c7a-4e3e-44de-8f3b-886ae2e9833e","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":"a62c4598-7d37-4dcf-9358-e5f4a4b19486","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":"aa64829a-dba8-494c-b3f5-a6f6eb2bcd1b","block_type":"box","text":"Merger Transaction Risk.","page_number":81,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"dd543613-5f00-4da8-9adf-0cd7b97c874b","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":"3f9ab30e-5c1b-44f0-a03b-3eb587a4e993","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":"aa02196f-4474-40b7-b0ae-45980d3ffd27","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":"1fd0b07d-6bfc-4278-8d10-c6e9618e4877","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":"28c0ca3a-32b8-499f-89fc-52b80b57ab9b","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":"5ccf63f7-50c7-4a9c-8286-8c64b5ce00e8","block_type":"box","text":"the Fund and may lose significant value.","page_number":81,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"906c221d-f3c0-4d3f-8c4b-136ff775fcbc","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":"29d05527-21ea-44a3-b431-4155d8c18be1","block_type":"box","text":"Cer tain","page_number":81,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"f07572e2-2044-48da-9a5f-c5ce229696a4","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":81,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"8aa4f083-45a2-46cd-82c5-6ed7c983289d","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":81,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"5df473ee-d39b-4da5-bec8-ef51ac20ed04","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":"f25e18ec-4739-4b6d-92fa-7d1ae6fd529d","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":"4ae155e2-afed-4244-8e12-cb5aaad4ab8a","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":"031dc164-99de-42a9-b087-9913ecbd982e","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":81,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"0b688e75-4ba6-4a23-8b68-f7f9fa70c7e7","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":"f97c0639-c406-4f31-bba0-5be73605938f","block_type":"box","text":"branches of domestic banks.","page_number":81,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"82a9ca27-66f5-484a-bfa0-5535f4cab4ca","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":"0bc2bc19-f362-4dec-86b5-3f80e66ef3cb","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":"59bf9b19-ad20-41af-833d-3d9a967d026f","block_type":"box","text":"Canadian counterpar ts 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":"eaf2dcd2-192a-45a4-8ae7-f61cb7ed9314","block_type":"box","text":"paper of a foreign issuer.","page_number":81,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"820a591f-836e-4edd-89b6-5fac1631983d","block_type":"box","text":"Money Market Securities.","page_number":81,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"8df9fe99-9001-47e7-b0a6-8349a1836c45","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":81,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"f3bab70e-9c8f-4cfd-9663-1665510a08fe","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":"7a116c3f-d508-458a-9e61-91e3f8c93a05","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":81,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"160a5c24-173b-4230-9642-c57d82e94411","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":81,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"ea33b180-4382-4341-9d2f-540667d158e0","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":"6701c0b9-d30a-495d-971a-31f38cd9d728","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":"dd3d931a-ddd6-4f32-86e5-417dc44834fd","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":"2816fa5e-16c0-407f-82df-ec9c6f0de7eb","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":"31b3ebcb-540e-4a13-9eb8-268ca2dd0efc","block_type":"box","text":"agencies;","page_number":81,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"aa92b07e-3275-4a22-a088-b0af309ccc4f","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":"1ae5eac8-6174-473e-85bb-850063d2d91b","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":"e9407862-377d-4774-a01d-c0354af5410e","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":81,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"fc2b7f7c-52cb-42ca-9538-f8918cd800d9","block_type":"box","text":"obligations and credit card receivables);","page_number":81,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"7fab7cdc-c0ff-48b4-bd48-8a027b50826b","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":"3c896945-2b3e-40c3-a989-51f5891d3717","block_type":"box","text":"authorities and related custodial receipts;","page_number":81,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"b2c6fc11-1032-48c7-a3d2-0f4554b68dde","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":"7afbd0ec-57d8-4149-b562-6a7562faa9dd","block_type":"box","text":"agencies or authorities;","page_number":81,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"7ee96313-c44a-4334-b925-3c6823b3800f","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":"249729ce-f43c-4d5c-afce-dc13bb4e3946","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":"652a09cf-7643-4625-bf47-0bd90a8ce1ae","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":"a0989c9f-dcdd-4d19-a7e1-1a60c6d2e6df","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":"94ecfcc6-87f2-45fb-a928-7d13579ebb36","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":"bc295e2b-f39a-42f3-9af9-e3f61a544da0","block_type":"box","text":"States;","page_number":81,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"cf2bb468-5e1a-4628-95b5-982a1110b00a","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":"7d420451-215c-4125-b390-6a9b706076d1","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":"e08e400f-49b4-4b0b-9a77-79c9bd4cc406","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":"d15f6d45-6aa3-41ab-af15-1c2a98904ee1","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":"c60f11fd-6d47-42d5-865e-28a636af53c5","block_type":"box","text":"II-50","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"346efb22-29b0-4847-ad43-682a00be6f5f","block_type":"box","text":"NM1026U-5985614-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"72719791-91e8-4638-be91-8384d4da95ed","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":"5749a4d3-f1c9-4b20-92a2-2ac4b9d9b80d","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":"c0447090-84e1-4ba7-8f31-16d24d75fc72","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":"6b80d724-a58d-498b-a1a1-85e55741fd57","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":"947cab35-e5ad-49ee-bbc0-674b6f0a1e75","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":"050779aa-04d0-4bb4-9c71-fc3a5d944d97","block_type":"box","text":"States.","page_number":82,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"015ed8c2-744e-4e7e-b7af-c6917c81b0eb","block_type":"box","text":"Mortgage-Related Securities.","page_number":82,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"de1bf472-91e2-47ae-b3eb-2f4cf27671f7","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":82,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"81fb19d6-1da3-4763-b61b-eee166406b9f","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":82,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"b3f19f3d-0f06-4d38-94a2-f9cbdf384c2a","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":"f8985770-7041-486e-abe3-ceef136e5265","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":82,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"66c0cf20-8fe3-4caf-9dc5-9a8319052577","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":82,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"03338310-53e2-42b8-9e79-4eda38fafc83","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":"cd2c23e9-45e7-45a1-b065-70f7c200d254","block_type":"box","text":"maturity or specified call dates.","page_number":82,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"cd9e99c5-fbce-4a75-85a9-122a56270b78","block_type":"box","text":"Mor tgage-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":"9fd5f408-0c29-4202-a1e0-7da0197b708e","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":82,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"0f2e5871-64ea-477f-82c5-9b40a76cb4b9","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":82,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"c805e2a4-71f5-49d9-ac0f-dd2392183c3a","block_type":"box","text":"par ty 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":"f674843b-1161-4c0c-b93a-daffe3ea8a36","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":82,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"0eea8a67-ded3-474f-960e-a90d880698c8","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":82,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"ca56bd44-de50-42ab-8846-263d26797ee9","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":82,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"4da761d7-2a20-468a-98bb-ed94b37b5851","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":"00e448e3-bc99-417c-a49d-0c6632652808","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":82,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"6842c9d5-49ed-430d-a16e-b960de5bf044","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":82,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"42af0768-5eba-42fb-9f74-84dde5c52c75","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":82,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"8c2d0fae-5f0e-44fd-a54c-33eea6cc8253","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":"4e1281a7-6c5a-446f-a1bb-132646a39b61","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":82,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"f0efe7d5-018f-43ff-91a7-4f83904a3152","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":"8bd7c491-0635-44d8-bd50-653766ca1b0f","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":82,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"4b2fbc68-3a89-479b-817e-5c8b2222b505","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":82,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"8f3ddde6-9cd3-42b4-b53a-1b4bf8079d64","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":"28ea7948-5d50-41e8-b13d-41e81fd7236b","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":"aa641bb6-d8b5-41f9-9fe3-96b317831fc9","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":82,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"a2f540e0-cb24-49ac-a827-0bee81fdce3a","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":"d3aa69d5-0036-4ebd-975e-d8e2970e5b82","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":"69d4e35b-acb0-4299-b007-3991085fd570","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":"c057bcfb-57dd-4c4b-91ac-9e428f4178ed","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":82,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"5540d7b4-b677-4771-8f82-17cf8a132f37","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":82,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"0613856b-ca5c-4092-9133-2d63b29ffbbd","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":82,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"1ab2bb40-023b-444d-a7c8-26b0d48fb8ae","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":82,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"c3c09ec9-34b2-4067-a297-2155522a71bf","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":82,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"8eb0d3af-c8f8-4820-846e-1fe74704b589","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":82,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"32232532-e1a2-4dff-9093-383a0b468d8c","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":"4a9cc8e5-7071-4d5b-b678-8cddf6c188b6","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":82,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"ce86b044-5c25-4793-8f37-6b2f1879dc5d","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":82,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"6f87cf3f-31f9-4557-aea8-dc4d0f3970d7","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":82,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"2bb9b7b3-177f-44d2-967c-ce811311acb1","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":"6ec95e7f-165e-44b1-8a19-44837757b716","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":"0e3d968f-b6a2-47a9-af12-ebd98eb15805","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":82,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"3fb73485-34ac-4b19-8684-bc4ad6c05bc6","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":"fc20d498-8272-4c93-9fb0-95bbb824217b","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":82,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"76987bcb-3553-490c-8af7-464a0bf95c94","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":"28638fb8-1f85-470d-b238-821c3b553759","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":"36456b60-2436-49f3-a1a6-03cfb496cb62","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":82,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"b7bfdf46-934a-4be8-a367-95f7036d8bcb","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":82,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"07a44265-e69c-4e40-8259-1b09cc971193","block_type":"box","text":"II-51","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82ec7ef0-afda-4b7e-92f0-7b5aced04034","block_type":"box","text":"NM1026U-5985614-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"165c9325-1bd0-4b6b-b752-682190f1c695","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":83,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"96a48b8a-2b20-4cf3-ac2d-2399b0283d09","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":"c16ecc06-7ebf-44f7-9c3a-df42a5af2b48","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":83,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"a9a1bea9-ac20-440c-88d8-8278188de159","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":83,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"aa859296-45ca-4f32-b025-9872fce8153e","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":83,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"4c3dad46-f981-4f12-a1f5-c172535d4d87","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":"467fbae6-52a9-4b3d-a01c-fd485caf051a","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":83,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"116dd2e9-cef1-4798-bd7b-be4af3fbe34b","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"719c0de4-acf5-48da-9742-7346429a8177","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":83,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"536f7664-74f0-4206-9226-818081415ed7","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":83,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"b8d4a823-47f6-4767-977a-9a38a3eed0c9","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":83,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"ac1998dd-ca01-46f9-bdec-e0b6ccebc571","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":"f5fc9cb2-d3da-4018-bf7b-040db219b419","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":"251abe33-9aaf-4b48-98bd-8ef829249a43","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":83,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"e91b9696-76b7-40d1-94cb-8a3be59cd037","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":"91fa063b-560c-4183-a730-2120e599757f","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"43fe61ca-9895-4fa8-89a2-2f10a5400ac6","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":"62af6473-bc7f-4580-856d-9e9d7b43209f","block_type":"box","text":"Private mor tgage 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":"df37fae2-1fac-41e7-b76f-0b81e65892ed","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":83,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"04ce0b45-d81c-425a-af74-53cfb067b486","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":83,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"cea3f5a9-1038-423c-802f-af0c7b221ee6","block_type":"box","text":"Pools created by private mor tgage 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":"ae186751-e631-4c3d-b426-dc0bd4abdca2","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":"867d9981-df2b-49e0-9d71-cf04b60746e3","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":83,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"42931623-c014-41e8-8961-ed2122e868b7","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":"38e753d7-ff2d-4934-ae15-6a19d4cb5ffa","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":83,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"d734142c-c51e-41c4-9cea-2f396c090cbc","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":83,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"33b30ed9-0333-4cd9-a502-051424fbae79","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":83,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"96c723fc-b9d6-42bb-828c-73fa310b553a","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":"d5b10b57-a995-415f-970b-144906310405","block_type":"box","text":"mor tgage 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":"3c570230-c377-4fde-a6e2-762297b47d5c","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":"bab3726c-23f4-40d7-9ed4-39237b2391b7","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":83,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"6185ab32-1f41-4ffd-a723-989859c00984","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":83,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"6e9d5608-d475-4259-bd0c-ad36c7ae402c","block_type":"box","text":"In addition, mor tgage-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":"e66ba5aa-b0fb-4e05-876e-2a3f96ceb7b5","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":83,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"bce2fd5b-da00-4e41-9c76-4f2aba19241d","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":83,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"0a118f16-e602-4c75-bdc1-792f2142212c","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":"206aec5b-7787-4b2b-97b0-78a38c220087","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":83,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"b1f929e4-f5e3-4189-b11e-26154d317963","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":"f9fd7939-0e20-4c15-a500-2c2b5b0d3950","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":83,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"ae684930-25be-4b97-87aa-8e786c41b927","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":83,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"35317f00-048d-47d2-9ce3-43c93ae87a6a","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":83,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"02877a52-991a-4a95-b4d6-3b0107b8fb78","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":"f4204cba-d157-4a21-9c1c-1ec36a7ffb99","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":"dc91b573-9f5e-40f3-a845-352a00b7992c","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":"067df993-2b1c-4b10-baf8-1688aaa0fe6a","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":83,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"bd9f4ee9-a401-49a2-bd23-6392d2da74e3","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":83,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"e14559b9-a840-42ce-816c-090b8bb76e0a","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":"2baed82e-b0b1-47bf-a4f0-2c8a889180d2","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":83,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"3574914a-577a-4e89-938e-8ce0dd36adec","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":83,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"64a99257-7082-4260-87b1-3e5a4ece9bb0","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":83,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"85d40f6f-954d-4cbb-8ab2-229be11b1cde","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":83,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"7e7ab43b-2c14-4d39-970b-08920d80b5ea","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":83,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"07dc35ec-9596-43c4-984f-10344a4e7d99","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":83,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"f69caa9c-09f3-44ed-a730-ef1c05dd8db3","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":83,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"5d0dabb3-f8a7-4d23-9492-60bf73dbeb91","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":"ffb66d2d-0a1c-4a62-998a-a34d6624528e","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":83,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"220643c2-7899-4a44-aa03-79fe4116d754","block_type":"box","text":"II-52","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a62d519e-0923-4d3d-832f-f3f3c4b6e806","block_type":"box","text":"NM1026U-5985614-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"df95919f-2fb5-483c-b2b0-dbcfa81c7e29","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":84,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"8da160ed-757b-490c-975f-464d00157462","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":84,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"6075d673-41fc-4089-acdd-d70ca66d772b","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":"34290f71-512a-4f12-a643-6bfa240b82b5","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":84,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"546c696b-b208-4a8c-a6ab-2a760db4d3ce","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":"08a1e0de-3ee5-4b8b-8926-88e69c93b545","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":"121c62d1-b6f3-4e7e-81d3-4546d808768b","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":"128a86b2-c4ea-41fb-a1f4-d7b10abd772f","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":"b70c4fa0-f162-49a1-bedd-55073687390b","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":84,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"04926e2c-4a87-4903-8a13-38111dc1142a","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":84,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"b0afbcb1-62fe-4265-a015-73d2274e9ce6","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":84,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"a5312dad-7a01-483e-8577-d69857754326","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":84,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"c2832661-2c71-4d32-92ce-3a9eef312503","block_type":"box","text":"of principal because of the sequential payments.","page_number":84,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"f2cc4452-58ee-4b26-b404-ae4179503035","block_type":"box","text":"Cer tain 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":"a01e5386-9de7-482a-965b-67d29bd2e3cf","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":"275df2ec-dbdc-44ae-9e31-d41e4a0421c8","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":"81562040-4d92-4412-a383-074dce9e9a19","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":84,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"02f1cf03-0b20-4afd-a738-a1e2241cfbc4","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":"46b46b4e-c8cb-48e4-8046-57a7d11f68f1","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":"24343849-2e8f-4921-b397-991fc1f07fcd","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":84,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"726cd87f-53ce-4e78-9372-8ebb04243a44","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":"bfa27290-1dbc-48fd-87c4-91b5ae8bd6ae","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":"65ce89b7-1388-404c-8af8-bfc1bc96ae87","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":"b912f8c5-3f10-4c46-8f44-8613322f9224","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":"629ce28a-68e9-4930-a1e3-99fcc03a1e56","block_type":"box","text":"securities of any single such entity.","page_number":84,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"a502de7a-a365-4e9b-923d-19c6dc5a86e7","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":"caad66f2-174a-4ed6-bece-d25f8135cc25","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":"4c6fca73-15d2-49c9-ae02-3f387c32cb9a","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":84,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"f03bf52d-ea0d-4950-8e02-cd32fa5b381f","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":"44e688da-b3db-47f9-803d-4350fe54a652","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":84,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"857d5d1a-6d33-4c21-84d5-48c1797d2f97","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":84,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"3ac979d0-ea98-40ae-b5a9-38cea9683f08","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":84,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"3e6e38f7-eb0f-478b-9cb8-b3dbd02f09b5","block_type":"box","text":"and are conver ted 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":"830892cd-c4b4-4a38-aa20-2f1a9bceed7e","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":"8eb4d603-1539-4446-85cb-5d4c8b4669a9","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":"5a4ad272-2628-454b-928e-98e9522eb3e2","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":84,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"aaae7378-f5e5-4cf1-a199-e173589a084e","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":"430f43ce-50db-4566-8756-facd2af3ad8b","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":84,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"744b2a1b-c56b-4035-a360-bc0eacb66b9a","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":84,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"0d05c013-fe9b-40fc-a44b-bcb4f36d54bd","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":84,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"ebff91cf-6f6e-4884-acfe-848477ea0e18","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":"42af0ec9-0576-44f7-9a2d-7af3ab604b4b","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":84,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"428ef0c4-d7f5-4b45-a7c4-d7bbbde35a2b","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":84,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"9a440508-b643-42ed-8ccb-35bd262eab37","block_type":"box","text":"classes.","page_number":84,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"60903f31-500b-4413-a07c-5fd9b4b902a2","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":"746756c0-54f2-487b-af35-5d2da84a11cf","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":84,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"dad503d9-209d-4fac-a13a-cc0c01373a7f","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":84,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"df2dec55-eac0-46da-afe5-d3d7266b3ef9","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":84,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"8f1eafed-0b8b-4457-9f18-374652146e25","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":"39c38595-568c-4b72-a3f2-7868fc5e58fb","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":"e7f85b5c-3c84-4cd8-a2a0-8adb7465d878","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":84,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"ee68e237-f910-423f-b44e-a38b3fdfec7b","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":84,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"d0fd9da0-aab1-448f-9b7e-f2ab5979a4a2","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":84,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"baed4350-7c4f-4b43-a088-4e52962bb589","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":84,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"2de53a45-67e3-4e39-a25e-704e9bb1abcf","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":"704ee844-d3e6-4d65-9607-14215cfeed91","block_type":"box","text":"to a designated benchmark index.","page_number":84,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"5120eff7-86ae-4142-aa8e-45051e55fedb","block_type":"box","text":"II-53","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a76ad7f2-5922-411e-bfa1-87c161d48f45","block_type":"box","text":"NM1026U-5985614-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5bb45450-8143-4053-9c2e-5e2452c9c6e8","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":85,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"a959c2af-42db-4df8-92b2-b1f1a22f85d3","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":85,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"f149290a-ef59-453c-9f88-0679f53dff47","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":85,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"0610b110-a8ac-40b3-b7ff-62f99861c100","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":"bc93afd1-970a-4410-b144-a8850ea4f746","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":"7f450b08-211f-4e25-92ef-fac49d82284d","block_type":"box","text":"Cer tain 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":"e116d0e3-4cee-40be-8e04-fdbf2e1cf53e","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":"30d4fe05-cae1-4db2-9b63-2533775f63d1","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":85,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"c504c7e1-ac22-485a-b572-6e37157c5b83","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":85,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"04370e27-4da5-4730-84be-f6b63b1db5c6","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":85,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"39c79961-6afa-435f-822d-b006c858dc92","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":"8cbc946d-ac5b-4455-b8d3-b3622ddab626","block_type":"box","text":"CMO Residuals.","page_number":85,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"91b47e6f-a91e-496b-8a47-e2c9d56921b5","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":85,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"00d2b2d8-f349-4216-a915-47e6af82443f","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":85,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"2b9cfd47-5a38-4855-8b9e-1f18224d81e0","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":85,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"25529d27-3a11-41a1-af29-c812f6489ca8","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":85,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"e7cf3646-003a-40f3-9d0a-a5ab9dd6bfbc","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":"69798a65-4474-4ebc-925c-4f571a490fc2","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":"670a4c52-23f6-4b81-8d90-ea47634dad35","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":"48add17a-b597-43ab-a702-cc128d1cc709","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":"2d9078c9-c792-4b12-be76-27be3a2ba802","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":85,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"65f4fc52-36e3-4c85-b1e3-17101c20aa73","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":"b2d82468-94c0-4477-b54a-885aa50d405e","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":85,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"7e22e2ca-78b9-43a4-8c86-54472640b878","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":85,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"2ff62dcf-a6cb-4b5a-8999-f4c949e695ca","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":"1f6451eb-895a-4c3d-aa9a-8fffcc667890","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":"b6a68ae9-fa70-47f2-9a52-86d450d2e183","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":85,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"ea90d23c-7bf9-4c99-a7b8-c2f484880afc","block_type":"box","text":"a CMO residual.","page_number":85,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"68263930-7952-4a77-8b42-16ea99ab5dfe","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":"3d7a5219-8f1d-4d7c-a282-ac9743736ea9","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":"b179e494-3102-4b3a-9d47-e57fe4de6971","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":"19dcd346-648c-41ff-9332-d0413a5a3fe9","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":"b6310167-1876-4749-9578-9a256e0f4419","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":"3017e4f6-2094-46cd-8b79-02e6f68ea59a","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":85,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"2061a4bf-9bab-4346-af5d-818c8fdb6609","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":85,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"34cd77ba-3f96-48f0-8ff9-1b13b10015bb","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":85,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"bce2cd5a-722d-46c1-9d62-ec3e74fbde81","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":85,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"ba092773-ccee-4408-b3b6-7de40f2f36c9","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":85,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"c2704bea-a0ab-4b41-a9d7-ea7c564eb8fc","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":85,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"a9ff1eee-e08d-4323-b301-48a613551f58","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":"80540b60-dda9-4cab-b5d8-aa298da31bcf","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":"615c0601-cf6c-4040-a642-db28f77e1423","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":"6081d617-a0ed-4116-b8d1-fabbbef5a2be","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":"3cdc0fe8-8f48-4e21-8d25-ddc71bd35d8e","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":"b601728d-b424-492c-869b-b4f3018fa9a9","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":"bc4cba66-4647-40aa-861f-e19b11a23e70","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":85,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"9bdf872f-27d5-49e7-8d02-2d064021de77","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":"ccdd6355-86eb-4667-a749-e944dcb8262f","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":85,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"bf1fb6b5-578e-412d-b183-cc8c955bfb3c","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":85,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"cabe7ea3-6fc7-44d9-bf6d-77bd09516f72","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":85,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"b89f3427-3747-4acd-a1ad-134fd2d3e63d","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":"7242e506-f886-4eee-85f5-7122b05a3c3f","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":85,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"998c52a7-f10b-4e94-b65c-b68898d6bf5e","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":"e96bb140-f45e-43d9-860c-6a80cf9d93df","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":"004db0ba-f545-4596-a54c-a3b4a4b12196","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":"5d6d45d9-f6f6-43ef-9f9a-9e91932e5f15","block_type":"box","text":"Tiered Index Bonds.","page_number":85,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"24cc6e6e-2b43-4fe1-b3ed-829050c3f04e","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":85,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"4d53f114-59a6-4406-910d-eadd295b4335","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":"98af13ef-50c1-41d2-a3df-bb35f534f352","block_type":"box","text":"II-54","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cf2b4cb3-356d-4e03-912d-989d1c1f00ea","block_type":"box","text":"NM1026U-5985614-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1131bdf7-1683-4c43-acec-d49aa629416a","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":"7a1de386-b067-49d2-ba09-0907dedff737","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":"a26718f4-ec65-4a54-aa3b-72e44fbebb07","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":"15c2a817-4035-47cc-9e46-2ae4c857131f","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":"7950706d-3a3c-4f34-845e-6762ad402cc4","block_type":"box","text":"that of a fixed-rate bond.","page_number":86,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"43ad2fd6-eb27-4e6a-9b3a-22fad1f230b4","block_type":"box","text":"TBA Commitments.","page_number":86,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"78ca9041-2499-400b-8f7d-8fed7058a48f","block_type":"box","text":"Cer tain 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":"80bf1e8b-5d73-4e5d-bb64-15abbd0876af","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":86,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"ead45ed6-a4b5-4f86-a066-25c023cb269a","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":"8b2ef765-0d60-4c07-a567-cbfe96d5af13","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":"d73ed74a-8fcd-4393-8160-1616112a1880","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":86,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"d41bface-569a-4705-8e3c-e134ef8987e5","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":"e2790ff5-2ebf-4c72-9410-9b8fde6077b3","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":86,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"34d0cd1e-b34d-48a3-a3ac-cbca42b3091b","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":"0e39c4bd-9984-46bb-84be-a60ca34ebb67","block_type":"box","text":"below.","page_number":86,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"db37a3a6-85bd-4651-bacf-2f777f93677d","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":86,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"1ae8c416-9659-48ad-8f96-6ef2c4a65bf4","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":86,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"62dc3628-cddb-4c01-8de4-8c10e0571d4f","block_type":"box","text":"Fund sells mor tgage-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":"289227e5-ea80-4d49-a965-09fb3017ec90","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":"2daeb910-cdb2-4cfb-915a-6296c18918cc","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":86,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"ac094125-2430-4d71-bf3b-5dfd01420afb","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":"2d5c3a2c-d784-4e0e-9c2e-b4f54401ef5e","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":"16223f49-58bc-4c68-9150-e8563542da6b","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":"18a34671-1780-4c9d-9d53-eea4e0c4f506","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":"ca91f765-feb5-435c-a22b-d319c823745c","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":86,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"185dd692-7f20-404c-9126-45b86f1fb119","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":86,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"8eb70c01-70ea-46c7-b402-11d67d2e53ce","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":86,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"29f89791-5ab7-4ca0-ad1c-7260b69d1f51","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":86,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"956b69a4-1680-4fcb-b846-e158a3ef39d4","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":86,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"0ed11e08-2d8b-4fb8-ab16-35f1f4a522ae","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":86,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"68a00606-1a47-4a8d-9e8c-427ed1628690","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":86,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"4a52766d-95e3-476e-a211-f5895d0bfc31","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":86,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"b6b6e2dd-d9e9-4476-85b7-1ec981413e31","block_type":"box","text":"securities in the forward transaction.","page_number":86,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"325d7fcf-a8a8-4d7d-96d8-fde913efd7db","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":86,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"50eed2ab-81e3-4d1b-96c0-d1445a564326","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":"7e337b8f-f9dd-4dc1-bb21-70334d667c02","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":"1f208e55-028d-4728-ab8d-89ad002f7b2f","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":"9c2a7ace-b503-4796-a08b-70cafd7cc4f4","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":"53ca42cb-d67b-4c12-906f-6162f3856575","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":"1b11aa65-3943-4e50-b1ca-c8bcbb847ead","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":"6df2c868-7e1e-4217-844e-e8a0a80ad06b","block_type":"box","text":"securities (","page_number":86,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"3b057b26-5fe9-43c4-9210-82232179d5de","block_type":"box","text":"e.g.","page_number":86,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"68433db9-d592-4faa-aa20-ecb0139be4bb","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":"cfd06d0b-48fc-4293-93e7-f5c222b7f2f8","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":"20e0bc3f-c566-43ae-bcd3-318f255a6d5f","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":"e93a093a-ca3e-47d4-9bc9-95700e4a6834","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":"6ac2fc62-1c00-47ab-b403-ed8ca762c1c4","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":"989bf0fb-0474-4a06-9b07-c8cb7f870d4b","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":"09301463-40a6-489b-9191-924759baf7bc","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":"c785faab-eb03-4f35-bdb5-27f412e1aa7f","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":86,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"12545214-7d4f-407c-8e01-c3cbcb1d87ca","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":"4a6cabf4-dbeb-4151-bbf1-8cbe9ab7f58f","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":86,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"260b7fa9-2296-4281-b477-34f8c0383052","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":"71641cfe-ad0f-4dac-91cf-e6ce69b96622","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":86,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"1f0f7458-d286-43e7-8f1c-35d283d9766a","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":"7180ee39-8419-431a-a0d5-ffaa2686f852","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":"d6a553f4-9714-4c2c-90c7-1027c9c39959","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":"addb04f7-e1dd-4e2a-b21b-d3fc6133cf95","block_type":"box","text":"Municipal Investments.","page_number":86,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"f82a7140-be68-40f2-a74b-a88d5b83bb84","block_type":"box","text":"II-55","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23e3e878-221e-4e82-85b3-b28214548c69","block_type":"box","text":"NM1026U-5985614-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d02312b7-0d23-430a-8236-85e2d947025a","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":87,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"7ca15e70-7f78-48a3-8c7e-19ac99d02f4c","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":"1656ea5a-eda5-4855-965d-3426d89058b2","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":"067ef814-4c61-4100-bde7-0eaebe12de67","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":87,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"64e366e6-9a2d-4787-afa5-34631e6847ca","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":"96861b2a-b6e0-4d9a-bb69-7f045ce1d85c","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":"83421c58-cae8-47f5-9503-9a2435ce5163","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":"9f6c76a7-ed0a-430a-8b31-fb84d48272d0","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":"c5d73602-9b53-4576-ac6a-90e4c77b3909","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":"87533f3f-a7a9-40c1-ba9b-c830ce7d43d6","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":87,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"4be67818-5c01-4e34-994a-3cf7dabc4be7","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":87,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"30dcfd37-fc3d-49ef-a433-6841abf10f5a","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":"ca0e239c-7823-4763-98f3-fbb7c53b0e48","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":"19a3dbbe-6f26-4fa8-b6a7-dfd47b6ddf5d","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":"5eac6584-d42c-46d6-a95d-71f3c7149606","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":"d89c7ecf-bf4f-4d7c-8292-bcf72953bf43","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":"07de63da-1b38-4128-abae-cfa4eefdfa10","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":"d292e5f1-8075-4cf8-ac2b-66b8a628f95e","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":87,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"73f4e429-6067-4732-85d8-4f3eabcaf326","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":87,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"a9ccf8e0-80f2-4729-8c30-c63ac539a06b","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":87,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"2ca64b3b-9c09-48a6-afc2-78196ad6328f","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":"7fbaf7f8-66c4-48a3-b014-c8935d113a92","block_type":"box","text":"The risks and special considerations","page_number":87,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"0bdfccb9-6635-485a-a742-87923f52815c","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":"63dac4f2-1816-46e6-92e7-09c1771fe98c","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":87,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"fe0b6db4-ba27-4b2a-8f7b-4c4af3266103","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":"c68afbee-687e-4f54-a189-84838bf2c121","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":87,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"7b4919e3-3989-46a2-a60d-8172c0120960","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":"65d5458d-ee6c-4c36-ba7a-b1aa2be59303","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":87,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"b44cc252-88e2-4fb1-9aa0-774a6238dcf3","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":87,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"f1539ee2-2194-4dff-9ed9-613a68b5ac93","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":"c7890afb-1362-4b25-ab3b-86ed3bc37b6d","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":87,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"1bce86e0-5224-49c5-97fc-7ee5998fcbb1","block_type":"box","text":"II-56","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"af309387-cae2-428f-b342-a8f489831faf","block_type":"box","text":"NM1026U-5985614-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3d88e5cd-81fe-4f2c-8098-375f4543b692","block_type":"box","text":"Description of Municipal Bonds.","page_number":88,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"b06298b2-095a-4db2-b62c-7978c0ba1447","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":"f1a9ed50-eb98-44c0-9ef0-e6c7d65253fa","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":"cfe4f23d-3679-436f-a469-457cf3994e38","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":88,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"0d990ad3-0d10-4995-8563-c6d4b7a6b881","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":88,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"2ee1dc5d-55a9-4cf4-8928-8369ba99ab6b","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":"54cf27b1-c828-427c-a0e7-966c59a6fda9","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":"82158379-2f5e-40a4-a547-063be2f009b5","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":"beeef872-c703-42f6-8bd8-db402f6c341a","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":"de778aa9-a29c-45ad-a6a8-34c2c7ac6057","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":"7fe911ee-369a-470d-bdc1-e70ae4a9cd2b","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":"8ff4de48-a63d-4667-9213-2f7366ad7166","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":"369e2b72-b5f1-47af-b5aa-b77d3c71ebe9","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":"e1aa4cd5-daef-4655-ad13-cf3f136d2f44","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":"944ccce0-7348-46dd-ad76-7412b5e584b8","block_type":"box","text":"General Obligation Bonds.","page_number":88,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"ae0e518a-c515-4466-b6eb-d05a4f97a4b3","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":"4673b738-6f36-44ea-b5a8-dbfc7f596d7e","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":"d7ef8d78-9a0e-4e6a-9765-9d1449a311a5","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":88,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"5429e51a-d47d-409b-b9ff-7fa054aaa40e","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":"dc8c6c16-6b98-4bc3-b026-8e68bf35b77b","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":"88dde51e-3e0d-4123-97db-c057690af63e","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":88,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"ec212dd9-bfb5-48fa-9af2-170810225d8a","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":"553ae0a1-c26c-4e01-b323-888986f3921a","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":"0031350c-a116-403e-9796-683f060525a3","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":"ac841812-9913-4cc3-bc5d-7ce090913dc1","block_type":"box","text":"Revenue Bonds.","page_number":88,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"db33fa45-a752-4cb2-a85d-dde39b64f37a","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":88,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"49995328-626b-42de-88ed-2340d4fd0f3d","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":"fa1920b1-f1b2-40f3-a4ab-b743f22854e3","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":"6f3caeda-a35b-49e9-a184-bc3290431164","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":"ceeb2777-bc57-4596-bd16-d100e0acf94d","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":"0e47f652-638d-42a7-a171-7a72f08d004f","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":"9b5d8408-4d0e-4c71-a78b-cdc5a317c7c8","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":"8aab5393-6157-48cc-8724-68c8014a22ae","block_type":"box","text":"proper ties 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":"e29c1a89-0408-41b9-9932-983d237cabb4","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":88,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"94c7cac7-88f3-43d8-af65-721f12b03665","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":88,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"b8abfc40-45e6-40c9-8df1-f72a4cdc1d54","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":"e1baf07c-e757-444e-83d4-29a59b17dd39","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":"076cda08-3ce3-4832-95cc-c867089126be","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":"a30acd47-3a26-458d-950e-982026c7e62d","block_type":"box","text":"PABs.","page_number":88,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"430d5496-5929-49f4-ae63-9564e7e82775","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":"8c617cd8-af4f-429f-b0b5-e19e72d5bb3e","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":"55021a0b-a577-4fb0-b631-ae9d1709b93c","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":"9b3a9ac1-7545-4714-a5aa-9e5050d2330e","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":"e6c9865b-7165-4df1-b42a-1e94b4ac3328","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":"d35a1741-fef6-4294-bdca-b7d95876960d","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":"2f210227-623a-4008-9982-004a55b0ed31","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":"e3c24f9e-d489-4e10-a3ef-cc9517590278","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":"a192c3a3-8594-41de-9d13-03ecf53ddbca","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":"b74c6b94-6d50-4f6c-8d48-80bc81f94ad5","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":"362d89ef-52a7-44fd-ad46-71be41b36a3b","block_type":"box","text":"the par ticular facility being financed.","page_number":88,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"55d99dca-1494-46ce-87e0-704faca037e1","block_type":"box","text":"Moral Obligation Bonds.","page_number":88,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"7dc2a795-4be6-49ca-9973-b565ed90d339","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":"a47dbeef-15c5-4a3a-9803-44aaea0e2686","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":"15ee0593-f8c6-4b53-825b-b44b87d28467","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":"c94366f2-7477-44c8-9763-f8c2ca070ae1","block_type":"box","text":"that issued the bonds.","page_number":88,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"b309bc9a-1db6-4a7f-a7df-dcd5ed282bba","block_type":"box","text":"Municipal Notes.","page_number":88,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"82dc6e67-c18e-4d7a-b59c-d75bd1b4c691","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":88,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"2a211307-ff48-4bd8-bbcc-bd7b4e5413d3","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":88,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"784529c6-9e8a-411d-ab90-1c4c155028a5","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":"3c49861c-ab89-46e4-a7d8-cad639f81512","block_type":"box","text":"II-57","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"267c5068-0819-4cf3-8b9b-4f3a3193a2c3","block_type":"box","text":"NM1026U-5985614-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"db6888e2-e42c-4a32-a102-12381f17a14c","block_type":"box","text":"Municipal Commercial Paper.","page_number":89,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"4403b49c-e2c6-40d6-965a-9175cba680d3","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":89,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"198906c4-631a-424e-b70c-fad0127f9aad","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":"c8fba92e-bd21-4244-b081-edf4fe4f6ece","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":"59a73a59-590f-4d35-8474-83707d67dee1","block_type":"box","text":"Municipal Lease Obligations.","page_number":89,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"075825ca-e6c3-4847-b504-eb2d211ec957","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":89,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"cd85f6e4-a79e-41b8-89b6-9b69f6250e9b","block_type":"box","text":"par ticipation (“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":"c7d47048-e55d-4b84-85ed-2d2618cbde7e","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":89,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"14ebec21-665a-44b4-9b1f-83e23940cdd8","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":"dae11acb-a6ef-48d3-b555-bcc513c22a93","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":"1519c9a6-6aec-4344-9863-2cbd9d27c672","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":"8acaaf90-60e7-442b-8be0-0313f5ffda1f","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":"067bdb9b-1d7d-4a38-8d57-5204d87b7b28","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":89,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"671e3dbc-9537-40bb-a38a-5412e8128cdd","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":"e59cab0f-7b25-4299-aaf9-a0dca71f81bb","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":"adf9c61f-6963-4d64-9195-b068951aef7b","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":89,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"b24ebcaa-452e-4af9-b758-be9d22fe8e3d","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":"cad249f7-b2ab-48ff-b699-6403ab8ef9a8","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":89,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"3de36ed3-dc16-41df-83ae-ce62dbc4be88","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":"a2018eed-db6a-4c2a-97d8-8b2255177b17","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":"9654cb8a-5b9b-4ea5-88d2-c061d2709159","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":"8d525a72-a110-485d-b14e-19e7aa08355a","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":"685d48c8-86da-4d4e-8941-5e25931dee0e","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":"5f5ca9f3-06e5-4ceb-bafe-8ef968028179","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":"be09f94d-46cd-43fd-b574-8a3a8dd4ebe8","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":"72ad3bec-8f05-446b-a04c-f7fb368bb9b0","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":"da236eeb-c8b5-414c-bb0a-7a0824eba051","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":"6d82a508-49ba-474a-9fa6-94de059b92d1","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":"7cae44a9-12b7-42d4-be04-7e2d79f4fd2b","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":"53d89b45-233d-4efa-be49-77d12460123a","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":"576da22f-56a2-4e25-9f44-8482a9324dde","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":"b6e45a6a-9d81-44b4-b3e2-d114f4ff2a9f","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":"4c4459b2-36d2-4e8e-94f8-15beb00f41c5","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":89,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"5e66a678-bf39-4135-9b3f-a2568cebec84","block_type":"box","text":"Tender Option Bonds.","page_number":89,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"8b580ebd-00cd-4ec6-a4e1-59d61da45fe3","block_type":"box","text":"Cer tain 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":"9a0f8abc-5877-4a8d-8289-9fa9eade9c0e","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":"86ea076a-97b4-46c5-b673-0f1363d66353","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":"5082dcf2-c9f1-48c4-8690-f00e27150d92","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":"96bf05c3-14c5-476a-bdc3-b60555f7ecf6","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":"47c4e56e-31b3-470c-92c6-c97b06bf2218","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":"1e81d1c4-e390-4f1c-ac76-7c6a2a225dec","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":"d018a38d-cfaf-4822-98cf-bcb975475a77","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":"afe1b3c3-5e95-41ef-a74b-b5e397b8bd1b","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":"388322a3-6940-4b12-b4d3-f9a44375592a","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":89,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"5869457b-8100-4b5f-92ea-570ce3f92f86","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":"683e992c-5ee9-442e-814e-493043201e2a","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":"37e3256e-3fde-44ea-9c74-cd6dabdaf8b5","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":89,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"8a01311f-94cc-40d2-b1bc-acea80bd5b08","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":"7d69b880-3191-4803-8fa3-f6c2ec53cccf","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":"8571f71f-31eb-484a-b34f-8b737d2e9c55","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":"d536f014-b06d-4b87-a981-e58a2defe994","block_type":"box","text":"cer tain 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":"cf959dc4-5ebf-4204-803b-45aed785da57","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":89,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"ad19f8c9-8c78-4907-b217-860145396cc5","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":89,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"29e59ec7-c814-4614-8531-5bb9df8fc3cb","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"8695cb24-e256-48a9-b7c4-82ea8aac84b4","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":"cb073738-1131-4c80-bdc9-6aeee5999c7c","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":89,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"8ecf3203-3d63-418f-9666-b9d94ae29287","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":89,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"b2a1a35d-13c0-4b0f-99dc-6370a924c70f","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":89,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"f87da871-89c9-42a4-b136-422ce361ad07","block_type":"box","text":"II-58","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50b53853-9856-4cea-99aa-5439298763af","block_type":"box","text":"NM1026U-5985614-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3746fdef-3e2e-4b9e-a8c0-b8ed4368c108","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":90,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"118eaf74-c389-49fe-a28f-67214b28c1cc","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":"6271bfb2-aa16-44eb-9595-8df9e76de017","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":"7e3b62fd-0ea9-4d71-a38e-91592c282c90","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":"ed307952-0b29-49f7-9aa8-3612f2b01480","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":"a57e5303-40fe-4852-b10c-4c79ac24c87b","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":90,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"dff4f17d-d4d8-4745-ac8a-222578f09b66","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":90,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"a6fd4147-799d-4958-bd0f-042023ab15af","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":"0f4c4e2c-80e4-497f-bf09-234d8f29e4a0","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":"1494ad8d-397d-4424-a240-95756e603e38","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":"aa455d16-338e-4190-8b2b-f8afe7d2db62","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":"5fa7c7a2-114a-4b68-bc6a-0c018009bb30","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":"ca7abaa7-6701-4c2c-821f-e158faecfc88","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":"969eb309-df79-4bc2-b4bd-025a8f64abea","block_type":"box","text":"issues.","page_number":90,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"435211a6-09aa-4580-8d8e-2ab666c8ffc0","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":"229df620-742e-45be-928e-cc85b23616df","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":"a465cd80-66f4-41e5-a229-bc3a87866f43","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":90,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"843ef418-3651-40b2-bdb4-f69cd343f76a","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":"770803e5-ddf3-4bc2-9c01-a786f771d1d5","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":"0781eb72-2117-4c80-bb05-cb664721b0b9","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":"1ebd8bd2-c387-4ac9-9072-783118d3af37","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":"e60d50e3-011c-4665-9a70-ad65357a6820","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":"78f98283-7910-4dbd-ac23-d312fae3698f","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":"21b38106-5565-41db-9f77-0d22cef9f24d","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":90,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"a95fe822-db6d-49b7-80c9-7befc99e455c","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":"559bc457-5f29-4352-8357-e9bb27133ac0","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":"7821e1d7-b6de-4562-95e8-27e6b4d78650","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":"e343e753-487c-4a9c-8569-888e689f2853","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":"37b3e762-301d-447f-8870-234dd9fcb853","block_type":"box","text":"i.e.","page_number":90,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"b1eb3449-de16-481f-a8f7-a9aad597437c","block_type":"box","text":", the Fund). In contrast, in the","page_number":90,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"6f9c3a33-4d26-4ccc-b439-18cbff9ac597","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":"93bcb8a4-fb3b-4e14-9e8c-dd3bb0dede56","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":90,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"c10ad21e-eaad-4578-9f46-7eb2512f5da7","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":90,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"a21c841f-ceb1-4de4-836a-61abf644fce4","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":90,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"4babe355-f6c9-490c-8354-9b20979784fc","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":"244ff23f-be43-4170-86cb-3b708ecf4546","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":"9502d6d1-e534-4980-a696-a2214f588e18","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":"ddee07d7-e1b6-4e24-a9c8-bf3b45adb1d2","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":"d224e17e-f2bd-413f-98c7-7dd0904fbe87","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":"1c72ec1f-d11e-40cb-89aa-b4f6bb700fcd","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":90,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"074f3629-f91c-4430-8825-d46fa8648e1e","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":"2176d808-1def-4f5b-8d89-b028baa24ecd","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":90,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"07bddafc-663a-449a-bff7-15f78fd67581","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":"f7d1aef6-96ff-4bf8-b346-73f373c77152","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":90,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"d5505c50-aa3b-4576-b458-cc2c0c0e94b9","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":90,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"e58a370f-3bc0-4340-bdcf-59a34837e0a0","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":90,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"1c4b5e83-d08d-4a4e-acca-48713f1c6b86","block_type":"box","text":"Trust.","page_number":90,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"3938fc78-9cfd-4228-a7e0-f182c476770c","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":"051ff599-599b-4f73-9b37-94fbbc5db7d4","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":"9681ae90-ecac-405f-9c0f-aac2661d2226","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":"dd3c01a2-677f-4ec8-bd26-788c0d96aabc","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":"fadec0a7-8e24-4c84-bd17-c9ba13c4c7ad","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":90,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"d37c1da3-5743-437f-99da-67fce44de4e1","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":"d9231c3c-c41b-456d-94c7-153ed382e375","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":"c5b09a05-b1f8-4af6-9c80-6d967e558315","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":"f79cb6ef-ff4e-4e4d-893c-9a9e7aafab9b","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":"34a3b3bd-f6ef-4dfd-aaf1-f06c9ab13715","block_type":"box","text":"II-59","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d420190-a17e-48fd-a8ef-39a775cf0ab5","block_type":"box","text":"NM1026U-5985614-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d244d030-4dbf-496e-a640-2a8bf229f555","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":91,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"b0a3ad24-758d-4805-8ad7-55998bc08c1d","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":"f7fd4ece-b2fb-4450-84bd-566cc8049461","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":"907c5fee-fde0-4b59-a991-f10313ea6094","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":"166b6707-1c2a-42fa-b5dc-d708dffe4962","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":91,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"985b8992-3ceb-425d-bc48-98da455ddde2","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":91,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"c238951f-8463-490e-a4e1-14e229f79d28","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":"8844771c-b488-44c2-a699-31cce3da55cc","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":"4b39b182-71bc-4e10-8b5e-ed999b6d406f","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":"0b600174-7ba1-4248-a128-0723315b1b6a","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":"11a56b6a-5ff2-4e20-9dbf-629108b571d3","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":"0004cf75-29de-49f0-ae00-b48033100766","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":"4e9a3f2b-17ff-40f3-9a92-01e7d88f5972","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":"d8b5b7a9-8e51-4886-ba6d-e323735d3206","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":91,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"6fc7d1d2-07d0-40c7-ad63-e5be916c13d4","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":"156ea244-636b-4d1d-9489-d4964e3e1238","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":91,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"a7f7fdd9-4da8-47b6-ad39-4a3f5775411a","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":"e1b35860-c1a8-4f71-a6f5-e7ecb0d5971a","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":91,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"39375e69-845b-491e-9d36-0a419092bab6","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":91,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"1cfd87db-f6b5-4388-910c-3d19e38c7bf5","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":"b10a4823-79ea-4929-aec3-8a813209a053","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":"c9c79171-a969-4e30-900b-5560391e9d00","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":91,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"7a9a41c4-62ed-42b9-9490-66d96d7e74ab","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":"659ba029-dd68-45e3-a099-15d679bd17d0","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":"4e10025f-89c8-4fdb-ba60-da854d79fee8","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":"6a2c9ab7-138b-48e3-8b87-99651711d34e","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":"f9651a95-269d-4fcb-bd9c-a68b4990363b","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":91,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"3753a88b-6254-42cd-8b7f-1d991014a0f0","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":"5b26808a-ca43-45ac-b920-3fe5336a43f6","block_type":"box","text":"i.e.","page_number":91,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"1c8ca7e0-0b47-4446-babe-2e21fcacce5e","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":"faa8cdcf-0a57-4ffe-885e-bec63f7a49e6","block_type":"box","text":"suppor ted 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":"cb80900f-8d6e-4436-9533-df3d25a325df","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":"034d0a84-a14d-46fd-838f-bcbe5862aebc","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":"cf3c6b51-4ff0-44dc-ab16-2072f7caaecf","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":"063a694f-bf34-4cd0-a907-a82271ef5997","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":"28b7c566-4097-4746-82f2-eb7080fbafa8","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":"8eff6a6b-b550-4580-9e75-773c591b31b4","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":"a293e940-b2ff-4f35-a9de-872da825e403","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":"3bceb7f9-ac4b-4175-a91e-c9f7cf72b210","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":91,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"2732b9cd-0631-431e-b9d9-bb89871f37fe","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":"09500d45-eed6-4704-bc4d-27f7c3ef8924","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":91,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"464260b3-bd41-40d9-9191-a7c88505a50c","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":"b6c0b338-f027-485a-ac24-f35bbe5746ad","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":"ca3c07ee-3308-4a30-88b1-a8ec42236fa8","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":91,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"3f9c58f2-f06a-4951-9691-264178f2589f","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":"fdb15092-83bd-488e-8fae-76c6db1257db","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":91,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"527dad8b-8226-4aa6-8f3c-b0a91bb20e2e","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":91,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"c2e9ed20-1740-4090-9eef-818c7bf93bd9","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":"f112c9bb-32b6-4c95-ae67-c6405eac21cd","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":"7e7f3280-053a-4fd8-91ea-f7e1cbb3ebd1","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":"bc83fda9-4c39-4f6d-b6f1-8e17ad6bc0bd","block_type":"box","text":"market is not yet cer tain.","page_number":91,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"7a195c46-ad03-44d9-870b-ef5df105199e","block_type":"box","text":"Yields.","page_number":91,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"523dced2-908d-427a-ba16-cab1233a5881","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":"08a729bb-6425-4e7f-8a7f-8408e62f1c83","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":91,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"2f7361bf-2cc3-4e0f-8c0e-d84c259b9bdd","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":"98a93b3c-a3be-4dad-b615-4848c82707ca","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":"3c1fcccf-90e8-40dd-972d-40bfaeae783f","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":"e2efd38e-a45e-4960-9ec5-26a05cbd155b","block_type":"box","text":"II-60","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a15f9e39-ae92-4321-b29a-de6eff86d828","block_type":"box","text":"NM1026U-5985614-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f310f616-4571-41b8-8810-819b4b9448da","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":92,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"10975461-9fdd-4d74-b502-7f9ef06834a8","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":92,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"c658d43d-2d18-458d-899b-294fa3176f3b","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":92,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"1e91a91d-f737-49bf-af23-c5f24489fa96","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":92,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"d82fc834-544d-49d6-8ee3-76ade5f93eb6","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":92,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"61e6c925-ff34-4bc6-97f5-e002d9075fb5","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":"3741fdaf-a977-4115-b943-d5d95ec256ad","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":92,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"1603f51f-42a4-484d-91e4-2530c83b2071","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":92,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"60981b91-f644-4840-8db0-eea773289181","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":"8a471651-e4e5-494e-8a8c-3c0db86e461e","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":"2978eade-ef94-4edc-aec3-8fe9f6644048","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":"4809b538-9bb0-405c-b50f-2dd3bd5bafc9","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":"c9769eae-9967-4f91-be17-ecbd16c35598","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":92,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"6a5ff1fa-1381-43e5-950a-01f158ec68e5","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":"11dd40fe-af21-47b2-a8af-6e2b7a3f2fab","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":"54e45639-73e8-41b4-9b27-d3719b79912a","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":92,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"505d8a41-f1bb-4540-a3df-464055bfc17e","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":"03edc1c2-6369-4f0b-9bcd-bf480128e118","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":"769515c0-7164-4409-8b62-5212c0ed5a36","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":92,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"18ecc1ab-3f11-4afe-8874-1ceb0941dd69","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":"6359de18-dc93-4025-aebc-003979dcbc62","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":"50e51bee-a7fa-49f6-86fe-c08e0ac531a7","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":"c195d5fa-53a2-49b1-9592-53ce5d4d3af9","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":"16f53635-5f33-45a8-9fb7-c67664f3eacf","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":"c3e3fe38-b95b-402b-82b5-486566d1e49b","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":"da087582-1662-47c2-b4ef-8160194cb513","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":"d6907116-133c-4330-a650-6f7dac854639","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":"8b71ace0-c1e3-467f-8f0a-d35d0bbe385d","block_type":"box","text":"assures per formance 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":"3ac6cd99-e96d-4377-afb8-06f6e5c09580","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":"fa777b57-a1ca-4c99-8c87-7c6eafb9b11f","block_type":"box","text":"The par ticular 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":"441831cb-ccf2-4f49-8b08-f591cde21e36","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":"c1b16205-dd25-4a99-8ea6-9d11c99f04eb","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":92,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"e30305f0-1657-4782-8b96-1bcfce4648eb","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":92,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"0d3cd43c-d19a-4275-aeb5-2df4eebe7f7c","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":"c9eaae86-c5ff-45e2-ba74-160345f03d5e","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":"f6c426a5-f633-4bc5-b7e9-1f02e589e35d","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":"513bdbf3-245b-416c-9f1a-31e0b97ea48c","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":"91a7c5ee-8022-4c23-9937-4679f1bca9bd","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":"43408b17-a9d6-44a5-b265-3e151eb4ca3e","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":"97f36fc9-756c-4b6a-be9b-4e146c0eed4f","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":92,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"44c3d0b6-4ea8-4b57-94c7-ad8d2243bd69","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":"e35c4653-f994-404a-9e2f-715034c9b3c8","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":"6ce42595-82e6-429a-8e37-71fb2cb7d5b4","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":92,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"d11c7a65-58b5-4414-adf3-be4f651f64a4","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":"a2b3f8e4-db54-4ba6-ad0b-81a9b2bdc7ed","block_type":"box","text":"Call Rights.","page_number":92,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"d2e7cf06-3338-4f38-9da5-875f4e17ef9d","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":92,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"69feb428-ce84-4bcf-a2e4-48739b4116fc","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":"09646d30-3d09-4768-bee2-034544b1ef34","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":92,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"5f8145cf-f5af-4daa-863f-8a7413c33eaa","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":"9195e1eb-042f-473c-a56a-ccee5eb3a54c","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":"f08382f6-9762-42bc-8786-f4b337cef246","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":92,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"9e80caaf-bf02-4949-b0a7-1afdfe569ed7","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":92,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"f457ee6d-fed1-4bcf-85af-781ad9bafd9f","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":"cf8d954d-3242-48e9-8acb-c0cb2b918e7f","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":"be95cd94-cdb6-4bd4-9afb-ae42c022c32c","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":"ad60abb0-c5ad-45c3-a61c-275b6fee9aca","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":"e69eb964-9998-40b6-acf6-12783c62c984","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":92,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"c3e188a1-438b-4042-ad01-c41514919737","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":"26e99815-9b32-4915-b7e5-23dd71d0bc06","block_type":"box","text":"II-61","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d069e08-3059-4e54-ab84-548fdd726a96","block_type":"box","text":"NM1026U-5985614-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6cfa5e5a-2763-477a-b054-5af998b8cadf","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":"0de15baf-01b3-4ae6-8565-4c77e0adec4e","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":"43be3096-9bdf-4e7b-83e8-21afadc6ed1f","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":"b8788590-0831-4445-b152-7d9300c567bf","block_type":"box","text":"i.e.","page_number":93,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"c76a3842-aee8-4522-9de3-210a8e96b580","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":93,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"c984b121-0ccf-4370-b754-82227efd5ae8","block_type":"box","text":"rates).","page_number":93,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"dbbe46f5-6d11-4f49-9cca-fab1740624d5","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":"736d7252-7f96-4454-879f-e429ac59bdd7","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":93,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"bb0351a1-c538-4982-b4fb-da8ff15d5bc7","block_type":"box","text":"e.g.","page_number":93,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"d5f63ba5-e03e-4b42-847d-8e26e03b97ca","block_type":"box","text":", an exchange of fixed rate payments for","page_number":93,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"eff989f6-3bf2-4bc8-bcee-3524cb5e1585","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":"3ac030c9-4fb4-4a52-a571-2ae68c2fcc8b","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":"72ca6c90-b7c8-4542-ac49-c43ab32a7d1a","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":"b62b7873-4bf4-4c66-8ddd-a5d2590b473c","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":"3d587a7f-2347-4927-8ed8-e8cdcc1df763","block_type":"box","text":"with the same attributes as the swap (","page_number":93,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"f988c21a-4ae9-4b0b-b84e-9f59cedc71ab","block_type":"box","text":"e.g.","page_number":93,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"392d3c33-ce61-49b1-9922-87caac116088","block_type":"box","text":", coupon, maturity, call feature).","page_number":93,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"5424a89d-36a8-4564-afb6-209f1b1fe402","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":"127cc36e-f950-47ae-b26a-eeba522946d3","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":93,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"b03159c8-6262-40bc-9c21-3ee38bfef726","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":93,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"6e8adb98-d366-4dc9-92cb-200096b5cd27","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":"ba46759b-3e95-4734-854b-0ae02ea45dc1","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":93,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"a8452a7e-338e-43c6-afe0-ad1299a897e5","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":93,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"3524ae3f-5195-4b7f-ab16-261d2c76cbd5","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":"e110a796-716a-4073-9543-0f63f4ada172","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":"93b7d5ba-2a46-4aa5-b80e-28cd2f7e6873","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":"71b2dddb-ce3a-4c52-b69f-b50cc73326e8","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":93,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"88c98135-7224-4915-9042-e8923ee4d12a","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":"8226091a-9c3d-452e-a47c-23ef51f6c7d3","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":93,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"da4a2de5-b738-4db5-b33d-ed900ba9f739","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":"609f3f65-ac0b-48cc-8207-6c4cbfd34d57","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":"d9cbda94-61b7-4f4f-8eaf-8c13ba441e63","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":93,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"a8227f72-3db5-4706-aa01-95410fa8ca42","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":93,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"25ade876-ff96-4d4c-afb9-6a54181c94e8","block_type":"box","text":"Insured Municipal Bonds.","page_number":93,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"aec2fbae-dccf-4b91-88aa-316615ac4cb6","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":"883a6dcc-d59e-4b06-8d6f-8c8cba23b603","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":"7f4e0996-0d68-4197-9c8e-415b55aaeef8","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":"94e36883-c719-48d9-94c5-a8a270191fb5","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":"6225b9e0-ec6c-4cff-8cd9-d617a47c2e11","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":93,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"9e7940e6-76a1-4a35-9a57-05defc595cb5","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":"53fad233-ba2f-4e01-b5b4-fa8a164495f2","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":"a46005e7-125a-4b32-8f05-761c0750963c","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":"2855ebd3-1363-4b02-9615-19659d1f2308","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":"82d3137d-f389-4aa2-adfc-badf90b9810a","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":"ba11cfb0-a7ff-4275-a454-1393de8da166","block_type":"box","text":"bond could drop.","page_number":93,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"0ed1a7c1-358d-4e6b-b826-a9c8a0a70a1d","block_type":"box","text":"Build America Bonds.","page_number":93,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"88eaa89f-44c2-4fa7-8443-6432520e019e","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":"7ace50e2-beb6-4513-a8b6-f049b876c59f","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":"9db1bb09-4159-4c2c-8304-0520435aa82e","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":"f53ddf55-3d24-47a4-be20-d450b3cc663c","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":"e72a7247-30a0-4530-9881-78a8a5227518","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":"88e49895-f5aa-461c-90a6-b8dde19cfbff","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":"e2262e72-a540-418f-a880-b495302c76e5","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":"5e040790-a103-414e-81d3-7dbd98b4db56","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":"91aa28d7-3ebe-47fb-bc06-d9052dd2e641","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":"490397d0-5bc3-4c5b-bba4-5339fd3c4f3a","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":93,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"b690ddb0-77b7-48d1-877a-d5be9efbe237","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":93,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"5ce10203-446e-41b2-ac70-894649d4f2c8","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":"865eb4b5-a4fc-40d0-b0b4-e07004a01209","block_type":"box","text":"propor tionate 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":"f209298e-6aa3-4c31-a1fc-5241f86d0b21","block_type":"box","text":"Cer tain 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":"251bdb2e-4846-46e2-8a66-812a796b10cd","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":93,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"1e269a51-fb6b-431c-9ede-4204d1ad6450","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":93,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"26387e48-e557-4f0c-ab0b-36b553c78584","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":93,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"6a5b6522-91db-476f-a584-e5bb3dfda642","block_type":"box","text":"par tnership 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":"b88a8247-b12e-451d-8ae4-5148f34ef30a","block_type":"box","text":"II-62","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94474163-863a-4cbd-b783-874df0a19c18","block_type":"box","text":"NM1026U-5985614-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"538e8b99-e716-4731-8380-0c99ec612cc3","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":94,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"794c9189-7d15-4f15-afeb-9eebb695f9d7","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":"5a76d332-2d16-4484-ab50-562b442fe3ac","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":"624c5c07-a649-4d98-8284-769c780e6cc6","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":94,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"d6eeeb33-fbad-4991-b8e1-e23c2fe37d38","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":"0af0b4aa-3fe3-4139-9bad-5aaa6c253a7f","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":"b396eeae-03ee-448f-9f53-cd78b19b71c9","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":"87a24652-8c83-4ce3-8afb-8f9620cd79e8","block_type":"box","text":"their face value to the sponsor (","page_number":94,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"41099c1b-aadb-4327-8758-4feb4ae6ed0c","block_type":"box","text":"e.g.","page_number":94,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"cbffaf8f-0fb3-4880-a9ef-8988081b3e82","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":"5386d0cf-ca51-494d-8536-11fa0daba765","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":"39c0caaf-8450-480c-90e4-3ea0a943bc55","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":"27158b5d-2b4f-4632-9a31-59d7035a0126","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":94,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"807cb53e-ce4a-40e5-a4b0-92febc796932","block_type":"box","text":"par ticipation 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":"ea7a905b-b6aa-4232-8232-626e3dd88645","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":94,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"9f899cf5-c4e4-4e3a-a676-7e55df41829e","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":94,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"e0290903-6b50-458f-9c1f-31794ccd8bdd","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":94,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"b669955c-cecd-44c4-b888-ff412f4b40a1","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":94,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"9495ef61-b8dc-4ad3-9c22-7235673e79cf","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":"d04ce215-2651-40c9-9b1b-fd35c6f322de","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":94,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"f58658b8-7aef-4aa2-be63-6738e513fca9","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":"85a94765-cb78-429e-8366-352e0a3c243b","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":"7274bcc7-19eb-4253-99d2-2761ec005ba8","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":"9a284164-c813-4c00-98fd-e0b5f0349b61","block_type":"box","text":"such opinions.","page_number":94,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"a8459d65-36c3-4913-8d66-4d62f3557379","block_type":"box","text":"Operational and Technology Risks.","page_number":94,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"063c5bd1-96ff-4bb7-adbc-cea205311a48","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":"6aaddb1e-7a02-48be-b7e2-2d58c79050f8","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":"681c869e-ee82-49b7-b35c-666db9f585d6","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":94,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"48248273-45b5-4070-8859-c26a7ce3fb18","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":"55229411-3a34-46c3-bfd0-370826a79fd2","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":"da9b7268-7046-4c17-a67b-c1a6d289d647","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":"29820c14-0ae5-4135-b556-f1a5917d564c","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":94,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"b7bc5490-76e8-4e08-9fef-1c539b3af1f8","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":"d04ef973-317d-4879-9100-525c45e00bfa","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":"40a76a0e-bc91-4cf2-96cd-1a33299f4ff3","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":"f28ef4c5-4454-4273-923c-acf95f2626ed","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":"11b9957f-973d-470b-bba7-8d98568d0c32","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":"151f26e2-d15e-4422-984a-6619e3313b75","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":"73514b40-5e2a-4ede-8c65-2cf3704e0047","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":"87a71c55-87d1-49a0-97c0-cc7fbb016354","block_type":"box","text":"par ticularly 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":"39d431c0-5e94-46b0-8019-1c4cc654fb14","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":94,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"4c7d6adb-1364-4765-b663-0b38381e6527","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":"62144213-52b6-43fb-9196-9efd59753869","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":"8cd47032-ee6b-4c21-b9f7-4c6bb557a662","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":"57ae1ec3-27c5-447b-b021-66db84494c13","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"27032985-957c-4ecc-9698-dc3aac12e227","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":"2bd20c01-a988-4540-9d2b-68d18520e065","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":"b88e1d61-150e-43a6-8a63-110daa3b0c06","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":"a745622c-7907-48bc-863c-0d71c374c3ce","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":"7c7bcd5d-c94e-4d59-b4df-41298f84aca6","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":"1f453e86-a70a-40ec-b810-5b6ca5bade57","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":94,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"8bbdda34-84f6-42d4-bdda-c810d98ac6a3","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":94,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"e94273c2-db60-4939-abd0-cb786e088540","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":94,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"cc546dbe-d681-49a2-91d0-87cb234229ec","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":"ee52ca66-901a-4454-b5c3-719e55fac978","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":"207edd03-de22-49d3-a261-b3de1f1b58c1","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":"73141ec1-1256-425e-9d59-032153b9486b","block_type":"box","text":"infrastructure assets.","page_number":94,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"854ca87f-164f-40fc-bbbc-ec8fbf3822f7","block_type":"box","text":"II-63","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19320639-0e28-4482-9e44-4fe469048d93","block_type":"box","text":"NM1026U-5985614-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6ac43488-937e-47d7-9edb-1bfb74ee0e99","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":95,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"fb0afc8b-2868-41c0-bbbf-dac10271d22f","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":95,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"462373db-b7a4-4c37-99bb-5fc4e43f75c9","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":95,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"09d4f770-e42f-4c39-89d1-fa3b762da229","block_type":"box","text":"or services.","page_number":95,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"ef0ce1a7-ec9c-4b2e-8703-cfaddb0da864","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":"64a7ddb0-d650-44fd-9c35-b03145b5b682","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":"571ec864-500a-438c-864e-c391939c251b","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":95,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"fba27199-babf-44d1-93c3-2dc69d350f44","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":"48cfcc50-1a97-4de9-b9b1-9115754c36de","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":"a898cb5e-8dc3-4fa3-859c-dd988d4563ed","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":95,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"f6cd5003-89bd-4309-a75d-ffea75f93ca0","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":"63860d58-19e3-41b5-8820-64d79dc4b7ec","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":"5d92ee2e-8efc-4839-807e-66f6436e9a5f","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":95,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"b5956b4e-a76a-4e3a-abc6-5127f5da26a2","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":"f953daee-9ae1-447e-bafe-793f83fcd8e3","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":95,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"f4b80635-f2b0-4163-aaa3-981d26f07253","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":"730a3caa-8264-4e50-86fa-015fda6c74e0","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"effa4b7c-6847-43ed-8c9a-a2e7a6f008e8","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":95,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"5acc8193-2e43-45a8-80c9-3d4f92feed8f","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":95,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"8c214ef5-39b5-4e31-99c5-078ec4402d93","block_type":"box","text":"ar tificial 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":"b5732cc3-2353-4bec-9be8-72c2a8ee89bd","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":"4d1ce3f3-7498-435d-bc72-e356f6cad336","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":95,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"bcd50961-6de6-472f-8340-16193be3c975","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":95,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"65bae7e1-8ab3-4506-8112-6283729a3804","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":"883eaf4a-60e0-43e2-8d74-3676517d75bd","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":95,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"d3fd8d58-73fa-44ca-858d-61fa477ba7bf","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":"b9a951c5-5af8-426b-9b09-c71862e8ba40","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":"482df484-60cf-480f-beb2-50d6898ee454","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":"4a91d4eb-a314-4b86-8a83-371581c69960","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":"73378b73-ced8-46f4-9c8e-fd7667df8e68","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":"60731233-3531-4185-99d6-e946ae435d68","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":"667314e6-3c51-4da3-bd66-106801f706d2","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":"5b3cd07a-85cb-4fa1-9aa5-f94a6a05cd8e","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":"36dbbcc0-55f5-4690-8deb-360ff243b5b0","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":"667f3744-6aba-4a34-8ae1-0e6d20db82a6","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":95,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"c8c496aa-9c56-4403-8bf5-8eaffa0ca532","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":"9462a337-2f06-49db-804f-27b515920835","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":"50524721-fb72-483c-881d-d39342c91e92","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":95,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"641ff52b-751f-48a2-9cd1-8b81e304fb87","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":"51630f3e-14e4-44b9-99d2-8e61c98421b3","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":95,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"00962559-fbb0-40b0-977c-89140f1e5710","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":"e23ca1c0-6f48-49f3-b2bf-3756995b515a","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":"d73949c9-59d1-4cbe-b1c7-11ecc65b1aa2","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":"e61e3c9c-a2e2-4c11-ac4b-a716ede755a8","block_type":"box","text":"resources to monitor and implement required changes.","page_number":95,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"f7e4f0f3-1c90-4284-94c6-8f3bed42310e","block_type":"box","text":"Participation Notes.","page_number":95,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"f9a9eeb9-1c7c-4386-819b-02f964a6281d","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":95,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"c7f93df5-af21-4776-ac28-008d00acf7e2","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":"411ecae4-bc59-4b79-9a00-a089f2c518b5","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":95,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"75be6fad-203f-4f1e-a62b-a3079095c274","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":"3ba5488b-6863-4b56-aaea-b4f92e84cfaf","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":95,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"9b50f0ea-b5da-46ea-86b1-147826a27bad","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":95,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"8c8c6e23-103d-4f88-bb98-39fe19dd833b","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":95,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"8da096f7-f583-4a37-ad59-268b41b3c547","block_type":"box","text":"par ticipation 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":"03551f0f-c42b-4010-937a-de08f72ddb83","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":"9d0f7593-0aa6-4405-baf7-acfc06769af7","block_type":"box","text":"par ticipation 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":"e4e35499-72a6-40b1-8e5f-60286ee9d590","block_type":"box","text":"II-64","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76d4310f-9868-48c8-a6ec-600d9aec852b","block_type":"box","text":"NM1026U-5985614-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d165ddd1-cf71-487f-b5ec-22a9e8986dfc","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":96,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"dd2a56e2-66b9-4c6b-8538-084ca0c368ac","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":96,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"e40b22d7-441f-40ba-8226-867b5bb13e1a","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":96,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"d3e141b4-629f-457c-a3c1-2b16899366aa","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":96,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"e26b955e-bcfe-44cd-aee2-e11add1d96cf","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":"7e7838ef-5867-4456-bf12-5aaf6d26ebd6","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":96,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"d542731d-05aa-4387-87b5-de4c53d444c1","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":96,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"d42789fc-d4f6-4ee2-a3c4-4053b1985390","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":96,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"f92c67a8-ff36-4a6e-9dc7-8afad57c75e0","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":96,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"cc2f9ebf-af87-4584-a4a1-3f558cf288e6","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":96,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"abf3d89d-01b2-4435-a729-b65aa1170233","block_type":"box","text":"Portfolio Turnover Rates.","page_number":96,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"3ac1e137-b7c0-4ade-b9cd-498307711933","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":96,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"0928ad02-3a7c-4a36-a172-3185a9462b2d","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":96,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"13a93e8c-9a50-4c28-b48a-da5b382de9e3","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":"8fa86fd6-0cd0-4d86-af15-42dff6d8addb","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":96,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"fa327297-8205-4c04-8ecd-79dd5be1490b","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":"b5647772-5b4c-4777-a55d-1ac98d101cc1","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":96,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"6a21413d-48a3-4037-aa28-e8c467b91cc9","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":96,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"199a3d9a-c2bd-4b26-91a1-57acf8f6d104","block_type":"box","text":"i.e.","page_number":96,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"ef0cc2ce-e205-4b9f-860a-d93ac2e30bd8","block_type":"box","text":", 100% or more) may result in","page_number":96,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"d34acba2-46ca-4206-bf13-304d164b6c81","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":"3c0e18d6-ec97-402e-a695-cc3c158eef1f","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":"9e7e4a0d-0f4b-4840-822e-fa426c2af148","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":96,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"dc7d3109-d560-42d4-8165-0e2f8c0fac67","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":96,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"27a9668c-e133-4c9a-8395-b79c220fb619","block_type":"box","text":"Preferred Stock.","page_number":96,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"d3191ed6-3a77-4e2c-b562-767fd2a11fdf","block_type":"box","text":"Cer tain 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":"b65f5547-1309-4d72-9c76-76c0656ca8eb","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":"60d757b0-dd2f-4ded-ae77-5b7dafa5b1eb","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":"7c47d130-b155-4366-a876-1aa495171ed8","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":96,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"2e2e7d4a-e1c7-4f5b-a786-b323f681d561","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":"6b710ec8-09e2-4852-a140-1d435e25c0cd","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":"a7f29978-54b3-47d1-9bc5-df1a496fe476","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":"b13139c1-4542-4c34-9690-003d896d280f","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":"48d7f3ef-aef1-4f3b-880a-96793dd7f2e1","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":"4d8aa2d9-d4dc-48a6-8e24-fa32ff756902","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":96,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"031c84ee-5103-4769-950e-b542cbe138ec","block_type":"box","text":"Cer tain 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":"ae0869a0-b9ae-4f32-84b7-0bd709236610","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":"4550e17f-d627-4503-adb9-5aedb71f2846","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":"0593c1c9-3a51-4a5b-9209-abef01751700","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":"578c1dae-2602-4599-8efb-7715e26258bb","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":"8bf9d6d7-9cf6-4d28-bd69-5910cbb658ee","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":"9a06ab0d-8e00-40a0-b227-bb7c04bd959a","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":"cec48ce4-e276-4cc3-a93d-6ac4fe968693","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":96,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"a14cb6d2-c0cd-44fc-9a31-72ff1085b7b0","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":"8244e14a-a8f3-4dfd-9eab-e9249a72c0c7","block_type":"box","text":"Trust Preferred Securities.","page_number":96,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"b574cc81-1f0b-4b06-b72e-d3c6eea04bf5","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":96,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"37e908ae-26a4-46af-9ec1-390510db7147","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":"fa398a32-698e-408d-86b8-213dfa02aabd","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":"7036b51b-b5cf-4197-b87f-6f389613c38d","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":"18a1f5ec-053b-47a6-9019-c44714773e94","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":"34195a09-d537-4942-9ce2-2f1b6058b486","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":"154090dc-5048-4ea2-98cb-39bb92a5a22d","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":"c41e1946-032f-4f33-8830-61d567511d7b","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":"7b69ce30-c43c-4936-94d3-9ce5522b5c82","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":"1e24319f-f799-46c8-8005-60e391c9157f","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":96,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"5140a9a9-de05-4e14-97c1-8b0019127d43","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":"5d5f955e-8052-4477-8544-95bb6cd857e6","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":"b1be63cb-7221-4afb-94a5-7493c959d2e8","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":"cc16f05b-4f27-429e-87d1-2f20bd743477","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":"2394a788-45cd-42ea-b917-6a47fd4e366d","block_type":"box","text":"®","page_number":96,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"ffb60e40-028a-4591-ac18-dbd24edcd556","block_type":"box","text":"”); monthly","page_number":96,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"3a30879e-9d7b-4298-a201-d19755c39597","block_type":"box","text":"income preferred securities (“MIPS","page_number":96,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"e7194078-c931-4bac-bc48-ea6a75fadc57","block_type":"box","text":"®","page_number":96,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"843801a1-aab2-494c-9c9d-72b544c100b0","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":96,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"7eacb6de-850e-483a-9ee3-b927de54db4b","block_type":"box","text":"®","page_number":96,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"86b92fb5-361b-4052-860e-1dc5ad9a692a","block_type":"box","text":"” ); quar terly income debt securities","page_number":96,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"bafa672e-3a51-4c59-b222-450cb941a7e4","block_type":"box","text":"II-65","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"350847f0-edba-4cc8-92df-f3ce16a4b244","block_type":"box","text":"NM1026U-5985614-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"adc2fbcf-da25-4544-b991-96aedc77d0f0","block_type":"box","text":"(“QUIDS","page_number":97,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"f4675b83-e874-4f97-a492-f79284f2caf5","block_type":"box","text":"®","page_number":97,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"3829c0ed-2cf0-482c-af64-738ae227ab44","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":97,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"3a7f0108-d08d-44f9-ba8a-5c2faefd09a3","block_type":"box","text":"SM","page_number":97,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"4963f577-d65a-498d-af9c-eaa139f204a0","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":97,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"9317a763-80e9-44f0-95d3-a359bcc2127d","block_type":"box","text":"®","page_number":97,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"bf5113f0-3bab-433b-a658-4fb1d0d964a0","block_type":"box","text":"”); public income","page_number":97,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"96b07312-8dcf-4d71-bb6f-9526df7dbfa9","block_type":"box","text":"notes (“PINES","page_number":97,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"03b2b68f-7d46-42cc-b74e-1aae05264250","block_type":"box","text":"®","page_number":97,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"ffdb2b68-e79b-4840-aed7-3c9459a83fd4","block_type":"box","text":"”); and other trust preferred securities.","page_number":97,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"68fc7461-0bbc-421d-866d-2416913ab947","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":"16ff2e1f-ca36-409f-b7e4-7eff04afa7f6","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":97,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"ca85fe68-1a30-4985-b246-bac72a1f9282","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":"c0ce7da2-5e1f-4931-91f6-016aa13d1c69","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":"0e90f46e-6ec9-4b5e-971e-3cdaaaee30fb","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":"bb09e26f-1354-43e1-bca4-00170d79a944","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":"10d72d42-c4bc-434e-bcf2-edd399e0f737","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":"7830af80-aad2-46f3-a04f-ca91c364f30b","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":"82e46f30-2358-4ce3-94ce-ec203223d9ac","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":"6d63872e-b711-47bf-b013-da6f4e432d2f","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":"9c16d688-0a13-481b-80f7-de7ec585d38f","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":"8f2f6bc1-6564-430a-9098-073e416eed64","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":"2d63529b-3dad-4f66-9404-a9c705febda7","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":"48a39b9e-ec93-4299-9488-e503c2dbcecc","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":"03a932f6-9a97-4370-b664-83a5ecd24026","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":"750116b4-cc88-4a74-bcde-943dedc42f48","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":"1ef26374-b79b-46fe-9326-8bdeb6a74086","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":"9d60f0b8-5d7f-43f2-8371-f7c0597d3638","block_type":"box","text":"debt securities.","page_number":97,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"ee5b009e-3808-4eec-8bdb-d248688246f1","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":97,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"cf3c7b2d-ce07-47c9-99a8-bfc80cadaf3e","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":"924467c5-218b-4441-b5c7-3516a81aeabb","block_type":"box","text":"REITs. REITs possess cer tain 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":"219f8ca8-b7fa-4266-aef0-ccd9d4eefe7c","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":"565deb05-f48e-48f9-b2a9-d9f10893c2a9","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":97,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"8f8ea3a4-c28d-4daf-a4c6-24ee7073eb0f","block_type":"box","text":"i.e.","page_number":97,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"67b09d30-49e6-4415-bbcf-30c32407bab4","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":97,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"9ef5b0dd-56c0-423f-976a-0dbf81e4c228","block_type":"box","text":"buildings.","page_number":97,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"fc2dbe19-d42f-4656-b437-e5e3340c4b7c","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":"f90f5296-9134-40c1-9ba9-befdfac996a6","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":97,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"b4f0a16d-6ef5-4c62-94c7-c61be7f69613","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":97,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"c39deff8-d378-4478-a10d-7bc34f92b8c3","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":97,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"597af20a-0241-487e-8ac0-7c9fc549dff6","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":97,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"5728e3f8-2eef-45a5-99b1-2ceba5ea3b05","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":97,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"787428a9-345e-4d43-9b97-bbb83c2f6da4","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":97,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"4a420d7e-a49f-473a-8dc5-9ab78f5d065b","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":"088e149f-71f4-4249-891e-27d380ed6ee6","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":"17a6bfdf-db23-4c51-b7ca-39d6892ba27f","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":"b87b8425-3852-4f25-8c65-c4b3e10d5466","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":97,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"3320ea69-7039-4199-8bcc-48027eb025dc","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":"1c8c91b3-1dbb-4374-a042-ee1b6842ce71","block_type":"box","text":"from new proper ties, 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":"859afd80-b7ab-4a46-aeb6-785d54f98c40","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":"5e5b555d-948d-4787-b23c-e8851a5c8e27","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":"b80386ba-03bd-4dfd-b3bd-c394b052f5e4","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":"a7dff188-9d2d-4598-b751-225eae22f0f9","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":97,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"c7a8e6b0-a733-4a4f-945c-4cf12ad1e440","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":"e3aad8b7-14ef-48bc-8798-69ec8c7d80d2","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":"1a503037-32db-44aa-9413-0de0af701e5b","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":"5388c87f-4da2-41ba-ab91-90d09813229e","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":97,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"21d7c5e9-cdaf-4476-bfdc-a018a090d6ab","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":"45d61766-5b6f-4c00-8ad9-8de3fb093fba","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":"0b9dc27f-91fa-4388-9822-964f85179b56","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":"8e3fb788-e2e4-4a16-9b4c-20d7b90459ef","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":97,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"72b66ee8-5364-4ec6-bb82-65d16f874f88","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":"b8a92035-2653-48bb-91a6-ab210023a0a5","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":"7e0a3aa8-db19-4b85-89f2-f19199e7345c","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":"ddc46cd6-46cd-4f0d-a93e-1c7de54fae3f","block_type":"box","text":"REITs (especially mor tgage 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":"c9782a04-ed3c-4835-975d-add3ce465155","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":"e5b23236-67d0-43f6-90c4-b6b37410ae7f","block_type":"box","text":"II-66","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"48229ebc-5054-4140-a76f-b264ec7b3360","block_type":"box","text":"NM1026U-5985614-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"70a77e40-5445-4007-a989-5c8b553565d4","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":"f669e0ad-d85a-4ad8-b8c5-b29a053ea06c","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":98,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"82311cbb-6b8d-41ad-8622-7f8b4d27df3e","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":98,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"4f199676-915b-46c0-a85a-dd6cad6bdc27","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":98,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"c2087bdc-ecfa-4997-a2e3-024857243553","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":98,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"4eda532e-8603-41cd-9c86-88d0028444d9","block_type":"box","text":"Investing in cer tain 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":"670177c5-6a2f-47dc-8241-ef3864186605","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":"dc7b0673-7bae-47a9-99cd-f4fa6f7dc8c1","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":"f652e4aa-701b-4f01-8cec-063e27f7139e","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":"78f0a3f9-0f5e-4930-89aa-280695214a48","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":"8424dc78-aaf8-4461-a849-73a1b15151d0","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":"b16f4aaf-36d5-451a-9e42-2b754bc1aaea","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":98,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"6ab865a8-0b85-402d-bffa-f4f4c6067f78","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":"8fb4e164-1413-4dad-acc0-8551a1c092b0","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":98,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"0a2b911d-2552-4ffb-948d-1a278ed8fcfb","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":"e223909b-933d-4cb3-be5e-9c5e3d0183cf","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":98,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"11502b03-01dc-4355-8b6a-c98f9de17d19","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":"14e8a7fd-c591-41be-a5ae-a0d95dd12c28","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":98,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"e9a034a8-8350-4079-813f-25e88f7a62c7","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":"0b756c31-d4d7-41ed-8f6e-e9cde976a3fa","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":98,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"2bebb43d-ffde-4698-8b42-aac1d18ed062","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":"99c5f92c-4a49-4a65-8bde-5ba4608f9de5","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":"31d348a2-2632-4304-a700-0a4e59701e6a","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":"20d86b2d-e8a9-4330-8920-6d13f72695fa","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":"8bdfb144-17d7-4b82-a063-0c585dc58fe7","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":"b010c877-7c7c-4b6d-b33b-d2212d5b19b3","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":"c0219bcc-aa3a-4e59-8d11-493261774192","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":"27d73841-ad9c-4f7e-a069-af733bd115f5","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":98,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"bcc6a96e-2ae3-46fd-a998-cbf417e35b25","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":98,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"068c9511-0212-44ef-9fe9-35a27d650e86","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":"a08849d0-e498-4384-8cd5-203c8fe8f145","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":"f45e6484-bb2c-4ba5-a541-7ec00d4a3f11","block_type":"box","text":"conditions.","page_number":98,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"ebeb8a41-3c23-4276-9503-2d4ad595e49b","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":"16575c83-7c34-4a2f-82a8-dd17498c9e6c","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":98,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"14736c42-7e88-44ec-9b2b-464a5b474ef7","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":"dfaa6a35-8713-4f8f-9d97-7ed98dc901ed","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":"4d8eae3e-58c8-4ea3-a682-1111effb4850","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":"e44f9e51-7f2c-47f0-81af-5cf91da1f4d3","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":"2ff78cde-40a2-4c0d-967e-256ec1bb6191","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":"1a6bb17f-d588-4232-ba4a-fe824433175c","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":"70e8b29f-2167-409d-a18a-c49ca9f4cebd","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":"10532d22-ca1f-43ed-a821-72719a5dfcfb","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":"88ee33ba-ac0f-4b1a-8edc-f31a54e91e3b","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":"09f8a075-32a2-485d-b2dd-b74d1a6d97e0","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":"8171caea-baa1-47ee-b743-83a97b1849b0","block_type":"box","text":"affected by such events.","page_number":98,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"0c71aa49-6910-4af2-9270-873acdbc168c","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":"8f054031-fb3f-4844-b020-2e55ef075873","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":"78df7fab-2cb8-43d8-847a-141d6dd520d5","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":"8bcf9e8d-7a02-4125-a1f4-f82f04a54bae","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":98,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"8fa85f70-66a5-4024-838c-1c8087d574ce","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":"5e69612b-401a-48c0-9cb2-87385f76ddb4","block_type":"box","text":"that could create uncer tainty 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":"4821cedd-75f9-4ef6-84ec-a00ea64a092a","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":98,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"4b3681a6-743f-421a-a90d-2f1e97eea8f0","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":98,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"36ed5da4-15ca-4783-a6dd-eb5d48abe300","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":"1490a817-d360-4346-82db-c91724baadce","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":98,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"0a4d657b-dc89-465d-a4dd-014876bdcab7","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":"504c9bba-d8cd-437e-891d-89f6b126eb14","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":"b72075c6-b724-4d5c-8492-84afacc2fd62","block_type":"box","text":"II-67","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"83ac667b-e841-45bc-b4cb-b533aa593fcc","block_type":"box","text":"NM1026U-5985614-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2f9b1453-addd-48ca-b471-84fb6c6779bc","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":"189e9fb4-15b1-4699-9abc-f0e965e48863","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":"56b0de11-3d1f-40c0-96d9-9bac93448472","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":"5690c66a-9512-4707-85fd-06c95a7b11f2","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":"ad2c96c9-794a-4a2f-b31d-ee40ac2bb07e","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":"c984401a-f84c-4410-beea-0315271019c9","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":"7277194a-2d56-487d-948b-a5fefc31acd8","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":"504f91ce-e6fa-451b-9977-8299c49f0fc5","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":"6b49c73c-cf71-4e67-b56c-50a555952661","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":"c317d3cb-eebe-4dfe-b21e-b6d1b243586e","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":"fb37fbf9-9584-4f8a-b5c8-e076f196f95d","block_type":"box","text":"investments.","page_number":99,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"28b95bba-afad-4bf5-9faf-e9ffad0dba1e","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":"1ed72119-e398-45b9-9b17-fa3c22ecd6b2","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":"a401454a-dadc-48d4-8631-5a1ce7056988","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":"555b607a-7cec-409e-8fe9-a9bd664dc152","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":"36041498-8057-4b44-9be7-4311410d325f","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":99,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"bf53f788-b17c-4f26-91e2-caded9bf2c4f","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":"7339d334-e38f-46a9-83f2-edf25654312a","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":99,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"6a1caab3-d703-4977-a410-bafd5d7cc6bf","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":"1e4238ec-cd45-441b-90d4-652228211672","block_type":"box","text":"Legal and Regulatory Risks.","page_number":99,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"f62a3796-182c-4809-88fb-4f4e26508ef5","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":99,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"6c3025a3-fa51-4e03-9705-3b29106f7f63","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":"ae1031ae-8cda-4e19-a633-8946aa225712","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":"7e16e1c9-1495-4b8e-b8fb-ef5dc8ca6ee5","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":"94f2e5f9-d6a6-4c4c-a33c-2dc1a0cbfdac","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":"e747f796-3c04-4cb7-a7b7-e3ceb55646f7","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":"be8f19a8-fd10-4bbb-bedf-c7728596a64d","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":"93785223-743c-4395-b0e5-3ebc24bdf43d","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":"989de9f7-7997-4670-b7f4-606ce16b4e6b","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":"59d4551a-356f-42f2-9f0a-2f1529d0e549","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":99,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"7bb6ec98-97ce-43d1-a2c4-2ef7249b68a8","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":99,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"f81bac9b-4f32-43f5-90f7-638af044a7f4","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":"32346a3e-017d-4a2a-85a2-880a9a333480","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":"e629f5fb-d6a2-47c5-a2a5-d8cb164cb338","block_type":"box","text":"international trade relations, cer tain 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":"3aa02f7c-0045-4754-8823-7cbbc5cbec26","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":"bdd5563b-3593-48f8-9de2-9212dedb6c1d","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":"ec352398-834e-4c11-84cb-8d15a47713b5","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":"4eaf5dd7-0476-4273-a7bf-5607d0d4b7e2","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":"124ae121-85fc-4561-98f0-082b5a50c2c8","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":"09b67880-d0b5-42d5-97e1-20858ac49648","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":99,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"8fcd5385-dd39-4aa5-9f60-1b9d945aee35","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":"7148f66d-acaa-44d7-b99e-99df3e77d6e8","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":"3464cbba-0bc7-49a3-b9bf-d5626a891a10","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":"68b13250-7377-417c-b258-ad5d5c30cf50","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":"09f6f3dd-3d54-4a30-ab03-36f20b18d6d2","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":99,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"e0f8658a-0b71-42c2-862c-eb74ad249d5d","block_type":"box","text":"Geographic Risks","page_number":99,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"daf6ce0a-9a31-4083-8aff-5cdc597c4733","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":"7ee2dd26-0432-47f0-bd69-6f9e43635e55","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":99,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"7115a79e-a667-4be7-9ad1-38c9d465c8f0","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":"8d3bfee6-027c-40e8-afbb-47531c2cb548","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":"758b76fd-663f-41df-ac84-0212bc81149c","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":"c64ec2d3-a7fc-4166-a7d4-196f4c2188da","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":"05fcab3a-369d-4f13-ab7a-86f95c56a914","block_type":"box","text":"Fund.","page_number":99,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"b5577417-72d8-4afb-bef9-623e99b2261e","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":99,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"66a57f71-96b3-4e12-8931-fd83b407bee9","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":"fe87b506-dda9-46e9-bc0f-6e553c6d3ae8","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":"10f288a7-243d-4041-b869-c10da5a08d6c","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":"71e4d492-57de-4741-a6cd-548fa851abaa","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":"2275585f-eae7-4f54-9cc3-8c75499fed3d","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":99,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d19264d4-8f2a-4f3f-aff6-34e12be81bfc","block_type":"box","text":"II-68","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14c3107a-619d-4b77-bb17-66e86fb1e6fb","block_type":"box","text":"NM1026U-5985614-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"97924296-fd0c-4912-9044-e6f1416bd1f1","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":"c6a035e7-4781-419f-85d6-c71eee2fff8b","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":100,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"33917b31-4cd1-48b0-8a93-6af6fb3c007e","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":"b8fa73ef-6ac7-4ad8-80e7-975aa289fe9f","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":"53911c56-eea2-481b-9d95-233c237f4824","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":100,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"bcd2ca5d-53ac-4ae0-8fba-9f1b465c2d1e","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":"dfdf03a0-aa0d-4e4f-8c60-dbb5410bdda5","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":"22776d1e-56aa-4047-8c95-992b16d2c4cb","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":"145a5add-75d7-4877-ab33-617e83870648","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":100,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"f4d41301-3388-4a53-accc-91822308846c","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":"defea5f9-7545-4b1f-916a-624c95c10813","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":"125347f3-bada-4ab0-990d-807334afdbbc","block_type":"box","text":"e.g.","page_number":100,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"d862ce5f-f3f8-4689-b714-d1812c36da37","block_type":"box","text":", SOFR for","page_number":100,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"02acf1ea-e87f-4349-af80-e93d53d5dfbc","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":"40a62578-e9de-49e2-a2ae-b52fd8bbdd9f","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":100,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"e736a0bf-5f3c-472c-825a-8aa3c600f5e6","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":"3f38dd6e-a306-47f5-9da0-d6c04494d295","block_type":"box","text":"determined.","page_number":100,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"f5422056-7f1f-462e-9b3c-88fe3eccd85f","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":"d831013e-e556-4999-8d19-b320f333c8ee","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":"5b17a2a0-62d7-4129-8ba1-42933baaafeb","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":"282cea6a-5e76-4643-b881-f3618f9dc75c","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":"48e2e997-6f3e-472e-8b24-ba4463f87b18","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":100,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"0c699325-33e0-4507-a7c5-393f146c62a1","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":"07112db6-f87d-4281-8060-1eb33e709aef","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":100,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"a7658cf9-a0a4-446e-b2ef-4da3cf3a9250","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":"91d33c03-8dac-4498-8786-7f8edfccc773","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":100,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"e09e31c2-5836-499e-8c49-cd0bd8c9db67","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":100,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"8e766843-15d6-4b36-b79e-49c2c369f21e","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":100,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"95ca2c77-b1d0-43b8-ab67-9a6bbeee0571","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":100,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"1bf550be-737e-4c0c-8e2e-ef9657559f07","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":"c6574edf-8b77-4252-9bae-f18e9d2b60ca","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":100,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"3f627eb4-a075-4788-96c8-23c17025a84a","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":"e7e63103-c00d-46cd-b300-81f946df6c78","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":"37d7205d-528a-4f7b-9c98-422f586cd92b","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":"be3bf5ff-df26-47b6-8747-a08c39a5b29a","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":"4f24092f-4aa6-4cee-9444-baadc2dba76b","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":"7a7d2806-c83e-45a5-8c09-eb3310141250","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":"97510864-9ae2-4a5a-a4fb-32e4852fbc79","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":100,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"3881476f-f92e-4d52-b66f-5a3a93e0da9d","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":"33f45d7c-f93f-4fb1-8211-27923e82155b","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":"f19ea68d-a9c7-4282-b430-02cdf0535802","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":100,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"7663391b-6b30-4ea2-9680-45216e65656e","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":100,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"ea95d26e-48fd-4201-8565-201232da4fea","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":100,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"a127edc7-726a-4748-a7be-df20a4301936","block_type":"box","text":"cer tain 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":"d0a92ba4-8b50-43fc-98d7-e400e2635289","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":"a3bbd04e-6d35-4e35-8f61-3d05076240bb","block_type":"box","text":"consequences which cannot be predicted.","page_number":100,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"1754eb1e-6e1e-452d-8da9-1886970bb364","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":100,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"cd6ea2fd-7761-4271-b2bf-14a7dd2a8a6b","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":100,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"b4e9c132-c66c-47fd-aa54-012e2fe3faf6","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":100,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"fad24f1d-2ca2-4b4d-821e-6519a108dfda","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":"0ed6d494-1518-4030-8d29-e113f5762210","block_type":"box","text":"term of the agreement.","page_number":100,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"af2b9dc1-67e5-4755-85f7-4cca05c2dbb3","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":"1f139ff6-052c-4820-badb-7f16e210181c","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":"aaf568e1-2b2d-436b-88fe-74fe0b64946c","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":"da298e70-f364-4a2d-a33d-28188541a9de","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":"f27c4b9b-ab4f-4b14-9956-61c7f75d41e7","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":100,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"928faab6-4b07-4675-bd72-a65814f7d43e","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":100,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"76171381-675e-433f-a742-7cef0bd96aa8","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":"4e46b907-3785-4bd9-b11b-3c92757085f2","block_type":"box","text":"II-69","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f03c1d18-2e7f-4e37-83c8-21d24667112f","block_type":"box","text":"NM1026U-5985614-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"668449cc-4c71-4206-b964-86ff14aff496","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":"594838a0-6d11-4fda-aae7-6ec17c57c5b0","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":"d1983594-4133-4997-8d73-13be81b9d188","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":"25149e6c-9a8c-42eb-bdaa-962fda87951e","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":"bcfae561-1db6-41fc-b772-16113b4e7353","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":"4ea24602-8942-4f7e-a7ee-137c927c003b","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":"6d581b26-6c6d-4347-9fc9-9edb3c49ab17","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":"c4fe66f6-f692-468b-9b78-e4a0897cf3d1","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":101,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"3dd569fc-968e-409e-aa1c-b5dde73ba2ad","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":"ff060a80-8ddf-48a1-852a-a163b979372d","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":"342f4c8f-1ad5-45dd-b443-bec5fdf2e9b9","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":101,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"5c695fe5-91af-4fb6-8008-99b2cee4543e","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":"ab2c9039-dd52-4238-a6ad-200be3531f75","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":"9a6505ab-2b90-46c4-ba33-55077b1199f7","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":"e2d7d8ab-315e-4bed-b6ad-6c3cecd07969","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":101,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"6a2cea7b-2d18-48ca-9d9a-ece642a59670","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":"502644ae-bcf8-47fa-8a41-f32b278f558b","block_type":"box","text":"or by another authorized securities depository.","page_number":101,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"d592b621-4b57-4a5c-baa8-3097f63d6e33","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":"8a3fd0ff-3822-44e7-96a9-28b972e5093a","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":"6d968f0a-0365-4362-9f82-ee391f6712c2","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":"fdeae4fd-4338-4379-a740-4667452f3940","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":"0729e0b8-5682-41df-b80a-bccf1363a5a7","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":"2c23ca9f-7238-4712-9ef3-6c799c965fd4","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":"4e786894-e7f5-4c66-a5ea-ea5cf3a8405d","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":"86c61dbf-5d84-47da-aef1-c26227999b27","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":"f6cbdc55-468d-4fde-8bdf-c5393d21cd25","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":"134d6097-9893-4ab7-b799-da6f2f26b6bb","block_type":"box","text":"the repurchase price.","page_number":101,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"e2dfe902-c833-453d-8ba5-936f38b08968","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":101,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"631296b2-c85d-40c1-b5cd-1e3aec7c6fe3","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":101,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"050bb1bb-61f9-47cd-8896-bd72ec18c0c9","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":"cd7bc567-befe-4655-9828-c26fd08ff5ec","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":"032ece9e-5906-4f38-ac7d-6fbded3f92e0","block_type":"box","text":"strategies without the repurchase obligation.","page_number":101,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"81760f7c-432c-4f13-b442-06d15a9c194f","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":101,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"f7ccc378-1f70-4e5f-8838-cea80d651393","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":"5fa06bd3-1066-4f77-a789-ac8bba1e58eb","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":101,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"c73780cd-075a-437d-bcd7-d5a931ca87bb","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":101,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"b2212fba-605a-4283-90f0-9ee63bb7fa1f","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":101,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"43a9d6e8-c2b6-4975-a577-6e728625fea6","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":101,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"008fac3d-3f7e-4653-9af6-d5957a5556df","block_type":"box","text":"i.e.","page_number":101,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"7551af7e-8245-4020-aaf1-e39886f8cada","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":"48575c68-885d-4698-afab-80ae534ce3c7","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":101,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"18c8f7c2-12a4-4795-9452-31448b45ecd4","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":101,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"be7a8369-8603-4177-8e12-48aaa0f06e37","block_type":"box","text":"and income involved in the transaction.","page_number":101,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"47dd98f2-b452-4f13-98ef-fb39b572b690","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":101,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"b1026cb4-9c75-4f15-8304-71dbe0692b32","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":101,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"9937f010-cb4d-4e26-ab70-20e2c011d5c1","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":101,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"72fcec82-c602-4625-b232-c297b244f1c1","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":101,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"aace81a1-bc27-4cdb-aba5-2bdea8417ec9","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":101,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"3ff2e96a-ee91-4231-9ee2-55fcdf315f6d","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":"eca24958-bc32-478e-8a52-24b5ae16edcc","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":"2a655fe0-84b5-4dde-a049-e216c6661d2c","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":"67e44ca8-e875-459a-abcc-806b8642de31","block_type":"box","text":"require cer tain 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":"181a71ee-ff4d-407c-a173-ff09ea194aa9","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":"d7865eb7-7480-4fa5-94b6-e7c7585673e0","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":"5a506388-6f42-4d5d-b43e-2748068ecc5f","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":101,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"5f3272b8-4114-4406-b6c9-731a0642c01d","block_type":"box","text":"Restricted Securities.","page_number":101,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"f420b483-ac21-4944-ba19-bdf3fe740401","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":"85b5caaa-68f2-4920-a431-9a84d379712e","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":"e99528f8-9ae0-4fb6-87aa-70ee4ff8efb9","block_type":"box","text":"II-70","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8db3a8ea-aa8a-440a-ae3b-9cc288ecf6ab","block_type":"box","text":"NM1026U-5985614-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c2d3826c-4339-437d-84d8-61646746527e","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":"5aa9c9a6-bd0f-4ccd-9170-e018388f586e","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":"88735a1e-e4a2-4e98-99ad-fe7dea1df3c4","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":"ed59470e-8801-4699-ab0c-c35d20f3af5a","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":"e6430012-51c2-4b68-93d8-78e1a3348957","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":"65f5d45c-b969-4250-842e-04841818713a","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":"1e659188-2b2e-4f4c-b534-ae7afceb87ed","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":"0aee8fcd-eb3b-4291-b7d1-e05b88ab3ce3","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":"b9ee1ebd-2850-4dd5-a70a-31ab15ab5b70","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":"56ddb04a-5491-48b1-8d06-ef6e575908e5","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":102,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"8e4fb310-9977-4059-ab82-afabaf5341ac","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":"05760904-66bb-4667-aab4-59c86091a35f","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":"a75a47df-af79-454a-a24d-528e1289ef67","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":"6bfd11e4-d279-48d7-9ac5-fcb588d847fa","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":"6fe805c3-77c2-4b7d-953f-91da85297d98","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":102,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"b1039cb3-ed09-40e4-88fd-ac8320b08977","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":"2a131376-b202-4095-b6b1-40de0439f61e","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":"ea533c8a-49a6-4cb6-b155-62a49970cc7f","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":"af756a61-a0a8-477a-b839-1fcff82bb7bc","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":"136974ae-1548-4bf7-84d3-01c549aeb441","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":"ab73999f-5bad-42c1-8890-08bae72ad56d","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":"fa50e267-746a-4e97-a018-a14e993b6268","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":"37741dfd-2668-490c-b574-fdc1a7a316af","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":"821d4684-d253-4c49-8173-249c762c08e2","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":"c14a3c22-52cf-47e0-bcff-1e9787ec97ea","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":"575e56b0-1db9-4d75-aebd-f2a29629ab0b","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":"a9a1a005-40e0-4cbe-9d75-7b88c2383fae","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":102,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"91dc7696-c5af-4369-adc8-b9274ae71285","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":"bca86c48-65de-49b6-a009-32da167ed4b9","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":102,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"f721412f-903b-4fce-9ca2-1e05a267bf75","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":"de24c90f-6d2f-4142-8fe2-ee06173662d9","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":102,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"8e2001a1-d1f6-4886-9c53-d683a9db8b8b","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":"aab52dd3-f301-4246-af6a-1ab1a5680758","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":"bde800ab-ef75-4591-a057-6883347e6d96","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":"6c5d1fac-b93d-467d-9715-ba4e564ce3c0","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":"8cae0ec8-e337-4edd-a65e-3826ecfab833","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":102,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"c0299084-fa3e-4c13-ab24-d6187fbc75db","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":102,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"009d93a4-05ff-4dc6-ad40-ae160f1bb12c","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":"4a866c92-7ef6-4cb2-bf20-8eccb58d5d7a","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":"efa27ea4-fb7f-4ffb-80d9-598cf8321eee","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":"14e789af-35fc-4c3e-be19-e17677738474","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":"63ef7601-6305-4793-be54-e1521f9fbaba","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":"10c290c4-57b0-4b50-9f73-3a70725fe179","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":102,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"70e60d33-8781-4e24-b767-50a5f9e69480","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":"e0055180-bd26-4d5e-8ff7-07d69cae5f04","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":"53d03ed4-f721-4045-808a-6bc845ab84c7","block_type":"box","text":"conduct por tfolio 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":"bf6b35b7-5f44-4bb4-8c03-d20e577b8fe6","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":102,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"683cc960-f41e-4641-952e-51a44b802b25","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":"65d5ef29-ff84-4de9-9af2-111001030466","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":102,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"c1f2043e-71ee-4997-b08c-caf1f4b16b45","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":"8596b4d2-fdc5-4232-a47c-b1b7ca170f34","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":102,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"6ca7758b-42c0-40ba-85a3-ef084a35646e","block_type":"box","text":"especially as that Fund grows in size.","page_number":102,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"5c8f19fc-aa8c-4695-afad-1e32098b5214","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":102,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"cb0e2fa9-51a1-4cba-bb11-159878e5734b","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":"bf6c5e8b-8de1-4b31-87b0-aed9e340eaa4","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":"cc6a387f-cf99-4580-a0bd-99383544e4e9","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":102,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"edfd2a46-fdde-4f38-acc5-f72efc86a4e1","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":"46ce979b-2cd9-459b-8f9b-f8410fc6c971","block_type":"box","text":"II-71","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69e6fbe3-d28d-40d8-b1b1-d857602c568e","block_type":"box","text":"NM1026U-5985614-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ed99b7c9-ebd6-4dd0-8ff9-22cd9c5cdbe2","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":"a51d54bd-8006-4094-b8a9-ffa1a580ebea","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":"2ff2b5df-2200-4106-90c5-cb9ce82734d2","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":"4bc28b81-d4e2-4c0f-94bf-ad6131e9f8ec","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":"b8031756-a9bd-49fe-9fce-0780bcb6b76d","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":103,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"c8febd2d-4864-4083-8101-68c99ebf9556","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":"4d7ce3a2-8128-478c-9fc2-bb324880c4e0","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":"6a03792c-02a6-41f2-9851-62372be208be","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":"77f13575-e705-4fa7-adb9-b0bd87ed854b","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":"feaa4180-1c1b-4aa0-b231-123dc30bfa56","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":"6a42bb58-0bac-496b-81b5-4071de71ae10","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":"2b6f2bd2-709c-4fbd-8af0-6adcb282c972","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":"615d0ce3-7c6f-4535-858d-18ba1885d577","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":103,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"3ce4b707-7b59-4422-8dc5-7246eb3778e6","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":103,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"9283ac64-47f9-4ba6-ab24-8ad6d15863cf","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":103,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"35a58f6e-8db5-43cc-b7d9-bfd865aaca91","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":"fb93a79e-8df7-47ef-bd4f-35ef79fd23b2","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":103,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"2dedeb35-396c-4f96-82be-51a6cbe8a011","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":"529d5d26-0580-408d-bc87-1d258d5bfbfc","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":"aae13ac2-1fae-481e-a69d-0981d1313378","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":"04f83c49-4fc1-487f-af43-d3deaf40250d","block_type":"box","text":"Fur thermore, 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":"f6211645-e0e1-45d8-9936-9d63d3def267","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":"83204f34-43ce-412d-a17b-841bf80ba7b1","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":"efdd5fc2-8e9a-4766-9d26-c8a7be1744e1","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":"481cfcd9-18d0-46a3-9ae0-b0f0fb74ef44","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":"9ae85ccc-0dd1-424b-a848-fca6aa386050","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":"9a32fae0-20e5-4939-b41b-755fab35a40a","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":"dfc674ec-6fe8-421d-acbb-fe2d73f016c1","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":"29b87394-9755-4f29-ba55-f4eb9412877f","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":"8cb35a46-38af-4c5d-a8f6-300a013b52dc","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":"ea145d40-cac5-4ca0-8444-bec90cccb6cf","block_type":"box","text":"similar financing transactions (","page_number":103,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"8014a36f-8b22-446b-951c-8316dcc70cac","block_type":"box","text":"e.g.","page_number":103,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"63c0d34e-9e82-4c99-80a7-b619abf3baaf","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":"f0b5da51-661f-498c-8f01-c4fdce94d65d","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":"dc586077-1d1c-4e66-b680-1241fb5f9f2b","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":"7d70cc23-1f88-42fa-a25c-1b47c9b21c37","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":"cdc4b498-e7cf-4e50-985e-31f9d0724a4e","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":"94285525-ede1-49fe-98c5-e45d7f1f5e53","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":103,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"feea60fc-492b-4ba4-acb4-8377a4c69b77","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":"458db6e7-726d-4c52-a52f-3076e1142548","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":"236af953-a75d-4a09-9b3d-17510d7dadb7","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":103,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"5a79f375-6dfa-4d3a-a15f-0d5043c6c369","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":103,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"2a5ee9ce-8264-4497-bfe2-aedf395c4f5e","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":103,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"923eb924-56b2-4c50-a4ed-5b3599ecb1db","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":103,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"200871e1-d4d1-4ff1-96cc-c0d057a16f59","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":103,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"497b0949-6cc7-47bc-9ac3-7e220ff3a318","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":103,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"5a1d814a-4ece-46bb-aa07-cbc4feec6c64","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":"e60e7952-4e16-49e8-9dc2-8bffcff11840","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":"77956c6d-aad8-494e-bbf5-5f463f5de65f","block_type":"box","text":"amounts to be received under such agreements.","page_number":103,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"b36cd884-22a7-480c-980f-dd22afa66cf0","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":103,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"2c700a3c-c405-4204-a117-4492a9e7ea85","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":103,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"6bc43706-51ce-47f8-8d6d-e246f0b65ac3","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":"68506a72-f3ef-4d07-a5ae-112422ccf359","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":"4c077d92-d35f-418c-bdf1-82145875d141","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":103,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"1c3063df-092f-4072-96bf-5685133dcbd4","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":"9a9995a2-6b0b-4be7-b78f-f7c8e5709611","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":"06c602f6-9603-4eef-ba39-f9209cf1a000","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":"a136d894-a67e-48ee-bf3b-44d4c0fb13f2","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":"303d1f34-386f-4449-8b39-b19fb990992d","block_type":"box","text":"II-72","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a0112c4-9201-4eae-81e0-1674c2ed3f5d","block_type":"box","text":"NM1026U-5985614-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2ca1c861-438d-4b07-b02d-30605635ae54","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":"77c2ca89-4d94-445b-a325-a0f613074d8c","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":"15ea60f0-e877-439f-ac0d-201692beb7a0","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":"2b5f3b0b-1107-4237-a2c4-0819a27a5fbd","block_type":"box","text":"Rule 144A Securities.","page_number":104,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"a1ba66bf-ad04-4aba-9edd-36592ffefaa4","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":"59834c5a-00d5-44eb-a779-541406d3dd1f","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":"fcf87b1c-4be3-4de9-8037-a96af30928d8","block_type":"box","text":"Securities Lending.","page_number":104,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"1f922f68-a956-440f-b45c-f68b4ab5f9ae","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":104,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"c0128057-0f66-4fdb-8b28-bc339e0bd249","block_type":"box","text":"be creditwor thy, 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":"e7e37d90-b99e-402f-8bb2-5ca5a883f1b3","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":"bb6c5402-9c48-4e1c-8086-9402fd5da9f3","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":104,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"b18ca681-e78e-410f-9305-4059cf1f91b6","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":"27aa7f45-1aff-483f-adcb-46d94adf06f1","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":"f8152ca2-6659-45eb-90db-625201389670","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":"480d9038-46db-4304-8bde-d69e49bde9f3","block_type":"box","text":"the securities were not on loan.","page_number":104,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"d24a900e-a3f5-452a-bdf7-ba924613ecef","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":"e4cf97c3-e10c-4503-8c61-4fac837dfa50","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":"148af122-cdb7-4561-b7f6-36fdb8f33dd2","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":"beb0b4bf-f435-473e-8b1a-7ed922a62119","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":"7c03b273-4da3-4f4c-85fe-d1a0be18c78e","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":104,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"153e1fc7-c648-4ec6-b472-510c16cb4e96","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":"f014925c-8cec-402f-9903-041c6c9c6ea5","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":"671174fd-e2a7-4d47-ad54-183db8887213","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":104,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"8b61d461-9886-431a-845d-e1edbb268756","block_type":"box","text":"i.e.","page_number":104,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"42c638b8-8eac-4033-830e-c7970e7aa926","block_type":"box","text":", the risk of losses resulting","page_number":104,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"58a02038-afb3-4ea1-a8ce-a146e8f63807","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":"808fd288-b001-4c0e-a811-3f3a2b1a0062","block_type":"box","text":"i.e.","page_number":104,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"57e80961-5988-43f1-812c-df5039ca0e38","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":"c3c81774-50ec-4504-b464-6e0debb14f45","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":"dd03f20d-5c1e-41b7-b9a6-7ee002b594b9","block_type":"box","text":"i.e.","page_number":104,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"d52d7cce-fc7c-4db3-baca-1c5929c55d3e","block_type":"box","text":",","page_number":104,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"4f46592c-54ea-46f9-8821-5c6b5579b858","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":104,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"0d18cd81-5780-4197-a217-b9fb362b5607","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":104,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"b47715ec-0347-4f21-b4b1-f4c4939991ea","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":"b52e073b-b728-4337-9aec-275add668fd0","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":"00800eb5-40a7-4df5-97bd-f4feab792482","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":"9308f547-3a71-4cb4-a774-9daf11ca960b","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":104,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"0c666b5a-68f2-4192-9cdb-51553e6b4789","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":"9bef6c0d-118d-4cbd-b654-4a08d188fe47","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":"5bea7575-37fd-45ef-8a2e-07d7359821b9","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":104,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"27d95ab2-8064-4604-920c-47b5d4472bc0","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":"3f715856-42a4-44e3-84b3-6765ae8cefaf","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":104,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"3ae89bcc-23c9-4913-9634-ec9eedf4e267","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":"4f75bc4b-005f-4e1d-bdaa-37ea09b48952","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":"d8b86314-36e6-4afc-9d16-4cd383a34b55","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":"8396319c-e597-4607-99db-09d06f792d11","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":104,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"d13b8057-61e9-4d8e-9f93-6f653090c527","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":"34ebcb0c-7cd1-47fa-9854-f0104b015c87","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":"750f22e0-1131-4709-92f9-245696607b6a","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":"634fffb3-cde7-41ab-8f8c-60ab5b8b6e10","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":"a307408a-8786-40e3-b1fe-cc17fcb11c4f","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":"820e9185-05b6-4be7-bcec-1ddfbbb29933","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":104,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"9a847190-599b-48ed-85ca-dadea87140a9","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":"8de9153e-c32c-487e-a657-adedff988be2","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":"b4e91112-6c1c-46f5-8af6-d436caad79b5","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":"3038f6b0-b25b-441f-8360-81547ab226ce","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":"51a220c1-7c81-4bf1-b4d4-bb4a2d479a64","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":"dc7ef640-feec-4fa1-92af-5be40303bd2e","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":104,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"6fce6c37-d3a2-47ee-aa5f-d7ce954da0e1","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":104,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"bdc46770-333f-426d-84e7-a69fae0003d1","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":104,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"0f7c4f32-4b29-4785-90c0-51f8afea992d","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":104,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"27835176-468b-4525-82d7-e45b3f8be06e","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":104,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"c42ba49b-c871-43e7-abaa-8b5e62fcd599","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":"08a4b092-ac6e-470a-8605-3f65bc190782","block_type":"box","text":"II-73","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4e5349b-672d-4c7f-80b0-bf006cb5e032","block_type":"box","text":"NM1026U-5985614-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8c9918e7-7919-4886-8fc9-afefcd8169f0","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":"72e390be-89e0-47e7-900f-2a71901ffcce","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":"34336297-8884-4043-892a-b832bd2e222f","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":105,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"889b7d56-1c76-4a68-a86e-e9280441fc7c","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":"e52cd216-807a-48c0-a6ce-9d9213a067f1","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":"483c4459-0da1-4b46-970d-2c20411739b3","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":105,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"1967d109-0e1d-4b3c-9843-7ee3f4258569","block_type":"box","text":"information (not including par ty 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":"b4bf57b5-bead-4aa3-9c92-1c353a7fb377","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":105,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"bcef84c3-f956-4f0d-8a6b-4c5defc9a66a","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":"9b9acb0f-d91c-43a9-81b8-f25836d3bb8b","block_type":"box","text":"the current expected compliance date.","page_number":105,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"6a01ef90-f872-4330-8983-19a44074cb26","block_type":"box","text":"Short Sales.","page_number":105,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"49c34359-709b-46b4-b4bc-f0852a60164c","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":105,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"09ef820c-ac04-4a2f-b435-d4730110b25d","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":105,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"fe44acd1-ee53-4aa5-b9ad-342db82ce812","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":105,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"bed7623b-0388-4a9b-a45e-680dc4fb46b6","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":105,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"e7968350-a774-4422-b2bf-a81aaa5125c1","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":105,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"de4e269e-a4fe-4e57-b4ae-9aa59c0c3fa3","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":105,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"db99b36a-a851-4d9b-b09e-6a448cc27409","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":105,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"d628d797-7380-43ef-894a-315e660acdba","block_type":"box","text":"securities to the lender of the securities.","page_number":105,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"3fa82506-63e5-4f21-93ea-b59cef0ca1c5","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":"03c3c0ef-d8e9-4044-9af0-7397dacf66ab","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":"5f1301f7-6906-4e41-a6f2-1c3a4e2807a5","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":105,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"2609f80a-746b-45c4-843b-7559af3b7a29","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":"3b66129c-cc87-4b34-bb39-a8b43df92920","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":105,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"77a6fedf-9899-496e-a3b9-e4cdc9debfca","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":"d65fab8f-2742-4caf-af81-fcfb9ef12200","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":"2de4bcce-5558-4830-a4c7-5d3cadc1831d","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":105,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"871d5f34-6d94-415b-a911-2b3e38a1a2fc","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":105,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"5817cbae-2fcd-4fa2-bb1d-b52d7865144e","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":105,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"32d0940d-bc43-4909-b87d-11e2ef8fc9cc","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":105,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"734baf9a-55ee-4001-ad1e-c2a7e3fee273","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":105,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"54e98e91-6917-425c-b8dc-a4e98aaf097b","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":"170bbd8f-f98c-4e28-9b0f-0ae268f85033","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":105,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"c12d50cc-7561-4426-aac2-4e1ee52a3650","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":105,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"85d3f9c3-6e1f-4f83-904f-201b61db6938","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":"6865cd46-26c1-49b5-ae02-17ce62919fb6","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":105,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"d892de83-0552-41ee-b5d8-3d7e792ad03d","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":105,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"ead53942-47ed-4bed-9762-dea2838170f7","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":"c465e4b0-c44e-4ca7-94e3-b62da2dc62c8","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":"2ecb79b3-0277-4eec-9cdd-bad3b416a277","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":105,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"837ecf54-d918-4e58-b9bd-560761142236","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":105,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"0ea761eb-7895-4196-bac1-aaa54e3a2e2d","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":105,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"4379caec-9917-4e75-8cd3-b0ba584ac6b3","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":105,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"0e236aca-41d1-4116-b2e4-59ac371958a5","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":"19c4f5f4-e4d8-408d-ae51-b5ce19713999","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":105,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"8224f741-f3de-4ae2-bb88-9a02894fd6c7","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":"7f509ab8-5708-4db5-94f0-38f1b7cdd2a1","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":105,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"9f41c884-bca5-4929-b7a0-36f5ce8345b0","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":"60524df8-9b85-4adc-8c5a-15fb358ef095","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":105,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"9bcc5f01-f410-4f3d-8aa8-095e0e41f84c","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":"5d5c2974-68af-42bd-b2c2-945d19bb8b06","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":"5adf1e81-d82b-4ccc-ad68-7f538d77cfe0","block_type":"box","text":"potential acquisition oppor tunities, 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":"d30e9f6a-d057-49cb-8afe-1bfadc9fdfba","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":"bf4334f7-420f-44cc-9223-a20cc2fe7899","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":"ea35269a-95f1-4154-86ac-7bb85256e627","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":"911b4971-7e99-4cc0-a903-c50166a743f5","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":"ebd29241-1f35-4d9c-a1a3-348dc6521786","block_type":"box","text":"II-74","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc44ef7e-24ba-4f53-9f11-64de28856cd8","block_type":"box","text":"NM1026U-5985614-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e7fe1497-5ce5-42cc-a782-fc8d9ee62326","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":106,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"02fa17fe-a96b-4f49-b9d5-cbe8af56049f","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":"c1d06c7d-fc40-42ff-97e9-d60baa31d4e2","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":"54af8078-3263-442e-825b-2e341d67e595","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":"737a83a1-ef47-45b0-98b1-3dcdebb93560","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":106,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"ef7271de-d781-42ef-86d2-748c26326a34","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":"712689ee-7075-4247-90b8-ef938ca0cd7d","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":"4466896a-6d7f-4808-bdea-25b4f10b11ef","block_type":"box","text":"par ticularly 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":"25ad7cc9-c40a-4cff-96a2-ae306d55fcfb","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":"8b3b1628-1389-4a1a-9749-07a074acf158","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":"0ae81528-310f-4bef-a5da-d5d1d9df23ea","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":106,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"86ba0dfa-f5e4-4cc9-8ae5-1b9ea262a50c","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":"bfb1e925-f431-4bf7-b26c-bec7aeabd81b","block_type":"box","text":"Standby Commitment Agreements.","page_number":106,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"596451a4-66de-4469-8d9d-39a6ac36f84f","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":"3dd861d8-e636-4020-a23f-654bb276deeb","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":"e27cc79e-877e-4dc5-be5d-7a031448646c","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":"28b30b15-671a-43f8-8673-b3841d50d495","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":"7b8b7601-f264-4bce-b724-c1100bc54f82","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":"595dd45f-b664-4bc7-af72-46fc58fb4e93","block_type":"box","text":"advantageous to the Fund.","page_number":106,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"37c5e04c-e2ab-4990-b010-d71cda9df236","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":"d9ff6f2e-8e14-4be5-8f70-27b2d965ce1d","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":"73651c07-bb3a-4274-99fc-14f5ccd1ebd7","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":"0dd3eede-87f8-4f37-aa17-f79b116f2be4","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":"b93aede4-8a4e-4006-bb84-24a2be169a2b","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":"c17efac8-5066-49d4-833e-c1f3da5e7713","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":"d11c26d2-7d36-4699-b1f4-352c77e8ce13","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":"8294d955-f446-419e-8292-ae05f068e487","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":"36939ece-e39f-4b47-969b-15900502ffa7","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":"608e57a4-e811-4d9c-ac07-f124a56aa8bc","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":"91a21571-1169-44a0-8359-2f71248ab344","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":"e29c1bab-26f3-47bf-81e9-e8d1a54ca833","block_type":"box","text":"por tfolio 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":"149bba0b-b295-4bf3-b687-25931f679a1e","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":"2a9c98c2-7c79-4a40-9c94-7d3b86dd718f","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":"15430d00-7089-4eef-b5de-77258d5d8568","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":"244db20e-09ac-4760-a9d1-cf75855007c9","block_type":"box","text":"Stripped Securities.","page_number":106,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"a1401248-9c3e-40a0-ab33-fd814d1c53e3","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":"bb7c629b-86d6-4bc7-8e5f-974078040dc5","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":"51d50d54-f8c4-4f51-a3f2-7d204f2e5608","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":"64fd8f49-31a7-4e26-8187-f6039fd255e1","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":"a21943d7-4743-493a-913b-b09bd6b4d286","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":"f8cf9824-362e-45a0-9248-4c5e2ab8ae3b","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":"6a3281f8-ccbc-4459-bb13-15958a28b255","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":"c133e068-2dc4-4622-a03a-f1335b1a478d","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":"9f6ea854-5e64-4eb3-be48-ed2cbc28fde2","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":"cc1cfea2-2670-49e4-8940-fe724022373d","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":"6cd5211c-9cf2-4b0d-86a6-d642ae4a5785","block_type":"box","text":"Structured Notes.","page_number":106,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"ff0a867d-efbe-4453-bdec-fab2e10f767d","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":"1cb4a761-e250-4d67-a14e-20a3853ccc2e","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":106,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"6b42caef-2f02-4677-b7a0-e22c0f568598","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":"6b314eec-7a3f-4a1b-8693-43a25ca5e04d","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":"8b245c71-a370-4c41-b770-7461bfe2b8d0","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":"dd1c84b9-346c-4923-9435-718c59b5cc02","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":106,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"c1e67cb5-c0bb-4374-b13b-49479a725ad1","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":"63bb6461-8e72-4294-a436-0c9cc75acc1b","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":"046a427d-7bb0-447a-9996-e290824536c6","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":"1b7e8964-0758-42a9-a88c-d62dd48c6617","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":"18aef881-0097-4b55-a15d-bdcf0fdb21f5","block_type":"box","text":"II-75","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd56481c-cdbe-4846-a196-71e5f9529e8f","block_type":"box","text":"NM1026U-5985614-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0bfa5de2-c22e-4f0a-9b4a-b2cb6fe2a8c5","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":107,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"798fdd22-4e28-4e0f-b92c-75af95563ce6","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":"787655eb-482c-4dc4-894b-4190a2f884bd","block_type":"box","text":"the risk of loss.","page_number":107,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"f0c2ec7f-6f2b-4dee-97d0-e7b84ba2f0f3","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":"7cff6055-cecd-45dd-b7b6-656b42a56e32","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":"cbfa6d53-9e02-464e-a327-4c3565530553","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":"b0953734-f08c-41e0-9d87-002f8b5f2653","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":"8aa52735-dadc-4460-a41e-9a1093bcd329","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":"cb193637-3e38-42c5-9485-e8262bccb2e8","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":"982e13ed-1c71-4ed7-8e3c-1313f6b84707","block_type":"box","text":"Taxability Risk.","page_number":107,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"018e2f4f-3d64-4a72-984c-e375f4f7bbca","block_type":"box","text":"Cer tain 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":"3ea91c1d-e65a-4a36-81dc-3d37cba2240a","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":"4943243e-4e52-4f4f-97d8-7d0375a859e7","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":"e5f07c98-1cd4-41a3-ba4b-fc50b75370bd","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":"2c0bfd24-d6b5-4a72-b908-5f4349a96503","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":"556b7121-4789-4acf-9e25-f1d7d3b7a088","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":"bdba58e6-4abe-4f6c-9bdc-f012c0aecf46","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":"8cd32c75-6915-44b7-b18d-885a3452898f","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":"ac486cf6-c860-40af-a9a3-6903a13dc61f","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":"4251af47-ac06-4f9b-8134-0acf09e126db","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":"2c2c3368-bcb0-478f-9c7f-8bc351236309","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":107,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"f05887ad-4025-4f2a-b020-b04b07b44e39","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":"d60c41ca-67f3-40d7-823c-59d751878345","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":"eee93c9a-78b5-402a-a45c-3511a6518b5e","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":107,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"f32d11e5-2216-47dc-9ae8-9721c54704f5","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":"a882d86a-7dfc-44c3-b556-e02b9e37a83c","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":"5d4bcefb-ad3e-4795-b839-a63900172ef9","block_type":"box","text":"Temporary Defensive Measures.","page_number":107,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"0af4f3c4-f16b-434a-871d-1655e1dc1077","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":"d1863316-ff73-41f0-9c51-b40f7a7d0b31","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":107,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"78f24631-72f9-41f8-9c13-b855d9ecdd8f","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":107,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"1c7c5746-c631-43cb-84d0-a5e119f9c451","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":"a4691213-665f-448c-90f6-60f4aa875973","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":"607718fb-b1ad-4237-a3f5-ca3acc5acb54","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":"d8f700e9-aab7-4e6d-a8cb-2ca6df8086f3","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":"39ca11d3-e2a8-47fc-aba1-ec3159e35d2f","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":"1029b170-6981-4793-8341-c8524b7f9b23","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":"dbf726a7-de54-4247-a0f8-f302813eb17e","block_type":"box","text":"its investment objective.","page_number":107,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"70aa9fb1-186a-4ed8-96e1-968572b07df7","block_type":"box","text":"U.S. Government Obligations.","page_number":107,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"3a0816a8-b53f-4642-adbb-52157767b958","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":"61879f38-dc65-45ce-9cd4-6fbee15c1323","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":107,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"da9d2157-0e58-4e69-b361-7d4cf257f2a1","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":107,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"d7fa66a7-828d-4b2b-8ac2-affa724fa8f6","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":107,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"f61949b9-a26e-4a48-8ad7-843347b6c36a","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":"8c23bdea-1e02-4ded-a4ca-744d7d380143","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":107,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"7d28597b-d369-441d-abc5-9b7e0688f4dc","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":107,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"9062f14d-2951-4cf2-8d9a-c462a88c076e","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":107,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"245b4ac0-b251-4792-9d61-f7151140fa1f","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":"036f3fa1-3bc0-4702-838b-98a2e576fa46","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":"7971262d-601e-4822-b05f-7fdf7726f8a1","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":107,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"ddecb637-2f61-443e-97ab-fe7fe8b9748a","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":"2cf75a00-6947-4bf2-9ac6-e945c8cb4f2b","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":"ce2eca5d-b97f-4049-9699-46373de699d3","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":"ccb4b3e2-87b5-424b-85b7-27ce4527bb5c","block_type":"box","text":"Administration, Expor t-Impor t 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":"4f9cba91-9196-4a29-ac5d-05b4289f6479","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":"eafce91e-4a6b-476b-aacd-5d5785883468","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":"3c64be13-a561-46b5-9441-fb0fe4fe991c","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":"660e6553-ce4d-483c-8540-5193eb11c9e6","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":107,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"86d09eee-af57-4b4a-8754-108fa19f8252","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":"d502678f-79df-4c47-8f83-06bb78ba5e1e","block_type":"box","text":"II-76","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca573064-4de1-4ad1-ae7f-a16a5ccbd1de","block_type":"box","text":"NM1026U-5985614-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c4ffe2cd-8fa6-4c06-b5e3-df5145792617","block_type":"box","text":"U.S. Treasury Obligations.","page_number":108,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"e653fe7a-415e-49d4-aa49-b47fb34fd0d5","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":"5c187928-68ec-40e2-921f-f4b939781999","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":108,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"47921b69-e67b-48c7-967d-1843b0780789","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":"3ed32ee0-4b04-482e-8f19-46017a7d3750","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":108,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"2a488592-f2ea-498d-87a5-4ee2edffdabc","block_type":"box","text":"do so.","page_number":108,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"c7a35cdb-44d9-41ea-81b9-27b586cb359b","block_type":"box","text":"U.S. Treasury Rolls","page_number":108,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"3e2be8f3-9e5d-4cbe-b7c1-0943dd4a3884","block_type":"box","text":".","page_number":108,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"19811ca7-f021-4fe7-a10f-3ec830a29fd3","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":108,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"4a11dd86-9a4d-4601-b222-bcd814465c8e","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":108,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"569b9142-04a2-4fd6-85b3-d84397eebd47","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":"642bfc79-19c1-456b-96fe-c485f16a9074","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":108,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"ec428691-c454-4359-be1c-143aeb279680","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":108,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"e308912f-a636-4126-90c4-0685cf5c5526","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":"8ed8142d-d612-4d68-893a-45077ddc3ba3","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":108,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"6caf8e57-eb15-4ed1-ad50-d5c633cfb782","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":108,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"c2d730b1-133d-4bf0-8627-0f68582c9c26","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":"c01fafa6-0d74-4b94-8108-7100da2bda0d","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":"25a86f95-462b-40cc-bdf7-835394f271d6","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":"8a0f04c4-6c1c-4bd0-9719-0cd3c3261c79","block_type":"box","text":"Utility Industries.","page_number":108,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"5fa90db3-bf27-40d0-9639-09a10fc306c7","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":"9d1fa1d5-b4ef-4436-9b95-7e4889b7dd4b","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":"253d8027-a3f9-49cb-9bee-f33e09738a75","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":"59cbcc05-112e-4a10-8dc7-810884b392ea","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":"f8fb0492-9b87-4637-8213-4d8e4cf9e804","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":"7bd2640a-8b32-4031-a6f5-7337a28668d1","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":108,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"3f05cdbf-4fd7-4fcf-aefc-ea7ef9c2d2ee","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":"f2f342a8-6147-423f-aa45-e398a5473ef6","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":"9a8fd6ef-77a1-440a-8f87-1df07d7a2c1c","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":"c87d6ff5-5d05-4d66-844b-97c0e0dc699d","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":"a6b388db-2e48-422c-b5c1-895b42f9588b","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":"2734a802-0587-4665-99d8-0edd4f113ce5","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":"cf27b15e-0fc9-4a7a-8b2f-e5072a9b3e97","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":"d6eac29a-ce00-4b81-88c9-700260860ef9","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":"5cc3d2e6-76d8-4cf8-bd41-e6a45b6b0030","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":108,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"11084e84-6838-476f-bf29-1e3986c7958e","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":108,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"d7018883-48c7-4053-b6ca-c9ee8a6e0db1","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":"40e3c4be-0365-40a7-9107-9b69fda96214","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":"ecec6344-2b50-45e4-9bbb-170cc1bab6d6","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":108,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"6affb140-60af-4803-a80b-d4925a87b0d4","block_type":"box","text":"utility.","page_number":108,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"a41a759d-686f-4bf6-a5ba-9556a98e538a","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":"7a8d10b6-99b9-4334-bfa9-dfb3eda4561d","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":"8c55efea-4f11-45a5-871f-775418d44371","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":"b33f7a11-bf45-48ba-b49e-c764774c2a0f","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":108,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"46d132be-cfe5-46f6-90db-0a5db006e70d","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":"4bd3e758-1045-4d7e-a6dd-2bb1fe654ef3","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":"ca5388cf-f93d-4585-a9dd-be27c983a8a5","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":"887c7220-aac8-4ce5-a6f3-f13e2f897b76","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":"5107ad04-4134-4925-b164-216ba245a7c6","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":"71492ce4-9e76-4107-99c7-3326b0addf50","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":"a9189c45-c425-45a6-821b-1408f3997e90","block_type":"box","text":"continue in the future.","page_number":108,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"b1378a86-3b0c-4511-9b9b-f44ae79399ef","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":"a0c95e90-a8e3-4a05-a736-bedbc4d5d7c9","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":"e6e41480-ed99-457c-b9f4-2318ff097b00","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":"46ab7cfc-89c8-4da7-a083-a65fae2dc8f8","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":"bf4ed3bd-9196-4ab2-bd0b-dba6db4d81cd","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":"dbef31ed-f8ec-4f33-b025-e717c5380a14","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":108,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"3eba56cc-4d45-4b63-8068-bf1ea00009f3","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":108,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"a16dadd1-372a-4dc7-b64c-6441f4830033","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":"7ad3052c-e3bf-4969-839f-6436b372889d","block_type":"box","text":"II-77","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"151e2b31-361d-4b63-a916-74eb541a003c","block_type":"box","text":"NM1026U-5985614-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4c43cd2e-9a66-4b16-a75f-9520a3a7b212","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":"0b4a7a66-b576-43ab-bd92-6f17bc91db2d","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":"510dd5b3-4aa8-41ea-9965-5b8ff02ea7b9","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":"3efe830c-7aee-4f56-a33b-d8c82e3d97bd","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":"dc283dcd-7d12-4ebf-beb6-fe4d8c4d1dbd","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":109,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"0f40a0dc-0e1c-4b47-ae7a-a3ecb634bd6e","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":109,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"f49cc9aa-5a4b-42f7-a45c-9d98815cdcea","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":"68f46320-dfd1-4fcc-b2ad-434c60b8e7ef","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":"cf505838-16af-4fe1-bc5a-cf77b8f97e60","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":"d8148001-17bb-4b1e-8438-317e56e12887","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":"2503c2c0-dbf8-4715-9058-c0b1deaad213","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":"d75114c3-bb85-43c3-a9b3-67db09a4ef33","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":"7823e9ba-6065-49d1-9ded-7e4dc26a3b99","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":"23bab6ea-8d09-48b3-a5a2-c5a03aa5956a","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":"b2f524cb-1dc3-42d2-824d-bd82657b50bb","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":109,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"289120e8-83d4-4234-baec-435d960dc536","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":109,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"29718c48-fa6d-4ffc-8416-43e8d318f3b2","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":"748cdfc8-3158-4375-be29-909c3f635a7e","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":109,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"125d6933-8860-43de-a44e-56aaa079c76c","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":"c59935c9-ca95-4c97-9478-c358e1924805","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":"5ba4faf4-0f9d-4aab-82c0-4f565c5f70cf","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":"bad92698-ee88-4cdf-ad15-08f5f8f0935b","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":109,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"9aedfa9f-b0c5-4002-aafe-811069b99e50","block_type":"box","text":"increase.","page_number":109,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"eba2263a-3e72-4661-9fce-11afb8fae28f","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":"38d2cfc6-73fe-4d68-8077-7fa61740b789","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":"bc38c61e-6d2f-4c8d-a19c-ec7a28ebd963","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":"32b5d4d4-3260-4179-9538-674ded915b2e","block_type":"box","text":"Electric.","page_number":109,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"037a9f3a-0cb0-4cfd-8cde-c477cc2534b4","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":"e2f6cbb4-cfce-4a05-9afb-fcb07baf11bf","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":"8b0017e3-e1e5-41f1-a8ce-9dda2a976de8","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":"484e45a1-2fd0-436d-a275-c366a1e874cb","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":"e588907c-e33b-4972-9cb8-0c6ec9744a81","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":"5f381cc2-74b9-4d41-9195-c6ca22ef4e57","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":"27588910-9468-4ecd-98a8-2ba181070ec8","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":"e8d1fe6f-d713-4cbb-a56a-8675a48bf651","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":"912b849b-5ec0-457c-a5ab-613c575e1a5f","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":"bace036f-0fac-4e23-8d12-4ab157dd4732","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":"330e9fdd-d509-4ff4-a933-fef7e5fe8005","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":"54f11b5d-8b72-4ef2-b3c6-0b3c9b882a0f","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":109,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"a490920b-ad75-4286-88c3-db5d6443e82e","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":"990a3381-af7b-4c41-a323-d60a1ebc0e10","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":"f2504aa4-dc17-4c3e-b0b9-ef84b0d177a0","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":"809c3bb0-31ce-42b3-8dfc-63c1dfd95d5f","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":"c8517317-5411-4e2e-90b2-5cd084742720","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":"d21faddf-4e84-4b20-b371-159e5ab7ee8a","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":"1b97dc4e-34b1-4f4c-bcac-accd4a381027","block_type":"box","text":"and for decommissioning such plants.","page_number":109,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"0fd5e2bd-0abd-4903-bfe3-c93abddb5358","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":"13569051-fd9e-4313-86e8-4bc516cf237e","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":"6fcdbbd0-f428-4d36-9dff-3bf9b95947da","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":"41d316e5-2a2d-429d-9592-9810d0e506f7","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":"92b73e0a-21e0-4087-979a-6e5be4580d04","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":109,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"fb0e2723-dd0c-496a-be66-bc1f0652ee96","block_type":"box","text":"greater predictability of cash flow.","page_number":109,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"86253de2-1369-48ec-a6b7-f04d594aef9e","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":"1dce362c-0252-4db7-8633-09fbbf788bd2","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":"bd354fe3-7c3d-4a54-9c80-e82452b7a77e","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":"55505ba1-0e56-4f17-899f-9577fd3d2a7c","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":"d601de31-cbc8-4f5d-a6a6-c06e3f6524ce","block_type":"box","text":"II-78","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3e742f87-4478-4dd7-9093-f77eea510ea0","block_type":"box","text":"NM1026U-5985614-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2cb7ff71-8c49-4c48-a56e-6d85d6214a63","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":"ba72726e-94cb-4220-a85b-e4477f777f20","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":"bc1848f0-3a28-479e-901e-3bf796f6a5b6","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":"e5a8eac2-372f-49dc-9640-68645072563f","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":"367f8746-92b5-4679-a950-46827d03bdfd","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":"8f1f091b-177d-4d6c-8b2e-6d781c9e2f8e","block_type":"box","text":"Telecommunications.","page_number":110,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"8e278163-2d5f-46ae-bd3c-e04b650d8044","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":"de282f9c-e994-4e75-9570-a1439d32c328","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":"cf135ce4-04fc-49d8-93ec-03c8e571f10f","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":"c1d96fed-3387-48b9-82fd-83e92074a8aa","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":"1d007ab5-3360-4e03-b41c-88a971677f6d","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":"cb57c459-12b2-43b0-993a-8a335b0b930f","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":110,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"23a410cb-e6ec-4328-8d0f-f71bb4ff55e3","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":"425bbb19-d303-4885-afd1-8ea8e3e90102","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":110,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"c13e7ac3-0571-446d-8eb5-75735e484ee2","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":"95b2c255-5f7f-4a22-b177-de8498ceec34","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":"41519097-749a-40b8-88c5-b3265e92ef69","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":110,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"302010e1-6b3a-4e86-8951-615ef40fc7af","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":"81d4bcc8-ec09-4f69-b135-4096001cac70","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":"34f16d8d-1a9a-41c6-bea3-baf019cf0832","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":"5939d628-e104-4cf2-9cd3-c0d823473915","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":"89a6d7b4-d003-422e-9638-353ca2a33e7c","block_type":"box","text":"residential, corporate and governmental customers.","page_number":110,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"710fbfe7-e239-4595-8415-6925e46a9d9b","block_type":"box","text":"Gas.","page_number":110,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"36d820ba-0abf-4da5-bafc-c24e0e7e544d","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":"90f2708e-39cd-42c6-a2fc-ddef28f3777e","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":"4def716e-d158-47ed-a5fa-2e3642a66ebb","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":"5868bea3-0dda-4260-920e-43729c07a25f","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":"77b1e27f-2eab-4ff6-83c6-193ba427e312","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":"805d9bfb-5237-42e0-9458-0033225da75e","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":"690defef-4545-41b0-abea-fbb154fcdbd3","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":"1d9583f7-f575-4bc0-8c05-0b68850c53ee","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":"9fdd184e-e5b5-4ea3-8028-918774c87925","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":"1b90d56e-e305-43d3-bf8b-f32c27dcade8","block_type":"box","text":"Water.","page_number":110,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"d7079369-dbab-4e66-94e0-6cabde37bfed","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":"3064972c-470d-4e5f-b626-3a13a8edee07","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":"d20458cb-32b7-4a55-b980-704bfdd9be9b","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":"4b71b85d-cedc-41a6-a867-c1f2fa776762","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"6c001a10-2328-42d7-80e1-b2aadb8ec539","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":110,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"ea564ef0-ccc4-494f-8905-c479d4a124c3","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":"b7eb7862-c565-4182-a02f-0666a98bb31d","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":"533157aa-8f55-46a6-8baf-7a2c2189edd9","block_type":"box","text":"Utility Industries Generally.","page_number":110,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"efe3134b-26ed-40eb-85ec-edfa9ff5f8bf","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":"ec1230aa-2a44-479d-95f5-68a4f8c7b0a0","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":"73277458-8624-4481-aed2-c7bfa967d352","block_type":"box","text":"not develop in the future.","page_number":110,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"a89004c5-6b5f-4719-ac66-79a6ffd6861e","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":"4d55e7f7-2dda-40b6-ac6b-62dc6cccf085","block_type":"box","text":"A Fund may purchase or sell","page_number":110,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"ec623526-ee53-4c37-ba3a-b718921d703b","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":"39236d27-af61-400b-b9b0-113a5f5906b7","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":"7cff73d2-7f31-40b5-8241-67db3e710441","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":"daf22f01-438e-4029-a477-944ac18783b1","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":"db0f7faa-126f-4d4f-a24d-383dd1203b15","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":"d9d99038-5c76-4e08-bde5-a08ba74d52e9","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":"45631352-2998-4195-9bc0-00a0a2f77022","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":110,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"75b6dda3-ddf6-43da-9046-e15ed33c36ed","block_type":"box","text":"cer tain 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":"d34cb684-311e-47b0-bd7d-c8d7e36e4133","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":"38fb8649-bb87-4510-8f08-fe7348b98fab","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":110,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"27bbf790-9036-4257-a9d6-ae25417cf3ac","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":"398c7c21-6a9c-46c2-86e6-a55a8487019a","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":"3eeb2c9d-7ab5-4270-a557-c7a7913ed99d","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":"8c9deccd-2c30-46f3-91c8-16dc9e87d3b1","block_type":"box","text":"II-79","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"360bfbc9-e66b-49b4-a986-df24675ce1fe","block_type":"box","text":"NM1026U-5985614-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b33ca106-a37c-45da-8225-0488f5c3d525","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":"deaa3bc8-301e-4232-9b28-0c13f6589044","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":"06a00fd4-7476-4df2-a51e-9121e9cf9ff5","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":"4fb9ff5e-a872-46f1-b3cb-3d79ad03d322","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":"07b641f6-55da-4033-b840-84b6e8455c71","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":"0a414b44-ed7a-4328-b37a-32ee52c7c961","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":"e251c5f5-7b8b-4f85-8f7d-667cdb569d6b","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":111,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"df37b5e7-9325-4898-9603-d2a578088039","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":111,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"c2a839de-5fca-4772-92e0-f37c33c1225f","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":111,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"62d514b8-7cdf-4679-a599-4755be75c3ed","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":"b21d2b6f-5456-4f40-a7ca-f77d77413f66","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":111,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"b2c7cf0b-2c46-4b8f-84ba-7402031d6646","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":"4eac741c-6f37-4098-b6e6-99fda68fc002","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":"5c465c58-6b58-49a7-943e-d12768adef6a","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":"e4b6feae-0349-46ae-80d8-2f23f39949c8","block_type":"box","text":"securities (","page_number":111,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"2d1325d2-9c67-40b1-a3fb-ebbf76ae0fd5","block_type":"box","text":"e.g.","page_number":111,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"edd64aad-fd1d-4447-95ee-934af401b1bb","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":"d0045909-80a9-4018-988c-7e53146a9c64","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":"264c9498-c588-44ba-b6db-f1d7d1b898d5","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":"383c9a63-e7b8-41a0-86dc-4fd086f57fe8","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":"6c08c08e-d503-42e1-a79c-905014ebcefd","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":"7724dd90-a549-4abe-a45b-65b6ddfbb293","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":"8f14a10d-3cc3-49c2-afa7-e08581156a4f","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":"cd492cad-557d-49fa-afa0-e5f7ad990fdb","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":111,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"af857d11-ca51-47cc-b46f-ff470ae4dae3","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":111,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"9b14a126-9553-44e8-ab22-f94c02fc341d","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":111,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"5979c9ca-d5b6-46ff-94ca-ef87cbb1face","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":"0b414575-22f0-4600-93a7-4fc0f4f64896","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":111,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"4b4d50a1-e20e-44b6-bb50-a8901c410f81","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":"3ed4159f-0bbe-452b-81ae-d04fb6b1f858","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":"8f9c6a95-75a6-4bc8-b6bf-772d8635bd16","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":"63b14605-82c9-43e4-9783-3558e0f89f14","block_type":"box","text":"Yields and Ratings.","page_number":111,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"ba357884-fb6c-44ff-a0be-15220f7ff7da","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":111,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"fb6bb41a-e4ae-48ce-9685-0a6619abaaf1","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":111,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"f214dd8e-4777-436d-8962-4e034f7a2182","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":"ed8c1189-8844-4708-bcb3-d7d0eff90b5b","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":111,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"6a547554-38b1-446c-b789-39f88838fa90","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":"18b798fd-5031-444f-8066-9ea7c85cbe11","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":"74458b9c-e501-4242-b768-c9b97fd38204","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":"03f865fa-f7a5-4bb2-afca-2283a02bae12","block_type":"box","text":"continue to hold the security.","page_number":111,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"adc139e0-f30b-4d1c-951d-4c0e3162f297","block_type":"box","text":"Zero Coupon Securities.","page_number":111,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"e2c4e6a1-186f-446d-9dbc-22e3f5ddb20c","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":"1a9bc057-2fb6-459c-b7ae-dedc4137b0e3","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":"78c1ec86-9181-4b59-a138-10aa77b6ed58","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":"4925bd5e-4b2f-4dc6-b6b3-90166db8848c","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":"737715d4-a860-426a-9cd7-552f9a7077b3","block_type":"box","text":"security.","page_number":111,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"a5f6525a-36f6-4943-90e6-2ec98b1b22b4","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":"f18b5993-6122-4672-930f-13a60596789d","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":"021fe095-fa72-4b23-8263-3c7696d975eb","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":"8970af8d-7bd7-45a8-a88b-0e02504ba301","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":"49fed3cf-dd4b-4574-99fb-ac0806bafca6","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":"e4564696-7ad4-448a-bf62-4859fe444d4f","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":"37d10be1-2708-43e1-b923-dac0b67f4afc","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":"3a4a1bb0-29cb-4114-8277-5866dff5dfe6","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":"21b64523-83f2-4c63-ba36-b45e09952c71","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":111,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"5ad4ffb3-cb5c-4d97-b03d-56adf22492f7","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":"e043cb94-ab69-434e-81f8-572e00c0e95d","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":"63aafb33-db8a-4a8d-8e78-acabfd1cdce4","block_type":"box","text":"II-80","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ce7a4d9-b6fa-4666-95f4-6bf04be55403","block_type":"box","text":"NM1026U-5985614-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a41701ae-78eb-4c3e-92b6-753ba34759ae","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":"8c10cd7d-509d-4bc6-b270-f63c1bfe9ea2","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":"503bcd59-905f-48a6-a8a0-fdc6efc14acf","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":"3e6f7d05-bbbd-4eb1-baf5-06a4bcad7bcd","block_type":"box","text":"intervals.","page_number":112,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"5e4de9a0-3792-41d3-acc5-14077ec81f7a","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":112,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"fb33d028-4c3a-405a-880b-10f7be487e2f","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":"c2807dc1-b2ad-4816-9b07-0f1d649f6430","block_type":"box","text":"por tfolio 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":"c01b0173-62d5-4e92-af74-e64f08fb74e9","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":"3d467bf6-3d76-4197-8abf-e3ed147c5387","block_type":"box","text":"exposure to zero coupon securities.","page_number":112,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"9d803197-bb8f-4255-a66a-888ed917a605","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":112,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"271b6353-826f-4e16-89b6-6e801b3dec08","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":"b4f910d2-20cf-4da4-b590-d821863c2996","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":"9ff56c58-3bfd-45b5-8871-c6409bc80c1f","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":112,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"0f580ea6-1a64-4e08-af0d-be6e05f66926","block_type":"box","text":"Suitability. (All Funds)","page_number":112,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"03fe4212-c957-4afa-8f3c-48a531e569c0","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":"7b6e8d16-4e3e-48c0-846e-60858deedc40","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":"9a1a62c8-8aaf-4de2-be0f-8f72f996d0e5","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":112,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"99fc254f-d462-469f-983f-7c9b8f34c77b","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":"57f97e35-b01f-490d-ae9d-cde9504e1d93","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":"35cb6da9-069d-4464-bbca-abf7f31815d9","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":112,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"fcc16d55-69f4-498f-b34e-1971c21b5c19","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":"51c4539b-a6d1-407a-a99c-61130209d7b1","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":"6f2490a6-b5ca-4128-8474-91b6ab07bc6f","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":"6ae57090-b60a-445c-93ae-186d00c46a6b","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":"77b108e0-2530-42f5-ac1b-c95ee3b4a6cf","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":"da164c43-0f51-411b-aed1-adc96e73e869","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":112,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"78660cb9-12a1-4712-a203-9772c538be47","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":"d3730371-c809-4f3b-affa-2bb8966530da","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":"df3815b5-4117-44fd-837b-67fff42a1c32","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":"9f1a2896-96fa-4086-9590-e670613ce400","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":"8e0efb1f-3fd0-4879-9e49-7126954a0fc9","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":"48a97d61-40d0-44a6-92c9-556aaa12cbd5","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":"59d24a70-e698-4ca4-9ef0-77d3b6a42403","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":112,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"5f7ded26-ec1f-4b57-bb26-1cb87dd00115","block_type":"box","text":"(","page_number":112,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"63c91896-d29e-42d0-bf10-84dd955698bb","block_type":"box","text":"i.e.","page_number":112,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"b9249923-731b-40b0-b59c-9cc572f5d235","block_type":"box","text":", par tnerships 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":"33616bdd-98f8-4ff6-8957-70b9bca328f8","block_type":"box","text":"par tnerships 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":"c868d79e-cefe-44e1-801d-fd8199439233","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":"765ca5f8-1815-478c-885d-6eb3ff812021","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":"10ea3579-3ff2-4a46-98f2-1b99f0f0f601","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":"417b3d47-863a-434c-8983-830542622aef","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":"2aaad199-8417-49d0-8894-ad438093ab6f","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":"8efecbe3-76e4-4c49-9262-412f35ca8184","block_type":"box","text":"regarded as the sole issuer.","page_number":112,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"804b4622-edfb-4a3d-a8c0-fee0862287ed","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":"ecb8861a-70ff-45fb-8d0a-0c0cc852a43d","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":"3e50236f-b9a3-4989-ae65-a762d046598d","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":"d37085ec-39ae-47f1-b5d1-8cd5129f32c9","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":"22650725-0379-48d6-bb91-3f0da320c8cb","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":"942f8efd-11b6-43d2-92d1-18912ea652b9","block_type":"box","text":"75% of its total assets.","page_number":112,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"590315e3-11d9-4c40-a89d-4badf652a3b6","block_type":"box","text":"II-81","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0cf1ccc8-b91d-497b-9058-5f9069b02520","block_type":"box","text":"NM1026U-5985614-112/232","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"57d2bfab-e82c-4376-99a9-fec97ae9920a","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":113,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"6c0572da-7a3e-40a2-9e03-d76f879357fd","block_type":"box","text":"Directors and Officers","page_number":113,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"036a7f9d-08c2-491a-88c1-c50e27c28887","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":"94ce5ec4-b245-4388-8eaa-c3de223c2dda","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":"0abdeefc-1cf7-46c3-89f0-63bcd143a533","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":113,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"c760db12-1770-408a-99f8-6ffbaa5c95f3","block_type":"box","text":"cer tain 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":"24d90da5-e34e-41a3-a7e0-4fe655573896","block_type":"box","text":"Management Arrangements","page_number":113,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"52d0540f-cf2d-4e58-bcfe-8ff3ece21efc","block_type":"box","text":"Management Services.","page_number":113,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"084e40c2-827c-4fa9-9843-dba0e9765ac0","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":"de0541c0-d8b1-4a81-80cb-ce87a7caa00b","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":"e3714b88-17f7-415a-ba0f-14af723980d3","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":113,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"8f2393c6-c15d-4546-b9e1-e1e09af45a19","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":113,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"5834cab2-dbb8-4b0b-a90b-c4dfa59eeb10","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":113,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"42e7fc57-4d35-40f1-8b78-5f5dbe4a5fb2","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":113,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"b2847c85-e285-4c19-957f-a227b3353ac9","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":113,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"cfaca28d-01d6-4d04-b1bd-8c7fd37f4f62","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":113,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"ebed856b-38ba-4eaf-970b-92cb768e368e","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":113,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"3cbda97d-6b9d-4586-8668-8738e1fbb2f2","block_type":"box","text":"Management Fee.","page_number":113,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"c5ce0d23-9f0f-4bcd-aa48-3b69a278ab07","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":113,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"042d76e6-2174-4c95-ab5d-503e8a3065ae","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":113,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"ce394e4d-4ac8-4fd2-aa32-a5b450624ab9","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":113,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"554f8851-a57e-4525-9c0b-ffbbd66be033","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":113,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"6f841beb-3dd9-4876-8efd-60d1af032394","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":113,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"9ee56e7d-2e27-481c-b5f6-788aeb270014","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":113,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"a9eb9b73-fa09-4b82-a1d1-c06bc8f953bd","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":113,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"32e65f13-7b28-4fc5-b307-c19dddb95a07","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":113,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"35cafcfb-427b-4467-8088-1e152f03aa1a","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":113,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"1e063cfe-f9cd-4078-9e87-b5570529759c","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":113,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"931f37b2-65c6-44c9-b606-1b4f94207831","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":113,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"74c14734-ce13-467e-b929-5b73986c30ce","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":113,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"408582e5-d5d3-4974-89c2-ac4c88785f87","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":113,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"ba9e5a96-5949-4f92-8400-5719045b9feb","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":113,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"439c7969-bceb-4bc2-aaa4-4dc5d73f4f56","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":113,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"c2b3d3a2-cc3c-4b0a-857c-b3c01cfec047","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":113,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"714d087f-9e80-4636-912c-9627f03de7c0","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":113,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"d88c0f0b-5012-441b-a667-1ca8550b075f","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":113,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"31ed1467-0b37-420f-92bb-4f6dfa989ba0","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":113,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"c71b4935-30e0-4505-97f7-3c29eaab327d","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":113,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"4d9938f8-bfe5-4164-afcc-c2110daeff4d","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":113,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"75271e6a-1c21-49e4-966f-d8ede349d621","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":113,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"1ec23301-4100-4a62-aa75-1fac9c39aeca","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":113,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"8417656c-ce88-4be9-8839-3e4586b65f2e","block_type":"box","text":"Sub-Advisory Fee.","page_number":113,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"968c8ba7-cecb-48d8-bcf2-9a8fad4cb614","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":113,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"30bb43f9-2599-4814-a70b-67a0eef1d237","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":113,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"7e2d60d9-03bf-4c2b-a8be-00883a5f49f2","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":113,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"e78c8690-4c09-4236-b815-9882ea8bf02f","block_type":"box","text":"Organization of the Manager.","page_number":113,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"a1d19a6f-5317-404e-917d-c64350fc3ba1","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":113,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"87b146fa-eab0-4b1d-90a0-f40dc4a9c001","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":113,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"9897aa6d-34ea-48a9-9d0c-fa9842d9eda8","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":113,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"ffcf649d-9a5a-4b3c-bc00-19bee126ea71","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":113,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"15fcce10-9daf-499a-ba74-3eb453dd9765","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":113,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"cb64dabc-8bf0-44c3-9042-f93c3641acbe","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":113,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"9336ab61-0ec7-465a-9a79-28b91e1e4e58","block_type":"box","text":"Duration and Termination.","page_number":113,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"06b1ac84-d69c-446b-8f44-996e166ce00f","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":113,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"f955159e-3ef4-4889-8f5a-cc1715084fc3","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":113,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"2fa5a9eb-8042-4789-9308-2124ce87a46c","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":113,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"e05611e0-11eb-4363-a01e-0f8b0cb95370","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":113,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"b71dbb42-a2e7-4a37-90c1-5913198df30b","block_type":"box","text":"II-82","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5c00fc3-4737-424d-8fe9-db9f1fd6a40b","block_type":"box","text":"NM1026U-5985614-113/232","page_number":113,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f2612bec-4c8f-43b3-ae88-b0d33f3646ac","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":114,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"8604ff19-fbf8-4da9-a027-d94af95c6d6c","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":114,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"3e5e98e2-6eff-4323-9db2-bcbf3de16060","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":114,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"d7be2e60-a9a2-4a63-832f-47e26abffa48","block_type":"box","text":"Other Service Arrangements","page_number":114,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"b12e04c1-d3ab-4572-a393-92bc16209bdf","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":114,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"40c3b5f6-3b34-4519-8bb1-c86e577f3285","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":114,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"94f8df39-516b-409a-a40f-e725403710b8","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":114,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"a98989e4-a6d7-49c1-b144-5b1a17db4060","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":114,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"c08c059b-9ea2-45d0-bc7b-8ece796e319f","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":114,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"81f03ca2-e176-4cd8-b240-74e80405287b","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":114,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"960111fd-5f48-44b5-bd83-c7059a662416","block_type":"box","text":"that Fund’s SAI.","page_number":114,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"c101db3a-a6fa-479a-b981-62c2b1f9de69","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":114,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"57a68010-5b60-4eb4-88a8-5cc84ca641a7","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":114,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"849f5566-6863-4795-b1ea-08b53551c4e9","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":114,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"9520491c-467d-4d11-a149-8ec72a39ddfe","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":114,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"73ede922-b8f1-46b4-8a03-316e6b1a1f36","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":114,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"73b9d9f4-bf79-431f-9756-d00e655134a2","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":114,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"9dcf7f6e-d4e5-4994-9edc-6653007bda43","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":114,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"554ae763-3e4e-4d31-9a32-b505b7189ed1","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":114,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"4d95bdd0-98e2-42da-8aec-04fb1e1cf246","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":114,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"4751c4ba-60e7-44d5-9b22-4e0347881037","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":114,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"356ce353-f6f2-4904-a5aa-6fc0408742db","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":114,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"bc38d6b1-e781-4c53-b17c-b9dd07ec4db2","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":114,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"27997bd0-6e59-4b39-b923-56cb307a7fc1","block_type":"box","text":"shareholders of the Fund.","page_number":114,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"c1989539-78fb-4361-9926-3078a7e0daa4","block_type":"box","text":"Transfer Agency Services.","page_number":114,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"b9f1ee3e-ffad-4e38-84f3-f642af029a7a","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":114,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"79c6027f-fddc-42c1-b7ac-ef64b963c6e7","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":114,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"bb45f1d4-6d07-4081-9e25-5ae507cb12bc","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":114,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"4bf7e507-27bb-4318-af74-7d1f1d2186b6","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":114,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"dc3304ec-6632-413c-b3e5-a8c0e567ff5f","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":114,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"b866f7fc-4a12-49ef-bf91-89f062b004e0","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":114,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"6a9cbcf7-6d5e-4f98-b0f4-9abb485179c8","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":114,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"57045c76-9114-4a3d-b10e-38b6f531ca8b","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":114,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"9ba9dea1-7fcf-4c7d-9fa9-9e8dbb6d8bbb","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":114,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"cba8d5cd-5d16-4b14-94b4-1b911df2a181","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":114,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"eb76903c-26f9-4562-9d5a-1115fdd4d135","block_type":"box","text":"class on a recordkeeping system.","page_number":114,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"3816c1a2-6d2d-44d5-b9e7-5c9f4557cd0d","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":114,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"18c0bb49-184d-4658-a1f8-1f43ef24db17","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":114,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"69063c56-90b0-435d-a61f-7b194b88ddb9","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":114,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"057a9fc9-2f9c-4129-8712-a72750295683","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":114,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"3c773a07-3a0a-4b94-9b7d-5a3e8fb40a1b","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":114,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"d4428c41-8065-4a90-9c3f-3602e7afaaaa","block_type":"box","text":"Custodian Services.","page_number":114,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"79de5a02-cdb6-44e1-b4ae-dc7179949735","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":114,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"b65b25d2-7bf0-4c91-98ec-46f2edf92a8e","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":114,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"115bce00-8549-4105-bb5c-3b0ffc3a9f06","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":114,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"f18a1810-5565-4356-a4c0-b64d429278ae","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":114,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"b8fcd4b3-3bc4-4698-b8c7-eaf6d710dd4a","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":114,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"0241f0d9-7c22-420d-90e5-5045cb9fbb91","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":114,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"45fb283b-4d9c-48cc-8a68-d87d8dca72d4","block_type":"box","text":"cer tain assets.","page_number":114,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"6ddb31a1-3924-4c55-8b9e-39f018016dcd","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":114,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"2f7a4ade-409f-4e7e-a22f-a3f53c3af800","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":114,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"89e4038d-2678-4e7c-93ee-ab1f165f8c86","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":114,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"45faca59-e8e0-433c-9a84-13b54a63916b","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":114,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"e72fb335-3fd0-4707-83ad-4c161f236e4c","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":114,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"e41e0274-7a17-4a6f-900d-f6c07b059944","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":114,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"0ebcfcfa-31b5-4e08-9cec-e43d26adf88b","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":114,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"14c69966-fcb0-4cc8-b3ec-52dcfc9634d9","block_type":"box","text":"Fund.","page_number":114,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"930cccdf-82da-48df-9120-6c7e84f25843","block_type":"box","text":"II-83","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e85af1b-6b0a-44dd-bfff-062044ac6c1f","block_type":"box","text":"NM1026U-5985614-114/232","page_number":114,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bc2fd2a2-8956-450e-9ed1-31a77f45edb6","block_type":"box","text":"Accounting Services.","page_number":115,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"9b28b4c7-1c6f-4615-b286-4b32a5be2dad","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":115,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"18c37103-0695-46fb-bc62-df905f8c2af5","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":115,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"f799efae-40eb-4d00-9d4f-53ef0c01965d","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":115,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"394965c9-9c0a-4864-b2e5-f1fffe8187a8","block_type":"box","text":"Master LLCs.","page_number":115,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"5a319fb4-df8e-4faa-8225-9a4ac9d33aa0","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":115,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"cacbd846-0faa-4471-87a7-e342a696789d","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":115,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"6034aa05-3135-44c7-8b10-49317e82fa7e","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":115,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"bfe1150a-4855-4e3d-b434-b8e5efa273f0","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":115,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"224dd9e6-83b7-42cb-a4e7-075e722171dc","block_type":"box","text":"Distribution Expenses.","page_number":115,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"948d01dd-31f5-4cf2-85aa-e1c2811076a8","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":115,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"988d8f59-39a1-4810-9d3b-37a63d389783","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":120,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"7f597034-e1cf-4470-86b9-fec263a0d976","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":120,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"3cb3d771-383c-454c-bd3c-a932a7e1c7b9","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":120,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"2f752037-3b20-4e39-88a7-99493b202f5a","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":120,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"1c781372-b411-4f8d-9b9e-0e4d7a18b099","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":120,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"c86b93af-fd09-45d2-8e78-c5105d27a0c4","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":120,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"5463e257-9859-4f22-b485-566a0c45c076","block_type":"box","text":"II-89","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ead663b-c9c2-4182-9b29-e6f15515d10b","block_type":"box","text":"NM1026U-5985614-120/232","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1b993ae1-1e9e-4825-b944-ae75ab1469c0","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":121,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"07cdf400-41c9-4fc4-998e-ad1d8b5eaf71","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":121,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"e494cfeb-10ba-4d2f-85b8-fd553d7973f3","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":121,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"3ea8f6ec-9892-4c00-b523-7e2efdb4064e","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":121,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"96b657b9-8cef-4357-be2e-7f1463aa0320","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":121,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"70f20e37-e36f-4ad0-892a-1008f45f2d7f","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":"bf69a24e-6811-4f1d-a01a-18f1b2cb3c20","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":121,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"0116e2f9-d79c-41f5-9d00-188424e8a0ff","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":121,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"0c710967-43fc-4bf1-a198-7b59a6a1657e","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":121,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"15bb9748-e44a-4aad-940b-878df98970bb","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":121,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"ac2bb081-fe8c-4c7a-8a3e-6ab6a247ec60","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":121,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"7a27312a-fcb0-4339-90c2-57e72707b307","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":121,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"0c7e4810-fec5-4d5e-a9f4-0b16709d5cef","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":121,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"ba3f5235-a0a2-499f-a83f-47ebc22f9666","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":121,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"7df00b60-fa77-44c4-b67f-d8479485ad77","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":121,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"501ffc2c-26bb-4528-9997-13ec4660643d","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":121,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"7940e713-dc66-459f-8706-e51edced23e1","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":121,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"6776e712-1601-4446-af53-e68bfe3bdac8","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":121,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"2f254843-4b95-49ef-bf69-d373d1713023","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":121,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"60ac19e0-b433-4a48-bf28-edfafef84b9c","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":121,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"53477a55-b8de-4429-9345-28ef52595b5d","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":121,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"6a9b3854-8728-4ff3-8e46-ec1910e586be","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":"24c0fcc3-3490-4e90-b76b-0c85e62f1740","block_type":"box","text":"Funds.","page_number":121,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"a2e3bd49-4f66-4ff0-8f08-9b4fd88feb38","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":121,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"9e99f576-39db-4ba7-94da-a35c6c5eb082","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":121,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"60ea5000-adcb-4cfa-99ca-c70fc392f2ee","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":"dd11733b-ae3c-4ea7-ad76-58f5e09aca15","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":121,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"6691024f-4a46-4990-8b48-ae2cfd016d11","block_type":"box","text":"Third par ties, 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":"398d0bc9-6c81-4a62-bead-790537143392","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":"1b33e68b-e654-44fd-800f-2d82cd215d30","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":121,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"5a9ee9ad-17cf-42d9-9893-9e555df61509","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":121,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"21109e68-e60a-4086-bf1a-0676da1f392b","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":121,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"acd4b6ff-188b-473d-b589-70510c796821","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":121,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"7b21d16d-4e1c-4a88-850c-0bb07ba0a562","block_type":"box","text":"fund or account advised by BlackRock. 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":"fc006b80-8a6b-442e-96b6-c7d75afb7650","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":"2dc50961-cec2-4dfc-ba1e-3c34b10da40a","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":121,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e52c9606-7487-4222-af69-5d3c3c09fa53","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":121,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"9a40cfa4-cf8c-407b-a54c-65347de8f11f","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":121,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"02475c47-f680-42a8-9401-25d1f8857e0c","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":121,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"73219f35-8bc0-41fa-b5cb-608847755b08","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":"a6fb48db-28ae-4326-b2c7-80ab70b006d1","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":121,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"270f7f10-5df1-4589-979a-986aaebdfe4b","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":121,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"b600288a-bb6b-48dd-a1bf-21d3eaee822f","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":121,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"dd28b47a-8b2d-4700-b01c-c0feb4fbaaee","block_type":"box","text":"case.","page_number":121,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"87f156c6-af59-4f2d-a1e1-1f30997520d7","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":121,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"3d1ea0a1-a2de-4853-95ae-eecf1a1ec821","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":121,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"4b950121-79aa-4bca-b962-b784b883aae5","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":121,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"e0348a0a-198f-431a-94bc-9882632b0c2e","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":"61efcfcc-63bc-4113-86f7-70a4b23a9e33","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":"ac9fee49-7672-41e9-8801-079d53d5fddc","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":"d4975b5a-0f57-4254-9e8e-debdf5ec5286","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":"f002f680-4082-4374-ae7a-c59a18abc539","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":"68a749b0-eba5-4e64-b4b0-b5b7f0ac7a3d","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":"22e19883-f6b6-42dd-95c3-70e45b2f2b8d","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":121,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"b4a77d0d-b94a-4edd-8d6f-593d874e4a30","block_type":"box","text":"II-90","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"79af6d8b-1013-42c7-8bf6-ee239705e922","block_type":"box","text":"NM1026U-5985614-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"32da884b-4779-45cb-b381-cabb2c95e11f","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":122,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"65e8f6a5-e192-4a43-a26e-45774a6e5e99","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":"a597e17a-4c78-401c-a53c-a5ee24461d5d","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":122,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ad264e8a-097d-4c9b-94f0-81a06dd14d7b","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":"723f6c72-f041-4722-b18b-e1d3a27d9c3e","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":122,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"b5bf3f05-b28a-470e-a921-47563de18f05","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":122,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"7f928398-57d3-481d-994a-79cce889fb7d","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":"34ebd451-5126-46ee-9c0a-f133d2cf7bcc","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":"d5e01694-c77b-4ad3-a493-651606617470","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":"0926e15e-9a06-4c8f-9505-b06a7fc5d2ed","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":"6d0cc8b8-b9c5-4efb-a9ab-b1a5dbe71a37","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":"f2a60396-b1a4-4659-8fb4-17db5f403a47","block_type":"box","text":"proprietary activities or por tfolio 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":"76fa483c-f7dc-438b-a420-afe291e1e09b","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":"58ccf7d5-d6d0-4636-b48a-0fbc6528c030","block_type":"box","text":"managing a Fund.","page_number":122,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"a28fd876-a7ca-4374-ae45-1a4444cb4022","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":"b3c7b28a-38a3-4b82-b24a-5e2bb7063efe","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":"cb28d053-b838-4dca-a6d3-da25c8279015","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":"e7bc0d49-d70d-4500-8040-2fb0ae767599","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":"e6c5b337-a256-433d-8028-78ec64204de3","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":122,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"89c6fb7c-ef9b-497f-a2fb-e75392b5d418","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":122,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"f643e73f-3430-4e04-9843-ef9796dbbd29","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":"d9faabe4-fa38-40e0-8f3c-7f4a1f567e4b","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":"8f2d4945-4e2d-4ddd-a611-a9703ff7d5c5","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":"9891b73b-210d-4532-87de-bb9eef24cd72","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":"b8753541-234e-494b-8ab4-ccf3737798e5","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":"95909a1e-5724-46a0-9237-cb09b64dca57","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":122,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"995228ec-5819-412a-8d94-97d871843f14","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":122,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"0fe23732-6199-47c8-b741-7db2d571cdab","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":"eaf4b5c4-2e06-4df9-a4a6-d422133560ef","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":122,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"c434c68b-a2c3-457b-bbc5-7c15fdd42825","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":"726647f3-cadc-4a5b-bd0e-cb6cbf0ebebf","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":122,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"f6e6ad11-67ae-4cfa-8087-b59036de2a28","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":122,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"67d1ac37-911d-4790-a428-f88d0c1f28ad","block_type":"box","text":"cer tain 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":"9e183d92-d42e-4ece-a051-b421dc2543bd","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":122,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"09f3146c-1198-4b40-8de5-809afa1b1c88","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":"03de94fa-d21c-4689-b76b-0b1633f3f71b","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":"4db6dbce-21b0-4cdf-8710-ec7e663c9a8a","block_type":"box","text":"under management for BlackRock.","page_number":122,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"81c9f8ac-9ad6-4b6c-b302-9ffb60978b74","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":"98819c47-3608-4f20-a93f-e3d9bb09e5b4","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":"64b47f93-edbc-4027-85d8-3db91d4e7ba1","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":"0689ce3c-5cb1-4721-9444-2eb10a4647ae","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":"bf2a8d70-a69c-4de5-be2a-f9a2d63a55e5","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":"aa89e3a7-527e-4f90-be12-b86eea4be6dd","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":"6c3e262d-d363-463a-b383-c2e361214a19","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":"63ddba96-9e78-45ba-a785-3e168a369514","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":"a7b6dd98-2f9b-4d07-8ca3-aae4ae418f2a","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":"2fd09e63-8198-40c6-b055-1eaf5f46cea5","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":"390bc7aa-c3ad-4260-a41d-e9f7d3a86f43","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":"79f17b70-1df8-4068-a79a-8acf6a2df333","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":"bff1e8bb-b5f7-4788-b9e7-5ddf128c4dec","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":"d4aabf30-eb93-4a0e-81e0-65dda0f20cee","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":"f879a581-bd02-44ff-a919-4b70ebfcd4bb","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":"a14a3f9a-c5a9-4163-a890-e12175ddc12e","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":"62d93835-1d6e-4247-8655-51a94fea2d03","block_type":"box","text":"II-91","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b9c6dc64-5c76-4f72-8ac2-b9a461e85211","block_type":"box","text":"NM1026U-5985614-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"daafc420-404c-47fe-86b8-3e36a3ce788e","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":"8086dbd9-953c-4025-80b7-c64056c75ffe","block_type":"box","text":"any such fees or other amounts.","page_number":123,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"5bfa7af1-0af7-4c1a-9322-b51a71462c44","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":"e557d6ea-784f-44f4-98f9-68971814d5aa","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":"18340180-e949-4356-a92d-5c06de3dce16","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":123,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"c684e3b5-c240-4b6f-b0bd-588a7f16abed","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":"3b749f0b-56a8-4839-817c-8e9c1ee8731d","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":123,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"39e26eeb-9d25-41b8-bd39-9feb0e1d6497","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":123,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"b98024ea-7f28-4bbd-8cf7-36f3ca9cc18d","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":"41869a7c-648c-49ef-bc05-ffd02de63b6c","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":"4ff6e425-60c0-4da9-9ca5-e58555a56334","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":"3281e139-fd54-47fb-a634-38a922584d08","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":"7e618e10-49e8-4a73-8759-6cf9920a6a8b","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":"25043e6d-ce89-4741-abc7-b5b3e996e847","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":123,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"c441b449-7b95-4cb4-bede-ecc942e08540","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":"68f2bca5-4d73-4a1f-9397-fac1e3269df7","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":"d5150ed9-b1a0-4aea-b30b-54ed02ac6321","block_type":"box","text":"BlackRock. As described fur ther 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":"6354f1ac-a41a-4067-8c0f-654dac4d40ef","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":123,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"94478733-6f55-41f4-8ac2-a400e0d17a90","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":123,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"bf099ff2-b228-4bc0-960f-c2713cc5d35a","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":123,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"2a014274-2761-40a7-b4b7-9d4281bd17ff","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":123,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"b6d328fa-4ef1-440f-94da-aae070eba043","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":123,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"1016b8d3-39ed-472c-aef3-018e1ed55223","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":123,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"a880fc67-65d9-4c13-b153-a5e0135ef4a4","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":"2e5a2fbb-7304-4f73-ae45-e6e9e2c36939","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":"0422087b-1e50-42af-af2f-6996b01b0115","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":"df766d22-42bf-4985-b0c3-a560d9cdfce2","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":"cf8b28a9-2ffb-4cf9-a497-565b8e1b59de","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":123,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"be8d9b11-22be-4636-a664-2083eb64703d","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":"102dffe5-489a-41f3-8839-7bc8ef93284d","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":"ea231007-e626-4dbb-ad8c-9df4404a2ce0","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":"b3359c71-2846-4fc5-abd8-8eb54e9cb1fb","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":"fa2f8b47-886a-42ab-8fa7-eb2b2d4ce493","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":123,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"1ad15570-81b4-46af-9d9a-ac83c89d2ac9","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":123,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"9e3a8c4b-3421-4fa7-99eb-13fbf7f4c7e6","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":"670fc802-f581-4712-8fb0-cfb20f7fcb21","block_type":"box","text":"regulation.","page_number":123,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"079d32f7-fe45-4a5e-adf3-4b0564323da0","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":"219cfbd2-ca53-4186-9460-4c9fc592279b","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":123,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"2c46c95f-5580-4aa6-9558-1a3a8e2714a5","block_type":"box","text":"various program limits (","page_number":123,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"72c9fcd4-0e61-41cc-bbac-6ee2cf24a421","block_type":"box","text":"i.e.","page_number":123,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"088fc4db-cf81-4fe1-ad2b-06592bd627ca","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":123,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"a078cfb2-cd0a-4083-9bea-3ba493fa3e7f","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":123,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"43bba2a5-6fb3-4de1-bc24-0165a5bd22e9","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":123,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"505b24af-bcb1-411b-85da-7d9cf0195cab","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":123,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"c7d4be39-20f8-48a6-b6f6-77bdfd6a66bf","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":123,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"d76a45f7-2e2c-42af-a874-64a91174f4d5","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":123,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"162077ba-9be3-450c-8070-3c453bbac8b9","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":"e79ef014-474d-4754-92ba-e247101186f9","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":"d183d2da-db88-4881-8565-7140f2a5e35d","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":"45657439-19de-4bdd-bf45-6a481b1df63f","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":123,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"4db7c0be-2ce8-4f6e-92d2-e81bedcfb358","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":"0a2a6b67-7d90-4d39-9573-86f5bc8f6a05","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":"942b6d45-8759-4cee-b867-f7537425b74f","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":"c99ebd7b-50e0-4fef-99b6-f7531136cdab","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":"ce40bd44-abac-4d1e-81b5-c0aa07d184cd","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":"710b4bae-d7a7-422f-aa48-d013201562df","block_type":"box","text":"II-92","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fadd351d-f33b-4eca-9e55-acb5ca996814","block_type":"box","text":"NM1026U-5985614-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1c154f6f-6f65-40bd-b726-e6a001566437","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":124,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"e568ece4-0226-4de7-9bbb-6cdce23a190e","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":"315e04e9-b03a-4071-951b-48152868bf14","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":124,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"213ce030-86f2-40b6-9428-46a094c4468b","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":"4c7fe302-51d8-4d14-be0c-220878e1851c","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":"807795b7-f565-4933-b954-ae8c9b3f7c6f","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":"cb48e388-d645-494a-b880-855af6b17f2d","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":"4f30af72-6390-4427-9c42-9e83e7063ce4","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":124,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"624bb247-e3f8-437c-85a8-ebf7abb3ecfd","block_type":"box","text":"than through client commissions.","page_number":124,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"a7618cf9-e3c2-4ce7-ac37-99c9c28b698b","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":"e76a803e-0e9d-4e37-8201-b2633f313437","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":"ad63e201-b4fa-4510-95dc-c5d61a39b32f","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":"31ac9098-c296-45ad-83f8-b135d8d29ef8","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":"40707c3f-015c-4856-8bf3-8728757f88aa","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":124,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"14d454c4-8ec0-4bc6-bb6e-0372dca0c1a7","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":"a9f24ee3-f061-4d51-aa6c-a34125f2fecf","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":"e058d878-84cf-4370-848c-6c6550183668","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":"540cc615-d51a-4ace-b50b-1c5a2da7ed56","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":"39bbca4f-bd62-4bb8-8235-def1256d4649","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":"e11f47d6-0de4-43fd-9460-818e01550d28","block_type":"box","text":"dispropor tionately 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":"88e37211-2fa0-4ecf-bfbe-0aa9f2b1c5a1","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":"a11d3854-d1a5-4574-a138-dbbfd7378d90","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":"ba7c08aa-9656-4e75-b3cf-7044565dfa06","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":124,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"c8e9ee69-dc14-4317-997d-b041c0325e15","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":"1bc65a40-8bf4-45d8-a3a7-0a8ba5c9dd8b","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":"51ab8f23-e68b-40d1-aca2-4345c74fc581","block_type":"box","text":"and services itself.","page_number":124,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"87f6ac04-9ae7-42bd-9698-5d9229c14aec","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":"aa9e42de-97ab-4f5d-afbe-0f7a2bb7e7a7","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":"9489f5f7-f852-4f9c-8d09-3934c234950a","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":"f2cb8c4f-9091-472c-9dd7-b9eab303ee6f","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":"2ccee008-eb72-45b0-88eb-1ff2a3e9033c","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":"b37232c3-7ee5-4c32-bcbd-e034c8603548","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":124,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"d5dc7774-e615-46e7-94be-ac97fac4f108","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":"f9419c6f-955b-4994-87c9-c97569e28f98","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":"b846b9d1-1c99-4ce4-9cd4-aca68ebbfe85","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":124,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"a02c6bf7-948e-40ef-9a24-9eb183a0f638","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":"d8411311-2999-4362-a6bf-c0b6ba865f6a","block_type":"box","text":"securities transactions for cer tain 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":"7e818c79-7411-4c73-a651-099c627dedb9","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":"66ea3a30-2a68-4eaa-aa85-296e29deac0b","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":"6814dec3-f246-433c-a6bf-be1f5123a8a9","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":"939c4a30-67c1-43dd-9579-3f649ce40d47","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":124,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"c0ff88f0-09aa-4ad4-8324-2abc5a236f20","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":"4387a33a-5d72-4d34-9ea2-8c91708be92f","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":"68598b37-11d3-434d-b71e-5436dbdd20cf","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":"102a1c57-d8a7-4a05-9104-29a094193b1d","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":124,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"a70f2aa7-59ce-455d-95b4-a5082d464da3","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":124,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"5400b624-e668-4639-95a9-cce87552a8d5","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":"620c903a-d7fa-44ff-a3de-743f55bd7a10","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":"205b6b01-f11c-4917-a900-796f15e27d9f","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":124,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"a26c9957-8c42-47a6-8050-bf00c35fa149","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":"2e2728d3-47e7-4d50-8899-9670d0d86015","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":"8f255eb6-a228-40a9-8299-917a895d4ed6","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":"51d28426-5448-4654-b308-ae5d3d2b1f0a","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":"4d1bd8a2-c71f-4b6f-a620-d6ff26ad346c","block_type":"box","text":"II-93","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6527c6ef-fa6f-4f4e-9c08-bd9b5bfe7b85","block_type":"box","text":"NM1026U-5985614-124/232","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7f076073-a95c-4f6a-bfd8-02c7af75816b","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":"cfd81ebb-19e4-41a3-9684-031fa8ef5e6f","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":"1822a584-1da6-4508-ad65-791fa64b8626","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":"ba9ab1a1-2cbd-4d53-bd56-810048b705be","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":"6c23638d-a975-40ab-b05a-20dc8a6b727d","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":"927cc849-5c06-47a7-ac19-6de9a4c1ed86","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":"62cab105-04b5-4adf-8423-50b8318f76b3","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":125,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"c3d8c05e-ce21-4286-b239-5d6fa437e76f","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":125,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"ae8f79ba-ced9-452c-980d-4cba66fdfd09","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":125,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"c5fc45ac-0bba-4d3f-b2a3-6ff7fa2f8265","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":125,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"25cc1dfa-5a6b-48f3-9633-e83e33d758b0","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":125,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"fa070c52-afff-4664-ad4b-97d6f26aeab8","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":125,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"fd9df9d3-6992-4e94-8031-c94fa4b04358","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":125,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"d6c0870a-c185-4d27-b4a7-32f4b461baa6","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":125,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"d214fa9b-54f2-470d-bfd5-1bcac656ec31","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":125,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"ec7098a4-e155-4748-ae21-82639bc30f58","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":125,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"2482ea94-a7ac-4d90-8148-eed6ff06bf55","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":125,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"83e5c1b9-3256-46c3-b0b0-449941c97ade","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":125,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"3a4d11ee-131e-4ef3-9f31-d37e5170b1dd","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":125,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"28ab238c-71e9-4073-b9b2-bb215da18e0b","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":125,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"1b4fa6d6-8b17-4685-9897-8eb14a8fbd8e","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":125,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"2c6f8f5e-144b-442b-a7e9-f370719411bf","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":125,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"baf54170-7414-4b78-86c7-3d845f5a3a56","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":"ef5fe5f7-b346-4bcd-a76f-2373676b1f74","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":125,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"c576599f-b7c7-4d60-bf98-89f8f272281d","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":125,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"32c285ac-78e4-4d27-bedc-3305d3a2eaca","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":125,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"90570ed2-cc5c-4bbe-ac70-896867333455","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":125,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"64697789-eff6-4867-9339-c2062fdb8315","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":125,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"214349cd-e1c1-4b24-8a31-d4eed501cce0","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":125,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"c6139a59-befc-4c50-bd94-23cea677b2ab","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":125,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"b060461e-c11a-4dce-bb9e-2efea410909d","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":125,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"a59fd547-e230-4e6a-83af-9d3113431146","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":125,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"70c64893-58b8-4f19-b945-84bdbb356876","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":125,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"ad324c1d-fb62-4f00-95a6-aee556ff15d7","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":125,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"9d5acdd9-7fc4-4b79-9d84-1ffb57652505","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":125,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"0549ea96-bae8-4442-b093-c8beb807a769","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":125,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"31152be4-8220-4c3f-8328-f66a2ff232c8","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":"780a4fb9-7b29-42b9-a050-6883cfa481c5","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":"a8fc3f35-fabf-4632-b7ae-d0852d4112f5","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":"924bf0c0-19b5-4d6f-b2ce-55668d14ddc4","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":"9ad71a37-b2cb-47ce-a80c-f31fb8a49f58","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":"f4a339ff-ddca-44ad-ac80-a9247ed19e48","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":"9bdda9fc-064c-4e1a-87d9-e8d6088f135f","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":"4332c230-d5ef-4b74-9f3b-dee15e56a42e","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":125,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"20380f97-c0eb-49bf-8946-7bea7fc04cf7","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":"451480a4-f596-410d-bc22-b1271df5a73f","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":"acf24c8c-4342-4ddb-9b93-ebdacfb2d395","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":125,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"5a720637-ec93-45a0-96c8-506b3e2054a2","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":"9bafa811-cc79-4c50-979b-62b34de0d469","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":"381ac5c5-7a85-4e1f-b7a1-2acf3e170c9f","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":"0264a443-6a18-4855-81ac-0ab56b1c2601","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":125,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"6e5a60e5-2e4e-4eb5-85e8-c185d6fc52cb","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. 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As a result of","page_number":126,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"2a6fc990-0e86-4c9b-ad00-ba9aee683510","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":126,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"800014b5-7965-43ad-bbf4-d8870e5f4dd0","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":126,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"8e76cc08-108b-4722-874d-9115c4678261","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":126,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"92396623-55f0-4684-96af-681b29a36351","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":"accb31c1-053a-4ad2-b688-634c57d7430d","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":"dbae094b-dbed-4ee4-a0cb-b52d8abc3a78","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":126,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"cf00c557-1d8b-498d-aa24-a84eba4c19a8","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":"3d6a24bb-867e-4121-9702-f66ff45a7456","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":"913a61b6-be2b-46f0-aff7-70f2ea152c2d","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":126,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"e71290f9-c79e-4df1-8ca3-d47624e5c08e","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":"84be83f6-6d0b-450e-8e97-ce0823933dbf","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":"1953e4b8-46f6-4757-8a11-86a45e5c5e74","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":"ffd7f59e-e49e-4c24-a797-757cdbd97b90","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":"a659e2cc-6564-45d0-aa8a-8e52ddafed5e","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":"b28cffd7-335c-41f5-a33e-7f0622623f6a","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":"6b4dae00-367a-4d95-9f5c-9052ff5f7c61","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":"5ef3fb7d-9803-47b9-8058-95d6c91490d7","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":"910e5104-05e6-4c54-86df-43092a517cde","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":"63a467e0-6610-46f3-938a-76f23997fbcc","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":126,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"b854d3aa-544c-40cb-acdc-23aa4bfcacc8","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":126,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"05977f70-d7a4-44ad-b4a6-e07c90573102","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":"5e088084-be3b-4023-a487-130d333df07b","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":"b6c11f5e-d5b5-401f-9435-13510e9c8a7c","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":126,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"a0da596a-2546-45cf-bbcb-e311e70f45b9","block_type":"box","text":"public information about the company (","page_number":126,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"281bfabb-42b7-47d1-8e16-2f35be4f98b7","block_type":"box","text":"e.g.","page_number":126,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"981b42cd-d2bd-4d86-996e-fc5e804af552","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":126,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"314e6c07-f0e1-4819-ae3c-06ce2427dc6d","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":"ec4c5a83-412c-4873-a612-de87c0e993a2","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":126,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"269f15e0-abf5-4d7a-a272-3d7847b97a95","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":"ac65ef78-083d-405c-bdf4-4cff1023c749","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":"e13b9a43-b6c9-4310-9829-00670324d76c","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":"24d1d438-eb3d-47d1-abef-151f45002ebd","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":"288164a6-781d-4c39-9832-69dfdb6711e0","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":"518bae9e-97f0-4af0-9587-a03221413ad9","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":"057f1ea8-5066-4ed1-b6ce-e9bc5d86e9f0","block_type":"box","text":"of the issuer.","page_number":126,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"6deec9f9-1234-485c-9e00-274d85211a0b","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":"d9eabe15-52cf-4715-a4e4-c50696b2b3f2","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":126,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"e80732fd-757e-48a4-9344-3f0af2b2c81d","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":"aca2c20d-d43c-4959-87ce-1cd711d92e8c","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":126,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"191a1fa2-03d4-431e-80a4-68dcd0c39472","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":"dc2c6a6e-7973-4499-bc72-b5f7b58f3e0b","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":126,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"d1af0deb-bb48-4ca3-8fc8-33111df4f1a8","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":126,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"9199f76e-0cae-4bd1-aaa8-1d684d3defb7","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":"09bf514d-2731-456c-b611-72e42aa67e19","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":126,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"41125312-c925-43c2-9f1d-5c847a52b96a","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":"463974b9-449e-4376-8312-ea449a467281","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":126,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"a4c81767-0632-40bd-9e69-90ada6dd0f25","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":126,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"f6a8abd5-623a-4c49-b428-2176b4fb6375","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":126,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"3563a48f-5072-4768-bc29-188965f126f5","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":126,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"738689c8-fb27-458e-a4a3-7d65d670a950","block_type":"box","text":"possessed by such other units. 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":"49e72057-9b21-4451-8b59-5ef8a387c2ea","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":126,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"18433c5d-b0d4-452e-9e81-03bd78ec29bd","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":126,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"281819a3-0640-4ff1-a326-f76585447cdf","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":"7fe62aac-8af4-4b1f-ab08-5db9ebe20ab8","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":"5f9a380c-653c-4e7e-a16d-2a0a7baa48f3","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":"c38b1cff-c3a6-4ae9-8a71-a1efb2ec8443","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":"e158009e-9edf-45fd-8777-7f1f3a5ec2b3","block_type":"box","text":"II-95","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"309e0bee-9bce-4cc2-9cb0-2520135496ec","block_type":"box","text":"NM1026U-5985614-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d0efa69b-9e93-4b16-b398-23c52371826d","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":"8862f42a-06b8-4133-a770-fa241a6ceb86","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":"c24ada62-1ea1-4e52-bd3c-5f9fd445b061","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":127,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"504dee7e-1c81-4862-ab8c-21e2dc00f767","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":"89a75ae5-7df1-4553-a070-85da88cf334b","block_type":"box","text":"a barrier.","page_number":127,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"da334c1e-fd27-4a68-84e8-c8f6ed7dfe97","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":127,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"689ae53f-c73c-4a6f-8c47-2a0611f6117f","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":127,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"ed678438-f748-46b9-8a85-d7aff12ec52f","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":"e7943961-ae65-49f6-b3b9-6031c9f3ba0c","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":"c37f4359-2453-4b1b-8c3d-efcd52d5a4a6","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":"8fd9c09e-9021-4528-8425-ba5d3ff09d54","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":127,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"4339aef8-0226-4e8b-b793-2420351d14ba","block_type":"box","text":"that operate in cer tain industries (","page_number":127,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"0d6e9e57-e3b7-4f16-940f-861067f35487","block_type":"box","text":"e.g.","page_number":127,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"5369658f-fa92-4408-95bc-d46d81517e00","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":127,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"a903e135-c5f1-4f2f-8dc6-8cfaceb69e9c","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":"7e5ba03b-9cb8-485d-a0cb-dace2df31244","block_type":"box","text":"e.g.","page_number":127,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"4eba0306-2f48-43b6-a7fc-73f958f25af9","block_type":"box","text":", with mechanisms such as poison pills","page_number":127,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"ed488f0a-bef4-463a-87dd-2e61a07da7d2","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":127,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"db06e296-130d-4d8b-a274-96d50794bfef","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":"db599580-46a5-43af-a345-e4db14d35533","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":"891af310-c876-4183-87c7-ba692cdf426a","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":"db7c67d9-46cc-42e1-aa30-3dbd1bef3edb","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":127,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"1e93d2f5-9426-4b3c-ac04-37b2e5ff1a81","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":127,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"77d9949d-1c85-487f-ad7b-88dc9c5fe9d1","block_type":"box","text":"seek to make indirect investments (","page_number":127,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"1d598c2f-d03f-49e3-9b5f-f3a8e4ee4011","block_type":"box","text":"e.g.","page_number":127,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"83204e88-14f0-4c86-b161-1a6d07ddd23f","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":127,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"4e5dfd5f-9777-4eb4-8277-2c45a2b0dea7","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":"217189c1-a8a2-4fed-86eb-054dde4148b9","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":"c62c423f-2aee-48ee-8c06-727c08c5a105","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":"ce992f26-e93b-4183-8b62-cbce4b5295c0","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":"92b9cd79-8e67-4200-97e9-95a6247de2bc","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":127,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"09ff8caa-4984-43a0-8299-84d770f6e22b","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":"83683f9c-9ff8-4fe7-a6a2-ba62f40db689","block_type":"box","text":"If cer tain 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":"cfc20597-1326-4da6-9804-f913df80bcf1","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":"096780a5-3036-4d1f-8294-4cf2e4396cd5","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":127,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"5593dc38-c6a1-4ac9-9be0-fef45013ac8a","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":"c710e76e-9c28-4d22-9383-bde482bad93f","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":"976340c5-31e0-4ac9-aedf-035fdb8c2605","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":"32b02d1e-85fd-49fd-99e6-1e8c920fe460","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":"a41b3eeb-2ad7-4cf8-8b7c-2405fc25dae0","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":"4e0e99ad-b85e-469c-9869-09da883d1528","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":"97f1ae0f-09e3-4c88-a28c-e7efa07159dd","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":"e3d9ce32-2049-43f2-b8e0-30d26223f017","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":"ed5f7d91-57ee-4c74-8c8d-9e79d3ac1122","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":"2120a69d-f709-4d2d-820b-86341fb16e5b","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":"623a2019-6212-4519-b1ef-4cada1302d74","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":127,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"10a9c72a-fa7e-4d64-9932-73deea4795c1","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":"c1ffff8d-b850-4230-b761-5518cffb57ac","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":"9cf045d8-940b-41a2-9db7-cd20894eed45","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":"3e7494b3-091f-4d78-8d3a-8d36471dabf2","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":"01b8b06f-950b-4096-9c5c-7d835aeb3c90","block_type":"box","text":"from taking cer tain 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":"48392be9-21d4-4614-8c7d-be43c3975952","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":"80c2fef0-9123-434f-ae0e-b16d58b6b3b2","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":"a1417580-40d4-4a48-a4ec-06a35346d3c4","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":127,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"4231d2d0-94ec-4bc3-9771-c92b783bca46","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":127,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"12d2061c-3c35-4775-a8a4-94315d3f8c63","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":"30859264-e95a-4d82-a11b-71df5440f387","block_type":"box","text":"cer tain 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":"06074052-3e20-4d39-b8c0-4af9109b5454","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":"c20bfcd8-2ffd-4e8f-bfb3-047b5153c832","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":"e4db9272-7526-4636-a241-fdbb86538f37","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":"0239f3ae-6e69-4752-9d10-f9f4bbf5df02","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":"d1bbd700-49fe-4da7-bad6-3ad10b6c4039","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":127,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"20b13a9e-4336-46d9-9d07-6bd6f2d81bf2","block_type":"box","text":"II-96","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bad4a137-e706-4264-a5e4-25b874fcd881","block_type":"box","text":"NM1026U-5985614-127/232","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"de84f7f5-e91e-4a72-95f0-f0fe609b0818","block_type":"box","text":"Ownership limitations are highly complex. 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":"e2433888-c3d2-4707-b586-3b8235bca7f2","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":128,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"f47e68d0-c30e-4463-a572-1f1f1842890d","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":"e67c9bbc-39ea-42d7-b278-d0ce1191649b","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":128,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"3c19328e-4fc7-477f-a836-7f14374bc276","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":128,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"6df9decb-8a77-4d72-a4f4-a8d0c7c92c51","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":"8b87bb39-271d-4c89-9649-1e5b5d373b09","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":128,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"54ad744d-9917-48d1-b020-98bad630295c","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":128,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"77611ab7-a365-41b4-bbcc-302738b1d9b9","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":128,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"8fe0a75e-b3df-4088-95c8-99898520a969","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":128,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"5690cdf5-7460-433d-b542-1716c8063b81","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":128,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"1887e9ed-005e-4264-b870-e3f5f5c4694a","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":128,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"6ffe7cde-0847-49b7-a894-c36f0c83ad3a","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":128,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"490c692e-fe02-4224-b3fc-094c539f05a7","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":128,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"0962f8ca-b786-4605-8967-24b79805f4cf","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":128,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"6de73f43-3e93-45f3-8c84-3adb6c5c6616","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":"0a4523d4-4bc4-43eb-b63e-1d13b28880e3","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":128,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"de53fa16-839f-42a8-a7da-b5e691dadb13","block_type":"box","text":"e.g.","page_number":128,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"6ccba037-623b-4531-a243-40fb70542c9b","block_type":"box","text":", custodians,","page_number":128,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"75558437-3644-4c77-af5a-21962747aed3","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":"84095a30-e5a0-493d-9a32-7e770c3575a9","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":"a915d0db-3423-4665-963a-47787957739d","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":"9bc444cc-edc9-4f82-8b88-8b00d2a6912c","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":"781d1da6-b538-41a4-99b1-c579a58401f0","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":"0b94098f-f249-4e37-a365-8d543a693d04","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":128,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"5bcbf03f-3615-4657-ad67-b3964bc0a322","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":"4a195f0b-2462-4db7-b319-1186f3230fd5","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":128,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"b9c7aacb-2ecf-4286-8a3d-232c0fb960c7","block_type":"box","text":"selection of such providers, par ticularly 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":"7e6ef6e8-4a94-4c99-9234-c90421d0945e","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":"4bd761d0-5cd2-496f-a4d5-ca8ece2c165e","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":"42ca3e0b-da21-41c5-ae33-55ce026cec05","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":"ab9be427-b9b7-4567-8488-41972d06b821","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":"2177f719-e155-47e1-b7b8-848ebe2551fd","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":"01734120-dc8a-4d65-88d4-ecd9a3585902","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":128,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"0395cc5f-7229-4fac-a6bc-b7b69e0ce55c","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":"b20bb953-e0d8-4eb7-b7b5-ab3839dbeaa7","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":"2ad89405-fe68-44f0-bf46-897826026723","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":"154e609c-a82f-4df7-ba2c-dc41ba68d573","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":"b3c37b11-fb47-4de0-86ef-8602f695844e","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":"15f986d5-132d-4d60-a4ef-9f60bf559414","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":"0215bda2-2a03-4a62-858a-9b8a01a7cdb0","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":"1529c407-1d04-4832-b0c8-ac052a60ea92","block_type":"box","text":"provider.","page_number":128,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"bf697463-0374-46ba-b3d1-b504f2c506f5","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":"c57b1eaa-4bd1-48e5-a216-d4ae52796b22","block_type":"box","text":"arrangements for cer tain 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":"0f0f3d93-d998-4142-ac5d-70a4ac776eca","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":"98021058-3771-4c62-91b6-5e590e09ab32","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":"dad2e50d-709d-44c3-a1d3-745b7e4fdea0","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":"b1e0c33b-1ade-4248-a099-62e97ccf3dec","block_type":"box","text":"PURCHASE OF SHARES","page_number":128,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"61061697-862f-447a-be6c-a8b026c08802","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":"f9ee02e5-3d57-441d-9f8e-14f39c81cae6","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":"a5b7c2dd-e6c3-4012-8603-25cef259fe6e","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":128,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"d9426168-4492-4910-a5a9-0cce9e7668b6","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":"b1a3c663-adc0-4a84-90d0-f3c9c9d5fded","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":128,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"019e7d4f-f79d-4269-a07c-83f5bbdd5152","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":"c1a39d5c-620b-4de0-80e7-a171dc1718fe","block_type":"box","text":"II-97","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9da77c1-65a0-4f60-8b6a-10005c2f6b33","block_type":"box","text":"NM1026U-5985614-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"891a1aa7-1ff6-4307-b9a7-f386a716fa27","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":129,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"e25fff73-e66c-46fb-82a1-211d05f2c95c","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":129,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"24abc259-e8bd-485a-bad4-4375266d007a","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":129,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"89617210-15f5-491f-844d-c3c0652a5659","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":"84768d64-6fdd-4787-a0f7-dbececfc854c","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":129,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"1ff83ebf-ef30-444e-a371-664eaea0cf57","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":129,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"52d7d421-8a5b-40c7-a330-94b9486fda84","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":"0c72ebcb-d519-4ea6-8c97-03c267bf08db","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":"88dbb595-79c4-426d-baf2-07010d982da6","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":"1be3bd10-8a39-4960-961e-2d7a05d3beaa","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":"2a0f864b-ca2e-4c85-a89d-8d6b18007abd","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":"e4993b23-5271-4ae0-9f7b-58468a0958ce","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":"688fd31c-c1d5-4c3c-b8e9-39b94f786a82","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":"ac3a8b25-f9e2-4bf6-be0c-46005d38f2e0","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":"6671975d-f7fe-48e9-8373-f10ae8e1e5ae","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":129,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"1303bedd-11d5-47b7-9492-d9036ce85326","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":"0085fefe-61a5-48d7-88f2-3e44ab54109f","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":"3e9939bc-36be-43d0-807e-62d761bb2f8a","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":"a4358da1-5c91-4bcf-bace-26441d8ceb7f","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":"2457b7da-6bdf-4121-ad2d-fe68b7597e86","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":"060e8744-51ec-4d69-9503-ceafe99c1913","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":"ecb4827a-af2a-4165-8f67-095702eb14f3","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":"75459a49-a8fc-4f1d-ad2b-f9f29ec17667","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":"a86b4048-42b7-4543-ae1b-9d3425efd0eb","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":"8056f9fc-e7ca-48b0-981a-aa419f93812f","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":129,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"f7da1f78-be26-4225-b9dc-31e0642758a4","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":"7b4f6a1a-4886-4e3e-81ed-4c84aca973e9","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":"9ecfd9db-bd48-44eb-86f9-895fc4d358cd","block_type":"box","text":"investment is $25.","page_number":129,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"98753b91-5325-4de9-ae3e-0665ad4c411e","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":"d9ee7e7d-a9af-4be4-b9c2-589e53e4887f","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":129,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"7533bf42-fcdd-4582-a8f2-8a0c1107d0cc","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":"e4fa85f7-5dd7-48cc-9e97-58a6686b9e3d","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":"8c17b264-636d-4dae-83f8-0aa8aead0364","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":"1bc51c59-5736-4afa-a2ed-eaef5706bbbb","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":"3ad4a83d-9dc9-4165-8c9b-5bb03496496d","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":"9c976cd7-0721-4add-b394-9b0b6932cd10","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":"8a283a45-d02c-4f2c-9845-5795bed9208f","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":"029fd594-7056-40d2-8592-94d58580087b","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":"5b39381e-2e83-4fc6-843a-5d9026a2353f","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":"ec36072e-3ad1-49ce-a010-17bfa6ce3994","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":"aca361b0-bf9e-471b-973e-d51f05d3cae5","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":"e2c191f0-087d-48c3-a912-84ecbdd5834e","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":"cd0cbe61-9060-4eb3-a396-e96c299e5c48","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":"25b7ec4b-7f7a-4af8-bf8c-203306117f22","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":"24594b1b-d124-4cd4-b2fa-a3d460e2a38b","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":"3f02fce9-2de9-403d-9e75-05a7a7e539c6","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":"2825f5e0-8951-417f-b2ea-2bf3c46f4f25","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":"3ab3437d-bf61-47e5-8981-ae4e51108d07","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":"db6fee58-3077-4da7-a475-b153b34fd832","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":"2df98703-5c4c-402a-804d-2791c2540b56","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":129,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"3a475f34-81e0-40bb-a2e8-4ae34a212bc9","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":"1b699551-55c8-4bd1-8670-0a1e3a04db24","block_type":"box","text":"adviser.","page_number":129,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"891cd4b5-7792-481c-b8a4-92aa59214bb6","block_type":"box","text":"With cer tain 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":"ccd28803-8f8f-4fb4-a44c-60e339290091","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":"055b31b9-b2f3-40fa-8afc-6b88bb4ec364","block_type":"box","text":"II-98","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d255ac0d-19a5-4acd-8a28-453f8726c854","block_type":"box","text":"NM1026U-5985614-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f4bd4f49-22b9-43a2-9d79-40c8e1ef0de1","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":"cc5ebbaf-c902-4c8b-858b-654ca383c7a3","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":"49330dc8-95dc-42f6-97c6-874655c5b78f","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":"4eef9577-90cc-40c8-a108-59c69f7d1fe8","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":"b18b2b95-d111-49c1-8e14-79ab56884102","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":"d36ba372-087f-4d29-9270-17a0467d238e","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":"4482147a-2592-46b1-8289-52d3ecaf6675","block_type":"box","text":"also be restricted from making additional investments.","page_number":130,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"8b6660b1-476b-41f6-b370-af8d6ccfd53c","block_type":"box","text":"In-Kind Purchases","page_number":130,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"9f03ed01-38fa-4f29-a476-1473d6b27a56","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":"13814396-3182-4f05-93c0-91783dbeb541","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":"b1fa5259-3b68-4920-957e-27944f122996","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":"cf5f11a4-e02d-4656-8b1a-1a0dfe96379c","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":"60fb00f0-6203-45f6-9ca6-be99a295b1b1","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":"89ce00c1-9eb2-4a64-a827-5552c8ddc43c","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":"e1695bd8-1ac4-4739-b8bc-51ffe343dd88","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":"10bea82d-c5d7-4aea-8303-a344dcb68329","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":130,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"227f8a8f-3432-4d56-b47e-0a2717dfcfde","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":"b391defb-f8af-4902-a4b7-4a066facd1ec","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":"6274c0db-189d-4eba-80fc-acdda15d9176","block_type":"box","text":"has settled.","page_number":130,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"b8cb8e2f-0db5-4350-9702-db3160bcbbc6","block_type":"box","text":"Institutional Shares","page_number":130,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"e4ead999-0d8f-45af-9ec3-24da3c255933","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":130,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"a6dace99-6d7c-4912-b1e6-d84044181d0f","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":"aeac4b96-9a3d-41c0-911f-1b8e167fe8ca","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":"087a7819-3f67-43fd-842c-45a0daf5cf80","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":"1aba9f90-bd17-47cb-9105-92464c7ca6ce","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":"4ecd0392-7ad3-4e32-9fac-87fee5180b98","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":"962c81ce-faeb-4f45-a38c-e54b05309e2f","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":130,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"0ebba4d3-7934-4c7c-9781-94b106a4e7bf","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":"0fc253b4-5e88-4d49-b38a-26a380a017eb","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":"b6b19716-6d4b-40ed-abee-0a0b5e398d05","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":"9b5cf333-90e5-4401-976f-a93f3357a32e","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":"0ce820ef-e91c-48f1-9a4c-81e2df8c4655","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":"79698616-b3ca-410e-aa05-2e4c4135b7fe","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":"2bc8a674-e5c7-4bf2-b897-07a110c7b3ae","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":"2d758968-0637-4835-8a21-ea2c22b5b403","block_type":"box","text":"these fees and conditions.","page_number":130,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"915bb662-ce48-4d13-bf98-e671dab5b2ea","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":"b38a2ddb-11b4-4ba0-9853-ed001d7c9d7b","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":"68c71332-a54a-4fdd-86c9-8d201b6f3844","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":130,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"f382b942-9f7c-4859-bc89-01a62fe717e3","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":"21ec4091-dac8-49b7-a31d-e39c0b31d876","block_type":"box","text":"incurred by the Fund.","page_number":130,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"8e6208e8-18f2-470c-83fa-ed39ce8e6f95","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":130,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"56c6945b-8344-4992-9540-4a3ae4635933","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":"d3d27948-7168-43a7-b84e-ec630cccdcca","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":"1e117805-538b-456e-9408-f46514729e63","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":"9c71190a-c0e2-4393-bba8-3596d3d2d41f","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":"bd682737-8f96-4a1d-a512-c7ff6ef8b1bb","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":"d6cd9b27-14f8-42a2-8ebf-c7d40055f7a3","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":"e888fa72-7803-4020-8a73-463d7c5ba1f1","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":"b6a0f9a3-aa8b-4e30-a6b6-7e0c0a900428","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":"8175fe3c-e241-4e15-a822-9e0c632a28c2","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":"f59c905f-dbdb-40c6-b3ba-79bcd76a389f","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":"7ba74100-aeff-423f-9b07-c1339f859fb4","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":"de2fc40c-d501-47ea-86dc-018a5eaabd08","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":"1ab4b261-fdc9-4e48-98ac-36891a9f49e9","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":"745d3bc1-4c26-429d-be4a-4ed9f7ba173b","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":"ed4ee774-6928-4308-9944-8a96ce12c768","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":"15f3424d-9ceb-4f68-8de0-8dbc4e6927cc","block_type":"box","text":"II-99","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0ba7675b-4a5b-4a2d-8ea5-2fa388bad37a","block_type":"box","text":"NM1026U-5985614-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"acf22a0d-085d-491d-9e21-1e06c006563f","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":"090644cd-1091-4850-9665-837fd3ba7e6b","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":"6fbce4f1-b729-40a4-bbd4-ed6a615ea4ae","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":"c65963ed-f2b3-469d-a8d8-6d54fefb0e15","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":"12a6db44-eeb8-4610-95e8-6d11c3773203","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":"8b133711-3194-4ffc-86ed-a332b46d7a98","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":131,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"b4077b82-d24b-4b94-8074-e92850a9b170","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":131,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"f6868a42-12a4-4e8e-bb9b-c3f2f3259902","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":131,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"a21eb659-122a-42b5-b601-53c3e7e7b3ad","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":"166a2716-bf41-45cb-b416-c9a4024437d0","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":131,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"3ce8c6d5-1ba0-45ef-84b7-696d0e5309a6","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":"0fd51bff-ec1d-47bc-ae75-cd78a56f01de","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":"212ae8e7-12b9-4f2b-954e-0785ccfd4e49","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":"2b5fee91-ed7b-47d6-a319-afd8263a8e8c","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":131,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"710084f1-10a9-433b-8f61-c7c05146084a","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":"73e56e13-050c-4b03-8b80-bce51fce4d5d","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":131,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"602ad96c-5f3d-4f5f-a2f8-9c88f00fd12b","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":131,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"237c5a84-207d-4abf-a170-0c9b9ff52869","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":"2e59d7d2-9043-4197-ab67-bc1c3a0d5fa1","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":131,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"708260f6-03a0-41d5-8524-866e40a7a153","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":131,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"6eb7bedc-e743-4753-bb43-44d277c402f1","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":"f5af987a-dd9d-453a-b0e9-1a6b7fa1bbba","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":"2e2bba7b-2a09-464c-97c9-83f82418f8dd","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":"901bf052-f138-4e7f-9cf7-9da3fe703197","block_type":"box","text":"BlackRock Shor t 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":"71e1e022-a1b4-40ea-8a3d-23df613e7b8b","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":"2d5df2ec-d1e1-4baa-948c-bed752116779","block_type":"box","text":"par ticularly 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":"05e89cdf-3a98-4182-a52a-29264655a9e0","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":"8623a920-ce7c-4952-8374-ff760f0e2f84","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":"260ee902-4c11-463b-a496-eb8ac496baa3","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":"dca790d3-7d0e-4a27-b283-8432194d0f5f","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":"05b569f9-c643-4878-be96-2e45ce216496","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":"f874a8fd-b14a-40e2-ac57-25c42eb29c67","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":"321d97d0-9168-4b76-b754-0297fce231fb","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":"ca1f77ce-45da-49e2-b21c-b356ad1ff3a5","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":"1470dfb7-de9f-41af-83d7-044af49b87ec","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":"69718c45-f5a2-43e9-be4e-b2b37cfc1ced","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":"539490eb-d2ca-479e-969a-81a72c371998","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":"a9205627-63b6-413f-82bb-a2bb4b389dbb","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":"276223ee-7ee3-43bb-bf5d-e7a769375083","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"f591d72b-8af6-4aa3-9641-30f4683944ee","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":"a8e9a5bc-a263-4e67-9a57-3958e6a3ef0b","block_type":"box","text":"periods indicated.","page_number":131,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"90f7faea-d872-45cb-b630-1c5bd5d5778d","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":"529a80ab-09b5-4468-ac0f-98986927a6b6","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":"f8c507b1-7f66-4420-a20a-5dbe45e9c99c","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":"915b8d7e-f624-4324-89c8-307bf4bf4e42","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":"5bf09537-d419-4087-98c4-6c3b8fa5a356","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":131,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"0dde221b-7a27-4b60-870f-d6bf305287a6","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":131,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"f1430ef5-8b98-4be2-b9a4-01f606feaa97","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":"8e9ebd69-b82d-479e-83e5-5e00fdcd2ac6","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":"4df91fba-ba6b-48aa-8621-b60178cc0739","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":"16fc07b7-4909-453d-9d3e-2be3910f17b6","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":"30d75b22-d0a2-43cb-beea-2495f2cd427f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"be662d5e-8072-4d6f-a49b-cf82ae461d76","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":"7f53d43a-9d88-40f7-9385-36940627a46e","block_type":"box","text":"II-100","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e1277fd2-c115-4832-9519-c8541a635fb9","block_type":"box","text":"NM1026U-5985614-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"03397bc4-0e97-4806-8860-8f187f0538a0","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":"3c637387-aa4f-44c0-bca0-5452e8c8e98e","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. 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Financial intermediaries may, in connection","page_number":132,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"2109e93c-d5c8-403a-a4ed-88752a2ae760","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":"7bc6af3e-5a13-408c-9f21-dc7a32627e60","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":"bc468e9d-f86f-4dc9-af71-4b5adb15083b","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":"4dbbb2b4-71a0-4c59-97cb-6660427e4fbc","block_type":"box","text":"requirements of the new share class. 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Financial","page_number":132,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"840fec44-e1cf-40a7-a142-84608e5ce116","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":"280c59d1-65af-43bf-8503-210f37e8fb6d","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":"2dde49d7-96a0-4094-bccd-065c9baf928d","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":132,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"0dc009b6-dd0f-4d5a-b270-40314c906132","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":132,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"94c74b71-999a-417e-be69-ee992d635884","block_type":"box","text":"per formance 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":"4a52137b-6e47-4537-8485-e3e696898b1b","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":132,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"82906da4-d7c8-40c8-b4c3-8bf8d29b4e49","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":"a32bbb4f-ef30-4ec6-966d-b822d5425506","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":132,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"854c989a-4214-4f5b-9aa3-7d0cffe25106","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":"669be3f5-50fc-4646-8507-cebf84098337","block_type":"box","text":"Letter of Intent.","page_number":132,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"2056ae6b-186a-45f2-901d-6baa86020d4f","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":"50e1c2ff-6a4c-45fd-9b81-0e69e3296e3b","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":"4556dac5-f5d2-4ec2-9b71-bfedb9d1d580","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":"4d13303a-3d09-4706-8ace-e2baf9978745","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":"7e3f1029-aaf9-4a40-a047-c7f6a55e5df3","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":"fd4c3a65-7db2-4339-bec1-0649cd6e25c1","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":"d281a4a3-305b-4492-bf44-2b543042a7dc","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":"bdcfd61a-aa7b-415d-83bf-d66b6951c5c2","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":"c7c269f5-5b2c-4e4d-89c8-e8b11a2f9795","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":"d3265008-71e7-4d4b-b903-bef22090eea9","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":"79029e0e-33e0-49fc-bae0-b19c6825992a","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":"3fca01f6-bb26-4db8-9c85-bb0a4a9f1b86","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":"7ca6ddc9-dd55-4e3f-896f-159bfec38a31","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":"b6f0a2d3-7935-4972-a9b2-4d6f37fa3c72","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":"0c619e3c-6371-4823-a865-146b17cf4fe2","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":"4d6d9c77-e24c-4fd9-816f-f08054d9e582","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":"536e423e-dad9-4f27-a246-3f84a0c8a167","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":"e1d4350e-c331-4a71-a624-dd851f903f56","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":"ec0d759c-98b4-480a-8bf6-7b6cd39d326d","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":"6625c677-8c39-4367-ab0b-3e99598ce2fe","block_type":"box","text":"Placement Fees.","page_number":132,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"0f91f285-5c32-4818-98b6-a32c1e4f1d71","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":"9c2ef8d5-fbe1-47c1-be6a-04e5619f1e5e","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":"b7015b60-9438-427d-b2c8-bec09227908d","block_type":"box","text":"II-101","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8dcbf0ce-fec2-4b50-ba2e-53f9258a8d3d","block_type":"box","text":"NM1026U-5985614-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3d7b0efe-ac30-4913-8d0e-da5768c7f6c7","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":"60522678-75ce-463b-95e3-7ef465014bd9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"50b38bc7-a9da-4bed-b6bd-d08709868910","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"8a331e88-63c0-44fc-ac35-835d3ed9c42f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"a18d5edd-de42-43a3-8fbe-8d693eeaf6aa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"08030acb-0e15-40e8-9595-18025e1ad8d6","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"ad1af56c-f849-452f-b5e6-4079ffa5bbb0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"b816a089-4189-476c-affa-8b5a2fe55827","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":"59526530-9e47-4267-8daf-bc551880e21b","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":133,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"aac91586-7ff7-4274-96a0-86ed357f0aef","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":"626eb36f-7f97-4738-ad44-e464dc89137a","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":"afbd4e66-609a-4a1b-9993-a3c0fd9e901f","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"d031c0ae-9511-4e0e-b169-fda4a1f8c641","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"58d0db5e-6a49-4893-9a80-f3ba84cf8390","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"9442daae-a333-4059-8d2d-a7a684b7fe9f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"7cb2fd35-889e-47ee-90ef-1cf2ad010a21","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"6db25859-7a8c-4fbe-8559-d01c16ac536a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"b6228fbf-8c39-4996-b2c4-e7269ed1bf43","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":"6cf723a8-bdf0-4fc3-8ccc-8cc2fef501b7","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":133,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"fa3ad3e2-8bd7-44a0-a892-9b28766daf95","block_type":"box","text":"SM","page_number":133,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"87d5cfd5-d882-40c3-a219-c383ecd3c8cc","block_type":"box","text":",","page_number":133,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"4fc4505c-b3a0-45dc-9fcc-efaeb1a6713f","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":133,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"44357b84-0f4b-467b-844e-679f9b97a55f","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":"1c397f64-e9c7-4d69-b1a7-8e6daaa801a5","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":"40daad7c-95f6-4132-a02d-38e42b7c013f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"cc3b331a-be56-4e89-a1a7-99897a66bbc5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"86ede372-a00b-404a-b61f-0f56695680da","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"4d6207af-2f65-4da8-a9ff-ab82f4047252","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"5c3ce0d2-0cc6-4727-8111-79fd95e59c45","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"4483013d-638c-41f6-b19d-46b23d167b4c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"6863bc5a-ed34-4cd2-ace2-bf990e5c6179","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":133,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"114cf8e7-b0ac-43eb-b0ba-34e325c80c47","block_type":"box","text":"Mor tgage 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":"0d972059-21ed-4b42-8999-e19cd093493a","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"b1f1bf2a-f5ac-4e9a-8124-6bfa6ed9c98f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"56c8473e-bcf3-47b5-8488-0052a7147297","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"7c514366-d02a-45f5-afc2-f3b3a9173321","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"cb3a0a5c-26f9-40b4-ba6c-c09dfe9cda33","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"3fadf770-f120-4234-8683-9d3054ab00d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"bc014b75-ec22-4de6-854d-a85d9b40c45e","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":"e4e4378f-f0d1-48da-8baa-712a1e3a549a","block_type":"box","text":"may be up to the following amounts:","page_number":133,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"483a69ec-7192-4b49-88fd-87d8a862afb7","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"9debadf2-3e49-44ae-9e83-fc1bb282ae5c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"387fbaed-2249-460e-9764-c27a418a4f14","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"c56cff87-a38a-4b5c-a768-add0ab110341","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"8481243d-8ab2-453c-84c2-86b976c621df","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"6c55f8b8-4bb8-4d4b-bf18-b8b550b0fa39","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"a0ce9919-df31-4323-9158-a5b5022ae9c9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":133,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"1e6cdde2-945c-43f8-9bf5-79a7a7140dc0","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":"0d031993-fd74-4229-8676-83498198ff1a","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"4332a958-cd2e-4769-8800-4a94cb86b872","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"1022ee53-f3d3-4018-9547-7f33f97b1f73","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"0343edaf-1393-4193-89f0-f23d447b1376","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":133,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"2bbdeb52-e324-44ed-ba6d-d19bd1605608","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"cfd4a1ad-9a2d-467e-abdb-f1150d23a7b1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":133,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"6c91f74f-4d51-4cfe-a7a5-76d2aec12d09","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":133,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"e9231dd9-2023-410f-bfbb-12f1b68034b7","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":133,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"2f5a8c87-eadd-4d18-ac3b-879dff199c6c","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":"b91bdc1a-c343-47e0-8dd2-926cc4b8293c","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"e5f7ca0f-55dd-41d0-a384-4c74693fc39e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"de6f7580-5034-49f0-acb1-9c9b696a7bf3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"e0415139-45eb-4844-9b7a-29d5655d6d6f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"5c68b1f3-94e1-4b0f-8749-7b9ee5b6f895","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"43a44dd5-8de4-443a-9493-ff255a63397f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"10a407d4-e606-417d-833a-817139f31496","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"39f287f8-e0ee-43cb-a751-3bfde084a3cc","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":"d2d6c33c-05f8-4049-b7f2-25cf4965f9e6","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"4fcc8291-5f12-446e-9565-e8edbff675e9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"001d6a9b-74a2-4e6e-a5ed-a3bdec0b42e8","block_type":"box","text":"II-102","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"76b878b1-6812-4f8f-afbd-ed71eeb3365b","block_type":"box","text":"NM1026U-5985614-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3ab849c1-5fbc-46f9-abaa-961a8113061b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"808ad7e9-4c59-48df-b6d1-90beaeef213d","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":"d7273a84-b022-4eb6-a58c-cda8676cf547","block_type":"box","text":"the following amounts:","page_number":134,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"9edf1621-1d3c-404f-867f-7c214cb0b14f","block_type":"box","text":"$100,000 and above . . . .","page_number":134,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"7c69d46b-58f5-4eea-99e2-2a7c1c7075d0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"141eed6b-903d-4312-a522-5161cfc41f9f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"3f90f480-e809-4dc1-96c7-ca1a333f9268","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":"7f846b1b-b6f8-475d-9c9e-28606c179b74","block_type":"box","text":"$250,000 and above . . . .","page_number":134,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"dedbb722-eb7d-4050-bc02-5f49a238dc94","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"c4e57152-3245-4022-91bf-e18e784adea8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":134,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"0048224e-6c65-45d9-ac87-b304f506abdb","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":134,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"98695e0e-4fbe-4b18-92e2-9471719cb1c1","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"717e44df-c24f-4f99-8df2-64107e571a22","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":"86f619db-61c2-4d6e-aa20-9df9850953bb","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":"f2e01558-80db-452a-8bb1-20aa332356bd","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"3cc6785d-3fb9-4c1d-a4f4-eff35e081960","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":134,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"f164cbb9-23c3-4bd2-836c-e6950aef4086","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"d55dccea-2d96-4164-bc52-e908639c2ebe","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"0db8bc72-3992-4eb9-9c81-78b9748729b3","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"d1d9e3e1-4cd5-42f5-a851-ba636d3657bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"af41f941-03e2-4bce-a6be-b4b80115d292","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":134,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"14635b12-350f-40a2-99ab-5c7128e6bb6a","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":134,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"f8788d6a-c491-49bf-9959-ab07e6f27e32","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":"685e6293-8b9b-4cd2-b180-ee7e8249e9be","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":"a2ac0af2-34c3-4f0e-90ad-7b029609448d","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"e8b26426-5944-4976-b220-43d2f0522fd3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":134,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"46c0e1e0-f780-47dc-8fe0-b9cc18ff359f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"1e84ea58-8803-4d77-9e17-de1c26bfe1a5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"e3b2217a-413a-4e16-8f1f-d77595a3afc5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"39f0c2f4-96fc-404e-b9ca-64eb0825582f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"82ca685a-b7ef-4645-a8fa-e696a1362442","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":"567c42e7-ff16-47c6-81fa-2534a53c2d0e","block_type":"box","text":"®","page_number":134,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"cfa958ed-474c-4091-b732-94084b119ad2","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":134,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"1387ac27-fc71-4919-8cbc-c38fcb1573c5","block_type":"box","text":"II-103","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"010dafe5-0603-47cf-b018-5d78e27d4eab","block_type":"box","text":"NM1026U-5985614-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b03e580f-c0e3-4bb3-83d1-b33189587111","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":"7430d9fd-c3ec-4e7d-882f-1f024df5dc70","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":"737ba7e1-44f2-43d4-b847-676c807168a6","block_type":"box","text":"approved by the Distributor to offer Fund 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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":"a930d9c6-906d-46c5-8ca3-f2683071e7a9","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":"5fa3f824-2ce2-4ad2-98fb-3ba77514b19d","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":"efb48eb5-5ddf-4392-8d4a-be2d312c16fe","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":"ba57a881-f019-4a61-b5ef-502b5cbe7752","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":135,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"471253ad-09ab-44d5-befa-9d6adfcda765","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":"63e21b6c-54fb-4fa3-8405-0779ac640d31","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":"fc5be6ef-4ca7-4c70-9b79-c82afe98516c","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":135,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"75c31b87-b80e-49ff-ba52-0a943e01743d","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). 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In addition, a sales charge waiver may be available for","page_number":135,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"b936c4f7-4871-428a-946b-dfc2a644408a","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":"b6b1a34d-650d-48c8-83e5-58083c0d3d35","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":"d8487fac-6e14-44f9-a83d-9ed40fa1897d","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":"be91d3b6-9751-4677-b88d-19c70858fded","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":"8777d129-9bc4-4127-843f-f421b42848de","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":"ab577e63-df79-472f-9747-36c34abf91a2","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":135,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"48add30d-08a7-4b77-9872-43e2d6804910","block_type":"box","text":"Income Por tfolio 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":"b9a0517e-a559-4e89-9f3f-3631cf3a49d7","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":"6253e648-df7d-4a41-b81e-18294c714e36","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":135,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"609ea8f7-dacb-467e-bba2-f0860d443cc1","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":135,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"abeb5644-377a-4094-b30c-1245352725be","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":135,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"203cec9e-6734-4288-8b00-bc9f0fb780ce","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":135,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"36e9d609-2e42-4cc4-a100-d375c96c63e0","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":"76f00866-87cb-4d40-8896-180eb112b988","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":135,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"bae4f009-63ed-48a1-84f0-9a7e165adf80","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":135,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"d6fb9cd7-dadf-4df3-9e41-7e0bc6091b9f","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":"26c99f38-58e2-409c-b9e2-348ab759cf23","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":"e7f34b15-c2fc-4733-ab16-3edd6bbb689a","block_type":"box","text":"shor ter 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":"84b7f1c9-d6a5-49d0-b112-8f5187bd2880","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":135,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"9f1797ca-cc2d-40ab-9a45-63abf907df0b","block_type":"box","text":"Funds and BlackRock Shor t 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":"ca0991db-22e9-4cc3-89a9-d5ed6bf4766d","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":135,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"08b852b4-1388-4be4-8240-7b69c51a974e","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":135,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"6da828f3-3174-4036-84a1-063e49afcb50","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":135,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"0ae09780-1e72-408f-8a27-ba58d367227d","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":"b2432917-9f38-4249-bd81-84e86fbf4622","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":135,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"e0a8270d-9906-4bf3-9a93-ac5eb62a3e94","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":135,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"bed8c93c-26ce-4278-85ba-4bf2f18d45db","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":135,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"0af90ec8-149d-4fc5-9fd3-205e8bed688a","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":"253e0faa-d662-4018-8293-8f4c3b205e18","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":135,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"424e9b23-5416-4c3c-9ae2-0350a2a155e9","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":"ad16f9e6-70e8-40fc-99ec-e486be34a0b5","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":135,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"60570147-f0fd-4adc-b77e-8a8edc17a7dc","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":"87826f98-082f-4fc1-b1de-c27f0ef5746e","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":"def580a3-428c-4d17-bcaa-5e15a24bba74","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":"6c3405b4-8b6c-42c0-b892-c89696d015ab","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":135,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"82fd13bd-f9b1-45a6-969a-e305cb5ef2e8","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":135,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"8a975e25-4c87-4069-b04f-5ef2e66482a3","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":"3dd44024-5547-4526-b73f-eb92c569a6e2","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":"baaad44e-388f-4473-b19a-a9cc197415c2","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":135,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"6f7b34d1-1194-4060-a7fe-4099476e0509","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":"c1e048ee-97e7-4dbe-9e1b-f3bcb09ce416","block_type":"box","text":"II-104","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"506cf5ec-135f-4bc7-8a7f-7469a2348ae0","block_type":"box","text":"NM1026U-5985614-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f18206f1-acd8-4390-a975-86c5af124940","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":"e800ad54-34c0-42fc-9c8f-e8188583ad1e","block_type":"box","text":"the absolute discretion of a Fund.","page_number":136,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"dc4b0314-e64c-40b3-a82e-9754ad6cc24f","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":136,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"df5f6584-275a-4ff9-a7fb-98eaba58d0b2","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":"96e0744d-3194-45f8-ac37-803020f0b5a2","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":136,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"b7fac84b-c682-428d-99e5-703878439ce3","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":"64ba69ee-0606-4d4a-af32-c43290544185","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":"6324589d-c8c2-4f0b-9ff8-e8797aecc831","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":136,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"7cef1059-a220-4112-afec-f9c4744d8020","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":136,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"0a767e43-08b0-4b5a-9e0c-9d3c946d7bc9","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":136,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"a96d45cd-4f76-4d43-a27d-6067f6ec4aba","block_type":"box","text":"Oppor tunities 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":"33847369-f3dd-4dc0-881d-c2006ae38aae","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":"97996fcb-265b-464b-8cbf-90e3855dbf76","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":136,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"aa5a0719-8c75-49d4-9709-ee1596d15aa2","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":136,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"cf1f698e-af4b-4f69-8186-91860bacfa4e","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":"760989d7-e863-4411-ba9d-65f6ff744cfb","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":136,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"55a2fe1b-d1b1-4e0c-a81b-09639aa2a28f","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":"7bb245c5-99b9-4215-81b4-095478d9cc86","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":"3d5fdd54-84c4-4013-8a13-2febf69771ff","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":"96013ecb-c217-40f0-ae62-a7496f918661","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":136,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"b5ad9dc2-376b-4b71-95a1-9502f8a8d6d0","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":"edbe3090-8e5a-4f15-a2e8-99de0dac4429","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":"4424985a-8d9e-434b-a6c8-662d08e151ce","block_type":"box","text":"public or private investment company.","page_number":136,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"79be545d-4088-4704-badc-71a6cb81e63b","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":136,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"118678fa-6f84-4219-8751-e62486ddcb19","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":"15293d06-26db-47bd-b0c5-b7174737a39e","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":136,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"1cd8ff98-a334-41c8-85a4-da5eddf0998d","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":"2c09464a-f705-410e-b597-2a447cc6be27","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":136,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"7bac751b-3d62-4225-9701-9b30f0095f15","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":136,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"904758df-236d-4a03-9e5d-0753834e04e7","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":"9b08260a-b04f-4ac0-9350-9d75cfc0ed8f","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":"b9b43bee-3458-42ec-9e8a-bae13a610792","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":"3731fa0a-1ee7-4371-8a2d-3feece98178d","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":"98461e40-96f1-4372-b745-f596ee783b26","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":"ddaa760f-fafb-476d-a51c-53858e024a54","block_type":"box","text":"intermediary associated with the account.","page_number":136,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"c24a53f9-27a9-4fd3-a393-64a142d36fec","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":"3c897780-0f61-451e-901e-a2aef56c30fb","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":136,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"d7c3af83-3af0-45f7-9c41-76798fce6856","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":"ec1c5073-8de0-4cbc-9856-dc9a2c9c4f4d","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":"55d8cb84-3e97-4412-8104-2b65e8e2748b","block_type":"box","text":"CDSC shares.","page_number":136,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"14d1232b-1aa4-42db-a556-0d06f6eec027","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":"831b6e39-b60a-4f79-9368-62bef66a722a","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":"d8788a50-fc59-4045-a2d3-8f202c24dc99","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":"fb33bcbd-f21d-41b8-8dd8-f26f4c6ce885","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":"1773ee60-9ee7-4d7e-956e-d8a524b49cce","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":"c818b3e4-d178-4273-9ea5-44c38af29677","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":"2cf8f1e3-2021-4bb3-aced-3e1ecd63756a","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":"3041f7d4-bb01-499b-abdf-fae968a41f73","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":"fbb3e736-c279-485c-81dc-346cd6688ac5","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":"224806ce-4a35-478d-bc66-a6fe8d936cde","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":"339d514a-eaef-4192-81b8-766e9b17981b","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":136,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"f8f37a70-cdd1-4ac8-8745-ade052811fe6","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":"7a4954d1-1e88-4caa-9e0c-9f4ca3826890","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":"779896da-a5a0-40cb-99be-7e80c7f81d8f","block_type":"box","text":"II-105","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"80f04d97-726e-4432-a74c-a253e30d6b3e","block_type":"box","text":"NM1026U-5985614-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"575cd922-e956-4dbd-8773-fca8186f997d","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":"5e198cce-272c-4ca3-80fa-4882b70e97e2","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":"8c8a7d0f-96ce-45ab-baec-ee3a52d1748b","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":"5d2c2b96-37d1-40ba-8a18-368e4596a650","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":137,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"713bb74e-b8fc-4d94-8b5d-dbf2d0b94f2f","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":"86435a9b-b306-4e80-b7df-ba71c08bb064","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":137,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"9d1d91a5-ea06-45c2-ae0c-5518cfb91124","block_type":"box","text":"Investor A Shares.","page_number":137,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"2f309a74-55d8-458d-a165-dbcb7b810a05","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":"9ff389b8-dee4-4262-b367-80e90d10678e","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":"5da952a4-9179-4903-8caf-a35278d0f6cf","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":137,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"d52e1a98-d725-4a70-8eca-a051d98ce414","block_type":"box","text":"Cer tain 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":"4e1c0949-0dc7-41b1-b2d4-eaa223ba439d","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":"d1b9d1d1-6639-4131-a327-40d165173123","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":"2af4d505-c3af-4368-af46-4b46f2966de2","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":"14db8605-82af-4629-8698-f03b4406cdfe","block_type":"box","text":"cer tain 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":"af974ce9-28c0-46bf-ba9e-4d0152c0f75b","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":"1c73f461-5aa5-4820-976b-50e208510fbf","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":137,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"b921a8fd-1b70-4b42-88bd-349b668fafb7","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":"8630dbec-d7af-4c01-aad2-2d6bc3835c34","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":"6331c196-2748-45bb-9b10-a6c4371a86ef","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":"d055b9ca-0b44-4400-af75-3f04f1217694","block_type":"box","text":"any such shares will conver t 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":"4636e535-d05c-4b73-879b-0f317996c4e0","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":"6d04a80d-d757-4ac7-a655-dbb5c5a49e55","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":137,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"a62341b7-8627-4467-bab4-aedbe3df6db9","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":"5fe5a414-1b66-47f7-a2c1-502d6323b258","block_type":"box","text":"“Investor C Conversions”).","page_number":137,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"633b0421-c204-4b26-98c8-2b1d67f222ce","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":"60e76b67-ad9b-4cb7-ad8c-a63449e973bb","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":"3800eded-2b8b-410b-aea6-0c0106e1a29a","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":"589c19e1-8051-453a-8ee6-246761ff8c23","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":"e4fbccc2-850e-418d-93a5-230ffeed20e3","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":137,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"cea85392-ab82-487b-ac6b-0bb16f1817e8","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":"44961058-9129-486c-a7d6-2a31c41c0038","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":137,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"bcb60429-653b-4b12-a33d-d57687d4c20b","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":137,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"b1969ace-c01d-4d42-8032-f0f22db3bd30","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":"c1e8994a-0b08-48dc-a059-94b78d203983","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":"6fbf4998-996c-4ab3-81cd-668640d35b29","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":"2f58dfd8-11e6-484b-b447-e13e74d6ad1f","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":"3026fc9d-a8df-4d25-bb8b-a3f23651a0c8","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":"69dec5b9-1f54-4b18-9b8d-1ebc371cb58a","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":"96ce3df3-119d-495f-bc19-ea4edd3fe55b","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":"55aafd5e-f8c8-43cf-80cd-e0c0903b4593","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":"80e74857-4351-40fc-87b0-873cafaf95ce","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":"b9e7b218-fa5a-49a5-a8f3-b7daf6808f86","block_type":"box","text":"redemption.","page_number":137,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"88895979-5440-49eb-a24f-232eff5c10df","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"a73ebb6e-32b0-4fa0-99db-7778c1c23530","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":"1db19a68-acd9-443c-b0ed-0e91217a6990","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":"6c7418f0-aed8-45dc-9506-3066d5822be6","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":"ac6f8356-6334-42d4-be7f-198b5de8d1aa","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":137,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"bfa0d77a-5fb3-4874-a07f-6b9c394888df","block_type":"box","text":"cer tain 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":"34b1be56-cc2b-4cbf-9199-985a9ce82272","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":"1ddd245f-0d8d-4292-8a35-a2124b4731d5","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":137,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"014b1147-6f6c-4ec9-bcfc-11c9705657cd","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":"960c4d3d-7c39-4f6d-8fd2-5d5c3ab100c7","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":"cce18274-4181-434c-8d0a-63bf30d0fedd","block_type":"box","text":"II-106","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ec0295a6-6fb0-42da-94e4-3b82fb2cba35","block_type":"box","text":"NM1026U-5985614-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5b88d66f-cce4-425d-bd5c-7a505f5f88f0","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":"39cf8506-61e0-47a0-8af0-771bae8445e7","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":"10ddd6e0-9956-45a1-bb95-a4d2bc5bf571","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":"6df42a4d-9dbf-4264-b9c0-2cdef45f879d","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":"293b0e31-6313-4d8b-a33d-3bf66c651f76","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":"81c1fe4a-6b4c-4f94-befd-e735d037d26e","block_type":"box","text":"limitations set for th 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":"34050fe7-6191-49eb-a0c4-c0283d1b9b73","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":"d7e65335-0577-4d9a-8f3b-4cc9bc6da114","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":"934671f0-d1ea-4416-ba1d-c7433ec37990","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":"193a7227-62af-40b6-97f8-3764d4c3520e","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":138,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"7e42a347-bc69-4a34-b709-cf2a8175d4b8","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":"ee65d6a8-9d49-4fb2-aae4-1e88dd821b3a","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":"071cc262-c0e8-44bf-ac77-338bd2609ea5","block_type":"box","text":"Class R Shares","page_number":138,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"6d7ced4b-78c9-49ea-a529-98c7cc1b04c8","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":138,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"8066a631-bffb-49a8-bdfd-10610a69c363","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":138,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"59f7fafc-116c-4987-8c34-89ce8026b5ac","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":"55d2637a-5e37-407e-8e8a-cf00a4905b8a","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":138,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"83fbe4a2-e16b-4c87-9df7-81cb43c7e7b6","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":138,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"b886e097-be9f-4e77-bf15-d57bfb72cc77","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":"3523a4cc-df0b-4deb-ab18-999bd6af0b61","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":"04c8656a-ee0b-463a-bfaf-2765d37b3cbe","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":"f2636619-1842-4a50-b6a3-b915c56bd3cb","block_type":"box","text":"Class K Shares","page_number":138,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"122d00c5-710a-430e-9555-3420855cb42d","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":138,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"ab9c9c86-26b7-4ee7-a431-c7b653bb34f8","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":138,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"b5e5bbd9-a153-4d65-9ebe-60424160d937","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":"bf24b292-d219-40de-b845-5b5d896020de","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":"c03b96d9-8abb-436c-b021-f77f400b08ed","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":"473925f9-9f09-449e-8bd3-022a088515f2","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":"164aeef1-0abd-4a10-8ad5-baa033b4475e","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":"1831a834-cdcc-4e31-9113-f29a554ac232","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":"748349cf-1e53-466e-9f02-5c33e27ec500","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":"a1dbc5db-32c8-4753-a56d-82df150bfce7","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":"9b2fccf8-278a-46db-899d-75326448ee1b","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":"24e80233-190a-449c-b32f-af1d45e59070","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":"3df9c8e4-c6c1-49fe-a526-0f4675f9848e","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":"a57a750d-ca3e-4146-a4b2-91c8897a906e","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":"cea4f202-d39f-4801-a04b-9dd9901f6839","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":"fd205efa-10b8-4206-8ca1-c3467e6168fa","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":"8378eb02-16e0-4b03-bceb-2d64f9591e80","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":"283b59b0-6f29-453b-b7e6-c18ca721ca78","block_type":"box","text":"distribution and marketing agreement.","page_number":138,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"8dbd41ab-bd31-4af4-83ef-ad85088cb7f4","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":"6f4f9169-45c4-46ad-8a21-109c984e92ac","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":"94348396-d305-4386-a44c-3668b3a737fc","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":138,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"534eab3a-cdb4-4478-bc00-8df280cdc21a","block_type":"box","text":"Class G Shares","page_number":138,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"2ebe5abd-ef7a-43c1-9148-c2af21f2c71b","block_type":"box","text":"Cer tain 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":"fd9c820c-fe46-49ea-ac74-c5db7909e732","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":"07f42cf6-0614-4fc1-b211-7dd9394e8f89","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":"533be3c3-4530-48c6-a433-b6f0fc4d420e","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":"41b37a5c-62d9-43a5-ba91-b35e9e6d37f2","block_type":"box","text":"eligibility requirements.","page_number":138,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"c3ce0797-7ac5-4405-b3e4-b4925b0024b6","block_type":"box","text":"II-107","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb59f7ec-ba19-4613-b7ac-24baddc1d864","block_type":"box","text":"NM1026U-5985614-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b3b64cec-c4a0-4c29-bd24-094b90422727","block_type":"box","text":"Service Shares","page_number":139,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"2c52046a-88e0-4384-8b0c-7a37e52143f6","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":139,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"1074bbe2-fbeb-4c47-b185-a884c4d1a16e","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":139,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"3607c436-7c5b-4922-8c1b-8dd1273b17dd","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":"16b4c1b9-de84-4f05-bba5-ef84bbfd2565","block_type":"box","text":"®","page_number":139,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"043bd3b2-2fde-4f66-818c-29ff3a189b82","block_type":"box","text":"Fund in 1996; and","page_number":139,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"17070493-05bb-47a2-bc72-464240ffd677","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":139,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"4c32d916-adff-46ce-8e64-bb4005abf48c","block_type":"box","text":"SM","page_number":139,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"dabfdbed-ede6-46ad-ad60-db0d6a775f80","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":"b8f22404-afcb-4e69-b069-f04a8932f72e","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":139,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"035e074a-c677-435c-a2ce-4795a7c7e2be","block_type":"box","text":"BlackRock Shares","page_number":139,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"1eb79b0c-d486-4ae6-b677-394241866bad","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":139,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"93898401-149b-4af9-8cfb-aaa32f039900","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":139,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"5bd04875-b27b-4d40-b5bf-555f1217e669","block_type":"box","text":"fee-based programs.","page_number":139,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"f5bd4361-8eea-4cfd-99af-5cdfedf6aea0","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":139,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"cf16ec3d-e110-4209-b4f6-08f9d1245a5b","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":"e83722b6-7e43-4728-811d-045e32dbc46a","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":139,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"50fa6d69-fdd0-4af1-972a-fb5d5bbf3081","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":139,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"d10e6a37-446f-476b-91ee-0a253a33ff5e","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":"9fbd5d2f-23f3-4482-867e-f200a841aced","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":139,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"543b5f37-0bf8-40a8-b72f-1387c7e4ae32","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":139,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"2f485cbc-c8ee-4d8f-ad4e-6d1bb8b29c04","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":"be4ee6ca-37c2-4051-b537-c0c5cfc56813","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":"77b53cea-ed74-4953-bfc6-714696f5f324","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":139,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"0876c871-fb90-4d25-8ff7-cfbbec234168","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":139,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"6e94b4b2-b0a3-4954-9018-18c455b2ba62","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":"4bbc28cb-8bac-4da9-9f51-c87c7e7bcf0b","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":"409fc037-0d2c-4839-8947-2c6652a262fc","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":"830a01f3-5a65-4c06-8342-3054a2d433eb","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":"3fa43b1d-815e-4ad6-8d5a-553ab747658f","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":139,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"18311f6e-f242-4725-9aaf-320346f76370","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":"2921f20d-5561-4bdc-a513-5556d3b5045e","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":"527b0870-7b2a-4dbd-bc8b-f40b7bcd4daa","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":"943bd253-26f8-4c4d-af07-b1375cda13e7","block_type":"box","text":"The suppor t 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":"699f956b-0d52-4573-932f-cfe483eed2d8","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":"0b524d6e-5eee-446a-a83a-9e06c159dfbb","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":139,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"30823027-fce5-42be-916c-f4e0b30689ce","block_type":"box","text":"per taining 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":"24cd3bbc-45ca-4c27-b9d3-d72fd5d7526e","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":"f2d06f9a-1199-4ed5-b22f-b9c2ab2578f9","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":"9beaea3f-820d-4618-a736-a1a03b6b811c","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":"93c0f01d-1b85-4a76-b93b-17263e988ef0","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":"deb04ea3-78d9-48ff-9131-7d0a30d7e1c6","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":"ef2e81c8-ee5a-45bb-b0d8-27b8e5bec487","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":"96be68d1-59b1-4e66-8d15-1ba289627b36","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":"045d7532-266e-4c73-a27b-58eb9376b369","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":139,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"0812dac3-76c5-4e25-95c3-5aaa562f1513","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":"15f4cc40-642e-449a-a60a-2f75b17370d2","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":"337f15db-feb0-410b-8a42-1b9ad9e8b3dd","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":"5965f6e1-ed68-488a-b52d-2cedb5af78c0","block_type":"box","text":"expenses, adver tising, 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":"ce0f7abe-794c-4d91-9d9e-b6d8abc541cf","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":"2156878d-5acc-493a-88df-8abe010fdff0","block_type":"box","text":"compensation for selling different classes of shares.","page_number":139,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"0123c107-4d29-4b0d-9582-253ee1ba7f06","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":"46c16104-7125-40eb-8ff5-7e5b5c052d3b","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":"e92939b6-1d42-4c44-b5c6-20b262344948","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":"5b630f95-b4da-4173-adc2-5c9c6f5b1e11","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":"1d183293-99e1-442e-98fa-25869bedc2a2","block_type":"box","text":"II-108","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"09ceaf31-a94e-457f-9fa0-783cccd80fe0","block_type":"box","text":"NM1026U-5985614-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"43952539-38d8-416c-a693-d71c83737cee","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":140,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"eba86e95-0e51-4c7b-9bf0-92c61924ae07","block_type":"box","text":"repor ts 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":"7fb58226-015e-4f20-92bb-45d7eece0f07","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":"6cb65477-53cc-491e-a2e2-98f9c1c4b0b4","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":"e474817f-dfba-4313-acd2-bb29f558d52e","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":"8916c085-bdd4-495f-9425-85bcd3ccc3fd","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":"755a28d9-6335-4ce8-b7ac-befe1354b1a5","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":"46604020-8e88-4a16-8a6c-6faac5253a19","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":"3928ec57-83e7-4145-8ea7-7f5051bd13b1","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":"34458532-055c-45ed-a9f4-5607ac39207e","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":"2241961b-7fdf-45bd-97e9-fa2a08855698","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":"f1d59dc7-8a39-40ca-a1d0-592e6ccbed0b","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":"f3348d8d-62e9-4764-949f-b1f7de385b4f","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":"e9569002-bb58-4f74-a582-175ff862f3bf","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":140,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"d1bf0e2e-24f7-424c-9f25-59e147455a6a","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":140,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"132dea4b-1f4b-4d98-949b-d062ada33b4e","block_type":"box","text":"easily accessible place.","page_number":140,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"c36bb77b-a2ce-45c0-bc3a-eb1e5d599f84","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":"66fe3f22-7405-4143-a874-44f9b47fb7d5","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":"f95c038c-0fad-4fe9-bfaf-bdbf81f16022","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":140,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"6fb7e65d-308c-4078-9b9f-d56b32345467","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":"cbd64e44-486c-421e-980e-5a8a112475f6","block_type":"box","text":"fiscal year.","page_number":140,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"9ac0bfc6-d458-4f83-b43e-8a8f1416bf89","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":"04566449-2375-497e-9d89-928e6bf5937d","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":"04f406b4-75ce-4d14-a378-04c9cf4e8644","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":140,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"8616d169-12d9-472e-bd7e-2348805a8132","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":"1a92a31f-6cc9-4ca2-a649-e1a499b2fc98","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":"1440bab4-daf8-4bf8-858b-5c9723f94fed","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":"c07ae31b-9953-476e-ac0f-26c749676923","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":"e7c40fb9-7e82-4130-974c-5d651ce59fc0","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":"b9f52999-e7df-4f40-8289-bdb6d3f10b67","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":"85e13185-43d7-400f-b7f7-452a3812bdf0","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":140,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"a2052dc9-689c-46a5-b315-e8c235771426","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":"2ac41e30-08e6-4a4b-bbb0-d68c1f47c80d","block_type":"box","text":"and Class R Shares of your Fund.","page_number":140,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"a072a637-5dad-48d2-972f-d869551c8c56","block_type":"box","text":"Other Payments by the Fund","page_number":140,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"20a835ca-b745-46aa-870e-14ae6572ba99","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":"338ad479-fb01-449c-9669-c96567504320","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":"e9085487-831b-4cd7-8842-b9bf2222b813","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":"3ab16511-026f-4ea4-9452-c60a9ae63be4","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":"c8333968-7d59-40b4-aeb0-e25cff2751e9","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":"069dd8c9-0838-4bf1-a11a-4cbab95b918c","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":"69d306f4-ce4b-4455-af4e-956864a1a172","block_type":"box","text":"of these payments may be substantial.","page_number":140,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"52fe14a9-bd96-456d-a804-45c380fdb519","block_type":"box","text":"Additional Payments by BlackRock","page_number":140,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"ab1b3f61-2deb-4712-8109-20c975859c41","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":"57c1c0f8-d1b8-4e7d-8bc4-dda2a42ceb63","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":"7ad710fa-feef-4db8-9494-b7e84d8e4196","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":140,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"ce9026e8-7523-487a-b3ef-75647b396263","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":140,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"13fafdef-7bb9-4dad-a844-c87e5009eb1a","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":"b6371a57-69d8-42ef-844e-164d5201db58","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":"be961f27-93ab-483b-8947-fa52afeafe1c","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":"64ac34fb-38a3-44f5-9eea-2ed48c42ff7e","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":"a97ae272-8fe0-4af1-af6b-a18681a83842","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":"11e77d20-6cff-470c-b4ea-7ba98cffcb51","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":"ff3d5ab5-6a0f-4be8-9e78-486b12088204","block_type":"box","text":"II-109","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"17962b41-0ee9-489e-b566-686cadaa099b","block_type":"box","text":"NM1026U-5985614-140/232","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ab9d9ede-15b1-4ae2-895e-31b699171446","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":"a5675280-856f-48a1-a961-5fdcf33b6a17","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":"79ced68a-8a0b-47cb-a1b7-64817597cad9","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":141,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"a3843231-6c06-467a-a3ad-c3985eb7b758","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":"20442aa7-7598-436d-b2bc-d4abe26aa44d","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":"939f6d17-25bc-4f76-9de4-a205685b3d80","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":"60dfebf9-5bde-4317-8606-6175a49833ba","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":"8b72a572-99a3-4740-b498-38e3d089c22c","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":"1948511f-30d5-4d13-a428-0c1dbcd99e8b","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":"1eaccf85-0d26-4899-ab69-8d15246d5a26","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":"fb4c817d-e625-4eba-863e-8b90e06722b0","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":"700187f1-1a63-49c4-b941-8c2f52eed49a","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":"b48dbf07-28b1-4e68-b9e7-ab3851ebd99f","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":"81d51610-82db-4ce7-a2b5-0045860498a7","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":"4e46300b-1347-42c6-a887-183000041dd4","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":141,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"2a8d05fc-9928-467c-9f9d-eebe6a999b5d","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":141,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"a6efa8b9-2642-4463-b767-1d62919d9a82","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":"e0694e5a-0174-4e57-b3a9-ad08f2af3281","block_type":"box","text":"cer tain 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":"e421cdf7-955c-41a5-8cd3-3177f98397e9","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":"3365a6d8-38b6-40e0-bce2-f9207437e838","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":"5cb77707-dbe5-4460-aadb-5e142d0dd8c7","block_type":"box","text":"Funds.","page_number":141,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"fb04c06d-b453-403e-a245-61b47d7b8dfc","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":141,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"981e40dd-ac66-461d-b043-f0eda5033479","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":141,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"af2be3fe-3a87-43fa-a9d3-0fc51953250a","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":141,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"a7339320-1ffd-4bde-85b0-0d4896c440f2","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":141,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"f0bdfbe1-55be-440f-b178-a28b5a9de387","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":141,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"d84ec812-b63b-4746-ae05-a4b30e54c696","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":141,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"df7c572d-7f5f-43a9-a095-4d4bff504a2d","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":141,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"c8fc46e4-cf31-41d4-b7f4-ab42d4a71539","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":141,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"16c4e56c-4201-4268-8123-03ae62f71ec7","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":141,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"1d0aca5c-12bb-48e0-b205-547c4a9ee0ce","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":141,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"edeb4ed4-e926-4868-a0a7-c8c103f0d032","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":141,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"9a7c7370-800c-486f-afa3-d28782a091f8","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":141,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"a4392da6-9b0e-4c93-b9a4-77fdd016ff89","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":"9c1215db-807d-4fe2-814b-75981aa2c54e","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":"f9a14eaa-3228-480d-a3cf-f6fdb4fb3951","block_type":"box","text":"B. Shareholder Services","page_number":141,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"6eacb19c-3894-477a-92e5-9bdea15bb91b","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":141,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"2bbdde59-c377-42ff-b469-ecec6807ee6a","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":141,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"34a69db9-fb05-4748-b1c7-a543b5f7b1d0","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":141,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"4eb66251-399d-449f-aa00-fe3c22ff50e9","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":141,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"51d28ccd-3318-4130-89ed-f0ea54a9258f","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":141,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"4896314d-f99c-4f0a-b8db-3949ea8d6f9d","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":141,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"cd7d2a20-1770-40c9-b7c3-7b98baa8251d","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":141,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"3505b1aa-997d-46a4-bc07-3f9d85379f30","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":141,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"0df2544b-0227-4af2-88d4-2d0e4123f752","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":141,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"1d04f8b8-09cf-46e1-88da-b8663fa06ecf","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":141,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"7004651b-f787-4f61-9b83-cfb12aee6605","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":141,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"d8f4103d-5ef5-4768-bf01-d762440b8107","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":141,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"aa3d436b-9dbf-4fe6-87ba-8c27b10aadd6","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":141,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"115fa068-f94e-49fa-bc4b-28072dc70fe9","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":141,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"aa7cdb23-5ad8-4edd-8f15-9a09cb93c0f1","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":141,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"0ae2781e-3c8e-48f7-be20-614cb1779172","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":141,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"b1a377d4-48ac-46ea-a01b-890f1c5c8c1d","block_type":"box","text":"II-110","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cfbe4e58-3c5f-4538-821e-0a3886174221","block_type":"box","text":"NM1026U-5985614-141/232","page_number":141,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"02fccf83-6ecd-48f5-8aa9-1f32302479a0","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":142,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"a121e972-89f3-4cd9-8fb9-d58923506753","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":142,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"faf92515-58e3-4068-9064-db553c93955c","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":142,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"60416c20-d34c-4c13-999e-a3f1e0dd21b6","block_type":"box","text":"&Par tners","page_number":142,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"b1d89cc8-365d-469c-9a47-84dfe0198ab3","block_type":"box","text":"AccuTech Systems Corporation","page_number":142,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"a63811a0-49e3-476e-8db7-7e72e39c5c1c","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":142,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"0e6f7a3b-b9ea-4f4e-9a7f-f6fd450aa8b7","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":142,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"95104001-e4b6-4594-a1f2-61dd36441b31","block_type":"box","text":"Advisor Group, 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Each","page_number":145,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"a7193656-d226-46d1-9724-8c6a4ccce550","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":"d275fd71-092b-4a5e-b136-60398d77c3a7","block_type":"box","text":"II-114","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3b670c0d-5755-48b2-bb7f-3e7527b5996c","block_type":"box","text":"NM1026U-5985614-145/232","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4cff2fa5-528f-42a5-8df5-72289ff4963d","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":"575e13c2-3eaa-4fa8-a844-6bc1f5b8035c","block_type":"box","text":"for any shareholder of the Fund.","page_number":146,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"7bce3f49-17e5-4de9-ae47-e75d7f27f44b","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":"f25405db-aaf2-482f-ada4-5499818d077f","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":"61662565-a6bb-4c58-b9c9-e5688c5ad5f9","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":146,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"f31cc63b-e55e-4291-a0a5-e467b41a1e30","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":"7ea9346f-8f78-4a6c-ade6-9d0dc550d5fb","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":"e002e356-d85b-4eec-a311-d441bcfb6bd6","block_type":"box","text":"redemption.","page_number":146,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"82213052-bc12-46e9-9fc4-03579e1f61f9","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":"507981af-75a6-497b-b171-b0ca052ef8f0","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":"9ac4ebe0-0da8-4fcc-97dc-82e0d8d15b17","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":"72cb9894-80a6-488e-a3f9-0bf28e08f668","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":146,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"d30073f4-b0d7-4853-896c-4e29b6bb33c3","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":"833b5530-f63e-4959-a308-35b74ff123a9","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":"86a69649-f5d7-40f5-af0f-1fec4b1f7bb6","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":"80e9255b-98a8-4c41-ab0f-e1d366ceb340","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":"17a094a4-aef6-4e3d-b027-2954358f944b","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":"4545a0f6-0607-4d75-b55c-9cbec6bab8d5","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":"9662ab0d-1ee5-44f7-85a9-f1c469ac642d","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":"c5cb87b7-8739-44f3-b11d-d75d6d90df23","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":"b7d1db7c-16e5-4664-8e3b-9f19eda4f861","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":"9afd3dc4-e96a-4794-a51d-c91f77c29d06","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":"1dbe8790-9dc8-4e0e-a47e-615c7640a8ae","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":"5dc36036-50a5-4367-b2d0-d22e3089fa3e","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":146,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"fed844e1-ff34-4dc8-91f1-280985e4fd6f","block_type":"box","text":"Redemption","page_number":146,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"3fa16016-8e79-44cf-a098-88fcf872fdea","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":"b351437c-f9b8-4c04-9504-aa44b21a719a","block_type":"box","text":"Redeem by Telephone:","page_number":146,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"45358f7b-2035-4f35-885a-4b888dc938ee","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":"2667d699-0767-4085-8ec1-7d765d5672e3","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":146,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"4cc73af7-fd70-41ab-8a3f-9bfb782be472","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":"a391bdd5-5894-485e-814d-ee6c84e45a9c","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":146,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"a6f76deb-67c6-4bb8-a047-358f54aadcc5","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":"9063af80-a5e4-474a-9320-0f1af7022513","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":"24962a53-9cd2-479f-a731-ff52615e572a","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":"48e2c278-eb0a-48ce-989c-cede9b1ea824","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":146,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"b3e83adc-8fc4-4e66-94b3-d5ec0ee474af","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":"7549ae7a-d0fe-47fb-8771-1cd7c153a58b","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":"9d45b3ce-980b-46fc-8425-8d9a5aacc59f","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":"46d21ea7-4d4a-4acd-a3f5-b1ea20e096a1","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":"2e163564-3266-4fc8-a0be-c309c27dd453","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":146,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"b101622a-c5db-4bee-8004-2a51a585e8e3","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":"5ecddf1c-0f6f-4a7a-ae09-be8999a6b824","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":"b0d44f68-17a5-448c-9655-ff5038fc3c5e","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":"ddae04e9-936e-40d6-88ea-5c7ffc2dd8a6","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":146,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"43da903c-2b39-4071-ac35-bb8b991476ba","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":"7b74ea24-f8ab-4293-9dd1-13f3195946af","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":"16e11b4b-0ce0-439f-ac6e-e08185d1ff91","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":"c1c155fb-741d-45ae-9382-a2eeb5e2c00b","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":"4dadc7e1-66f6-4d7f-b818-cc925933de16","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":"fcf0fafc-c67d-4a01-8dea-c8ed9eecaaba","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":"63b6eef9-913e-4d12-8054-3aec8450d115","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":146,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"15827be0-2e7e-43db-8caa-ffeeef9db023","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":"807682b3-d10b-4a7b-ba83-7996a38770af","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":"4da23958-b62b-4db3-8a3b-0da3d1347ee4","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":"6d23324b-664d-400f-bd60-4bf667ffaa3a","block_type":"box","text":"II-115","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ec818ccf-4152-440b-8f4c-eeb0b94af5a7","block_type":"box","text":"NM1026U-5985614-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0c789b9-686a-43d3-a117-21d57ceb8121","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":"35c04b64-839e-4b10-90cf-a0409c64b246","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":"ba13b397-3cb6-4de1-a88d-dcd4ca960274","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":"42bae1f4-da56-49a8-8565-5b7438eb24ba","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":"4f3dde2d-8262-430b-9ea8-8cde935b745f","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":"8f7b8137-3bf7-4015-830f-189a67090138","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":"2c292eb3-c105-4eed-b263-d504255380a1","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":"dcfb30dd-40da-427e-9edb-96fef7f6e49d","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":"69cd6f40-70e4-4d56-b47e-2d95785d037d","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":"e1bfd2d5-1aea-4d43-8965-34e224376858","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":"c9d33944-81c0-407f-9222-6815655ac962","block_type":"box","text":"Redeem by VRU:","page_number":147,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"b9ee8932-6391-4014-ad93-641bf201e45e","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":"5415ba44-0d85-44b9-aa18-572fa675bf34","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":"8fb9d646-38b2-4404-a244-dfa6284350f5","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":"bb5a54b3-e4c9-4f9b-8774-e2496a929f60","block_type":"box","text":"Redeem by Internet:","page_number":147,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"1a7e5677-4bc1-4652-9d79-b2a2f306b36e","block_type":"box","text":"Cer tain 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":"9e155c05-496b-4b70-b562-2699bd62e5bd","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":"38107302-1fea-4426-8123-3c67cc8f9d0e","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":"e821e78d-c0ce-4df7-8029-106f33b8911e","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":147,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"1ea50e7a-c59a-4dce-8672-26dc3e612843","block_type":"box","text":"institutional investors.","page_number":147,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"258f425d-4a30-43ef-b5d3-7a71119b4d04","block_type":"box","text":"Redeem in Writing:","page_number":147,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"fac20614-c4a4-4e12-8a78-70a64dd2c08c","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":"d35389ce-6868-48a7-b999-359297c7a46f","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":"ae634df5-54b0-470c-b360-92b6a5e0028e","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":"b149cf21-7184-4ee6-9430-b2d74a3c8110","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":147,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"2bb5f55d-6493-4aad-82b6-69ebfcb19b6d","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":147,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"622fad67-90c5-4e79-bc53-59f9f256c39a","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":147,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"35984cb7-bc8a-47fb-b974-2ef0291a5b8d","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":"5a961c27-1acc-4776-aab5-b9fdd21f5edf","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":"5b773e17-cb41-4e92-8e0d-e32e3e966f14","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":147,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"090b4a5c-d623-4de0-9f7d-36b2465aa02a","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":"370c218b-302e-4831-92e0-ab023f017bdd","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":"5934c679-d461-4c2e-8e4f-0d97eb2353d7","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":"90a09367-7f6e-4b7b-a606-964e6dd70def","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":"5668a180-3c5a-45d1-9c50-af1f8a89edb7","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":"edde0199-3aef-48ce-8caf-4593b03a9f73","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":"837ea8a1-5478-4416-952c-7d4b5bd5501f","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":147,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"72fdf182-c6dc-485e-8d15-0200d182eb03","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":"871a608e-eb77-4791-960e-2065c9c2a9c2","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":"a1e76634-6299-45d2-aba6-f91887e6f1b6","block_type":"box","text":"redeemed by the Fund.","page_number":147,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"d0e25ba0-cede-4409-bb8d-bc79c221673f","block_type":"box","text":"Note on Low Balance Accounts.","page_number":147,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"ca0143a7-428a-4d9f-a214-9375663ee1a0","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":"4a8c0685-166f-4992-81bc-3c5c6d235c67","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":"66dd8e7b-1e16-4fa3-af5b-fd253d7cb3e7","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":"1ad58b70-2dfd-4baf-a9f8-6c8c629be4b8","block_type":"box","text":"for any reason, including market fluctuation.","page_number":147,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"f5f59589-7d98-4ef1-9611-e057eb5bfdb3","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":"14827ffd-c10b-448d-a5e9-031d27add7ec","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":"cbf418e5-169a-436d-a742-8ed6df0cad40","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":"7633b538-c92f-4a71-af6d-6e29f68bf2e3","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":"7c50befb-3593-4fe0-b577-2c7374ce6274","block_type":"box","text":"cer tain 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":"4923f0c8-b8f4-44e2-89ad-8a36a00e87a3","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":"7b59a34f-42a3-486e-9bd5-e77e182da2ba","block_type":"box","text":"Redemptions in Kind:","page_number":147,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"06a6e106-f29b-43a3-aa23-8df67264c5cd","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":"bd3b65ab-77cd-4481-8a43-b7389bc340ef","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":147,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"5d0312a3-4363-4018-b4d4-60fa049d241b","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":"1ae717fe-8384-42c3-a8e8-fe6913146eeb","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":"32f550c4-50ac-4dcf-9473-95f68bdedeaf","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":147,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"f208e604-f9ea-4dd4-a6ba-420e2549f936","block_type":"box","text":"II-116","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fb8754a0-81f3-4d46-960d-71c80f51e337","block_type":"box","text":"NM1026U-5985614-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f1f6ca68-ef94-4c97-a292-9733762e27e7","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":"e87eeee7-836d-4017-935e-8f2d32989b51","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":148,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"01e03a18-d128-4f63-8956-db86ff2c40b6","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":"5042a1cf-1c2d-46c5-99aa-36d2b9cfb6b8","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":"dede4793-fbb8-46de-b6ec-c8a25ff2290d","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":148,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"6fbadf97-cd5a-4a7f-bc7e-d8b7e99ba52a","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":"fa92e5dc-255c-4d4d-99a1-778fb4713e58","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":"5fdfc0ef-809d-45b0-a0e2-f0b6a36a5f25","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":148,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"12d4b2f1-17ce-406e-9dda-b67d7b9895d4","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":148,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"078e8ea2-1907-4343-bc4e-e637948ee57b","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":"0e3567fb-01a1-4195-9a84-6d1025638c5a","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":148,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"dc041db4-5e61-44e1-b1bb-0b24fcae1d7b","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":148,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"6a8ecea8-6053-45aa-be8b-2366db6464ac","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":148,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"6173863b-e54e-40f9-9c58-210848b8b1d3","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":148,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"4c451326-2e11-459a-ac83-5bf4607004af","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":148,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"0c1ee08f-2bce-498e-a9b9-e9c5bde8625d","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":"726442f6-1d09-4939-bee4-522546cf721a","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":"5b8901fe-8e0d-4b8c-af03-fc325b9a274b","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":"74667fb2-ea06-46f5-a579-674c7db0ec7c","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":"3057add7-2288-41c6-9335-a3657259ef5d","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":148,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"280cff98-ed64-4eb4-bd23-cc0d0321ce1a","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":"017cef51-45c9-42d6-8166-929c6cc423aa","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":"6727fb9c-cb7e-4d44-80d2-b315ab305176","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":"05bf7dca-60cd-49ea-b2a4-75f7e3d0dce3","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":"9de8383d-26fc-4d2f-8b5e-f9299f29f266","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":"374bade9-e2ad-45e1-a0f9-108cf82568d6","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":"670ee230-32ba-437c-b80c-2cc68998c867","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":"5449304a-f87e-4cc3-b9eb-a55beef7634b","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":"814c370b-ff23-4d25-b5db-ce7021dfa387","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":148,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"fcb6f489-5905-4d93-b59e-12a2508108fd","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":148,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"4a60508c-5a5c-4c16-9720-3dca0e848763","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":148,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"ffb7a6d8-1e32-4ca5-b908-87024e16904a","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":"3aab8537-088d-42d9-a910-8214bc0406ec","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":"ef03a3a4-a6de-4a40-a3bd-1a560712172a","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":"d53e6e12-a411-420e-ae4d-cf0e01d42f41","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":148,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"4a85964a-90f7-4f65-bbb5-9855cd61af67","block_type":"box","text":"Repurchase","page_number":148,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"4331069c-edfb-4e3d-91a0-cad4eb6620ff","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":"43b29533-c37c-4cd6-8be8-7706da2aa3f5","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":"5f67d89e-8647-4f53-bc8d-7c187ae8f036","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":"7b3f1b8a-ff55-4f36-bc1b-24cd8e5b4c14","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":"4686579d-8b5d-45a8-b5b4-38a47ceb33b9","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":"f68147de-f61b-4ab2-afde-bfe86efe7941","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":"cb68330e-34cc-435f-b663-c1a47bceced3","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":"2f53c2ea-21ca-4eb8-89fb-20530e5c4636","block_type":"box","text":"next business day.","page_number":148,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"ec9e1dd2-8b38-46c7-b0ee-6476533bad6f","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":"75fa1f9f-1945-459f-b412-595d2201677b","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":"d5d99c88-1bb9-4bb2-9331-89a293145466","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":"a59dfe9b-d897-4b81-a15c-d22a5a453f71","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":"d24bc93c-ed82-4410-83ba-dc6e73f189ce","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":"3a037395-b411-4870-85dd-acc66107f327","block_type":"box","text":"redeem shares as set out above.","page_number":148,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"cc75fa90-6da7-452f-bc05-2c429027868d","block_type":"box","text":"II-117","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"10d27936-631d-48dd-a5fb-43047b4e4e4d","block_type":"box","text":"NM1026U-5985614-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f9c99b1a-a924-4fac-9fc1-9618d52e5fbc","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":"b9e7d613-efed-483e-a038-bdbd4b9fa725","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":"7ee5fa82-aa2d-45cb-a077-0ee8d689b728","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":149,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"8f74edbc-04d5-4a13-8cfa-c7b422b46603","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":"b5b2f228-3b0e-4240-9844-73db733c0275","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":"0bf987a8-1898-45f3-9739-82578d98dcc0","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":"ef25bbbe-7e38-4dba-a419-07fc10164a12","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":"091af6ae-98ce-44f1-ad27-fa8e850eea4d","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":"5ca609eb-2e47-4ef8-8946-b86bf6a6f050","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":"86b81ba0-7873-4057-aceb-e94edb4a73a0","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":149,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"eaa81104-6eda-42da-a728-fff9ef34340d","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":149,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"be720334-c663-4de1-b359-85b00fd4206a","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":"a8576ec5-c765-42e5-b408-cd858d684145","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":"d0ad34c3-ea44-4673-a7e9-ffa75e631d2e","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":"70ad2266-1a89-465b-9bfc-65837ed544c8","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":149,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"348ef0e2-38aa-4d20-a49a-1ec6584301b9","block_type":"box","text":"Investment Account","page_number":149,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"09ff6e73-fff8-418c-adbe-a11b0f2eed7f","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":"a2221737-5d8b-4b53-80da-6e4578e1b906","block_type":"box","text":"least quar terly, 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":"3c792c46-f04c-4f55-a3ca-542f90fd41b2","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":"f5b32cb5-2762-4f32-8dcb-42929cc9a913","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":"af2ca62e-9750-4e5a-b870-2937bd2d232c","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":"a27669c2-5f90-4c4f-9443-e28a209032ad","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":"c008a0b1-3f86-4724-8611-15c5269f87aa","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":"9d335a3f-6005-4eab-8964-ba77b65c34f3","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":"2b4181c3-9254-4705-a962-506386a41237","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":"ba59adae-996c-4869-bcc9-c4ce89f3ccfc","block_type":"box","text":"automatically at the Transfer Agent.","page_number":149,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"39fd3d68-25e7-4cd7-8e4c-5b55de87e127","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":"d761b738-3c88-4d71-b1f4-f44c800df646","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":149,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"6558b8ad-0a4c-4bda-baf0-e94929deaa23","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":"b97c0433-0b73-43c8-9fa7-fec7744fd328","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":"5345d407-5484-4da8-be43-74c6a569aef5","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":"c1d0e983-c940-46ad-b447-278a4896b69e","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":"3f04d79e-8f22-441d-82b7-036191b595e5","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":"8b4512a8-c288-4178-8b3b-0fce7259b78d","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":"257fdb8b-d926-46d9-9b97-9456e148d4b1","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":"af770a29-89c2-4777-bd50-171654642742","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":149,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"1b39ee7a-7afd-4039-9c25-24d4fd5d7240","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":"67113b3a-bdc7-47eb-9aa6-f0c36d290927","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":149,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"96c4fb56-495c-4838-a454-1179ad8e5837","block_type":"box","text":"issued.","page_number":149,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"5d4db3cd-fbce-4c90-ab65-2e79705f0f5c","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":"0dacfeb2-9d14-46d3-bad2-af8aaa80d2e3","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":"9a57f558-ee76-4d57-b16e-e6fc2b1935f3","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":"b82d1219-315b-4fc7-9473-6b10bf07fa62","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":"7f935561-64b6-4404-b187-1146620be9a9","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":"1b818354-fc0a-45c1-acd3-e99e37a7a93a","block_type":"box","text":"Exchange Privilege","page_number":149,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"25946be3-0f85-4009-8dbe-46ae133d278a","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":"ec4fe13a-0338-4111-ba2b-fe99c25bcac9","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":149,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"d297a4a2-1494-49e6-8adf-6712b6c052e4","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":"e51c165f-98d7-45d0-ac08-6d0e2ca0767a","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":"77bc4d09-8f65-4035-b10b-c59113843661","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":"ff3118f7-d406-46fa-aa83-663cc5620c7c","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":"f0a3811a-bdeb-46f7-a670-ff76f9956626","block_type":"box","text":"II-118","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb0bb5af-47c9-4c0c-98c1-942317dbe5d7","block_type":"box","text":"NM1026U-5985614-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7ccd0d2f-0277-44b8-8062-652d32a38b9d","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":"540af128-5eb6-450b-8164-e8f0706be9b6","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":"38298457-4382-4517-a681-e4a0a840b4a1","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":"9d36e262-7f0b-4a45-9059-a5f7d80e98d0","block_type":"box","text":"Institutional Shares","page_number":150,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"94fe7961-4168-4b70-9963-fb4076d4f6a1","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":"ffd5e66b-fcb2-480e-81b8-85f392fad71a","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":"4d4413a2-4088-4f4e-be6d-5cefd7d758d8","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":"5bd7ffae-9e72-448c-8cf0-b75cfb9f6950","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":"ab630cd7-6858-435a-947f-da28f499befd","block_type":"box","text":"for Class G Shares of other Funds.","page_number":150,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"d3fc88b4-3fed-40c3-b4df-6213c5521596","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":"55434616-c2dc-4841-94c4-a688b4387f5e","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":"bcdea14a-ad8c-4137-85fc-3c5048238226","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":"941b3b9c-8b19-4e85-8739-07c3fa32e337","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":"9795e3c8-966a-4ac2-a872-73e737eb1f53","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":"f1b33e93-dbed-4dbc-887b-7fda904933b0","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":"3610bd4d-f546-407a-829e-79604cabd35a","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":"32b8efc6-56a7-436b-895b-fd146fbd44f7","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":"a653d57e-d95e-4792-9401-332b40a57bcc","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":150,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"3e3faeed-2944-4fdb-ad70-cd501d61f0be","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":150,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"facdb338-9637-4046-bec1-c33012182f4d","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":"5b257022-1226-40d5-a26a-22c857d909f1","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":"38112b6d-8d7b-4b24-b305-a4c22f5fbb6f","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":150,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"02733948-8a6d-4b9f-82fd-a044ad2a0a85","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":"d60957cf-75ee-4b4e-b4ca-ad4285b82c14","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":"299d96d7-eaf8-40e4-a26a-2e79c29acc6c","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":"cf349495-85b4-47c0-a69a-cc5244902c2f","block_type":"box","text":"Exchanges of Service Shares.","page_number":150,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"5f2d5910-55de-41c7-8bd0-95fab8208270","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":"322df244-aea2-492b-9aca-269a445ea3ef","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":150,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"ff2f0ca6-2cb6-47cb-bfb4-e07c23311c61","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":"0b9d080f-7a07-48a0-b1c3-a249b9b5f9a1","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":"7f5c631a-d4eb-478a-844f-8655592cb5a1","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":"18c209db-49a0-458c-8174-a0bc2a6afce1","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":"bb13d382-089d-4210-b7d0-d306917e7e70","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":"668a1645-7007-45c8-8825-c94f714919c5","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":"a855d232-7440-4288-949b-0eca0a87389d","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":"9ffe7197-b72a-4294-8f53-e8099c8e1e9c","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":"a031e98d-6ee7-4e40-98d9-2a0e6f9d0110","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":"9180b6fb-d30c-405f-b472-bd6b070e8587","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":"c0401a53-dce4-45e2-9b4c-8baa8f2be0cd","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":"e5eb94f4-2f4b-4c74-b165-bab1bca17dfe","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":"aa6ba916-2f4e-4a58-b39f-030ce08cbddc","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":"ffb34427-5b51-4d8f-b670-506c7bcdf46e","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":"e1597a6c-fceb-4519-9baf-df4bafff42a5","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":"426a3494-6fc9-473c-b82c-93dc39bfe97a","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":"38bc4d46-dfa8-406f-a9e2-5bf7b0df8a2c","block_type":"box","text":"exchange.","page_number":150,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"7193251a-a86a-4d10-aef5-6e494455914a","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":"ca8bf0ae-e8b9-407f-b12e-86c8debf8aa9","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":150,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"357aefcd-e80d-445b-b13c-f1be47ac964f","block_type":"box","text":"par ticipants 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":"e7c2d429-0c79-4fb8-8516-a26624230a3b","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":"1f4fb05a-6a1d-4f92-b1d5-73f1b7e51db4","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":150,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"8e39c048-7ed9-428b-86c1-54c0e3ecf90d","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":150,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"bcfef0bc-6d5d-435c-9a3a-0bc016de7522","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":"60395439-d58f-4220-9419-3bf709b657d2","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":150,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"afb0e62a-74f4-4d16-b4a3-3bbd14382fb4","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":"ac9c2b2a-a818-4966-a124-0f62e5dec34c","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":"1a51a196-cacc-4b50-beeb-3a760a394a2a","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":"10c45242-3232-4a29-bdc8-5c7383aba017","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":"fd236b91-1376-435c-a930-4c8f993d84a9","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":"ec189d3c-6d9e-4a91-afe9-a5cd050701f0","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":"f42932a3-9ed3-41c3-a6fe-527dc863e98b","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":"59f3e11b-3b67-41a0-9f21-b857068cafb7","block_type":"box","text":"II-119","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e2d4968a-f81e-4b10-acd9-7c0fabfbfc75","block_type":"box","text":"NM1026U-5985614-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6e498118-be15-4770-adbb-3f201aa7b235","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":"418e664b-fef8-4b4b-b96b-4af3db35b66a","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":"4043a507-9a8f-410a-8b30-287e20578d75","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":"df1aef5b-f8cb-4916-8c07-006c7cb157c0","block_type":"box","text":"Transfer Agent in writing.","page_number":151,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"653057db-a802-4fbd-bffa-b29afce4eeb1","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":151,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"4dead2af-f00d-4168-b17a-d967a83e51ca","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":"f46b639d-969d-4e5b-ab1c-23ac46c1de2a","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":"30c94447-aca0-4608-8aab-ad9331c91e63","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":151,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"aef08834-e823-48f4-a0bc-4bf312a25a18","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":"99685bbe-9934-46d7-a1ec-ec2e460e9ca3","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":"9fc95506-433f-4249-abe5-8571128f2d02","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":"2b6ae89f-c3b1-4663-a3c8-49d10c9eba9e","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":"70d4e655-f900-4bee-8708-bd026512d8e8","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":"d5e815d6-dacf-4249-8557-d6ac1767d9f2","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":"831c2309-f269-4ee4-af91-e3d68d5f7a19","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":151,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"075ebc36-a0ac-4c28-89c3-ebf5eb28ef96","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":"356c4a9e-5e42-4886-af73-154d53dd469b","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":"3df03962-0de0-479a-909e-502114e9de5a","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":"4b20be00-0795-4c2f-b153-031d3ccfa8a6","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":"597d77ba-9bae-4164-9f5c-6287a4fd2ba0","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":"a59bead7-2f3c-454c-96b1-16b7a6007fcc","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":151,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"f9214285-fbcb-431e-8ef9-29e993f4d34f","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":"a31330fc-060b-4549-8a64-b9b3d9944d37","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":"820804b0-6bbb-4aa5-a4bb-ebab10438ef7","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":"df56ae23-f86f-406d-8c70-5880644a7a94","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":"abe2af6d-18cf-42e7-aa0c-7d48262c73b9","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":"b3fbb962-0cc2-489f-81a6-63a0a8ee0705","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":151,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"ac569e79-7e17-4580-b43c-bff709be24d2","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":"3891fc9b-d8f0-47c3-aa72-8c24a1a46fed","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":"2e3ddb72-1c96-444b-8458-24d09619acfe","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":"7a3ce100-21e6-4b28-8a9f-7e589edc1f21","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":151,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"d75373d6-cf6b-4944-a2e5-c37d8d1f9455","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":"660ea58b-d65f-42fc-bf58-7722bb246375","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":"91a7fae8-4bf9-4073-a545-e7e049093822","block_type":"box","text":"may be distributed by the Distributor.","page_number":151,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"bec59199-d86c-4c81-bb4e-196d83a8b4fe","block_type":"box","text":"Participation in Fee-Based Programs","page_number":151,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"9f6de854-62eb-4059-8a27-538ca3a03220","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":151,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"b2a6abdc-bdc5-44b1-b714-c40f4b7bb75b","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":151,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"4bf331a3-1c94-48ec-a401-a1be34216e62","block_type":"box","text":"programs in which BlackRock par ticipates, 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":"a4a258a5-b2fa-4ac4-9035-b49fe5350464","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":151,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"498dc1fe-6034-452b-b373-4753abf5ba6f","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":"c6dc75ed-4af2-4712-bfc2-2d6f2f313892","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":"61f02a37-96a6-4b65-af0e-a6e010f46129","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":"d4812196-f9d7-401b-bb23-2a40f1decaa8","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":"77c2ceee-f777-4326-8209-66eede29832c","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":"f12a1db9-f9d6-448b-b5ce-b7f49792cb0b","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":"b4350d03-680a-48f4-858e-17a8e2951a3e","block_type":"box","text":"an account. In cer tain 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":"f0fa0cf4-3404-4456-9d52-4130a7ad010c","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":"95e27de0-3601-44f4-b624-a61254046bd2","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":"0856897f-6532-4306-9dec-3fe25411e79e","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":"e0eaf369-1442-43b9-adf5-eb39a509d758","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":"26076b2d-75a6-48f7-ba7c-718281380a65","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":"1686135e-936a-4614-91db-169a8f4323b5","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":"f4ae325a-93b3-4eea-8607-8767bdd77c41","block_type":"box","text":"II-120","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3c80ba3f-07a7-48bc-aad7-aaec7843176e","block_type":"box","text":"NM1026U-5985614-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"801a7dbf-749f-425c-bc22-c6b65c8c1d2c","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":152,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"9b70a11f-b524-4fd9-8ff5-cb90c54cd66e","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":"e4f8d3a6-cb89-448c-aee0-f37c077b08ae","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":"e9486878-f93b-4d64-aab6-b25b494d58e0","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":"13de44fc-5158-4d02-9fe9-609c9145d982","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":"2281df7d-887b-4720-96ef-c7ae10779f7b","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":"abea3254-41d2-4689-a339-7a1e7a109ec7","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":"ab2e0495-1a21-44f2-a38e-abb775dacd4f","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":"d6beafa3-c10f-41f1-af65-ae98fa2ea5d2","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":"41f26f02-d007-43c5-a684-4311f655cb31","block_type":"box","text":"information.","page_number":152,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"faa80930-52c8-4727-84ca-04e4c56af3c2","block_type":"box","text":"Retirement and Education Savings Plans","page_number":152,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"e7e0f346-d793-44d3-a4d1-35e0a3e85c49","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":"faa608cb-008d-4b9f-ab90-9654abc46529","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":152,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"71266fb9-cc58-41e8-9a45-f60ae915bc72","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":"d96540e6-11f4-49d6-a232-8a7871aecc6b","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":"8bd654c2-02f0-43a0-9e6d-b6faad62b3e0","block_type":"box","text":"your financial intermediary.","page_number":152,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"72f1c814-8bf3-48cd-b6a3-4c379e7d9fec","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":"d9ceb0f1-b173-4f4a-af56-c50d180fd0c8","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":"fa9abc6a-0a4c-435a-9a6d-e012452ed6f7","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":152,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"e8935a5c-026e-4634-ace1-05920545d2dd","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":"320599ed-4a73-455b-a548-001735eb9117","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":152,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"211b01a1-0d80-47b0-becc-af5fe7c0c4ff","block_type":"box","text":"Automatic Investment Plans","page_number":152,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"8f7c5396-4c0e-4219-b4fc-10f6e478eb44","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":152,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"21475220-afb6-4a43-aca4-b90689c5b9fe","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":"8f68b6de-ac0b-4d17-9cf1-1aeccf3b3e32","block_type":"box","text":"®","page_number":152,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"84fdbbe8-64f4-4754-a72a-d8def8b94160","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":152,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"5f6e36f6-9a44-4a6d-aa33-bbb4ff515fcb","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":"652026ac-cc55-43d9-9341-5072488a2aa1","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":152,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"22022c4c-c623-42fe-bae4-644d7363a6f6","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":"49546f0d-ad54-4ed4-881d-8b93738606a7","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":152,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"2f0fa586-db6c-40f4-8a23-f7aeb83df08f","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":"17af531f-75fa-4041-a583-5baff7adb3ee","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":"0400cff5-647c-4e68-b7cc-e96c1b125bcf","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":152,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"5b6b6b5f-7fbf-48b9-9930-0c9db41abc83","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":"d8f51723-3c80-4691-a955-23b78e0d68a6","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":"7fa4fdec-1cc8-47dd-9d6c-897c0c3790a8","block_type":"box","text":"Systematic Withdrawal Plans","page_number":152,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"70664445-b99c-4885-8e0b-23fae13854ea","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":"1da827f1-8873-4039-8b54-dd33cb5ddbc6","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":"904240b7-5523-4abc-a712-a94f328bf81c","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":"277fd480-610c-4166-b9f9-e36ca3aec681","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":"6a750079-6eb9-4213-926c-0a3dc75c5be5","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":"f2d4459c-af3e-454d-8f9e-7ed235a84b4b","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":"9b2162de-70a2-466f-9a9a-b8e8cc384c5d","block_type":"box","text":"www.blackrock.com.","page_number":152,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"4198b15e-7f7d-4908-9eff-799e8adcfc18","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":"24ec289b-3122-4f2a-b76a-3516dea845b6","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":152,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"f81dd04a-4ddb-4a22-875c-ecf24758e5f8","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":"b20a3f1c-ab7d-4f43-8936-be4879dea557","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":"184f73ed-acca-412f-afb6-53a87ced11c4","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":"ed68f45e-3221-4798-9209-3e5663253676","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":"cc0bbfe4-60b4-431d-8a6b-7da24d48dc10","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":152,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"25129a04-a444-4cd4-8270-848b472ac7c6","block_type":"box","text":"II-121","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50140976-bc3a-4d4c-a619-2508247e04eb","block_type":"box","text":"NM1026U-5985614-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"45f3780d-525f-44e5-b5fc-34af88bb51a2","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":153,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"0687389a-abb6-4387-a0f4-6a7288e0eac7","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":"9b04158f-1ee2-4016-ab63-9835ef9dcfe0","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":"7abf6479-37f2-4f9b-b113-6c1dee230a15","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":153,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"93efa494-1ea6-49fd-987a-e774e459dd3f","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":"c674ef50-0fcb-4b3e-aa4e-8bf039634b38","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":"ad24989a-32f9-4126-ad0c-35373d77c6a1","block_type":"box","text":"Dividend Allocation Plan","page_number":153,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"6c48ae19-f19b-47fd-b0b2-56b886c2ec8c","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":"f6f440ea-a2b1-4c9f-bbd7-8de61efd6ab3","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":"7e96b0cc-dadd-46f0-b728-e650a2df234b","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":"3dd852ca-07ec-42d0-81bf-ae23d7500268","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":"986a1df0-9920-4a11-b369-f36998b747ec","block_type":"box","text":"PRICING OF SHARES","page_number":153,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"0a9df20f-5ef9-4829-a5b1-5f62da0b48fc","block_type":"box","text":"Determination of Net Asset Value","page_number":153,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"dcc5f68a-70ae-4c5b-881f-ecb962b01f5f","block_type":"box","text":"Valuation of Shares.","page_number":153,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"cde8c7b8-c682-42b8-a02a-6ce4e325106e","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":"29a2a0a8-3e0f-4370-9d54-e15ad1080d36","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":"05c0e402-19a6-486d-a9be-d3a6699210b9","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":"2d35d257-11dd-4057-8310-0c71fb49559e","block_type":"box","text":"Equity Investments.","page_number":153,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"c27184d6-e743-4e03-9de6-dce6edf74a1e","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":"865aadf0-47bb-47c7-9373-c42f241f2fd0","block_type":"box","text":"e.g.","page_number":153,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"41ff3efc-a9c3-4f8b-9e45-93f9c403ff8f","block_type":"box","text":", NYSE), on separate","page_number":153,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"bec40a65-7bc3-40b1-9c59-5ab6b1f1cc4e","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":"efb77cd1-9584-47ac-90e2-733df02d2c94","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":"aa66874c-1906-4401-a535-06f342cfa792","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":"ff7e7bfd-87f9-4358-bfec-af08289fdccb","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":153,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"b04717a9-5464-4acf-b78d-f60c2f7249ab","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":"9b65f551-78fc-4435-83d6-31277273a57d","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":"d42d112e-6fe7-4014-ba10-3b1b22f95cdf","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":"c7a6d031-3739-4e51-8ff6-1f7d6ca90984","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":153,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"bc06f8f8-4793-4133-ab3d-2891d498b94e","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":153,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"f0833016-2779-468f-abfa-f33449689fd1","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":153,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"f9ad8cb0-42a6-49fc-a93e-3a138541e259","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":"67e93f47-05be-4865-8063-a9460d6d141f","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":"36278db2-d02c-491c-b6d3-6c0a324c97c4","block_type":"box","text":"defined below).","page_number":153,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"58fd623b-8514-4ad0-b49e-fd9c25a9e60c","block_type":"box","text":"Fixed-Income Investments.","page_number":153,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"77348375-0035-4a16-ab0e-b6a8af575bb9","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":"c7212171-863b-4cb3-bd0a-f8c30576f70c","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":153,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"579f2ed0-8ce6-4312-adb1-709584072a72","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":153,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"a54c46c3-745a-4246-a831-98dfee1b4ec6","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":"f0591a9e-dd51-4c15-877c-36160dc72a65","block_type":"box","text":"e.g.","page_number":153,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"7de8488a-c44d-44d2-91fc-6f778f09500b","block_type":"box","text":", recent representative bids and offers), credit","page_number":153,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"0a63b20d-0662-476c-bc2c-66a2bdfb5699","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":"b66d72c1-3725-427f-aa99-7b18e5d11ce8","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":"03667d8f-f5b7-4329-820c-1178925a8b35","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":"dbae29bd-333f-4444-b2ad-3fa454587c88","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":"e08498ed-7b7d-4a2a-8f81-e057273381e4","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":153,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"742e83cf-cb7e-4d26-87fb-ce6ee7e30748","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":"7a5fa6f9-50a5-4212-82a1-2f6a9f4ae4fb","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":153,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"91da291a-6914-473f-bb9a-7370b1dfdfbe","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":"bed2d164-39d7-4a4c-bc01-38b2536e7f23","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":153,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"1ee64bb5-7711-4d23-9070-3af4b98c1126","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":"6d7acaff-7fdf-4b5f-945e-3e5592e5df4c","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":"b725362f-366b-41c7-a6b3-78d7d9ec6ed7","block_type":"box","text":"attributes of the tranche.","page_number":153,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"8b9c41af-d38a-47d6-94ee-4da2d8dab6fd","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":153,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"4ee1219a-ccc9-4b11-b199-dfbb676227db","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":"67c114a7-ff26-4670-97b5-7626c2861fd8","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":"806deb36-1bb6-4785-93c8-2be60f7a8127","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":"1fd7b9f4-a2f4-4255-ad53-6b3e4763aaf7","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":"71bd7f75-1992-4a44-819b-f725319b0682","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":153,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"668dd907-55e4-4107-adbf-d080f6ca11e0","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":"23bce3b0-c467-41ec-8b6a-803e889f1f54","block_type":"box","text":"II-122","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0f50712f-2aea-4feb-b36b-9ec39a82d59b","block_type":"box","text":"NM1026U-5985614-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"df2fd8da-fbee-4a64-8dee-bbfc4ccf7dd4","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":"593017ff-c221-4ab7-95cd-7d03be78f87b","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":"b3b8d90d-996c-43ab-b3e1-bf89f15c0571","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":"f3c2d262-b3ee-4626-9c57-4a2e8959eee4","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":"db7a9442-e398-4ba4-aeb3-75bcacbeed8f","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":"4a02eb88-1c39-468e-b4fe-b67bfc2d308a","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":"aed2fa27-9ee9-4d4e-8f4b-4dd924ae91ed","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":154,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"1b957288-bdda-44df-8b92-a13a56096582","block_type":"box","text":"Underlying Funds.","page_number":154,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"6fa8969f-5300-4e5e-bdc2-1f78c6288997","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":"85f0379f-e398-45d7-a748-6309380ab2b1","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":"73f9286c-fdc9-4d34-8744-3aa32e10da96","block_type":"box","text":"at their most recent closing price.","page_number":154,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"1302231e-be26-4cf1-b70a-ef459d059a4c","block_type":"box","text":"General Valuation Information.","page_number":154,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"e5376892-7353-4787-92c6-31b5d9a12812","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":154,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"c2b48d09-f908-45f0-9628-c85e157650da","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":"5a955b98-c7a0-49b5-a29f-d4aef3e6ee30","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":"833c02b4-96e6-4d4c-9036-a4c55d7946e5","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":"0e60668e-5743-4237-aafc-4f3a7dfc6648","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":154,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"4fe07753-914d-4523-b443-98e9feab9f85","block_type":"box","text":"the revision.","page_number":154,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"49ea21b6-ff43-493b-bb4b-be5c9a07f4dc","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":154,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"71a748c0-3716-4c11-b015-a59bfc677ccb","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":"8daf5adb-bbf7-4637-8a7f-a39a161c75a5","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":"1f2192de-e05e-4461-aae7-f7d377f35d2b","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":"969bb2b1-b030-41d5-b5ba-1192c3129549","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":154,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"b25d7345-2ea3-4d97-8ede-8c72788b5eca","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":154,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"8a0a5bbd-693c-49dc-88f9-af3e260512c9","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":"6ddf00a5-6aa5-4118-9cc5-6290a52c1cd4","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":"3564919c-75d8-417e-9267-a7c732b7dd9a","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":"b38c1dd5-0e9b-49f6-a7f0-b9872a46f255","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":154,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"775b1afd-d15d-49a6-922c-9e9d0602bb7c","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":"801f2ae1-5585-483c-836d-8c2ff6c2f5d2","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":"07c76da4-31bd-4917-8423-57a6c474c865","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":"e6f17999-fea7-4d4d-bf4d-8f36f1f4c088","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":"e01a5dea-c221-4c75-81f9-b95e6430224d","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":"4f16c2c7-8a44-4199-a889-70db48556309","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":"e66aeb31-d06a-467a-ad6f-52aadc05ac88","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":"eca4096f-5994-4868-b11b-a493162d4335","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":154,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"94b89ef7-3466-4494-b1cb-5f0e3e4a369e","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":"67640514-f1e7-4f63-a31e-f88d60132383","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":"4d9c761c-3833-43fd-9751-621da99e493d","block_type":"box","text":"Fair Value.","page_number":154,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"257c0158-cf25-4b62-b72c-33feebd17d6d","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":"022ee816-faa3-4bb2-94b9-dd80aa10b7e3","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":"df56698b-a0e6-4f46-8764-e4b59a06b350","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":"d41840fd-b5b7-4d33-a837-c12f3e059b59","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":"62735340-eaa0-45c0-a83f-a3f461301b7a","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":"2fd7d96f-5107-4271-9848-18ab587af21e","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":"21570f11-d8ce-4eb8-8cdf-02d2d5748a5b","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":"5fc13e8c-4d08-401f-8e31-2b58238fea51","block_type":"box","text":"(","page_number":154,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"bf6ff00f-fb68-4d47-927e-6a1e1064c926","block_type":"box","text":"e.g.","page_number":154,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"4d98f3af-05d1-4a30-b963-72bcbe48cc11","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":"ec03d015-1bd5-4691-99e1-f4e9695439f5","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":"aa609a85-f90f-481a-81c4-bbbab3cff4d3","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":"4c2d9efe-c451-481b-b6a5-7b86002378c9","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":"82837c92-e818-4962-9e09-e9cd3bc45581","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":"cd3559ed-e6d7-49a6-addc-62c937e9e418","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":"ceb98aef-f251-4d59-a0bd-dbce595f0d2c","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":"b26a3b49-32f0-42d8-b897-5cf10c9633da","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":"92f4a7a6-0be8-4e10-8a75-6a85361e6731","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":"bb19b47f-7109-4c37-8cab-f9608915638c","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":"d429f682-b46b-4643-b3a1-7f054c383720","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":154,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"64371b18-fd70-4830-93c9-d6a189033e7e","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":"5a51dd12-3e14-43cc-a4d2-8a9e398e3353","block_type":"box","text":"II-123","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4ef76932-6902-41db-851a-ef0d32f7e4df","block_type":"box","text":"NM1026U-5985614-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"261e89ab-7bf4-433e-93c7-b0814b748c7e","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":"2442066d-2074-4e32-a526-18ecc9a5aa02","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":"e48c8580-c58d-4759-9374-354077d5ffb4","block_type":"box","text":"pricing time.","page_number":155,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"f05ce8fc-fcdc-41dc-a14e-6fa088720f43","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":"d668a995-92de-4aae-bbb0-13bf1345003e","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":"7c0190c7-1fd3-44f5-85af-2b51564fd97b","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":155,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"5a2da71e-f7d9-4805-8ea8-ce29b7dac368","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":"c9a85ad3-4104-4082-abae-0a2e68464de9","block_type":"box","text":"assets and liabilities of the Funds.","page_number":155,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"f572b023-88db-4ed0-99cc-eca26374b74e","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":"a48bde17-de17-41ed-a6fe-879a0e754a20","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":"72ff6482-a15a-4d88-815c-7d3c5828d4d2","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":"34437149-3dc8-4df5-8bde-3ad75aacb7d8","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":"624e7e11-c798-4515-bc0c-77288b024135","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":"0a52ce22-a117-4838-ac47-c6e06c7ae38a","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":155,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"330d41bf-4370-43f8-9305-3d465fba9fdd","block_type":"box","text":"valuation models.","page_number":155,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"45a7fdcd-18a1-41af-b9ec-d67fe9b6d082","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":"40e9a7e7-50ad-40bb-998b-93c02d47a2cb","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":155,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"78328317-f2c1-4ccc-8213-608ee7728049","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":"dde939c2-0784-487b-83a6-8d94c62d6e73","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":155,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"f958cd8a-66b7-44c9-9950-790e93074192","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":"2cbf9610-892e-4465-b799-8779b091f455","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":155,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"b33f48c4-d139-41f6-b969-272544c67e6c","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":"9058893b-05ee-4081-b524-a0b39fb96f0c","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":"98bf95fa-f879-4fde-b4a2-f8de2cd52bba","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":155,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"7ced7ee2-654d-43cb-8806-03e71b8a2fee","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":"6a66ada3-9cc8-445f-ab30-ca1f2873e1f7","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":"d6c58687-88f6-4fca-bdee-0109bf14db41","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":"e3806f02-0988-49d4-baa1-1d85f6ad418e","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":155,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"2c204f0a-6a34-4afb-aee7-ce5472c35b00","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":"913a3ca9-226f-4e8d-a7fb-c65a9253c909","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":"f49b5111-5be4-405e-b9ef-db3d3f139d0e","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":"3d0de72f-d376-4c99-8edd-82ae0f722e3c","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":"a9a3137a-8e12-4534-acd3-11a4abd3dee3","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":"0b46bce3-f748-4dd8-8df7-609c5597da6c","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":"fb430f2e-7882-46eb-b454-38ad13dd1b96","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":155,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"91fbf1d0-6b0e-4f3a-a57d-37b8cd697b06","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":"5bf4c8c0-a939-4898-884b-e6a16ef882a0","block_type":"box","text":"par ty determination of fair market value.","page_number":155,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"89e3d676-7dac-417a-9e2a-7042899c2001","block_type":"box","text":"Computation of Offering Price Per Share","page_number":155,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"bceba633-f3dc-40f0-9019-06df6a06a0e7","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":155,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"82b6b8fb-9d0d-49b1-8d03-c996d7d2077e","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":"329a0d74-dd86-4dd8-b8d9-780b8aec93fc","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":155,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"94cec9c8-5ffb-4a23-865c-01746e3c680e","block_type":"box","text":"Transactions in Portfolio Securities","page_number":155,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"a1f6dc47-35c1-41ab-a3c8-a98bc62829c3","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":"2cf3a30e-a7a4-4d8b-b73e-fb8fe478cbfc","block_type":"box","text":"a Fund’s por tfolio 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":"5d40ad10-73c3-4f31-a905-9bf08180767f","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":155,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"d2126f6d-329e-48dc-b578-f511f209b88a","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":"2419c018-f9f9-413d-a77e-adca05ab6f16","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":"3f51d7bf-a503-42e0-bbb7-154b7a6f344d","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":155,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"8dbc16a4-8273-4337-814d-a58af95c319e","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":155,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"10e32c03-b427-41c4-accd-3b6cc6963da9","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":"3cf8276f-0d5b-42e3-ac65-7e9630ecd670","block_type":"box","text":"II-124","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"58bfb2f8-01da-45db-b002-f5d9513daede","block_type":"box","text":"NM1026U-5985614-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"82403363-df40-4a21-bf75-ad6499cda6bd","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":"04b8d052-ac58-4dfb-a9cc-24ffa883466a","block_type":"box","text":"reasonable in relation to the services provided.","page_number":156,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"b50e5313-1c74-48ca-b800-a1efb1a3deee","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":"d64f24ae-4663-4588-80ed-09c34a11aea5","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":156,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"f9a3c368-704b-4100-b6c2-96e2936ddcc5","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":156,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"be09c09c-2718-4b78-a9a4-9f01fe826c3b","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":"1a3af59c-8cfb-45f7-ab01-d0b38d225f12","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":"75bf874b-501a-4a61-a67e-0a37433fb225","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":"4bab443b-6f02-403e-bf87-60b969de0957","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":156,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"4b6bfbfb-5f89-43b8-9de8-3506e276a4bf","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":"e123c432-9608-405e-b1f4-bfbbfb3070c6","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":"467158df-9010-4232-93e8-e35686a75f48","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":"9b4ba589-044a-4f45-b0c3-b8acdb6a9b42","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":"45cc4cff-ec4d-4fdc-94c3-d2e2dc798b75","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":156,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"e17b17d7-6f13-4826-98ee-29b67587b61c","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":"e9ba8ffd-13fa-4a25-ab7f-5cc31335fbbd","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":"908ea498-2996-4cd9-a58a-bcd0f03ff6b5","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":"e6912db2-081c-47eb-874d-0f801813b1a7","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"4423992e-91e4-4fa0-9c99-e107dc93ede3","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":"e7faa624-60d9-4766-a2d5-01267708697d","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":156,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"22a8e33f-f9f4-467b-a089-6d10663cbdea","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":156,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"ae71b5a5-70ac-44da-a0ea-174cc75f7204","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":156,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"87bca804-6ab4-4d34-ae82-89a16337573f","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":156,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"90968e77-97a9-444b-b525-b7b20b2d5d5b","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":"b692c39d-d34f-44ed-b154-d41d702b6391","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":"942b1a80-7f5e-499b-8be6-a0f941b90541","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":156,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"eb8224f4-86fd-4fca-890c-7f2b52f88147","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":156,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"2b86f490-d50f-4182-8c49-510fec92f884","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":"523444b3-9932-44c9-a14d-b467b179e1b2","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":"80b3576f-695b-48fd-82a5-4919973a06a6","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":"1dd325dd-de0c-4f23-9470-72e080f02e7b","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":156,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"3cdf4fe5-2aad-4b93-bb26-52b709b5934a","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":"f8f091b0-7158-4599-99f8-1560016b672d","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":"af164a6f-8a04-4011-a612-bcc7e68ed975","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":"6252066f-866c-4e3d-8bc3-ccdf85fa8679","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":"13d56da9-672f-4a7a-a8fb-e200b4c0d7db","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":"18b630d8-1be3-46d5-813d-f757c2ca5a09","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":"586315d4-2b35-4043-8fe7-364e2f85017c","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":"68471550-0ca4-4474-881f-d16fd53ec359","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":156,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"fca40827-0625-44d2-98ca-7dca32f42b7f","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":"89a5f90a-55ee-4f49-bb5d-ca90daa2a422","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":"afa3bffd-3cf7-4041-9a39-66b73ca1a7cb","block_type":"box","text":"por tfolio 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":"b00debe7-e06e-459b-a2ed-48b7d7a211d6","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":"f8b8e5c0-000e-4815-869f-d1560fcc82ae","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":"78198c66-f3e5-46ef-a638-6b4eb97a96de","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":"ed115780-88f3-48c4-843a-53998bc3faec","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":"21c0ac42-aa99-451d-84dd-4d63bcd20bad","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":156,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"23ac8716-e336-4523-b7ab-80272ad99f33","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":"28f8469e-76af-4286-9e24-eb017f9b89ce","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":"be5e8568-092a-4d2b-b5f4-32e7f6eb8ca7","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":"b2219def-37dd-443a-941a-7424342c5a21","block_type":"box","text":"par ticular 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":"41975a9a-3369-4eba-8fb8-2e44d792953a","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":"cfec15fc-68ff-4c3f-a526-b349efa6227a","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":"bbec79bb-feea-4f2c-9723-622d3a45d380","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":"04993687-c2c8-4c77-b614-88c7b3d69689","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":"8b2574fa-af98-42d4-864e-713b926adb63","block_type":"box","text":"II-125","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d8557f1-8c0d-4471-9d76-abc0d6b941fa","block_type":"box","text":"NM1026U-5985614-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"22ba3c6f-9f29-4559-a4a6-e4ac51fb6cdf","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":"bbaf08fe-81fc-480b-b6f8-64888f701c25","block_type":"box","text":"managed por tfolios, 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":"1c98162e-90b0-4dc1-bf86-0e7e3a493dae","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":"3ea46c91-f504-4fde-9dbf-a4c5f3ec40e9","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":"8a6b1b93-3b23-4254-b24d-3b7e02cac5b3","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":"05e082ca-915e-42f4-bfae-0688038e7330","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":"df11c3b0-47d8-4172-869e-9fa8576d346a","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":"15c7fa25-4992-4827-a81f-829a136697f6","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":"1494c82c-0a9e-4448-9484-4e1c2b833b2c","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":"97b24f5f-2150-44a0-bf2f-ec48f51be70d","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":"f307d127-0042-498b-94e0-842f7eab51fa","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":"d40333e6-eecb-45b7-bbf5-31624ea1e8c8","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":"52e131af-8182-4f29-a9fc-3894de9a88a5","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":"ba2c072e-d47c-4054-9219-f44da601ef59","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":"d30c92c0-857b-4475-89dc-ace30647c487","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":"9fa90c10-8732-409b-96d9-12b27a46cfc4","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":"4b15e011-9752-4c62-acf7-44c9324f3ebc","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":157,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"d82d7491-95e5-4cc2-ad60-6f310a6ad06c","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":"4240f48d-78fc-4d05-89a9-c696279ee59a","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":157,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"495c1d59-608e-45f2-8e99-ab202c51ec30","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":157,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"83fe3f40-1f49-4a1e-96f8-5c8b59f8f35f","block_type":"box","text":"brokerage.","page_number":157,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"1b8186f4-53ee-4313-b532-9e4baead03f3","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":"0d5f2aed-df0f-4b38-bc1c-9a419190fb8f","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":"1941f2c0-3c65-4250-b7cf-3595a4b68915","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":157,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"ca177647-5486-489d-b00f-f2bdab0b9340","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":"13086b50-b124-4896-b7f2-be1586ef8c0f","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":"4601e1b6-c702-40bd-ad42-7d0c96733cf6","block_type":"box","text":"Section 28(e).","page_number":157,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"e16fa497-f84d-4654-b8eb-8909b986c96b","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":"9dacddae-8702-47b7-886e-0f22eb52fdec","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":157,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"b14f4cda-42d6-4233-87f7-44c9582a5211","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":"3fbd8e04-1f0c-45f3-aaf3-75009bb4f401","block_type":"box","text":"execute transactions for those mutual funds.","page_number":157,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"bba7286d-ec0b-4623-8cba-68712a2cf53e","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":"5f5d5551-55c8-4ed2-b346-f9689a440a41","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":"0840e0a0-2359-4910-b2a1-93f0443a597f","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":157,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"b36f1275-6968-4c3a-9f91-d4f8a6343d39","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":"477249ca-5e0c-4822-bfc1-0e8785262c5c","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":"ca33c3d4-2e12-4465-838e-6c2ebb9a1fe1","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":"2e4adb2f-9405-4ec0-9823-1c0b782b07c5","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":157,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"8e1084f9-16f0-4315-8277-3be3156e4df2","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":"e57f7822-8f13-4840-b694-ebcf3888e0ef","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":157,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"8be7d520-b2cf-4ee5-b57f-803e186b945c","block_type":"box","text":"See “Por tfolio 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":"0609004f-4bef-467c-82de-9051e4ecd9d6","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":"3b60d768-32ea-44b4-a41a-b1e9f98ea3a1","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":157,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"0a0411a9-5533-4d8c-ac44-bcd528d3f52a","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":157,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"0d1fcc87-4215-45d5-acdb-81526e7ac849","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":"87988581-1d05-4332-88b2-4da88c58ea4f","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":"c4cdc7a4-0b78-41a6-a184-75f44ccc77b0","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":"c17cca50-9e32-475b-9d98-ab49d69fcec6","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":"8af96f55-0054-4bed-b8e2-9c46cd51e091","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":"ff312384-43e2-4519-b3e2-cb155e8ce942","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":"b4068ad3-2386-499c-bf13-6eabdcf3b417","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":"5f0296f0-ea09-4699-b9a7-7a39bf176d97","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":"5bbdc235-db20-4d56-a0e6-a8bbc5f3f092","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":"ab98eb1d-cb66-42cb-8072-3a8388a4d9ad","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":"cf5abb03-c40e-4161-b7f1-7acf15395729","block_type":"box","text":"II-126","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"97df4368-8c49-41b3-8b92-52b07f4e0e17","block_type":"box","text":"NM1026U-5985614-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8ca63dec-aa99-446d-a32f-4e43d24e7927","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":"907cefc9-24cb-4a49-874e-f918f94616c3","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":"eb866b0a-acd3-4fc1-bcb4-77e99bea50ce","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":"3ac97549-2f62-40b1-a95e-c31df511520e","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":"2c0ee8b9-0f61-4ba5-b168-527c40ee42ea","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":"800caeb8-275a-4efe-b3bc-31abec13fcbf","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":"4151ffec-47c4-4e30-a139-0a31c8e3adbc","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":"e78b4965-2e18-477b-9010-451281d4e9f6","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":"e2ce27a6-93c5-4de4-9736-9e9369163b96","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":"0d127869-91b6-4d56-bb36-782736d0595c","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":158,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"17375bf6-164c-4905-94d5-334ae90e7752","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":"ac960b15-acb0-4571-8c00-4d9bc2ca65c4","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":"5ebaadf2-322e-4498-97b4-18608fe76a61","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":"231ad2f6-a20b-4d42-87a2-21f6cd3a3f43","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":"72f1de68-820b-486c-9068-fa7d06aeaa64","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":"b1ae324a-3298-41a8-a324-b79c7a71a5be","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":158,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"75a29ac6-963e-478c-a834-ad29b6751e07","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":"e87795cd-ef6d-4cb3-b405-dafa25bbb008","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":"0b047cfa-9859-4bf3-9f1a-358fde7e99ad","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":"a07fcb6f-2398-41b3-a289-cb16b43f9d09","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":"ea35bf1e-e854-490c-abb6-889147e615c6","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":158,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"0e9ea117-f9f4-4217-9601-3dbcf3d49847","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":"2b7ef1b5-9094-4169-bd95-aa97a64df58c","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":"b3b483ba-24ae-49ce-8ae1-a9c66b0d3027","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":"e40222c2-53b8-4acc-9c44-8892a2f280fe","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":158,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"325b1da8-4977-478c-a7b6-8b0e06816662","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":"63e95739-859a-4641-8262-791aa15c0dc5","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":"ca570741-7483-4950-8229-33cc5491e04e","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":"fdb2387c-a6b6-43cf-a5e2-8bc74b27729a","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":"b98c08bc-5525-4ce3-845d-53e40d07811f","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":"878423a2-3b64-4dff-b395-35b717ce38c7","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":"8aedb30d-dac6-4b84-899e-a0773291f309","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":158,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"3546db5a-258a-4e48-9a42-639231b415d3","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":"6d21da9a-075b-494e-843e-9969a81f74e3","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":"66a1f88f-441a-473c-b82d-95cc12584b57","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":158,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"0d54032f-5163-496f-826a-5315d0779392","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":"353a9be5-07ba-406b-81c6-2fd721059934","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":"399c1492-fb7c-4918-8fa2-ae96240541cd","block_type":"box","text":"accounts and compliance constraints.","page_number":158,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"fff4f2d8-9958-4f0c-9f49-c0f75f5a0f56","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":"52515807-d174-4cd0-b54c-e5b4425103a6","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":"f4485e98-efec-48ac-b4da-96c0efac1dce","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":"a287c78d-9b51-425d-8a12-13659e93f0b4","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":158,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"aea8c8c8-cc1b-4085-9e3f-7f02cdc8cc36","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":158,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"32a5eafe-84fe-47e3-88c3-89eeab25e5f9","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":"95aa34a2-362e-4010-9fd8-6cc9ae3f4699","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":158,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"dbb51965-7c4d-4aee-9d14-9aab86f70b1b","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":"c42e05b3-7ab5-4039-bf64-52d089bd1f1b","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":"b6e90b7e-d283-48ac-abc6-b0b3000913f9","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":158,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"a5e4264c-1ecf-4df8-b4cf-818675775d56","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":"8a7d2bcb-2685-4376-937d-b447802ab3c1","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":158,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"04e18bf5-4ad8-4f14-9dc5-68a894a101f5","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":158,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"d7127b6a-97fe-4870-a4ff-b4fbd0ac6399","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":"fbb072a4-61f3-4566-a28f-7e03f5b38821","block_type":"box","text":"clients may be used as well.","page_number":158,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"2ef590cd-3f03-407c-9b31-6f36bac607d3","block_type":"box","text":"II-127","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d0e28dfd-1da3-4375-a9c7-fd267be39e6e","block_type":"box","text":"NM1026U-5985614-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f4cb5b18-c1e5-4caf-9b4f-c7d0810761d1","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":"3fb44468-3e7d-4bc6-bc3f-a364de50ce05","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":159,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"99ed8e63-f889-4296-a4b8-f6272221a013","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":"528fb010-2a20-4aca-bb01-5c91df56eadf","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":"df8cff0c-78e9-40c4-b2d8-1a8da33d2187","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":"c34121df-a084-4a97-bd61-991e29daee3a","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":"7d1e51c3-0808-4523-9721-c7e418b0f584","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":"0c51bfde-1d05-4844-baf7-b004afdd8128","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":"64c78313-aea2-44da-a91e-bde0238d9740","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":"609fd3ab-c4d1-4b56-8aaf-eb71db10b698","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":"75fb6e98-bbef-4807-b032-89a90bddf669","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":"1480f045-c9af-4df0-a4ab-2d2221502981","block_type":"box","text":"In cer tain 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":"2b7ae043-7a0b-4c66-be05-b3fc9a56eef4","block_type":"box","text":"aggregate cer tain 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":"839504b8-a5f3-42c2-a137-3d533773a9db","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":159,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"677352bf-8e98-4fd0-83e5-b60183d028c1","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":"b8850690-e71f-4077-a39d-6f594fff4a4e","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":159,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"9557764a-56f5-4031-ab7e-daaf447692be","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":"eb831c46-38da-48f2-aded-852f5c68298c","block_type":"box","text":"par ticular por tfolio 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":"516f1409-c0f1-4107-84fc-015a8501283e","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":159,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"28538089-e0cf-4a11-8e5c-89be41b09446","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":"1acc29ce-dabe-4e6d-8676-3fdda6eb3433","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":"6f8d9b65-4319-4286-9f5a-5a57bf467e82","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":"558b747b-517e-4340-b724-5e9f8e1ddd60","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":"6ab0393d-1207-44a1-b3cc-551ad71a2bcb","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":"c8999757-d5a3-4367-8381-01e50529dbf0","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":"37be27e6-ce7a-4bc3-ba0e-debda4f23ef5","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":"1a5805a0-4800-4530-adae-3566b3ef9c95","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":"e10c0132-4e38-4783-bbe3-5b29f17d5492","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":"8fc50026-ba43-49ac-aec0-f5accf042b4f","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":"1e2bd528-1777-4dcb-b291-8c17e19debe6","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":159,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"4b3cc1ee-4e68-44a4-ba95-382fe73d6bca","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":"023028d2-92d8-43ac-a65a-6e4fc654ab05","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":"dd1e7460-cafc-4e7d-b9a1-d140d45b173d","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":159,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"d0994dcb-8b5d-40b0-9b04-40b23c7a4486","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":"a11ec15c-e08f-4725-be0b-fd239a503666","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":"323640a7-7ecf-4000-8046-0a519eb78294","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":"950ae14c-674f-4fc7-9f10-9ef98d47ed12","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":159,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"d948f206-f246-49ae-b8e4-500582d10503","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":"11cb793c-742f-45f1-9a06-a63cc2a88fa5","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":"e6652fa7-f18a-4dae-b6b8-6aaa83f859e7","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":"ac04cc33-bea6-4672-9b83-1c05347a4c74","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":"a32a51b6-97b5-49eb-a4d1-c68ea3cfc5ed","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":"d7b22e7c-be72-4d82-9689-1013eade0ee0","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":"5a86aa49-2ea0-4f6e-8204-932ec346f276","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":"13f1668c-963a-44b8-a08e-3322f0825bcd","block_type":"box","text":"Portfolio Turnover","page_number":159,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"f8cebd64-40e9-48c6-96d3-f21e26b9f6ce","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":159,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"f2c7c6a4-1a06-425b-b4e2-1e2b28e0d8ab","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":"9e504d85-dce2-493c-b2d9-c0e1d022be57","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":159,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"2e139e94-8c8f-4bf2-886e-4d5c9cf69c90","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":159,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"dc2fb6e9-c4cf-436b-abed-1916ef519bb3","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":"526611a2-ee42-4437-867c-e20cc3941e12","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":"7d51f259-5379-4b58-9634-b8e81658b745","block_type":"box","text":"II-128","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13ac010d-1fd3-451a-b8a5-99274d108959","block_type":"box","text":"NM1026U-5985614-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"10a2e88c-b2f9-4d4b-80d0-40e8792df5c2","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":160,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"f3867702-6841-46c3-9b44-0b1b50dfbab7","block_type":"box","text":"Dividends","page_number":160,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"dcb0d76c-a39a-4dcc-bbf6-0d09a68cfec6","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":"bea6745d-6dbd-47ef-8225-bf191a292849","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":160,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"b38d2976-d79e-408c-8d9f-9902053e7c68","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":160,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"0ce5bc5d-4f57-4929-b075-3a9f6ec5cdf7","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":160,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"48660d6a-d12b-46dc-ba9e-2c5108142e90","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":"386863e8-f208-4fb7-9b05-20102b4331a9","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":160,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"9beb3364-ced4-4c75-bfc1-1523bc2f4137","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":"e0b7ed44-162f-4d22-8274-52c97fe9e344","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":"43e21a3b-8dc9-4303-8ce1-2eb387d551a1","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":"87b61166-2fd4-4812-9dc9-8dfdee459c4c","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":"603cc934-8481-48fd-87fa-c259dce2b3af","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":"b545ae32-bfb1-49b3-a040-84fe5b76dd86","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":"55618b37-d194-4882-8790-d6a56e69b8e7","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":"bb8ef2fc-7a50-490f-9e18-99d26bfc2ada","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":"de777096-2d6d-47f9-b059-31ff23162052","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":"f6c41d2e-91b6-4140-951f-0eea4ab303c9","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":"268dcbc6-7ac6-4477-adbe-9b75c03cf3a2","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":"46d66a50-1bf1-4956-9be3-3924ed0d1e7e","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":"d657c363-7aba-400e-bbbd-5bc74205dbb4","block_type":"box","text":"Taxes","page_number":160,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"abc257c4-4095-439a-8bb9-c6ceecb78159","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":"3c19b6c5-abc3-4fe3-9d10-22b308492e8f","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":"75755614-6a3d-4713-bcda-344368ff3c84","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":160,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"6ebc8e2e-7fea-4452-ac78-18e730290abc","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":"f0b259a6-0e0f-4fb2-a975-e4cef7bcb8e7","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":"503bb336-094c-4901-a90d-685aeff5c16a","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":160,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"b69564ad-440d-4d64-965a-bc5f710deee9","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":160,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"286286c6-2b2f-47ad-9116-397496c3a4db","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":"29ed7ff0-e201-4797-bbd9-89b5189b8126","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":160,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"45ea1d93-0fcf-4e0f-b609-b5df7a9ff229","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":"418985a7-71d3-46d7-9a9d-97b5eabda5f6","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":"abe17823-edf6-46e8-ba59-b5273eb8e20b","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":160,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"490163af-3541-4f9b-88a1-22fd6e43be54","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":"6a31ed6a-9487-4887-b61d-262349ad2ad2","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":"135c61b8-9c54-4a30-90ee-fe3549bef12a","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":"5665038b-3ed9-43e8-bb6a-1aed3065c944","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":"ca59a262-3877-442a-a428-8d08daa6ad7f","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":160,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"0929ef40-2a58-4214-abac-ae4ab058cf85","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":160,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"f73ff314-9890-486e-919a-e14beb715ed8","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":"30f11f3a-7ec7-4a76-a53c-4dba05e2f59e","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":"1cc5caf4-480a-47c3-b130-5eb4e53e45fe","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":160,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"f938346b-707e-4b8a-85bd-48aa266978d6","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":"8a11069f-37a2-4d0f-91ee-c893319176c4","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":"6a8c8495-e6a6-4ee5-bc09-53d64e006e42","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":"4b2f39d8-7846-4aae-8114-4e786cd0f4fd","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":"eb56c182-005d-4bb1-bf23-4f6bba128e11","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":"668378ba-bb07-4550-88a3-6992a11a5897","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":"c08c6785-aeb4-418a-9766-ef398e6744e8","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":"114bbff5-0584-4995-a31b-4fc55ceeebe9","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":"9ee4eb9b-f49c-4df8-9acf-199597891ab2","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":160,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"8707f504-24e5-4fa6-83f0-4bd9d8571328","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":"4fb33494-4a8b-4d7c-bc39-cd29b0b55dcc","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":"36669be1-80fd-4789-a4f1-6eaffb55d86a","block_type":"box","text":"II-129","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a39dc8a6-dc4f-489d-ab5e-453b5d2ed0f9","block_type":"box","text":"NM1026U-5985614-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"33aff4f4-7ede-4d99-831f-9c2139391818","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":"7781223e-248e-4509-bdf8-a93a8baf3f4e","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":"54717120-a789-44fb-bed3-6e9bf376bd1e","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":"a2dcac97-dc41-48cc-89c5-03d822ad6fdc","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":161,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"2e0f2f67-1335-417c-8092-0ca078db5470","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":"4843a132-3e3c-4f7f-bdbd-7460976115a2","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":"aba443d0-bd3f-4388-8aab-f72264a4b70b","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":"354adc6f-6a59-4035-bce1-3911af395c1e","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":"f0ba2e9a-b21b-4f1a-9cbc-654c781786fd","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":"1e0f43c6-7cce-4b81-bbe8-ba4e188fdf63","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":"c0a32282-09bd-48a3-b4c0-2bf67c85c53c","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":"b4d959e2-eb32-4721-8f9e-374818e80b6e","block_type":"box","text":"limitation.","page_number":161,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"dee6c5d2-9d39-4453-9ddc-90cc86c0d76e","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":161,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"c4c2d4f3-46ad-4c78-9223-f4e9f278727e","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":"9b1a12cf-07ef-4c26-a584-a8db56427495","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":161,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"d204ec3f-8247-4708-b06b-a3fb676f9fa8","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":161,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"169547db-6df6-41d3-8a25-1b658b85cbf9","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":"31cd41cc-0177-4528-bcb7-d42e0c537f22","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":161,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"6d7f233d-0970-40d0-ae29-cfe8b10855f9","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":161,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"77dabf0d-4df3-4885-886a-626d2960a4cc","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":161,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"6e82ee70-ea6a-4f07-8ee1-eab0ff8bc635","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":"f016cf57-4fef-484e-aa63-e2937bac07ba","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":"cde12f1d-b6a3-47ad-93d6-15d87e216179","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":"36f104b3-e9e4-456d-a256-9395f233d8db","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":161,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"88c4ad1d-cdbb-4c34-8bd2-966be3453d15","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":"74804dd3-3e67-4762-9aca-00acbcd09d5d","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":"debb5962-f6a1-477c-859e-95017210bbb6","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":"3c4e42bb-a14e-4558-966b-3561649c2049","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":161,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"607d28d9-153b-459e-b50d-8972bdd5a905","block_type":"box","text":"tax purposes and shor t-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":"db6e086b-5438-4c60-870c-ea351eaca310","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":"dcc421f8-71af-4b0a-8c5b-ca38550d2e07","block_type":"box","text":"constitute “qualified dividend income.”","page_number":161,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"29aadb76-778d-41dd-86f1-da16fa5ab8e1","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":"8a121f4a-45b2-46fe-89a1-e85b89d9e3e0","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":161,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"d060f2bc-b22b-4cce-9334-2bbf86b5399e","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":161,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"55466cd7-bc5f-4970-86c3-21d5e4454419","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":"49afe9e6-a809-460c-9322-470a777975d3","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":"711c069f-4d12-4e12-a4dc-c45a626dac92","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":"08791e63-7fa5-4e15-a700-a838126a7100","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":161,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"c464ddc8-aefb-4d21-9a89-b540a6c3bbaa","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":"dd02b570-98b6-4545-8693-514fef3812eb","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":161,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"978419e4-86a7-40ad-a926-93990934d667","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":"ef2644d3-4140-4a1a-9be1-f5cc4bcbaa86","block_type":"box","text":"against their taxes.","page_number":161,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"fd910ecb-52fc-4bf9-999e-64b92e7f9edf","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":"5055ad53-bf90-40aa-b657-de6e274a5187","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":"71b91d00-e5f2-433d-9a88-9434749795d3","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":"73d87c80-2b38-46e6-990a-334dd4ffb866","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":"fc3f2b04-35da-4c35-8993-ec9c43193b21","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":"9a4ed780-52f9-4f2f-89ef-6dec9b116acd","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":"ed2bc238-0919-4804-8d37-ff959b081c6e","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":"2306a035-5bfd-479d-9b0f-955a85ff3a59","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":"3ae42cfa-8a84-41e7-9662-9972e0463669","block_type":"box","text":"dividends received by the shareholder.","page_number":161,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"80c31997-1254-4ebe-a45f-6db9526068a3","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":"6198d8b3-2275-4cad-b540-2fd013905796","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":"be44976a-edd0-4fa5-9e8e-91d365e9774d","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":"b6ee13fb-4002-46f5-af8b-9f9d42d49c83","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":"a3f47ff1-87ee-4aa7-bb20-5a035acce78f","block_type":"box","text":"II-130","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"76673897-32de-4347-b96a-09a459e8ba45","block_type":"box","text":"NM1026U-5985614-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3567cb4e-1eb9-4bbb-ab64-f2d665fcf8b1","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":"f5b64f35-5b5a-4031-9f93-3e6c4981b2f1","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":"5cef0053-c1f1-4265-b994-6deb1433be1d","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":162,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"ceb326ad-29be-4183-8ea2-7b941614baf4","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":162,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"7eeeeee2-b904-414c-8058-29a575bc2b0f","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":"05b7fc9a-58c3-49a6-a5f1-592723c70244","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":162,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"3c0e035a-04e3-4d21-9859-75fe3c1f2336","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":"247ab695-640b-433a-94a7-7a316192873e","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":"0124c7cb-5c27-4611-b204-95cfe7cadd29","block_type":"box","text":"taxable year.","page_number":162,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"11e46461-a0ec-4625-9de6-1b61cfc058b6","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":"c9a8a8f1-4a4c-4db7-9702-24868511e6e4","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":"d402f6a4-964a-4460-ad3a-17ab641bd8cd","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":162,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"e5da8b07-fda0-4cf4-a68e-b14d76d89bdb","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":162,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"26e9709b-e456-4d34-b7bf-d0dd7991b924","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":"a8d4dd09-4301-4591-9b34-7e1bba48d913","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":"af10cb66-6d2e-4f52-8a56-b6eb687f707a","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":"be4c57e4-5d0a-464b-80d0-0be0662b0d82","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":"a1b3ba90-dfb5-4262-8020-551f63574f96","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":"263e01e1-89f0-4e92-a5aa-4b1f4217a5a7","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":"6a2bcfa5-6d36-42ea-b71b-7eea74bd2f83","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":"26db655a-0b20-4a74-9538-0f3a74ca694a","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":"1cb7e54a-fd6f-43bf-8dc3-11fffbfbe592","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":162,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"42836ffd-1b1a-48f7-8d42-ba6783bd88d2","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":162,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"28dc40a3-e2e3-4358-9bb1-c1bf45a606b7","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":"912b31de-44fb-4645-bd0a-75450e486d5a","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":"6f467765-bf96-4175-b200-205dcfeb0f43","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":"776adebd-71ec-4213-a88d-ecca3a6872ab","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":"94ef0747-374a-49e7-976d-be0c230adaaa","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":"7c39a151-bdfc-4d44-bbef-b0e7c6450bb2","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":"71a577fc-3b3e-4c20-a215-da0e21ee5543","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":"f7e10769-1166-4ac8-8c4b-879688905d76","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":"54235082-21c2-41eb-88c8-6de9926c63a8","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":162,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"5ef58326-34f6-4f37-980d-abce5015c39e","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":"ee789f66-3c4d-4c18-9d60-190358de2d11","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":"54b1e61a-1fca-4020-9170-25be7fad8d85","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":162,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"64398276-a62a-4f6b-b92f-405750f63b17","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":"f19224a3-df9d-4344-ab0c-96503f7dadec","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":"df0eafeb-664d-42c3-b270-634615b3721c","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":"35064558-9ec5-4cd3-a512-4c1b116c13d4","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":162,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"776e573b-192a-499b-be78-f50d6f3f6049","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":"6d568fbc-d349-454a-bcc6-c0c5647c8bdf","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":162,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"71c31078-b453-4661-9a8b-38e176983ab1","block_type":"box","text":"redemption of such shares.","page_number":162,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"4e87b927-9bfc-4899-a821-2413c13814f6","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":162,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"799f3ab2-5209-4f85-b8d4-fb4c5e3db329","block_type":"box","text":"purposes of por tfolio 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":"97816119-9d59-4655-82e0-889e3a6af720","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":162,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"5f2af794-81cc-4396-b4b3-d30781b1c7f6","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":"458a7eba-ce9f-485c-a3f1-8994d7897a6d","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":"61bd8b0f-0318-42c9-8f38-d38822d1a748","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":"e239a11b-e0c3-42e8-9ee7-c636b2bff02c","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":"092f782d-f48a-4732-9a59-6599105834e2","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":162,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"f093e80f-32bb-4eab-b4e3-b153fd403679","block_type":"box","text":"Cer tain 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":"7555ee58-7972-4763-8c54-87906a7d417b","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":"05d1baf9-4130-4001-857a-4618e27a15c0","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":"3af65cd5-acb5-41fd-8a17-282fb83f5c43","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":162,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"69919f09-13d6-4ffe-94e5-d083e34fb6db","block_type":"box","text":"II-131","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0a282d1a-6059-43b2-89ee-d5e06fed6775","block_type":"box","text":"NM1026U-5985614-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b8323fa6-8462-4194-a952-1ece07b5963f","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":"4dac539c-8242-422b-8e61-77e7e3d7b18c","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":163,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"edf36901-731f-4f26-af55-7eaeee30ce54","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":"d4fe56c2-e8c6-4bf6-be2e-2d15deea19fc","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":163,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"d8dc12d2-6a04-456d-b889-7ea226b4b1dd","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":163,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"67de18a9-a921-46a5-9ea8-eafa3407580a","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":"9323db43-86c8-4f0b-966e-7289a8a3153b","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":"7223c88f-8824-4634-9171-64009dcee3d3","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":"41180de3-7f05-43e7-aba1-9952ba268f94","block_type":"box","text":"Cer tain 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":"0c111e11-fac2-483e-9c45-333c4cfabaab","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":"e9901fde-f63a-4ebd-a65d-44fe23183331","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":"c24c100f-0a07-42b5-819a-7af6a6b7e6c6","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":163,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"a7edb4c5-6a4c-4769-8ccd-b4202a1eac23","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":"38bde17e-9837-4d40-9046-9ad7d624f259","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":"e3c8550d-68e8-4385-875b-60ab42ad9c76","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":"b0417284-4d62-421f-9afb-883ed6268fc4","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":"37d7fd66-356b-47ee-bdb2-b544e90485e9","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":"d3e79080-06c8-47e4-9791-26197cab7cb3","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":163,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"f83576e6-2977-4807-bed6-11c5a3978f01","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":"2cb83da9-ba96-496c-8a63-764822c9d370","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":163,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"abc4c09f-736d-4169-87d1-10913d30140f","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":"4c7277e5-5057-43bb-8de2-4ebccf69a17b","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":"2634b852-8119-4859-b6d8-4cde63717819","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":"8f9222a5-c65f-4f5e-b407-914a4e75b446","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":"70f111be-4d7b-498c-bf35-8d42306a6c1e","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":163,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"384c5ab2-3167-430b-9c09-0dc02acb9084","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":"be0288d2-3810-48c8-947b-cc5921a43cde","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":"8f3a2d02-d9c2-4035-a4a2-af693c8bb23a","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":163,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"a56fab7e-9450-4d8a-bb0e-f9c354bde3f5","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":"c1023c85-9c0d-4ff0-bf30-f389b105c395","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":"44f72bbc-329c-461a-8d86-ed3ec8c1f3fd","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":"ea556688-08b6-4263-a952-ef6d86cc9d1f","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":"716afae4-daae-4756-83c6-a131ace28661","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":"24c90758-cfa2-43b6-a4d0-7db60b4a6648","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":"8f9236e8-48cb-475d-841b-29b1f02dbf05","block_type":"box","text":"in subsequent taxable years.","page_number":163,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"5580ef5c-95f4-4bee-bfd4-8f51c3a21979","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":"cd34337a-bbc5-4a72-ad18-b336664587c8","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":"b8e1f332-8969-4385-87e7-9e46b209c3bb","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":"31738a28-682f-4468-8cd5-a7064de96b81","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":"8b7a3e2b-d1d3-4209-a02e-a7b326f6f265","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":163,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"ae6e20a3-2102-4c74-a059-a721abc143f2","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":163,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"b861ab5a-cb7a-42d6-9fe7-78f378df9561","block_type":"box","text":"company from shor t-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":"6beb2df5-8086-489b-b961-e506c7967764","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":"aeae0da5-6dd2-465c-a074-720c06cbc442","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":163,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"da09444a-a2d3-401f-bb0f-70feca2c6742","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":163,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"b4425ad2-bbe8-4a7b-9f72-2a24740b5eba","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"4699dea8-4e15-4551-a5db-7b3c352c1dae","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":163,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"ab1e0ab0-59e0-4b06-872c-37a3a2b4680d","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":163,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"e98fedb7-9848-4cb7-b3d7-defc18e8c96d","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":163,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"c6de189a-039e-408b-8880-c75282c65b74","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":"6bbbc50c-3d0c-4379-8c02-70c890a8ad11","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":163,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"4cb44a19-03e8-427a-9b97-9336afa63d47","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":163,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"31e33ea6-d34c-4972-a4c4-7b9089f550c0","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":"2f8fa7e9-09a2-45d1-9cdd-445331c34e9b","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":163,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"917dd595-94f0-481a-9a04-6b8375a83737","block_type":"box","text":"dividends under these rules.","page_number":163,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"ffcfd14f-1b5d-4fa0-bc62-863cd8685f5c","block_type":"box","text":"II-132","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6eab155c-7048-4a72-aa4b-6ad215f1a00a","block_type":"box","text":"NM1026U-5985614-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1733191c-aadd-4992-bc85-80d6af052284","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":164,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"66a4ee39-df79-468f-ab99-e897be9e9990","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":164,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"1daabfc4-47ab-4951-a9ed-7b0f2a8d31b4","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":"5511d909-d593-42d2-bae3-56d0f570bdca","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":164,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"cacc7b9b-19a5-4c3a-b7bc-94d0084e88a2","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":"f351e47a-b107-4d97-89d3-7012e3e99e3b","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":"351e8615-694f-407d-acf3-36197acf18c8","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":"7f568755-c28b-470a-bb2e-9bf251156413","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":"4eab6ac4-133e-4eec-987e-655c606c56e3","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":"a3662628-7f58-475b-b73f-07852e3a2ee1","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":"a6a2be29-368c-45c3-9495-a70616e5aeac","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":"58b8b1a7-ed8c-4872-9d75-5986e2fa123f","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":"4e5796d6-c0ea-494b-8e92-5d0bc7705227","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":"25fa2ce8-082f-4609-9e7c-a681921228e1","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":"71ce4792-e982-440c-806b-b495ab886597","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":164,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"90891f66-6a06-4d7d-a4b8-169a57eba753","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":"9711cc34-de0a-4c00-9bc5-322300241de8","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":"de60c42f-c514-4738-9323-bbbc0b68f98c","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":"aac525a6-aa1c-4cb7-a940-a1f02baa915c","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":"da726f76-2cd2-4aef-b2e4-ec3281d5dce0","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":"1b16cbc6-e35a-43e8-97c7-69789de16e60","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":164,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"9e7ffeda-8fcb-4a0e-873b-37151f4d8428","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":"3f875312-7dd2-416e-9bf1-50c65e990252","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":"401ab27e-7ce4-4aad-aa26-1f9f9ff47ce0","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":164,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"264f38d8-c004-4d0e-8499-73ca73fb296b","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":164,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"29302f73-f772-4355-874b-81bb41e3c634","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":164,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"8d450bf7-0b2a-45f8-abca-1833da1ca865","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":"2d4c6f0c-e846-48bb-a8cb-a565e39dbd53","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":164,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"c18b19d0-64aa-40c1-8285-8bcb6f3b00d7","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":"1bc34760-fe42-4986-8133-8eb89d38abda","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":"b73087d0-7d84-4bca-a12a-a7b7526dc8e7","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":164,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"227ed994-7a8b-4ae5-853c-102a44e7aa49","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":"4b503c8d-76e8-4f16-bb8c-c642a2f38069","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":164,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"155af324-f0f4-43d0-b87b-4deec6d4f644","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":"a25e9f0c-359f-478e-a380-826fb1567654","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":164,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"1bd0f436-51d9-4fdd-b3b2-fa59bdc7d8e5","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":164,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"f82f59c4-88de-40ca-9c21-2052e54debcc","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":"3e75db7c-8aef-4a85-a457-2262660d44a5","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":"1aad6551-66ef-4f90-aa1a-b4d47103355d","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":164,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"281cff0e-b7c9-49ce-bb26-e7d3d3f85dbd","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":164,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"2451363e-e79a-48f2-ad4f-972ea60262e2","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":"ffa0a33d-c81f-44ba-baca-cc7fc448bfd7","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":164,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"adaac4ff-601e-4c17-b879-99f9386bc5d9","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":"51ea421d-5d79-4cf0-be59-00cf04779adf","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":164,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"b2cc5e5e-3f03-460d-8e4c-3d081a51c96c","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":"0ba29e01-750d-4be2-aa3e-58ca8353d518","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":"56abc766-cc9a-4fb2-bba5-c8dab524be3e","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":"1e1e7fab-2391-44c6-b99e-a7d0e9acc949","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":"f550271c-a90c-4ba1-a4c1-ace681d3cb22","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":"a2fb5afb-55f8-45d3-b6fa-d79ad7179a03","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":"ad1f72e0-6083-405b-850c-303499be2fe0","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":164,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"5c515948-ec10-45a3-a18f-143377f93825","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":164,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"034de37f-fb6b-4193-9d2b-587bca98ef01","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":"27382883-bc80-45fa-88c2-c0c99f29aaef","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":"2a1780aa-f2ba-4802-bac0-18b1d49c893b","block_type":"box","text":"II-133","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"92295e38-ccd9-4043-a8e3-4111039559fb","block_type":"box","text":"NM1026U-5985614-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7b1db26b-b088-4f04-9e7a-674566ce4e77","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":165,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"4626a977-4a71-47bf-9815-a0015b9de1a2","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":165,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"920e2490-894f-45ab-8fbe-53c5cf4c6aa7","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":"8aec169b-495a-47f8-bfe4-9764a333a4b4","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":"4be5c0d7-a3d9-4fd0-9486-7b134a6758c3","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":165,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"b8bd1a40-cb94-484e-a690-e2bf51359dd4","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":"6196d3b0-78ae-4e2d-a283-c5f7972f1231","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":165,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"fd074207-2cb5-4c66-8f10-c82188879aab","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":"3102ae34-97d3-4a5d-ab9b-40e59ba767cb","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":"7243d077-44e3-41be-bb49-3b057e0ce2d6","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":"754318e3-3718-41ef-bc0d-289237c306c4","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":"ac70c3f6-160f-447d-9e9e-10750099dcb6","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":"fa25504d-5838-42a3-8c55-f0607586d52f","block_type":"box","text":"investment oppor tunities.","page_number":165,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"8916ea0b-d657-4da5-88a2-2cb34b804010","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":"efdce5aa-a43e-4f36-ae38-a59108f720f8","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":165,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"ad979b6b-66b3-44bc-851b-ed8e3d1d2bdb","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":"6f15f926-335f-48fc-a382-41f936297648","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":"113b96e2-2757-41ec-9da5-f247bd661c80","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":165,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"1bce2820-3ec9-482b-be15-fea2c2994502","block_type":"box","text":"accounts and cer tain 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":"86dfc4b0-b447-449b-8649-a2b40d3d7c6d","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":"93eb3394-a44a-4d84-b390-f8f8e9710321","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":165,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"2316f4cc-c64e-4a64-86d2-c893d9646320","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":"1d782df3-3642-4f62-b07b-7bcc45fc8251","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":"343f784a-717e-44cc-9d9e-9a0c8a6fd544","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":165,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"f9640288-822b-4faa-a226-5336257fedef","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":"346a8646-d2cb-4faf-ad66-e7ff89ee49a6","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":"bc0274be-6ed8-443a-9dfa-8b00cfe3e33b","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":165,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"81b0ccb4-33db-4a77-8496-464daf80d751","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":165,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"24ce6355-cabc-42f0-a12d-214111acc7a3","block_type":"box","text":"deduct such propor tionate 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":"4bf722e5-cfbe-4294-938a-5cd019a913b8","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":"b3c786fb-3682-4906-9226-8eb5d38d71cb","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":"dbfc4d68-0d9c-4ec3-9dd9-601ef74e8116","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":"24d1b5d6-afb7-4d51-9564-bbb0f2bf40c0","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":"2c5e14d9-456a-4e3e-96d4-e2ac94afb610","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":165,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"82c4e8b9-3875-4585-a111-0ccc649c461d","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":"afa19dba-ef04-4a07-abb5-60c3683cbfa9","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":165,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"b69e6e0c-2639-420c-bd6f-30ed13fd7542","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":"66134b3b-c6e1-4a9e-b4ef-7af342f6084c","block_type":"box","text":"allowance of cer tain 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":"bf842ce3-307f-4abe-9261-6907ead9f9e4","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":"958ff1a3-83f1-4b93-83e3-51fdf803335c","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":"1b0b9347-82c6-44d5-a0d0-68b7fda3e1cb","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":165,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"0365ef81-9552-49cd-b080-108cb9b26ca7","block_type":"box","text":"positions in its por tfolio (","page_number":165,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"c462f2ca-652a-4bce-850d-1954f61e609a","block_type":"box","text":"i.e.","page_number":165,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"b7a0e260-1717-441a-b720-f6a88d0b1001","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":"5282bb4e-2d35-45a1-a052-9f6bcc9d7b70","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":"2d4b57f8-0fcf-48a6-af6a-d3ab4fb7ad63","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":"507aedaa-0ee2-4435-93cc-4d5ed4c3b82e","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":"fafd0682-edeb-4cf8-9c60-5e7526d026d1","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":165,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"b45fc949-b743-4df5-80c2-cfa3872a6848","block_type":"box","text":"Cer tain 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":"62d6a786-acbc-402b-9544-a1d1e6fe5d1b","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":"755ca9f9-ef8f-4c2d-82de-fc8c8ef94970","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":"ca36d903-d7d2-460e-a680-bc314edabe0a","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":"7fa79372-8d6d-4152-8bbd-c834af144e8b","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":"5584600a-1810-4fe0-99ba-a614db15f7ea","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":"ead01ba6-e2a3-4b5a-9861-e5302b91dcbd","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":"61a2a824-adf7-4ee7-a99a-3f88cdadf34b","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":"24177525-6761-4fe0-968c-e68d50d5b87b","block_type":"box","text":"II-134","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd80011b-10f7-4769-8295-e0042902782c","block_type":"box","text":"NM1026U-5985614-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c2cb78f2-88d3-44d5-9612-3c71b673870a","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":"3837f9bd-947e-4a73-80cf-65ce9207d660","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":"84d78500-ab00-4afc-a1fa-5f7f602fc36a","block_type":"box","text":"capital asset.","page_number":166,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"5b9274ff-75e1-44c2-a3f7-03cd10d2e300","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":"746b3769-eba8-44e1-9d36-20c737a72bc5","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":166,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"20123b79-e861-4c35-abd7-6191b8b8adbc","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":"fffe4f3e-c035-4e7f-b8f9-01f9c1b6eb3b","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":"74bbcf3d-3e12-4aa2-9b09-c321db9d4728","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":"efee6546-33c0-4ce4-993d-e22a580eef0f","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":"bcb02e15-278b-461b-a698-486e8a32424c","block_type":"box","text":"Fund were to invest otherwise.","page_number":166,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"668db177-05a5-4b46-9c8b-b88e1d255148","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":166,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"4d814ff2-c636-4277-8e70-d8a918cf00ab","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":"fa62497b-254b-4532-9c6b-e571fe393c1e","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":166,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"55be18db-c876-4b27-85c0-dd2e84fd0bb2","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":166,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"fa1eb4a3-de90-4e71-8372-2bc56af26d17","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":"d0b29cf9-5904-48a9-96b2-2310ba87e7cb","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":"dacaba5f-c104-4db6-9e76-8a690bbc1db6","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":"714c6485-357f-4e15-8e29-e4ae0922459c","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":"360d585b-bea4-4baf-83d1-fd548bb7bad1","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":"3c0c93e0-0c6c-466e-bd71-85750d1334e4","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":"4e23dad5-24cf-4393-991f-9a36c54c8b6d","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":"00ebaefc-428d-497f-8551-19ef1cfeccb0","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":166,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"8f30faf2-b0dc-4fea-802c-8e3c048c614f","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":"fc673124-a6c4-4135-8bce-9f433d3f8d0a","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":"505d3636-5bc8-419b-893b-812e9e73d2cb","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":"b85ec0b3-849d-4453-b522-292c14a96421","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":"3727f856-b24c-4445-b509-59509c2fd342","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":"3e4581bc-770e-4eff-ad95-653dd5cce73c","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":"5f6ca058-2d54-4577-b397-26961df54b50","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":"43e37d32-edba-4c3a-b0be-ed4780880898","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":"0f9ec4fa-e180-440d-9020-7a80a76e677c","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":166,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"a55fd98a-352a-4432-b58e-c296125947bd","block_type":"box","text":"PFICs.","page_number":166,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"3bdb8dfe-c1fb-4c22-9003-78bd4200134e","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":"81a5e036-05a0-4750-9edc-797adb75ecd2","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":166,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"a3f3f930-b21f-4f2c-8b22-3a73b85e8de7","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":"1cfbbd5d-0c51-412d-a0d0-16e575fb4262","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":"27ab91c0-bd94-4f17-a0da-fc82a9c5c3b3","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":166,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"1923ad37-6d9b-40ae-afd9-5de76200dff8","block_type":"box","text":"difficult or impossible to obtain.","page_number":166,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"49c5b79d-1e7e-4b17-9af4-6e51db61b592","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":166,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"fb334268-2aaa-445b-a27f-a6fc158eed47","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":166,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"74ed1eb0-8e86-407d-b9a0-727b21bd2d19","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":"b95635bf-8333-4649-bf46-d37f025ebb23","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":"36348bf2-415f-4f92-bb54-0e5c700bd6c4","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":"8fedf36a-04ab-44c5-8b61-70019b6a8785","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":"6cecf3b4-bea4-4da2-8829-4efc80d1d47e","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":"128a6d71-24d4-43ff-ad6f-d037509d5125","block_type":"box","text":"Municipal Funds","page_number":166,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"3634d562-da16-40f1-975a-9dba2096ec03","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":"7c83160c-1b5c-416a-9d4c-4fc941a1f100","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":166,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"dcb6c78b-7dc6-4b0c-b348-21f89f2c8de3","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":"b4a2e0f7-e542-411c-9283-92027477139b","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":"2abed0a5-01a2-4893-b7a6-2bd7f9589715","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":"7dd310fb-128b-4fd0-9304-87d53bc474fd","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":166,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"33d002a6-4232-4d1b-88b3-3e4922ff8d2e","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":166,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"bb31b300-bcb1-4ea7-adff-386706de6bac","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":"ddd608bf-425d-428b-99ad-dc60de6750f6","block_type":"box","text":"II-135","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"04c5c37b-24de-4ed2-99f5-0b44e401e6b2","block_type":"box","text":"NM1026U-5985614-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3a645d39-ffc7-4fd1-9c72-8a6f2d733d2b","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":"9de97ab4-a355-497d-80f0-0b05d10e1cbe","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":"17c9a9c2-506b-4ee0-b8fc-ac47004c2ad7","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":"8e7d1b57-8558-426a-9b5c-eaafc4eafe91","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":"5494afe0-e7c8-4cec-98fa-3afae1531219","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":167,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"66339a92-8a1c-4179-904b-19fa7dee4083","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":"7bac232f-bc0c-45cd-8141-e84ceb46874a","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":"dc552a2a-94a4-4780-8f33-ab32f300e2bd","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":"1622b250-76fb-4c84-a6a9-7024ba09412d","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":"4f12f933-4f1f-4321-9fec-2a95fca03591","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":"85e00e89-201d-4a50-a1a9-ab8ed7d2c729","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":167,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"c5eef929-2564-49d1-9872-f32307786be9","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":"72b40273-0a78-4826-9817-b1f0ad595ad6","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":"7ddadccd-6c05-42e5-92b7-b48397bf57f9","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":"04a7ec5e-89a5-480b-b509-3156d556a8c6","block_type":"box","text":"constitute exempt-interest dividends.","page_number":167,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"ff094616-a992-4686-975d-6036e7884b63","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":"441ff5c4-f4a6-40f6-a54b-fc13f675264d","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":"36ac00dc-ce90-4c9e-9149-7736702adcd7","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":"b27de90e-f8c8-48fa-994a-89f0c2c21da3","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":"a06f40a8-36be-4532-97d6-4cb27f6a540f","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":"f7efea66-fc72-4347-a061-0bb9c183e5dc","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":"513de7a9-ab28-4d32-846b-79714ea2b537","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":167,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"6a6c5659-f269-40c4-bfed-a18aa0c14a68","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":"e56cd88a-3a22-469d-afe0-5e200599cf82","block_type":"box","text":"income dividends received by shareholders.","page_number":167,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"67696c25-009a-49f3-87ab-42f1f006e252","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":"9ebe3099-6e74-4af1-ba1b-f57bf841f0b4","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":"3d7f3c16-c10b-4533-84ab-701108b510d0","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":"279757f5-17e0-405e-b360-1e5aea8cd449","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":"9a90f3fd-7306-48ae-8f6c-70b9395569d6","block_type":"box","text":"the accrued market discount.","page_number":167,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"7a5e55db-fcc6-40fa-924e-73b064fc8481","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":167,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"3e590234-506d-4dd1-a6e5-184555c7ecd3","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":167,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"182756f8-be4c-4e52-ae77-c01f78bdf739","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":167,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"6f6dbbed-db13-456c-93bb-60d72f1afd49","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":167,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"0ae1a35e-e678-4af3-88e5-3bdb1d76d7a4","block_type":"box","text":"e.g.","page_number":167,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"283ee8dc-341f-4a36-878f-ff6a3ee776b8","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":"647bd718-05c6-49a4-ac3f-8189501b9f59","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":167,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"3ba605ff-f350-4970-a2fb-dc61776249b2","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":"7c7ad79d-bfc6-4956-a580-491a0f935631","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":167,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"8374117a-4d0c-47f2-b63d-9c2aab4c54ca","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":"5edd27df-b15f-4f47-a300-58483306b6ad","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":"79a41382-8395-4f0a-9ab4-56e571a12e87","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":"3c7e4a3d-7752-4987-a09c-6eec936ed648","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":167,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"73a662a2-0b9b-491e-b3fd-16b0972c2f0a","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":"68737105-f9c8-47b6-b709-74d2f2ffddcc","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":167,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"37d26629-3886-4c75-9471-3217889208e1","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":"a22b1930-268c-4529-8181-9c747b874027","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":167,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"c257aced-ae25-4e66-b3ec-64accc6e1979","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":167,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"72cbcdb2-e4e4-4fed-8392-2c2137237129","block_type":"box","text":"Oppor tunities 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":"724579c4-1a4d-4067-bc75-8da03615fc8f","block_type":"box","text":"within each applicable state.","page_number":167,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"3804e35e-5505-41b8-8940-dfd02403d043","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":167,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"f96ebfb5-190b-49a2-8ffb-53f09c68497e","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":"27eba09d-1b87-4753-9839-ef846246de14","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":167,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"6d7d2fe2-ddbf-4dbe-aa44-4098a75b0fc9","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":167,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"b47402c2-e924-43b5-a411-fa1e11f593d2","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":167,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"b1b734a7-942b-4677-af1d-57c24d4b9c80","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":"cea9f5bb-c9f4-4ae7-a672-c25029c07287","block_type":"box","text":"II-136","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13f18618-ac27-4b32-9789-0e72f7a6549d","block_type":"box","text":"NM1026U-5985614-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9dc80c8b-320b-47fd-8170-ea985a33ee10","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":168,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"30be0a38-ff9f-4b42-925f-8f2cead39459","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":"71d3e9c6-89d7-4331-b9ee-239c164d2245","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":168,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"41b4a05d-34ba-480d-8e79-17193af24618","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":"83ab17ed-7d9a-4ada-99a3-b86f55e3466f","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":"7c5a882c-053e-4626-8b3a-014e4a176203","block_type":"box","text":"exempt from state income tax.","page_number":168,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"0a5d6373-2675-4d8a-993d-0cdcbb840c5e","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":"b2cd3d28-2175-4869-a30f-f7cb521c9294","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":"c1bd9f63-f507-4a88-a066-8e5636b7a95d","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":"39ca9de5-8bbd-4762-bba8-c4d2f0f225f7","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":"790a80d6-8e7c-418e-a3bf-6e2e33c6e508","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":"3495c665-f6c6-413d-a455-6db5ba4b1e3c","block_type":"box","text":"cour t 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":"9ea3586b-a572-483b-93d5-99e1c101dd6b","block_type":"box","text":"decisions may have a retroactive effect.","page_number":168,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"8e4c82d7-54dc-4f2e-af9d-2cb24e99bb33","block_type":"box","text":"PERFORMANCE DATA","page_number":168,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"719f641e-5676-4d53-a9a0-d4f2e447bc07","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":"c9366552-51f9-462a-abad-8b446d4ea889","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":168,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"7fc06466-9ea9-4846-9dad-8518fd1e98b0","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":168,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"5b818a36-2990-4acd-98c2-64810016a355","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":168,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"36e2b492-36a2-4570-9c1e-ad1b7b8b7dd1","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":"5d350dc3-171f-476e-b9ab-481d8da6635d","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":"93a41da4-17c3-43bb-b513-4855a222e8ce","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":"73f33041-1662-43fe-95b1-d388b90d39ce","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":168,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"3258be2e-4f55-483f-a470-283af86fb9d0","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":"19f0877b-f58b-4b91-aaa1-5779cc4a208a","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":"2f5d7aba-9871-48b5-baa3-437acbabc226","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":"544dcd36-1079-4e83-98bb-a31f4df4038e","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":"87f2b216-a67d-45cf-8ce3-668289ce78da","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":"15647a1a-c32f-4308-a0a4-a92dc377ba91","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":"3fe2c2f9-1105-4be9-9b7a-5c05a894fe7a","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":"1ba431d5-02d3-49fa-9b46-0079c258d418","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":"b24e0460-0670-4b37-bb2f-179e744a7c03","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":"2be511ed-5cff-4444-be07-2cc6694ba55b","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":"18729e48-17cf-47ed-932f-7cc9b1360fe8","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":"5347be4a-1d85-45b7-bdcb-dc30b0103749","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":"c44152e1-55a5-4233-9917-ab1ef7395815","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":"5687678b-0bf2-4c2e-9ce7-71587968a790","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":"e69b8fc7-3129-42fd-a0ec-18782b38c6c1","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":"1d3ad4fd-9feb-475a-b685-a6dc15b29012","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":"2607b569-23e4-43cb-9120-f809c2858974","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":"449ba9f1-d283-4f91-bf00-e51ecce65d9c","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":"28a9a20c-b9c0-4335-a56f-7cab70a3f361","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":"39820147-ea39-4585-b222-ec072e18a61b","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":"3c57edce-5491-49e2-821a-fdc00ecc810a","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":"d2343aa9-f84b-4129-b509-c2e44a531e58","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":"dfe02680-0027-412b-ba70-46908ba6a198","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":"3a4be010-26e1-415a-b953-a4c6f47dfe15","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":"a80e9cb4-ff58-4761-8ae8-9af7fb65f6ae","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":"761a411b-8ec4-4f74-b76a-1ab06e21b435","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":"e6d33ee7-761e-465a-99f8-554479c2eeeb","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":"bc9bd3e0-5b44-4af9-adb3-16e34e788c26","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":"c07258d2-11d9-406a-8af5-c0ec5dda3365","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":"e5bf077e-3d38-4c67-bcf0-d98b638513fd","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":"b14c4e05-eb85-49aa-a4b6-1ec287dbb392","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":"2526b19d-2984-4b08-97c7-19cf8ea6d922","block_type":"box","text":"II-137","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc53178e-cc90-43f7-b701-46eff8274928","block_type":"box","text":"NM1026U-5985614-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"931cce9b-dc5b-4aba-924e-32713e33b10d","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":"d09a59d1-092b-4819-819a-7ccd4241b1a6","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":"81cf8015-4bca-48e6-81c5-e53efafe50d1","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":"beb0860d-5dc1-4cd6-8b83-0cc8305923a8","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":"bc6a7b70-3903-44f6-9e76-b30bd97e9a54","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":"5d507a6d-d640-442e-b3f7-ef55a168f5db","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":"96c52f00-0b31-4e0b-93e4-aab185c5b359","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":"0c0d54f9-9820-474b-9d78-387e075e4379","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":169,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"9162b43e-2c9b-4789-9758-484f46bf6e84","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":169,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"71bb18ca-dd6e-455e-bf5c-b31cd9c021dc","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":"982f7247-d81d-4a47-97a0-0518b21b6990","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":"e964f44a-9a0a-4227-a92b-9b98cc6d61c2","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":"1a579ffb-a66d-4a71-be3a-c020772810e3","block_type":"box","text":"per formance 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":"56190192-2bb1-4477-8554-33e21194f0a9","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":"e763a963-3ff5-4faf-b99c-b6000b2f8d21","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":"8843f1c9-b167-432c-8cb9-5b79924e2182","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":"b897fd9e-9220-4816-8373-28f3a3fc1569","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":"a931f3e2-1c25-41a6-9238-f1f10f36155a","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":"d44f2783-e9d4-4425-b175-031b51902de6","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":"4a888db9-208a-49ca-83d5-01e0f85370c4","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":169,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"06a458a7-c76a-47ba-beca-3f2a3d519ea2","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":169,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"feb8e1ae-2597-46d1-9712-179b0f10b766","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":169,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"5b01d9ac-ad44-4a05-851e-fe26ab034653","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":"199afb92-e3e8-4b2e-8d1e-fb3728751c09","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":169,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"0e6b9778-bc3d-47d7-829d-313f3d31831f","block_type":"box","text":"less than their original cost.","page_number":169,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"9b755b51-a1c4-4677-b450-2fd0a8b44434","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":"000434aa-ef00-47a2-8a30-ae06a6da1b26","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":169,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"5a829240-ab14-43e3-8010-054bb4de2fcf","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":169,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e3291e82-d60f-4f4f-8d5f-3be0b45dbacd","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":"4f3d7a54-1cce-4131-aec9-f64595bb28e2","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":"6d7974e0-d323-4c11-9c9b-c9db5ad2f056","block_type":"box","text":"lower amount of expenses is deducted.","page_number":169,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"718b0976-2bd1-400d-8997-1818edf4a435","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":169,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"314a9782-2a8a-48ca-a28d-ffe642e4094a","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":"8dd15006-6506-4e44-8155-4fb116b28864","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":169,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"cce46753-c4ad-4e67-8611-0671e70a455a","block_type":"box","text":"Money Magazine, U.S.","page_number":169,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"4cb2c4e8-e373-4afd-895a-90d53afc04ac","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":"b415d4a8-3ff9-4fff-8742-11d208d4403b","block_type":"box","text":"or other industry publications. When","page_number":169,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"f23aaec8-b78f-45fb-bd54-00e78f7aaca0","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":169,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"75209326-cff6-4cdc-a3b5-0ce724302e1d","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":169,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"76f99c01-0986-4b7a-aeb3-246134676b41","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":169,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"2bea5264-bb1a-4fa3-a760-1559dc32f0a0","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":169,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"0beb482a-6e2c-4a5f-8bf3-5538718db836","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":169,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"bfd5d300-05f9-4af1-84f0-365b8fad0f37","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":169,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"16096f94-0d80-4a9b-a079-55c7ccd6f295","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":169,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"c6edc7c3-b1be-442c-af52-bdcf365837cf","block_type":"box","text":"developed by Fund management.","page_number":169,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"69d5c3ab-74dd-41f5-a394-03197f92b96c","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":"0755256a-b0c4-4cdf-9502-0c897fad4136","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":"c403a1a0-3e95-4730-b74e-f8f57deea399","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":"f5a06ead-20e0-4c96-97e7-7b441c688417","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":169,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"18f56852-ad0c-47f2-88ab-d303746c4f35","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":169,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"604b4298-46c5-4b84-a402-4bad468c6719","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":169,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a07328a3-a4ae-44c0-a7bc-5e69353b357e","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":169,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"9b0c0b0d-1ec2-475c-9884-1c129ee0c937","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":"f98b25ec-569b-4a3f-8129-d75a4440bff3","block_type":"box","text":"II-138","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5f55b2db-78c2-4caf-80d3-e636b2a124de","block_type":"box","text":"NM1026U-5985614-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c32bf485-1c91-4c9d-8cf9-bb926e4ff280","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":170,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"9330b331-256a-49c6-a84b-149d3f082a04","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":"532f39be-f0da-44cb-9997-117a0eb59729","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":"2c5fbf3c-3d0e-4f80-9fcd-6923a8c4b9d6","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":170,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"d62b9ea4-fbe4-4812-a0e0-303397c606d9","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":170,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"3927a1c1-cde5-45db-9d0d-d702f1b81f74","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":"0a4094b3-af49-494b-8a77-e6e8739e373f","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":170,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"8556bc25-d46e-495b-a377-1be86e77f714","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":170,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"39d0890f-7ca0-4df6-b8e2-953830d3d80e","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":170,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"543f6911-85ca-4631-8987-2ec76671bd4b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"543a89bb-0cfb-43f6-a4da-d840e5d289da","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":"fb51d0e5-7e66-4d1f-999d-d64f914a06e6","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":"db2c0599-81bd-4796-95bb-39a515dc7394","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":"aeff8849-a219-44b5-85bc-2f6c2722b74c","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":170,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"4ada740d-b805-406e-bcc4-86af315bb4a5","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":170,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"a8a873e5-60aa-4808-9007-5e1a3a21a36b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"bce312a3-0c79-4a6c-933e-5aa49b60bc5e","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":"5dca046c-8224-4e85-902b-c21fce0bac09","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":"9b09bfab-fd4f-41a2-a041-fa1ec8f2d6eb","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":"ce812d36-f448-4de8-8ad8-efa0d2b5f4a1","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":"4557e1b3-af87-4429-b9b2-d5c9446524c3","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":"324f47e0-877d-4a8f-ba1d-9fca6deee5e5","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":"967f1929-c3da-4150-b73e-bc005dc1f9bc","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":170,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"abceb0f4-c489-4349-8cd6-868c8c49edcb","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":170,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"d8017d52-13a6-4bfd-9f88-ddb9d1d017b7","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":170,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"2486aaa2-6b5e-463e-9cef-c27f27e2e0ec","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":"b9df590c-104d-470e-b35f-2cea68208994","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":"e5559b92-a7b3-4796-af4e-87792783aa07","block_type":"box","text":"GENERAL INFORMATION","page_number":170,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"ccdbeb3c-fa37-4fb9-a032-7605b9b13553","block_type":"box","text":"Description of Shares","page_number":170,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"19bf10db-1cd5-4731-b40b-3cf9301a4da2","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":"8da0938b-df25-48c0-9aec-53b7aa4fbe32","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":"71a22453-da13-4fc0-a5a4-bf3f7da5b896","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":"1e83e071-2ba3-402c-a139-6941c0efaa6b","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":"bc7eaf51-e7f4-453e-9eae-41d942fb116c","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":"06b6b4bc-b149-4f08-9cbe-60209b7f8ff4","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":"8eb2d562-3740-4c7b-a9c9-22b0ac6046c9","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":"475022d4-3674-4d8d-9cce-aeb4bafa17b2","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":"0233b440-65b6-4adb-a4d7-43fac0ebf3c2","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":"ed979eb2-3629-4452-ba12-c961b62c7fac","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":"a61298ef-f279-425e-96cc-7a777e917357","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":"7d398897-f95d-4a15-b9f5-2f972dcb242c","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":170,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"efde1b19-8bd1-4e70-ba3e-c202a0466f0d","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":"bd37c8aa-7c03-4984-a40a-706959a7d1d5","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":"17e4e3c8-867d-4a9d-8018-3727c37142b5","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":"3291fa97-5fe4-481c-bc75-e4544155529c","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":"698d5579-6bb8-4ea6-8eed-73ffde9da3e6","block_type":"box","text":"Cer tain 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":"43802eb4-0236-4235-bab0-453ffa13dd99","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":170,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"f9c52c4b-e5ff-4aa2-8cfe-fb2fd1a22b76","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":"8439cc45-c7a9-4d3b-ad48-df8c4b19e1f8","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":"2e4a6a7f-d952-40c8-be5f-bff156a064ed","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":"8477421f-b2a4-49a5-9bf0-44fdc2b741a1","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":170,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"fff0c7d3-e831-4ce4-86e3-983087eb76f0","block_type":"box","text":"II-139","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"19f227d3-6563-42f6-b97b-b0d9756c1296","block_type":"box","text":"NM1026U-5985614-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c6476488-e9ce-4e0c-9163-1c0a55aa1070","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":"dbe047c3-17e1-42be-8f35-6a7f8a01fa3d","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":"486fe339-4068-43b1-9f31-8fc38abd2818","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":171,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"7387bbcc-e03f-4fb4-bdcb-ce0626453e15","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":"c681c233-708b-46f2-b62b-3fb9aa7e5da2","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":"98c9c4de-7718-40a7-bcf3-2ae0c62c9dbd","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":171,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"55b1c85d-6a74-4449-9bd7-6dcc104fdcfc","block_type":"box","text":"Additional Information","page_number":171,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"d83fa63e-2a6d-4896-a0bc-1e80753ae85a","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":171,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"702dc2bd-8295-489d-8692-6dec0127a8b4","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":"6e14afed-78b2-4544-9b26-3a2597e08289","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":"8bb126e5-8ca2-4b28-b3ba-205413bf049b","block_type":"box","text":"such name to any other company.","page_number":171,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"969c159f-c40d-49f0-9956-01beec63ca94","block_type":"box","text":"II-140","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e08868e0-245c-4442-b5f5-890b9f524467","block_type":"box","text":"NM1026U-5985614-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7d4e4291-833e-4328-b968-4c5d684a5d68","block_type":"box","text":"APPENDIX A","page_number":172,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"e2dc191c-b11d-4500-8634-0d8db27f0cb8","block_type":"box","text":"Description of Bond Ratings","page_number":172,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"05608dbd-c45d-4560-8893-d170d6d660ef","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":"10a2be4d-3ac7-45ee-9343-ce37601591ad","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":"332885b3-278b-45be-b696-7eccbbae2d0a","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":172,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"93e2ac5e-e65a-4722-b78e-577ae075a0ff","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":"09d16443-825b-47e5-b92c-4b0121a4cc57","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":172,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"52c81813-cb1d-4ae9-a467-2848c21acd94","block_type":"box","text":"NRSROs may rate specific investments (","page_number":172,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"e7e006fd-ca77-4db4-a03b-7b2db8f81398","block_type":"box","text":"e.g.","page_number":172,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"f97fda8e-fc48-4a6f-9eb7-7c0cd7c8fd5a","block_type":"box","text":", bonds), issuers (","page_number":172,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"97db4db0-3f25-47f1-be68-18833e16bf3a","block_type":"box","text":"e.g.","page_number":172,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"53bdcf02-6dd0-4497-bd5f-a698aa9740be","block_type":"box","text":", corporations, governments and financial","page_number":172,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"c9fd0dec-a757-4f3f-b9b8-d9e8444cd560","block_type":"box","text":"institutions) and/or programs (","page_number":172,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"e8898119-50de-422f-add5-024bbff1ba77","block_type":"box","text":"e.g.","page_number":172,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"312bc106-2a9e-4c3e-98b3-524a34443787","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":172,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"c0123d12-cdf7-4b86-82c0-fbd1be2fce5c","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":172,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"1edc8586-dcee-4d69-b2ff-92cb080bf16e","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":"6755ddf1-a166-4967-b1b5-92b236b60d9e","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":"4f272b51-250e-4c22-9835-aa40893dd9e3","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":"b9599c55-29aa-4350-92a7-f8391f2fa5d8","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":"aebe2a28-4128-46af-ac05-bc77ce39ee84","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":"c0663ab2-4343-4a2e-b980-3d02b6c8b3de","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":"ab731ce3-e924-4b1d-9133-2a874b36cf05","block_type":"box","text":"security (","page_number":172,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"2156ef02-7e9f-4ed6-b625-d246a7a3b99c","block_type":"box","text":"e.g.","page_number":172,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"a4bfe2e0-42fe-4e9d-8879-df83c817edeb","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":"95316b2f-5dc3-4bb8-ad47-ba435a07c12f","block_type":"box","text":"highest of the multiple ratings.","page_number":172,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"d8b2ef22-7d5b-43a2-b3de-f0b4b5ec735f","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":"ec2fc246-5a87-4819-a1a1-e4606cc91889","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":"fe3df63e-96a7-4552-bda7-d4b6d7f7722c","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":"7b5de07c-1932-4842-8bef-275d9555aed3","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":"7e19c21a-2c43-4b22-926f-8f04d34e2719","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":172,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"f3a7b760-dc5d-4324-a7bc-f6efd94f8759","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":172,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"d7a58792-30c2-4215-90aa-6b6eaaac0cc1","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":"532e3bd9-99c8-45ce-8511-1cd4596d56f9","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":"ae171f7c-6789-4f09-ac84-0a6c5e433432","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":172,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"463e7efe-e071-48ad-8ad5-862a9c1784cf","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":172,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"803313a5-4a6e-42cb-b850-5ae1cf0a0a19","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":"3e0705a2-d306-470f-b1ea-eb089487cee5","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":172,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"bc07aea2-f171-4339-96e9-18cd89606c4b","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":"bea0faf2-cdc0-4bcd-a258-561ba1aeb292","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":"06ccf00b-bd81-450a-bb45-6a16586a34a1","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":"54c790ac-71b5-4677-9352-b8c774d250f1","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":"455f0a38-942f-414c-a4b6-0add825892b4","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":"3cf47ac5-fe47-4ac6-8525-ca2fddbfe0b0","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":"54eaedeb-2b0c-4a47-8f36-0e6296d4bbb8","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":"bf75eac2-e4d1-4cab-ba65-b686be8835ee","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":"474efa5e-f7bb-4aa2-a321-728f779ff14b","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":"f98dd954-ae1a-430b-bd3c-9b31ebbaf186","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":"3abdedbb-248c-4ea6-a207-56ffb08f9d3a","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":"a6e7e41d-6d65-4931-8c79-76d00cb5d5fd","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":"08e2082d-0965-4d5a-b9ae-dafbe0c1ae6d","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":172,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"d5d38bd1-0617-40b5-937e-e3f9f3759e81","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":172,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"185dacd5-2c82-49b3-b5e1-b068dc79310a","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":"cc76b376-ee02-43d5-a1c3-7d09423372fb","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":172,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"111107db-5e27-42d4-937f-2ade931b40d7","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":"be7b97cb-80c3-4f88-9abb-dc6638463ea7","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":"f3720bf8-adfb-4f4c-a62a-88740c946e2c","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":"70dd615a-f979-40f2-a338-8aec44eb8769","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":"8c109de8-04ce-4bdf-aba4-665afa367b12","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":172,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"b74f8261-ab4f-4f14-8d61-90881036444a","block_type":"box","text":"upon standard sources of variation (","page_number":172,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"35dbb391-803d-4c4f-b593-54c0c98091be","block_type":"box","text":"e.g.","page_number":172,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"836725c6-92e8-44dc-bf8f-d9de8ee139a5","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":172,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"fd78c7bd-c171-4aa0-a163-ed6c72a24260","block_type":"box","text":"A-1","page_number":172,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"e59b7c66-774c-4c3c-b755-757ad50de096","block_type":"box","text":"NM1026U-5985614-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"264e13ce-784e-4969-810e-a5238d2e3347","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":"050952e1-596e-4c51-8f91-66874e84a3f8","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":"e2363899-f274-4ebe-9305-78458cb3ec4f","block_type":"box","text":"e.g.","page_number":173,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"5afe53dc-bf57-44bc-bd62-ee1ea98376ed","block_type":"box","text":", equity indexed), absent","page_number":173,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"439d84b6-5b39-4ec9-8ba9-06babd8faea8","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":"d423c5d6-bb4c-427b-be49-2a375227a3d1","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":"fc499285-9480-4469-b9f8-f039f98b5a7e","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":"c357577c-b7c0-4cf8-8598-a48ce9e350cd","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":173,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"693e6a82-3311-4de8-b366-68574474f1ef","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":"f2b7d405-d741-4ab4-8c29-d186c6d7d2de","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":"901de1bf-86a1-4ea5-ac2e-d35791b6d292","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":173,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"02e82b5a-d5d6-45a4-907c-4ee978d5bd70","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":"50a274f4-c4f1-48ed-b07d-aafac63355a0","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":"6b392e85-1f59-4b30-84c3-3fdd1c834752","block_type":"box","text":"i.e.","page_number":173,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"aff928e3-6a63-47e6-8024-0d02361353c7","block_type":"box","text":", ratings on nonfinancial","page_number":173,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"5b019561-59d4-4c55-999d-b9568730bff7","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":"b080dcd7-24dc-426d-beec-4c70cc4a89f5","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":"e51e3dc9-019d-45e1-9300-c9f724277025","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":"60db7b21-65dd-42a2-8d5c-971f40edc9c2","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":"be043cfb-7e28-42c4-b4b2-eaa164a1c48f","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":"8fe61164-ae67-4a48-b86e-2426b92ae6e8","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":173,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"d0073ff7-d563-467b-a158-ba022f8488e3","block_type":"box","text":"of time.","page_number":173,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"6bde64de-6d66-4222-863f-a0766f9de694","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":"b69ef18e-2886-408b-b81c-9f91d0a56684","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":"54c22136-67a8-4a19-a88d-5df327834ef2","block_type":"box","text":"risk.","page_number":173,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"73062dc5-659e-44b8-813a-af560bdbcf58","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":"b55e415d-2cba-411a-a409-f12bd2adc10c","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":"60c6d639-a8b2-493d-b2d2-38685f2f783b","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":"944f1c48-c7ce-450a-89e1-4f962377ea10","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":173,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"c39e2a16-3338-4e7e-8d22-7961a2ec8e15","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":"c974d1a9-3137-46f6-9192-ecf91dae24ec","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":"7dc6fb13-f742-401a-98b9-fde1277b71f8","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":"2a6d97e2-b6d0-45e9-a5d9-afb0845d9c09","block_type":"box","text":"credit risk.","page_number":173,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"ece7cf8e-5995-4b3b-8d6c-3489a0d6dd09","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":"17490e8b-1ca3-46ae-b4c7-9f81680ea90c","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":173,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"b3982c0a-42cf-40d9-be56-c8434575dece","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":"bb934904-e601-4829-bcb8-aaca40ae73c1","block_type":"box","text":"of principal or interest.","page_number":173,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"3d3996d1-f019-435d-b775-8fe9e67d3570","block_type":"box","text":"Note:","page_number":173,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"38216425-d620-47ab-909b-c49d3a9fca13","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":"3207c6e7-f4d6-4f81-879d-7732f876e15d","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":"3fde9675-6051-4233-9ec5-6b4d1b65aef4","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":"38db4eae-a999-47a7-9389-fb6ef11464c7","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":"14ef3704-28c8-47d3-b3df-f3857fd04cb6","block_type":"box","text":"companies, and securities firms.","page_number":173,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"be539a05-05f0-4248-8c3f-5683417d4409","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":"8aade008-f552-42b0-a222-4f034b56dea2","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":"b0662cfb-22d6-4df3-9eb5-6703e1e26619","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":"97a7112e-6390-4732-9b37-f012235faad3","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":"48d15e86-c412-4b3c-9098-baadcc964e59","block_type":"box","text":"that security.","page_number":173,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"1c9aad5c-3589-4182-bf12-19bf5a266830","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":"9094055b-b4e7-4f0c-aaed-5154e9ed45cf","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":173,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"33c3e9b3-506c-4ed7-9ace-1cfa6d330a23","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":173,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"18bba06b-82f2-47a1-ac28-4382f625b7bd","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":173,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"75a66405-642d-43e1-b09f-518c99fd0145","block_type":"box","text":"NP Issuers (or suppor ting 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":"2a3d9bf5-6aff-4a26-8a0c-2b79ca7dada2","block_type":"box","text":"categories.","page_number":173,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"27218496-5db4-4fc0-a117-524c7b260492","block_type":"box","text":"A-2","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"73df2044-f3d2-4eca-975c-0498a6f8bf61","block_type":"box","text":"NM1026U-5985614-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6cbf74c0-bdc4-44b4-85ff-8fe97776a1a5","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":"51814a24-bb6a-4583-b462-16bae262a368","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":174,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"287123fb-d4ec-4106-8d6d-5cbe4979ceec","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":"865d5490-dd5a-4959-8109-9f842340b6bb","block_type":"box","text":"an issuer’s self-liquidity.","page_number":174,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"afdf94bf-3c7e-4cd3-b702-c6bc1e54b707","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":174,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"78312576-6c0e-4295-ade4-f4a1f8e42cb3","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":"da1865d9-fa4e-4949-b6ba-f8c2129674c6","block_type":"box","text":"MIG Ratings","page_number":174,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"d0c80f07-3a41-4f93-a8b6-e9f38dd8a012","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":174,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"af3dad0f-7284-4597-b1d5-64fdf3fa40d6","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":174,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"24ff6ae0-b0ed-4265-8352-5a2ff82c40be","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":"03c69005-c850-4a43-8c17-f6ab2d9ad5df","block_type":"box","text":"MIG Scale","page_number":174,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"44e9cce0-fc6a-4a25-baec-e437133b11b9","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":"ca884d93-bf59-4284-bfe7-2eea60e36cd3","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":174,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"f3e7f6f4-9308-49a9-b8ca-adce8fb02aa5","block_type":"box","text":"refinancing.","page_number":174,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"4360c914-1cfd-41b4-8a62-9d94b626bf47","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":"d0b5a81e-fb7e-44b3-95e4-121a99446fdb","block_type":"box","text":"large as in the preceding group.","page_number":174,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"cb9b70af-9928-42ea-9050-a7a6caf10ce2","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":"ef1f5d0b-a84d-4b3f-95e0-da5d37cde3a3","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":"daff2d46-47fa-43d5-9120-a0aa052cef4a","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":"9e25900e-e599-4552-be11-51aa1ecf2f22","block_type":"box","text":"lack sufficient margins of protection.","page_number":174,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"d9780c5e-9cee-43f3-9096-aa593105368d","block_type":"box","text":"VMIG Ratings","page_number":174,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"f0a69046-b0c7-4970-b947-487f8788401f","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":"7541209b-c09d-43bd-b0c7-a63771bb5b3c","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":174,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"82170b9a-84a4-42ad-bb86-9c9fdf382bc9","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":174,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"6d2edfea-5b9a-4468-9c6a-0f69615b65c5","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":"1b263f57-a6ab-48a8-b821-8fb31823f897","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":174,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"4890b40e-c87c-4ef2-a4f7-4dc9d106fe0f","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":174,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"20ecc616-9ab8-4d63-878f-4d2f0bb83009","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":174,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"e3cde2ce-c4f5-4789-b4a0-fec57cd450fb","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":174,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"770b4905-de9f-4160-82cf-518eeddc204a","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":174,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"5ad0e8ae-7a97-4b86-80b9-085e78508c29","block_type":"box","text":"grade.","page_number":174,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"6eba1021-0fd0-4b1f-90e5-704dd2a8a304","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":174,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"dc22a9a4-2492-4a5e-8871-7956009915cb","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":"d5183f7e-79c7-4b96-b1a4-d243e4709501","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":174,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"3f23bc2f-6ae1-4326-a137-671b484f8f04","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":"184eb2cd-60e6-454f-badc-76325475a4f2","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":"2d56d578-05c5-4284-a789-133305c353e1","block_type":"box","text":"liquidity of the corporate obligor.","page_number":174,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"4212478c-747e-4492-bd34-e3706b968576","block_type":"box","text":"VMIG Scale","page_number":174,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"248d75e9-1fc0-4558-a8b5-c2870ff3ca21","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":"22f48ad4-8954-423d-a2a7-7001360deda7","block_type":"box","text":"shor t-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":"e6ae9dc4-e836-4cea-a55c-8db4a3c0cec8","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":174,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"6c6d7ac8-b29b-4435-a5d7-94ab4f6e90af","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":"5b09eae8-02f9-4203-8dd6-dc94945b4826","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":"9c7d4422-f92d-46db-b87e-e63acd4743ce","block_type":"box","text":"satisfactory shor t-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":"bec8d85b-132c-45bf-b060-a54ebe13de64","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":"87f0ee48-3bef-4dfd-853f-b3fcf434196b","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":174,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"517d8e10-2bac-4979-85eb-9491940a17f0","block_type":"box","text":"may lack the structural or legal protections.","page_number":174,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"dc9cd66c-e13c-4969-a646-4dc9694ef3bf","block_type":"box","text":"A-3","page_number":174,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"06e3579c-69f0-4e83-9adf-be2511cf26cd","block_type":"box","text":"NM1026U-5985614-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4f2136be-d388-4994-b6bb-1827d31032e9","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":"c1fa1741-2e92-490f-80c4-21bababc16cf","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":175,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"be829581-929c-4574-89a2-352df5a5891f","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":"44385fe1-9418-4ba4-823a-1f1eba5b4931","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":175,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"da63499b-712d-45eb-8536-679ec032bcef","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":"fce36dea-5bb2-4085-a056-f503ff34b88b","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":"e73b5d54-a869-48a0-85af-9835eec967ee","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":"dbe54ef9-5b14-4af6-85c0-63713b846b48","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":"edcb2bd9-5867-4f74-b7ef-dccc1d1db58a","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":175,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"643d5047-45e7-4f61-915e-0d453cfcb5cc","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":175,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"67634f26-656a-4766-b81a-565277c5d375","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":175,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"1e511574-5415-4df4-a3ea-619d49180fd5","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":"8bf98336-9f8a-4acc-8b04-028b41c4715b","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":175,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"8f5ed435-a7e3-4375-a029-8cb76c232900","block_type":"box","text":"from these guidelines based on market practices.","page_number":175,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"dc17b277-a22a-44db-8051-e35ad800f8de","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":"6b54f1ff-c8cc-4061-a0f0-51b1cad580fd","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"21a587f0-b963-4278-816a-a3751349a858","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":"988dda8e-4821-4bc6-b894-808b2bbcdbcf","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":"a00a3bb9-5f5a-4877-8f16-115d7145426c","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"e73a5156-322a-4f8a-90e3-f1dd2e946d1f","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":"ea6986fe-8f5d-4ee0-8c0c-116d9d707dc1","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"a45e7c1c-29f7-4a18-93ed-d71f2eb2d71f","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":"16054f96-0ee8-4210-b73f-b003f0320ed0","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":"6e3e75c1-a533-4a66-95c1-dc4c6d532f5c","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":"f6f867a0-be7a-4af8-a2ef-16de7988167e","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":"d0fa321d-4522-4581-9c1e-021e19b84065","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":"3edac5d5-5833-4060-a892-afedf09c3df0","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":"4ed899f9-bbd8-4509-b51a-bcd68dd71367","block_type":"box","text":"obligations.)","page_number":175,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"69e9334b-70c0-4aee-b59f-f1b962e60a6f","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":175,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"709ff344-971b-4e9b-9659-001dac142f3c","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":"512a86f3-ec2e-456e-b945-b403040d4aa3","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":"98028463-bc3e-4cbb-bd28-8c83ac9feefe","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":"604e5a7a-e503-45a3-843f-a2e68d7a0e49","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":"854a7964-dd7f-4e41-8dd1-6f7977347cc6","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":"6c6fad29-0d0d-42ab-a43a-600f17427c67","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":"23abb01c-bd0f-4269-8a08-a88184e52bc1","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":"c449a54c-2c6b-4bcb-80b3-b57c31aabe9b","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":"2ce30551-1ca6-40ff-98c6-e46b3702249a","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":"27193b46-be33-44e2-bd7f-4f63a58c934d","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"8ed61d82-672a-4e6e-8293-b7dbdf5d8df3","block_type":"box","text":"BB,","page_number":175,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"1b2bb722-8132-4f15-a28c-430836f42ebc","block_type":"box","text":"B,","page_number":175,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"16a55dcf-c140-40e1-886f-55bfd04d56f0","block_type":"box","text":"CCC,","page_number":175,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"c608433e-a492-40e2-b5d8-656e487532ac","block_type":"box","text":"CC,","page_number":175,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"5ee5e86a-3461-4a15-afc7-ce675be5fcfd","block_type":"box","text":"and C","page_number":175,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"b7678e72-41da-4670-bbcc-3bafbad80474","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":"f33a943b-20f5-4f2e-8cd2-b4beb70d9930","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":"922f236c-1fe1-49cf-8659-d978e921ba62","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":"97b354cb-9a5e-4afd-aa96-6245ddba7a9d","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":175,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"b85bd43c-d150-4fda-9ff3-dc5727ca8889","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":"55255b29-2047-4df9-adb9-3b710de44612","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":175,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"919969f0-fb68-4a9d-a02c-be8cf2cad379","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":"a68ba3c7-a13b-4017-ba68-a79914853ac8","block_type":"box","text":"on the obligation.","page_number":175,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"a16b0454-2c22-430a-9c0d-56c8aac58313","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":"9b918f5d-50df-4386-bc7f-6289453bbfad","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":"857a41cc-0944-4c94-9eb4-a535333ed0f5","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":"b82f84a0-f89c-4b41-9254-c9ec993f106d","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"a7d8826b-cf24-4d2f-bc4c-8acabdc0630d","block_type":"box","text":"A-4","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"2c13a9b9-213e-44dc-ae5d-c35f5b779c5f","block_type":"box","text":"NM1026U-5985614-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1fb037c7-1338-4fea-82c1-1b0f3042828e","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":"644b8e55-acd9-447e-82d6-1b74c1e91431","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":"a0f59e5f-1c72-440a-8220-58223ce41725","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":"c908c273-768f-4251-83bc-bc1fb3f7f1d8","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":"4dcd08b2-ba7a-49d6-a357-76904cfca706","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":"4c0c8d06-368f-479a-a245-43db9fc96328","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":176,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"d6bd729c-3138-4500-9a48-910f8767b479","block_type":"box","text":"anticipated time to default.","page_number":176,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"e89ea7b3-ea95-4bf6-8004-46b283bd4359","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":"069f04bd-5493-4c11-b9ea-c243588c6e48","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":"ca730858-dd37-4129-a75b-035e767eab28","block_type":"box","text":"higher.","page_number":176,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"8c4e838d-5d82-48f2-b66a-e72e13ddbf63","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":"ae98e3eb-25d7-46de-9fa7-55a51cb74247","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":"71ad323c-d932-462d-bed4-88773c9ab0eb","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":"a119cc47-801e-4e61-9f9e-65cfcdfb3006","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":"cfcc0882-e267-4954-8960-a03088f0a9cd","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":"e77f4508-8c85-415d-8fd1-76b7bf949885","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":176,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"e2d57e0a-3911-408b-927d-3a4547e6f2ba","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":"02f0c00a-14db-495b-96c8-d276c91da4d0","block_type":"box","text":"restructuring.","page_number":176,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"2342c27e-1756-4d5d-a491-2fa3e1e48057","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":"3350f2fc-ceff-476d-af51-cb27dcac7b8d","block_type":"box","text":"standing within the rating categories.","page_number":176,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"c0ffdc46-8c27-48b1-b847-99807947a3ef","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":176,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"7ff61a2b-953f-466f-a7c7-ae1fb322bb7d","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":176,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"175b1a47-5ed7-4243-816a-023ca6839632","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":176,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"788c6baf-00ed-4a9c-ac24-f113a4743c52","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":"ef06c4af-4a01-41f0-ad30-2401299b2434","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":176,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"8e2b22db-269f-4fc2-b998-0e0efd6b0852","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":176,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"d811a659-f0ab-4d0d-8816-9b51ec222664","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":"78848930-4aa1-4952-9469-7404e066344f","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":"212fa3a9-2d72-4ffa-b44c-c86d03435091","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":176,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"771f6dbb-9bef-4f8f-a65c-b4e9b9c9f04b","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":"52dc725e-d97b-438e-8557-5bb69f0b2dcf","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"c5d424a6-5864-4d45-9828-dd1172b6df2d","block_type":"box","text":"B A shor t-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":"7e610dbb-539a-4847-bd7e-019536228e14","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":"1fdc7350-92f7-4fe3-8a29-37eaa0b22f3e","block_type":"box","text":"it faces major ongoing uncer tainties 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":"6eae3095-9be9-4e4e-87fd-138a79398c14","block_type":"box","text":"financial commitments.","page_number":176,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"8eb47a2a-cb62-4e92-b162-b1d6561974e9","block_type":"box","text":"C A shor t-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":"49b82847-278d-45ab-bcad-210c151e62f4","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":"ec6a8fb5-c7ee-49af-92f5-7b9b57637d8c","block_type":"box","text":"commitments on the obligation.","page_number":176,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"2d9cea97-8a78-46cf-a23e-c4452a559283","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":176,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"f93f46b6-ee9e-4a3a-b13a-fab4e150b919","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":"f888063f-dfa1-417e-a146-d4435d09b0ce","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":"5594150c-1770-4efd-9a79-18941d7492b5","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":"3ce0008c-6a2e-43c9-af6e-4ca233e95516","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":"29e2a894-0577-436c-9d6d-5b4e7fce9a46","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":176,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"5a0a61fb-5fb9-4d47-8cc6-2c3f44b67d05","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":"1fbb7662-20aa-47d9-9411-3b89d40dbac4","block_type":"box","text":"debt restructuring.","page_number":176,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"640650c4-3c24-4bca-914a-566d98eb3f06","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":"a6e37828-b4e2-4956-bd5f-d3c0d9b18792","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":"d902c175-039e-4d1d-b091-2f0bb982533c","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":"29b2ee29-0575-4876-b5a9-1212916cba82","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":"831c88ec-f92d-414f-b0d0-ab2b968f69c0","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":"638eb90f-f80b-40bb-a360-f218f73268bd","block_type":"box","text":"A-5","page_number":176,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"dd7f1b14-136d-46cf-ba15-6ddcaee9cb36","block_type":"box","text":"NM1026U-5985614-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a76faded-4588-4046-af81-34bd5fbeff1f","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"f32f5d32-9ece-41a2-b6d0-7918284b532e","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":177,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"c5a1f18a-70c5-42f4-a39d-c175779a5b63","block_type":"box","text":"as a note; and","page_number":177,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"cb1ef2a6-aec2-410a-8177-dd917bedd3e9","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"cad30ece-77d1-44d5-a66b-6d58288147d4","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":"cca1308d-2c69-4c57-99fd-3cd6dc35b7df","block_type":"box","text":"treated as a note.","page_number":177,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"80cac2c7-c359-43fa-92c4-0959d69bc159","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":177,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"f1e59808-32ae-4558-ad04-13f89faac6c1","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":"6f6d1329-a548-4684-a04b-546b8360758d","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":"b952848d-72b1-4126-b4c7-42e7767521ea","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":"aaf5cb4c-ea2e-4db4-8306-c9c287eaaeea","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":"5fcca013-b1ca-4926-a6db-9a709276f522","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":"344d5575-b16a-4652-9668-400abd6ea416","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":"29d7d5b2-31f9-4f33-ac28-0c33bad072bb","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":"b418b356-b7ca-412e-a027-ccefe44d2040","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":177,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"1acbe787-e090-4c91-a3af-57595d759e65","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":"488a5f5e-b877-4b29-90bb-d6e4eb18884c","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":"2ccefd4b-e104-4fc7-a822-bc22912f4231","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":"469aa8c9-b5d6-4cc9-8101-dc75aa86b96d","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":"2e029e5f-e98f-479b-88b9-f49333a92d90","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":"052a9115-3d6c-42ca-9c24-2d60965b827a","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":"58dcb1b0-c8e0-46aa-8641-1e6f3f54df84","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":"054d3bbc-13c0-4a93-a9e9-708dad0de106","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":"c6ed921f-e191-42f6-b5c1-cd58bbf44ccc","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":"816dd284-4e7f-4537-b786-b252d1c9a998","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":177,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"a74c839d-cf78-452d-9c45-4b2c8c863a2d","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":"1fdbf52d-357c-45e4-956a-aa2ba1249740","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":"e3d9dfeb-87d9-4005-b775-6bd2c7fc60b0","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":"4c54fcf6-da66-49a3-ae35-44c746da1dbd","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":"dcdda7bd-75c5-4682-8b5f-8a404986e543","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":"68d4b81d-ff23-4fae-9615-c589b65d299a","block_type":"box","text":"receivables or other financial assets.","page_number":177,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"be6eca3e-83b5-41e2-9fbc-0305ba729877","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":177,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"b968e478-5af5-41e1-aa10-1b87b6a76cb1","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":"171672c5-d1a7-4f79-ad0e-d2888df5b4b5","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":"fcdb5c0a-d071-4ee5-a76a-958234c98c93","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":"eac3674a-358c-4377-9e60-cc4ee1a9ff2d","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":"38dda469-1ffa-4ffe-95a7-66cb66e96a23","block_type":"box","text":"occurred.","page_number":177,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"916bee82-7da9-439c-bd2a-63d020ec3f87","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":"6fbe03d1-f5f1-4d6d-89bd-7321ce463a16","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":177,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"2c721a70-913b-453c-a930-09b8bfb9d891","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":"f99431e8-fd6d-41ef-a292-bf01cb526741","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":"39007fca-97ab-4dfc-a7d1-78ee74569eb6","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":177,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"34b8c697-7b2c-49d0-b800-24f7396b8878","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":"49a5d5f5-fa77-472a-8198-5ef97045bd9c","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":"04089e57-0781-45c8-97aa-8c31690b1f42","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":"f67c65df-98f6-44a9-91bc-41437a276222","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":"2c55a5bc-23b7-409a-94af-376be18c2379","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":"b7ba1370-9ae3-4ef8-8870-10cb761ee89a","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":"126ffe2b-aacf-4141-b30d-14f8c2a2369c","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":"e4bd106e-8ecf-4f73-998a-f8397631740b","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":177,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"692c619b-a275-4639-8edf-4920884c867d","block_type":"box","text":"i.e.","page_number":177,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"77f69a66-230d-4fdf-bf62-70fbc8137f1a","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":"938ba998-5f79-4166-bdcb-1648d7255799","block_type":"box","text":"the obligation’s documentation).","page_number":177,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"5fd13a54-6838-4a44-b49a-23b09ae31c84","block_type":"box","text":"A-6","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b61611b9-0725-489d-b0a3-6468fd254f0d","block_type":"box","text":"NM1026U-5985614-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6d19366c-231e-47f2-a89e-e6c31a2f3cf5","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":178,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"2af8c72a-c89c-493d-b793-e58a9a211cd6","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":"37b836a7-2b5f-4087-b6d0-082e46b34522","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":"07c59a8b-12ac-4225-abd9-e46215a96ef9","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":"4c221dca-7ea2-4321-8326-a87fe5dc0e8c","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":"58b75489-1de3-4a4b-b641-d795a2e4d995","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":"7ee196ee-41db-4e06-8014-d05f7b41142b","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":"e03021db-a891-4498-a4a3-dca0b7aaed8e","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":178,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"b788377d-2d8a-487f-b1a4-e21cf9c7596d","block_type":"box","text":"e.g.","page_number":178,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"a3094828-2eca-4a69-b1fd-84773f33a169","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":"c8403d2a-30d5-452d-83bd-2e77b78fcc0f","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":"bdd9430d-bd81-47a6-9ab9-0ef266ccc7ee","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":"899714a6-03ea-468e-839d-2818f7e8e38b","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":"e42e2b00-9474-4d2c-9e21-e43a8874a13d","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":"6717b0a3-612a-4b0e-8ec6-9e2e3310d9fa","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":"486450e9-507b-44b6-844f-a871d349ec4e","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":"a4ada471-2cd3-4da6-a163-e77afc60b0e7","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":"065597c1-684e-4a00-8227-75f33165e646","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":"9ff82bff-cd2c-4360-a172-b5b5be414467","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":"475a3ee7-29dd-4dbe-a4c6-ee608062e6a6","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":"c0ada4a4-e4aa-48c5-a9a6-1772d5c3965e","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":"3a1ddf7d-cdf8-4dac-ba18-3a1e97a72dbc","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":"6e375b04-550d-479b-b787-de2d82ba030a","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":"2d53bbea-d21a-4f3f-b565-2b43ac888a0b","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":"021ff0be-55a7-4875-b8bf-60216d08598e","block_type":"box","text":"Ratings.","page_number":178,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"7ed1d761-ed1c-41c6-bac7-4c105fe8f2a4","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":"0c28ba50-9a3e-46e6-8237-774da82b1d23","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":"cb903305-6cb4-489c-ae7e-7b94d39a5c38","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":"d6cd0e65-12d3-4527-b34e-a57e95d39fd8","block_type":"box","text":"obligation ratings.","page_number":178,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"ac61086a-65e8-44b0-bed2-4b4e59034b7c","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":"8de6fc23-60c9-4499-bad8-1948abfdb7e2","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":"e223c39b-522a-43ee-bd38-309fe99ce4f7","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":"36edbdde-cb4b-4666-880c-d5283f24e327","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":"7217e2d5-56cb-42a8-a2d3-27a55d8b944f","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":"8cdaef04-1d3b-4951-b01b-c7206be4aa48","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":"f2b8aa67-299b-406d-a803-576e06521a1d","block_type":"box","text":"to foreseeable events.","page_number":178,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"bef1f9ad-2494-45bf-bf75-17282590323a","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":"0db0389a-4927-4223-9c04-101107c91c9b","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":178,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"210fee07-1a82-4766-94bc-cd698b2cbb5d","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":"8589dfc0-5f01-421b-9531-0424f95c4026","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":"e138cbaf-3e44-4482-844b-6ca0dc720050","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":"94183fa0-6b91-4b41-90a5-1cf16b9dc413","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":"f05960d8-1cda-41a4-9605-5d7b4734968a","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":178,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"c22ccf6a-af36-45ff-9793-4b82025accc5","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":"85fe1030-c0d8-4897-84d4-a16eac3bdc70","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":178,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"66de3d01-5fd1-42ed-a4e6-5b02b6d3479b","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":"06300b9e-3dcf-4576-a5ef-adbd9800c7c9","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":"1a458219-0a5c-4470-a5d8-344a03e33643","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":"fba4c757-28bb-4ea2-8b81-2a1d972944ef","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":"f982c46c-7fcf-420c-aecd-c6c9c06c4372","block_type":"box","text":"possibility.","page_number":178,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"38783cbd-e9a4-4a4e-a5d5-0b58c33bc8c8","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":"272d5810-d975-42ba-b510-0c7c3a6f2685","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":"3ce2992a-cc35-4a1f-87da-aa1206ed1e41","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":"8daaf02a-18a3-46e0-b921-242edfe67be5","block_type":"box","text":"A-7","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"e9fc0998-6608-458b-8bf4-3feecb7c164f","block_type":"box","text":"NM1026U-5985614-178/232","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b62571ee-2c97-43d5-a851-eeee4c4c1367","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":"8106c5e3-d58f-4fef-b603-12dda2dcfdd8","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":"809809fa-0ae1-4308-8d8a-7664ffe280c9","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":"94b8dc7a-507e-48e9-a219-16d4c7f35828","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":"c78b9fa8-90d3-4730-a23c-ee8806ee9812","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":"47cba19d-a6f7-4357-9a82-0985c796c1f2","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":"599fa3a2-968a-4536-9751-e10576a1c028","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":179,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"d87a8b73-803a-4a8c-bdca-dc5e8062aa50","block_type":"box","text":"Within rating categories, Fitch may use modifiers. 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For the shor t-term rating","page_number":179,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"f8739e3a-16bc-492e-9d1f-dfa5c1ce0e7a","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":179,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"09a506f5-f91a-45a9-a4c4-e5a1eb4c5484","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":"57ed1c60-799c-41c3-a661-0640b8560416","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":179,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"ff5cc4f4-c1f4-47e1-a28d-e8b55978bdbd","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":"393ff038-f44d-4068-8dec-f8504ac67fba","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":179,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"08f7abbc-b153-4f8c-8bab-c80deeb1867f","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":179,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"dab45421-ec01-4add-b783-48616ddf7a53","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":"de110fe0-974e-41e4-a258-33f367253e53","block_type":"box","text":"finance markets.","page_number":179,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"cfbc47d2-816f-4d90-92da-ff840d47d224","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":179,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"d9684f88-638c-47f2-a71e-69340dfbb0a0","block_type":"box","text":"F1 Highest Shor t-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":"ba2ed0bb-4ed6-4ce5-9ff6-78460c870333","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":"c2803d8e-38dc-4d37-865e-4981c1a7aa07","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":179,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"dd868f8b-e482-44f9-abc6-56bc4ee47674","block_type":"box","text":"commitments.","page_number":179,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"f5b2e0ab-ad33-4119-9c45-6a20c4767abf","block_type":"box","text":"F3 Fair Shor t-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":"79af70a4-c6de-4adc-808e-7372775392f0","block_type":"box","text":"adequate.","page_number":179,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"c851eb17-c44f-49e9-8723-2b7747006236","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":179,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"9ad96e19-6786-4918-ae8b-72dc445329a2","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":"040122ca-e23c-4996-a6df-179ba8826170","block_type":"box","text":"economic conditions.","page_number":179,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"47c481ee-af4b-48e8-80c3-11c3990fd2aa","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":179,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"2e7469f3-207b-4062-beea-a5ed9f5188c1","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":"f2a85616-2b56-4d40-b1bb-cbd12d7f2c00","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":"bb3f2ca4-1a0a-4235-b57c-ba0ac9c6f132","block_type":"box","text":"ratings only.","page_number":179,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"f47f866c-342f-4870-93e4-c712404df839","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":179,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"94ab500a-916c-4ce5-8868-a3e24ad63fb5","block_type":"box","text":"obligation.","page_number":179,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"9f24bb5a-85d0-422e-8fa8-394ee1e5d1e9","block_type":"box","text":"A-8","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"fd57eb13-42b1-49ea-adc7-2ab1da208da5","block_type":"box","text":"NM1026U-5985614-179/232","page_number":179,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c52afc6b-4299-496e-bc18-f83d1a14bebc","block_type":"box","text":"[This page intentionally left blank]","page_number":180,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"fdee8289-993c-44a2-95da-6b66609c70bc","block_type":"box","text":"NM1026U-5985614-180/232","page_number":180,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dfd987ac-7fe0-4f54-aea8-74ea1e1c8d4a","block_type":"box","text":"APPENDIX B","page_number":181,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"5c517a75-e70e-4a0b-994e-d70643683691","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":181,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"6d5f6b81-31b1-44b0-ba18-9c232364f5e6","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":181,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"98cba040-6eb3-4766-a10c-c2eeda488276","block_type":"box","text":"Effective Date: January 1, 2025","page_number":181,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"8a8da558-52cc-4bc1-80a1-78a8cac7c43a","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":181,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"b95cd6f8-c813-458e-a55d-b535e3d35e6b","block_type":"box","text":"□","page_number":181,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"9f04333a-bc7d-4adc-8352-62b08d064857","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":181,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"7f0dcbef-150b-429f-b0d9-899a101db239","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":181,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"ba7aeb0b-c1f1-4550-9499-48154bb294e6","block_type":"box","text":"□","page_number":181,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"91deeefe-0489-49a3-afc4-ff79b97acf13","block_type":"box","text":"Money Market Funds","page_number":181,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"b0d5e5af-f08d-4fbf-82d2-1ad643c30ca8","block_type":"box","text":"□","page_number":181,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"ce0d7f0b-6cd0-4c1c-80b4-bc64d3c4aaf2","block_type":"box","text":"Closed-End Funds","page_number":181,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"ffc5763c-7e75-4d3f-b112-562bf5dc6717","block_type":"box","text":"□","page_number":181,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"ce79dcc1-baba-48f2-ad86-2adb4aef6c2e","block_type":"box","text":"Other","page_number":181,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"d4855452-79ad-4cd2-9ba5-9cbcd5217177","block_type":"box","text":"Objective and Scope","page_number":181,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"1a96a752-55ae-4121-bbff-e4469d36db4d","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":181,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"bd29714b-f1e9-4ce6-810d-eef800d31def","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":181,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"070fd04f-b8bb-4a26-a00b-16c8247d6fd4","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":181,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"be5efe99-a442-4af0-ae93-17e21439f16f","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":181,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"7ce952a9-167d-4781-afc8-598a8f3d0e5e","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":181,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"57b9a5ba-d07f-43d9-bcb3-d7ea4ef6a67b","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":181,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"2f4629df-320c-4f7c-b354-f2fe568f7ebb","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":181,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"6b2d5963-2d28-46a6-ad01-61d2e9755ba0","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":181,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"4c6b326c-f1eb-44fe-98c2-aee170918939","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":181,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"cfb3acc3-833a-42dc-b1ea-6c7dfcff7eda","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":181,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"a6a8d203-ef63-469b-ab17-43aa112069bb","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":181,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"626a9e1e-4d7f-451f-9bcc-308cb64414f1","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":181,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"198338bd-191a-450f-989f-4f40f3d58a26","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":181,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"6b2a3721-9648-44a0-9670-1a4cd6ca16da","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":181,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"41b452a1-a910-4e6a-8868-8f70fdcd1ee9","block_type":"box","text":"Conflicts Management","page_number":181,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"e0cdee23-56ac-456f-abdc-c0ca38c22727","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":181,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"9b65038e-9bff-44e1-9147-a6e32d2bd1d9","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":181,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"e473945b-0fdf-4190-b569-09df110a4275","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":181,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"e5f6b73e-7e27-4a6c-b328-87c2dd7d3ee4","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":181,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"97bcde7a-4cf7-46df-9cce-f3475276d96d","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":181,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"793c4ec1-a5ad-4a1f-ae3a-78a49581098b","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":181,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"4ad70658-af9c-4c5e-b679-2cb1948e8427","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":181,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"b9106180-0010-4b20-9735-a8fe9c430a0c","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":181,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"ae824bf1-1f2e-4a6c-9145-e43b2ef06a5a","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":181,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"b7b70eac-8a52-4c41-b469-a1e8727d7965","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":181,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"26a3f2ac-b18f-49ab-bd9b-e70469ebba9c","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":181,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"1a7c1042-0685-42a7-a32b-4bc683c8d098","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":181,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"ec8b570f-b916-4515-a95e-e579caecf83f","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":181,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"003a153c-490a-4083-8e43-09bd00040398","block_type":"box","text":"connection with proxy voting.","page_number":181,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"a673d42f-13b7-41a2-a789-0e1e5f0ce10d","block_type":"box","text":"Reports to the Board","page_number":181,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"c1cb022d-49f2-41be-8d6e-b07d37ca8376","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":181,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"6c5bb358-d821-441d-a338-e64cc7e0d9fb","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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The money BlackRock manages is not its own — it","page_number":186,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"296652b9-e576-4450-b081-7c144be75384","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":186,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"f937106a-9f5a-4229-bca2-b7439b42e95f","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":186,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"dd09b781-d34a-44e3-8b18-3d00a1f77fad","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":186,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"9a5388a8-ac0e-4663-afb0-46cd3bb2a5c7","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":186,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"a8132776-d1ea-4736-89ea-02598b4faa7e","block_type":"box","text":"this work with research, data and analytics.","page_number":186,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"a128b37b-dddd-49f5-be22-3d920b3d13d0","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":186,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"697b6f60-1187-43e5-bac0-7bb75a8cd306","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":186,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"9934b32d-b053-4ac1-a200-e97378397523","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":186,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"dbc692a7-174e-4c31-b6bf-44d3fe57593b","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":186,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"420d2e4b-c1ee-49ea-ab38-aea2f5cc8a68","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":186,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"6a39a4bd-3e79-4c38-8b68-d8767929a35d","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":186,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"c15d90f6-4384-406a-83d5-bfd3a679b8b1","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":186,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"ec44b5c5-f4c6-46b8-a64a-d5cbfcdcda55","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":186,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"0c080383-2d15-4fc9-8866-a9fc0c54aa92","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":186,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"19807063-141a-4620-9dc5-be419d02224c","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":186,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"6971d3ed-2141-458b-a3ee-680f79f2d862","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":186,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"1f3edefe-91e2-4f27-8426-f5d8e4d0e0aa","block_type":"box","text":"shareholder meetings.","page_number":186,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"e6df514c-a776-464d-b7f9-f7c28644b0c4","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":186,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"24670a6e-84b4-4847-8594-0c06bd809d1c","block_type":"box","text":"investing.","page_number":186,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"895f7d69-049e-4e17-b418-efbcd3db09e0","block_type":"box","text":"3","page_number":186,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"a2a81d81-7a2e-4f2f-9680-2bc839febce6","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":186,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"3b200a76-6a69-4f7d-b0ae-18c9f5750458","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":186,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"7cffe95f-1a90-4e62-85cb-9ebd8aa422f9","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":186,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"48e9876f-fba6-4c40-9cee-0142a2edf516","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":186,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"cdd8a9a9-5bf4-4b8c-ab3b-77d5e8bc5abe","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":186,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"2d4ef2a4-25cf-40d5-a345-e71d72fa69f1","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":186,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"830546c8-c851-423a-8f27-bc6a463da545","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":186,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"fff225f1-9629-415a-bca1-0e862a37aa42","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":186,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"7bd8ea74-d639-4d4f-8c6a-e5a01e7a36ea","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":186,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"9ecf2dd8-b2aa-485d-a85a-a2c99442cc3f","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":186,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"e3e66584-2f8b-4450-b4e9-7bce8680e3e1","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":186,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"51b6d92f-dc6b-4690-bf09-1362978c8b21","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":186,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"fb5a264f-8453-4f11-a955-43ddae55fbfc","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":186,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"cc6b7bae-41e4-4f1e-b8c1-bc684c24cdca","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":186,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"687d95b8-0292-48d0-8ad3-c7a9cd51f5e1","block_type":"box","text":"management teams and board directors","page_number":186,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"5dea3dbe-d5df-4c05-9d92-41bbd806d72e","block_type":"box","text":"4","page_number":186,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"bd5b0ed6-7ef3-4806-b9a8-55de3ea49625","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":186,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"06b08c42-5a8d-4583-9360-66fce71c2dde","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":186,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"74081e93-e058-41ff-b542-be27292142c4","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":186,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"c68c69f0-c103-4666-afd4-f278fd390497","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":186,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"87eac0aa-5b1f-4b78-b9de-1686ba304b70","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":186,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"9c189287-e25f-4c42-93b7-6e58c4ddf39e","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":186,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"bc4fc852-f479-44fb-aab5-d97935c51c3e","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":186,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"143d5924-314c-4a46-a09a-fc093ad67440","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":186,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"969e56f9-dfb3-4bb1-8af8-9c5c6588bd45","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":186,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"ca83ae30-70f0-44a2-90a6-80816b8d31d1","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":186,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"2ad1359a-7a6a-4ee5-9fda-23b1063d6175","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":186,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"b5de7de7-445a-45e6-ae89-f34565948589","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":186,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"f63753ee-40c6-494e-b831-dd9f31c9a9d4","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":186,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"5d28160a-0c11-4e83-995b-dea64848ad64","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":186,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"8f3224ad-0909-47a7-9929-e34d6735d23b","block_type":"box","text":"3","page_number":186,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"434831f7-aa76-4322-bb71-98b4ae29b152","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":186,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"a2b5a642-78fa-409a-a28d-6ad3bca8d12b","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":186,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"170abc64-d648-40ba-b6db-63c7896f49d0","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":186,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"ab954e68-9742-4803-b9c1-a174fefc016c","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":186,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"745fa125-cce5-486b-87dd-34eb0d9639c5","block_type":"box","text":"4","page_number":186,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"462fa16d-48cf-4535-95d3-7b5cbaa8cc94","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":186,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"f9589564-c028-4220-a8c1-7fda3aba0c5b","block_type":"box","text":"boards and their members, where relevant.","page_number":186,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"46cc449f-5dbc-4c28-8ddd-7705a7ebbe02","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c0181cb6-76c4-4184-b5ab-a2bc8cf43447","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6af9d532-2a4f-40f7-9da0-868235cb9abf","block_type":"box","text":"NM1026U-5985614-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"04db1263-9f14-4fbe-bfcd-e2d548d6b069","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":187,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"90b02add-b381-47cb-91c3-14b78252e54f","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":187,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"b39b2673-ac4a-46b5-a401-c9e543b8e46b","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":187,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"52db57ee-f762-4b8b-b0ec-6116148fd2ab","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":187,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"14d839dd-2c8f-4413-afb8-09bf4a01e90e","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":187,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"068f8206-7160-45bb-aeb4-f51980e6f606","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":187,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"c9ecb9e3-de9b-4e1b-af65-12090486a062","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":187,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"ac01a5b4-f105-4063-85e3-d59b644f9a62","block_type":"box","text":"5","page_number":187,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"49d4b32b-b85c-4d19-91be-81e620c8b72a","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":187,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"2cc747e3-a48b-4f96-83d1-c30f513575d9","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":187,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"697402df-315b-4512-a2f0-f866f65d5b3e","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":187,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"900df837-b58e-475d-b13c-316d720b36d0","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":187,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"d758e1e0-7432-4c0c-80c9-d134dc6e8762","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":187,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"30e71dc3-a27d-4900-8751-073b8cb86a2e","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":187,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"114d672e-7556-472e-917c-d7fedae50d57","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":187,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"ff6bde8f-9e5e-486f-8f9e-902060066d48","block_type":"box","text":"5","page_number":187,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"47771243-8468-426d-a30a-f93260a54da9","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":187,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"360ca454-320d-46da-86f5-5415ef025f1f","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":187,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"48614a64-270c-4e3b-af0b-feef6f645505","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":187,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"ecd78d39-4072-4214-baa3-534edcc7301d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b2257718-76a5-42b6-b1e5-99b644e7b854","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c1a4c45d-a18a-4676-9768-e049534f5a3c","block_type":"box","text":"NM1026U-5985614-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5aadf1c2-24f0-4e5a-9039-930967b0f63b","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":188,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"6ebd3e59-0535-43cf-aaed-deaaec6067f9","block_type":"box","text":"Roles and responsibilities","page_number":188,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"a43421cb-8c89-40c7-abe2-a7688490ce95","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":188,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"c4a825da-4d3c-4664-bc0a-213904bebc53","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":188,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"314be900-f0ed-42e0-9d13-e0a908c00589","block_type":"box","text":"6","page_number":188,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"65edb0db-70fb-4df4-8787-6c39f32da865","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":188,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"f4c587f7-a14b-45ef-8039-a30c653c2732","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":188,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"241de31b-a517-4e78-98db-403071eae34b","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":188,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"270c3a0c-ec9b-40b4-8ffb-6b7098862eee","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":188,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"d45ac599-cfa4-457c-a98f-a435de4c3563","block_type":"box","text":"per formance over time.","page_number":188,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"b145f21b-54b0-4061-b678-d6722bb82d6b","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":188,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"7c862c2c-f85d-4f0f-bbf7-4087fa26b03f","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":188,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"536af7c0-e039-44f9-a094-5400550b8329","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":188,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"6e1350ac-c854-4973-a0d0-2c241327e7c3","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":188,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"911d51f0-ea3c-4eb3-b0b3-a27d66b5ba3b","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":188,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"05497dc5-6aa4-4ca0-9106-f5f5ac577366","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":188,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"c341c6cd-e7cb-49e9-8c9c-bad27952b157","block_type":"box","text":"Composition and effectiveness","page_number":188,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"cb521a7d-eee1-4170-bb5e-ed6408bd210c","block_type":"box","text":"Appointment process","page_number":188,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"13dee632-46ce-4f47-adda-b5f943cb0ab9","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":188,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"ef530ced-a34e-4e1e-b5e0-beadba31e5fa","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":188,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"d9e14798-b686-4e5b-8a15-a138a074d53c","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":188,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"06d12474-7336-437c-a68e-bd7f5cfe64ed","block_type":"box","text":"e.g.","page_number":188,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"43e4d0dd-6682-4500-88c2-02dd63ddd01c","block_type":"box","text":", sector, maturity, geographic","page_number":188,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"2c277055-95ab-431e-8310-f6dabc73f8ed","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":188,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"0663baea-cf4d-450a-b8b3-d815cfcc505b","block_type":"box","text":"e.g.","page_number":188,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"413343f0-4d2b-42f4-9e8d-843afbf07a3b","block_type":"box","text":", financial exper tise, industry track record). To","page_number":188,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"c20150b4-b470-4d52-ba84-ca7adf7e9126","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":188,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"70dc338e-54d7-4cb4-b779-93e5d4a9557e","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":188,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"4f7fee6e-8b44-4d94-a56e-c942febdd470","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":188,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"6cef9274-9ad1-45ee-acd5-2d10e52262e9","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":188,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"f405682f-fdc5-4991-9f2b-83037ce1e3c8","block_type":"box","text":"and local market requirements.","page_number":188,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"6a4dcf79-66ab-4b69-800a-1c0548dc8188","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":188,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"f31a46d9-6784-460d-acb4-cdd4b0c77377","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":188,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"14905770-efa3-40c8-811f-4b3b88405b3b","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":188,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"fc317e8b-8ba4-497d-b53d-51fb8584e7a4","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":188,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"996c7f42-0cda-4992-a1b1-4dfe8d019c73","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":188,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"a67f1cbe-3be9-47f4-ad1f-3c5f6abd12ee","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":188,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"ec9a4599-d8df-4ecb-ad1f-7accd330b72f","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":188,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"6ee53e87-559e-4719-a501-7369ad211fc2","block_type":"box","text":"Independence","page_number":188,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"0c81fc30-fb0a-4b4b-a524-fc2f4b69875f","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":188,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"6975d585-4abc-42cc-8e71-91c85f6b485b","block_type":"box","text":"e.g.","page_number":188,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"fc9c7078-a7fd-4308-93e7-2b0136ebfe8c","block_type":"box","text":", government or","page_number":188,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"2743061d-0568-4286-8be4-23439f1108f3","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":188,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"5565f03e-cefb-464c-9d92-c3145caf967f","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":188,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"258aa7a9-9cf0-4a7c-a428-e76462ee77a1","block_type":"box","text":"conflicts of interest or undue influence.","page_number":188,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"5d4a13de-9aea-411f-a5b1-1896c976c6e8","block_type":"box","text":"7","page_number":188,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"cd013df8-5919-4bf3-8a25-c7dc6c8a4155","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":188,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"7bbd039c-3e7b-4a48-9333-05e3640bb3d6","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":188,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"25fd6ead-d125-41e8-8224-9ba49aa6ecd7","block_type":"box","text":"independence should meet those local requirements.","page_number":188,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"460925e7-18e0-4c30-b688-7dbef82c70ff","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":188,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"bec9d43c-3262-4905-91c3-d7bcdeb4d3e7","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":188,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"3a55b84c-6570-4562-82b0-17f36e458367","block_type":"box","text":"composition if this is a perennial issue.","page_number":188,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"f830909e-dd59-4032-870b-f6342a2e902c","block_type":"box","text":"6","page_number":188,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"44b95bf9-a74c-4c2e-9e1d-6884d18a9732","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":188,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"38e0c919-1cb7-4ac6-8e00-0422508f4f12","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":188,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"c8d7b947-9344-4af7-b8f5-5d54562018dc","block_type":"box","text":"7","page_number":188,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"7560215d-63b8-41fe-b34e-d8eda1c02c97","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":188,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"4cd0eda5-f74e-4edd-9d50-45c9324c7906","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":188,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"dbb4cce1-b080-4824-b918-02429b057b35","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":188,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"4efeede3-f7d6-48ed-8c95-b298d994bb61","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":188,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"be4d2bd5-d04e-48b7-ab7c-e57af96772ee","block_type":"box","text":"of the company and shareholders.","page_number":188,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"7c6b1985-0244-44ff-a6ff-c12599b78607","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d783eca1-2274-4839-b1db-1fd0f16baaf1","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"27284074-c88a-495a-ace6-ad6fac2e78a8","block_type":"box","text":"NM1026U-5985614-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d6729b90-c062-447c-8c14-ac35dd5f62e6","block_type":"box","text":"Independent board leadership","page_number":189,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"72b1c013-e769-411a-8e4f-d7eeef39c986","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":189,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"c2753d36-1326-462b-b09b-a98f8fe724b5","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":189,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"f72d92ab-ca56-4e14-a51b-743b92318000","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":189,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"f0a51322-07c9-4a85-a155-bca86fdd9f80","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":189,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"dd135938-0929-40eb-875d-303464ecaad5","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":189,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"cc4bb8f3-c913-4abe-9073-96e841fb71bd","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":189,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"83f025b2-7802-4081-b02d-98ca488a8b02","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":189,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"81ee9237-97e9-4932-bfd1-6f4a9275c962","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":189,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"56837c9d-9746-4d67-898c-8995da8f1850","block_type":"box","text":"how it serves the interests of shareholders.","page_number":189,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"07299272-8e49-4cff-a8c1-aae6371137ea","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":189,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"fe6c8314-f88a-406c-b980-a817974d0196","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":189,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"63584101-262a-4277-bc77-3e5383116876","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":189,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"72bd9abf-775a-47a4-aa37-f299f2468d72","block_type":"box","text":"Tenure and succession","page_number":189,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"787a283e-4159-46d4-a6ed-2753f85d3ac7","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":189,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"2b9ac81b-9865-444a-a692-71e12dcd2dff","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":189,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"83ecb64a-e982-420d-acca-3df825b43c2e","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":189,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"03870705-f10d-4501-bc29-33de94aeb245","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":189,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"11f0b0ae-d335-4bd7-bed4-7ab47ee45a63","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":189,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"272f068b-8446-486d-ac57-1a3d3f7a35ba","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":189,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"0bcbe297-eda6-48c8-96f4-4a2759ea63f0","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":189,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"19aa1237-950e-403f-b5ea-fa28392aa94f","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":189,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"246b570c-2a1d-4d23-8d01-2c995991fa57","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":189,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"268c9b48-0fc4-4eec-bc1f-04dca5699120","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":189,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"fa8e867f-89bd-45c9-a21c-c50a6be9c631","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":189,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"0cbfa687-c227-4ffc-af64-3ffcd2850352","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":189,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"6363d381-2592-440d-bd40-ed0b3fe63520","block_type":"box","text":"for their continued service is not evident.","page_number":189,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"96b83908-ab79-4d7b-9ba7-f6c2b92fdbc2","block_type":"box","text":"Capacity","page_number":189,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"304e7e1e-0e92-418d-9195-2853a9c3280a","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":189,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"e32eef38-6a6b-43c9-9898-7a453621af94","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":189,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"46e9f557-cad1-4796-891c-48bbdc8b7c94","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":189,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"7a2be185-6467-4646-af0c-6865ac2d4b96","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":189,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"2b17869b-55c1-419b-b06f-080f6674f532","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":189,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"c5029d01-b47f-4046-8942-c110d05b398f","block_type":"box","text":"determinations across markets.","page_number":189,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"12d3870c-8cb8-42e3-a532-d7ead445cc8f","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":189,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"21f25565-ab0b-4794-81cb-788ed7743728","block_type":"box","text":"their duties to the board and company.","page_number":189,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"6055add9-f9ac-45ff-ac83-414f108f1ed2","block_type":"box","text":"Director elections","page_number":189,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"4209cb5f-4651-462f-999a-db247849e7f8","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":189,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"f4d1fbc2-ee98-4240-b69e-bf0382d6feb5","block_type":"box","text":"structure","page_number":189,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"d0fa1a18-16dc-4464-b008-c730c50e5343","block_type":"box","text":"8","page_number":189,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"3331d963-21b2-42ee-b8e2-059028870095","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":189,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"f9043c7f-dc33-4ebb-84b1-14aec6c97511","block_type":"box","text":"basis of its business model (","page_number":189,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"05418b1b-6d01-4d8b-9c72-20b73911c0ed","block_type":"box","text":"e.g.","page_number":189,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"ebd9a9ba-ec05-479a-991f-cd04e4e4d62b","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":189,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"bbc941b8-6498-478d-8398-0c10a8666d8d","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":189,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"843a27e9-e6b1-43d0-8e72-5fcce32bff70","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":189,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"18cef74f-fd0e-4407-9daa-1f4f4016b5a8","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":189,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"b6f98c8e-0e14-42e2-8d1f-254b4095329c","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":189,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"d0c6217a-9105-455c-82c5-a86dfccf97da","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":189,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"df8a80e1-394c-40ad-b693-6f64bde93c1c","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":189,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"4cedfa0b-7d18-4087-aff8-8942eda74d9a","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":189,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"680e10f5-8d73-4ba2-8d38-46afc41577ad","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":189,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"2de91c29-423d-4439-915e-05ba8144ebd6","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":189,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"b7808315-4306-4ccf-8045-3f3e68f4311b","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":189,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"b5d9aae7-8650-4de5-acce-6d1811ba2eab","block_type":"box","text":"8","page_number":189,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"78b1e7c3-40c4-4f7e-84b4-89cc7f01d674","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":189,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"fae5238d-d96d-4ab2-92d1-85f4a3f09b9f","block_type":"box","text":"directors stands for election in any one year.","page_number":189,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"257a5445-f7a0-4c2b-8fbf-3e9c06fc7e0d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"460172a9-9f77-4884-9ceb-72c3285fb700","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"44df7084-5884-43ae-9554-2215b2c97a49","block_type":"box","text":"NM1026U-5985614-189/232","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2215b253-0dfd-4ab2-978a-344b0e5d521d","block_type":"box","text":"Committees","page_number":190,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"351459ad-bff2-4565-9626-8a9ccfe77ce0","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":190,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"59ff3433-d356-4716-8e42-21e96fd1c7cc","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":190,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"9ae00135-14e9-45cd-ab8b-22b55d6afd3e","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":190,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"dddf9505-1ba6-4fea-b390-741367b4abf9","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":190,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"c023dc31-407c-457a-9d20-66a9ffaf2d86","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":190,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"7067e722-4ecc-400a-87b2-c79aaf00e79b","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":190,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"763f5749-6bf1-4dc4-ab3c-6b7fd2a53a36","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":190,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"782cf4cd-6884-4d2e-b706-f3ff42a991dd","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":190,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"19714703-b983-4ded-8909-597c877185c0","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"e909e10f-b039-4395-a003-5554bdec6552","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":190,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"c66e7934-de1a-4a81-9c28-fc2ea2784d50","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":190,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"bd6e101c-f3e4-4eda-b4de-a8d02e8e982a","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":190,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"50d7538d-f473-4a01-9736-4376588ba2c6","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"08893756-e9b7-468d-9da2-4afa512079e5","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":190,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"eabbfbca-22ba-413c-aaef-efc32ffc7dc1","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":190,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"3fecc56f-7bc2-42ae-b49e-6e0a2a846162","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":190,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"ae299f45-7b3d-4386-8e40-3ef475357ddb","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":190,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"e0fc79ad-83ca-4c58-9ea9-79b7f16760d9","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"70da6dd9-e6b2-4f84-abfa-40cfad88efbd","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":190,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"fe66e168-4cf0-4590-9a75-50d25464476f","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":190,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"378f1de0-2ff2-47ac-9cbc-3d38f573eab4","block_type":"box","text":"firm-wide compensation policies.","page_number":190,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"4b2838d2-b893-4ac4-8469-419957283a20","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":190,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"3090d30e-f29d-4af6-8942-f37e2787c9f2","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":190,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"f095674f-7ebe-42c3-9005-3f5f20b2a5af","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":190,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"15239878-8f17-496e-9fda-2e584776415e","block_type":"box","text":"Board and director evaluation","page_number":190,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"c39fa8ab-2359-4efc-92c4-d2c79301e39f","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":190,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"cc20dcba-4365-4b7b-b3b3-3442ef067f53","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":190,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"93660d36-20ee-4aa8-b00b-6f816300abf3","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":190,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"e3dc7903-ce03-47f2-9366-67ac852e8ede","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":190,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"ec604783-99ea-4d39-987b-62a53968c3a1","block_type":"box","text":"a result.","page_number":190,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"1a747747-d6d6-4541-a418-68acd499dc8e","block_type":"box","text":"Access to independent advice","page_number":190,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"23944790-a0b5-4e8e-9dd2-b06b1b65197e","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":190,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"cdefcfd1-141d-4e5e-8418-110a4efa30e1","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":190,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"b79f47e1-5acd-4008-9fe3-861db22e5e33","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":190,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"8027a516-2b51-4876-8440-7de4d51db5b9","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":190,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"f7937c44-dc9a-406a-9ea9-22e1f4303304","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":190,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"12f08e83-874c-44df-b1e5-678267ee7b7c","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":190,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"5d45632c-249a-4823-b08d-1e3775a9e0fd","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":190,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"6397bc88-49ad-400e-87d0-9c2985ceac08","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":190,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"3b573bdf-c708-4f20-ba7a-cac8a495e703","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":190,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"6622c488-aa11-45d0-846b-1ac7ae30ca40","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":190,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"130098de-b22f-47db-936d-54358d69d1d2","block_type":"box","text":"per formance.","page_number":190,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"62b3e01b-7d0a-42bd-834f-32b0d46d1029","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":190,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"e5ab6480-4977-450c-8ce9-096e23c3dfad","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":190,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"51c9b349-b5e6-4ccd-90e7-18fbcced6944","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":190,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"36622957-2aaf-4ede-ad94-f3f819dba82d","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":190,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"53d2993d-9f5f-45c9-8113-83bd6e191b20","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":190,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"c2a1e721-66ae-4cf2-85dc-c192676ea599","block_type":"box","text":"recruit and motivate.","page_number":190,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"83997c0c-1584-49a9-97b9-7f9292b37a51","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":190,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"2e21f647-871a-4b46-8fa7-a2e77052aaed","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":190,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"dfb5894e-2863-4732-98a7-5201b611585f","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":190,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"efb665a4-a3f3-473a-85e7-6ff5443d1c96","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":190,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"864a8c01-5fdd-49b6-81a5-1486582ce37a","block_type":"box","text":"arrangements include:","page_number":190,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"b562da2d-4ed1-4b08-bcea-5965ed2df4c1","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"1e571b29-fd38-4dc3-8796-50b17976a797","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":190,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"6185bd04-6ebc-4ac1-8c00-e7bbf77f01e0","block_type":"box","text":"the company’s size, sector and market.","page_number":190,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"f4f4450a-a9d6-426d-b553-160ea91c97ad","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3379fbd1-1312-498f-be83-4cbcab3767cc","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8695e248-2be8-48af-8f69-4a8081afb2e9","block_type":"box","text":"NM1026U-5985614-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bd960ca0-f124-4ad9-9565-38a50b0cede6","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"bff62c14-4b25-4d4e-bed7-d1739d4282b8","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":191,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"bd5cd8bc-fd8d-4ad3-b8af-fb1f867216b4","block_type":"box","text":"strategic objectives.","page_number":191,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"e2572516-02af-4e6c-9fc7-74e54adff29d","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"4712cb36-0d1b-43c0-828e-5136754032d2","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":191,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"24096f98-319a-4fea-b49e-ab94d370e636","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"407421e5-101e-403b-9fe8-4ad0939b6b23","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":191,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"6ba50c88-2d8e-4176-b56d-6a19be0c2de2","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":191,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"7f6876ff-c1e6-44c6-b988-7c0db9d38e3a","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"5d95b2d8-0363-4d5d-a6c2-f14ba8e47c40","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":191,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"39f1453d-bdce-43a9-bcb2-2d0ca374c630","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"a7805839-0ace-409e-a1a8-35c9569fc16f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":191,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"7089067f-6085-4605-9074-69475d2c261e","block_type":"box","text":"transparently.","page_number":191,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"cc6dc4a2-2545-433b-a4aa-1c67dcc80827","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"bebed662-38ce-452e-97a3-54100b3e1584","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":191,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"0400194d-5f57-468b-92c6-746c2d68952b","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":191,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"de040af4-0ca0-4ac7-bad2-bb9fe846c127","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"18951841-9d6c-47e2-8642-5bed859226ba","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":191,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"f0d82e1b-3db4-4511-a2f4-f405fb0806f3","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"2eee2cbc-0d8c-435a-ac9a-38f4ea4534d0","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":191,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"74d02285-6430-4573-aab5-bd512a77051e","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":191,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"31da2ca9-05a7-40db-873a-5594fd8ace17","block_type":"box","text":"misconduct.","page_number":191,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"4826e4b3-08c2-4c13-bcef-347f7606f03e","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"d6f72d2b-5ec6-4eed-9c23-55f25b8e3ac2","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":191,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"d61a5b60-d672-4414-8129-b1338acd024e","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":191,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"af5564f8-67c5-43ff-b3a6-013458e998f1","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":191,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"9d68bf87-96fd-44be-9614-f499414a97b1","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":191,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"1619dbfe-3ba3-4d6b-a3ac-8bf615f56820","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":191,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"ceb96d64-e764-49f3-bf15-2130710c0311","block_type":"box","text":"committee, or the most senior independent director.","page_number":191,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"74af2e9a-8974-4ce8-a153-28896def8405","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":191,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"5ee650d9-7d5e-42de-9a00-0384f3e04919","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":191,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"844e6003-afff-420d-a43d-0330095c17df","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":191,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"15f064d5-ecb0-4477-92c8-2db6125978db","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":191,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"7e404a6f-190e-4450-ae90-043c29dd0ddf","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":191,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"04eec8d0-0976-4b75-bb5b-454b3a474d1d","block_type":"box","text":"CAPITAL STRUCTURE","page_number":191,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"1402906d-eceb-4c27-a4d1-c0c2e3c66112","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":191,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"d5236916-e9f7-483e-ae09-43920d4c37a3","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":191,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"54d0dfe4-2941-4bb1-84d0-c73953b41ba7","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":191,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"a727a9da-0172-446f-b4a7-59602e1943ca","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":191,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"3c903de6-63b2-4014-9342-4c1648994b7a","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":191,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"b3aa23a1-941d-49bb-873b-5b7c2277db20","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":191,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"851e25d7-c7f5-46dd-b394-eda6273fcd74","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":191,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"0f9c99ba-331c-48ad-a0e4-bff5e449d4fc","block_type":"box","text":"Share issuance","page_number":191,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"947729ba-db0d-4171-b164-3692dd420dbf","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":191,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"19f8c79d-4140-40ea-a822-a48cb89ad1da","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":191,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"ebc47624-53f8-47a6-aa75-2f899079e09c","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":191,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"128ad315-1e59-4d5d-ae5d-43fbd244a6da","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":191,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"dd7b16bf-0863-483d-a6ce-bbab841a4217","block_type":"box","text":"market environment.","page_number":191,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"77a1926f-2380-411b-a5fe-ab5dc60cc670","block_type":"box","text":"Share buybacks","page_number":191,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"0f7cc883-baf6-413a-9c64-473ad8917a2a","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":191,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"15dc2a75-28ac-45cd-bd96-4ccecf7700ec","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":191,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"ce892c2f-1dab-457f-b514-4faf11ab3fcf","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":191,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"ee34af6a-f080-439c-b1e5-6e7e8224fa72","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":191,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"b63ef64c-8dba-4c9d-b40a-90450018a1b0","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":191,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"4ac0eb95-949f-4a5d-88cc-2f723e4cfe78","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":191,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"6cb1571f-9c38-4b95-91dc-ce82fcbeb658","block_type":"box","text":"of the company and the market environment.","page_number":191,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"2e8046c7-48e6-4d61-b1ed-46cbde6f803c","block_type":"box","text":"Dividends","page_number":191,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"64fc4f77-3814-4dbc-8f35-49b8f8ff9535","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":191,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"813b4455-26f6-4408-b88c-198d1aed91e9","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":191,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"eefddcf4-56b3-42dc-9826-8ff8724fafa5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b060cf51-91a7-42cc-b4a1-7b68c9637811","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c80c9db4-3f09-4a47-8f59-241e0a978c17","block_type":"box","text":"NM1026U-5985614-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1e22ac50-94bc-44fb-8809-97dfd1f27dfd","block_type":"box","text":"Differentiated voting rights","page_number":192,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"c31da93c-f9bf-4b61-b824-c6ec12596f41","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":192,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"d69dc006-e9dd-456b-b406-2ac32fa36022","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":192,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"6d0d18da-15c6-4367-8dbf-31b787271c73","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":192,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"88adc6d9-7ec3-4b1c-9497-5ff3e4732dad","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":192,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"822587ab-d40d-427d-becb-599187435be9","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":192,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"e0c752a3-746b-4775-9a82-7ba18c88c05c","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":192,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"29bde6ae-6c8d-4669-9a5d-291dc1d4ae82","block_type":"box","text":"analyses of proposals.","page_number":192,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"413e59e1-b856-411d-b170-050ffe4328ef","block_type":"box","text":"Mergers and acquisitions","page_number":192,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"e3e3e4c0-8466-4b2d-8f0e-9c5311ff67d0","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":192,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"ed507ab6-9c07-4eb5-824c-ecff3472f67b","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":192,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"40467ce6-0a87-47a9-865f-d5e33fc03da8","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":192,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"c886b4ee-71d3-416a-bc71-d38d4e59a9b8","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":192,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"e6e231b6-6911-4dcd-a152-e6492d23e76b","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":192,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"d263e738-ae3c-4876-b8a0-3375d09ea313","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":192,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"552a887f-d6bf-40bc-bfd0-7a07fe6ef3c4","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":192,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"a5d5c590-a2a6-4a40-9b5c-f5a0c3ebc9b3","block_type":"box","text":"Anti-takeover defenses","page_number":192,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"da2db7ce-da21-4cdc-bc47-dbe3852a9374","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":192,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"9696ce06-adb8-411f-9e0e-60f6a9286f72","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":192,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"64506605-b8ea-45f6-9a43-7a8c77f831c8","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":192,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"f7c50480-a79e-4658-941a-0ad2f9c9e605","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":192,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"217969a5-de17-4208-9036-4880aa47f758","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":192,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"29ceb784-4e50-4db6-a9c0-02156f863dfa","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":192,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"b7255f16-de12-49ef-969a-4a16e69e5ccd","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":192,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"260f9bbe-86fa-4fd7-9f6f-b7bbfc8a6f04","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":192,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"f9066886-b9d4-4dc0-81ad-c934f4eb00e5","block_type":"box","text":"Shareholder activism","page_number":192,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"76322dc2-370d-4e84-9076-a2bbf0d29612","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":192,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"9cf337c0-4636-472a-badc-4168527caabe","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":192,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"1b19d6c6-efe9-4f05-ab2e-58c4e10a5b36","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":192,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"aec096b1-e85d-4ee6-a409-78838ec30e77","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":192,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"205ccd71-3eed-4cef-9ca3-11c29422f87b","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":192,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"17182899-b090-4db1-98fd-d9f769be8929","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":192,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"219a6955-73e9-4603-b832-86466a0d61e7","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":192,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"9c38e240-413c-4991-beac-1c987bba8641","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":192,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"4826bbbf-8cc2-419e-9da8-505e17a5c750","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":192,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"62c0576a-b778-4ea1-b4a9-13440763f2fb","block_type":"box","text":"protecting shareholders’ interests.","page_number":192,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"75813c94-267d-4d29-b8c2-5f21d5ad528f","block_type":"box","text":"Significant shareholders and related party transactions","page_number":192,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"b7c53129-487d-4473-a45c-1bd9ea894603","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":192,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"61db7556-2085-406a-b2b8-ee205632e359","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":192,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"b29d8e3d-6a0a-4298-a012-0a9816732a64","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":192,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"64886e5f-40f7-47d6-9e43-a515873ddb52","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":192,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"349ef1bf-5515-4d61-8629-f90c8d2da1ca","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":192,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"84898271-5639-42c0-b243-02410790b1a5","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":192,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"9cd543e8-abb1-4b58-938a-87ddc03f22e0","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":192,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"eac4158b-05bb-42b6-8a81-aea4210dd18a","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":192,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"298dfe89-2a12-433a-bea1-587279c3246d","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":192,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"4b8f1725-b5f1-42cc-8f57-172a5227c796","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":192,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"323d4c72-6d26-4ced-89c9-6452bee0a612","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":192,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"88bc03ca-f040-43a9-bc44-fa1600ebef19","block_type":"box","text":"audit.","page_number":192,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"f4059ce1-6dfb-473c-b252-bd604dd4edff","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":192,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"378df5e0-40ac-439e-a7d7-da2781452398","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":192,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"dab8ecb8-7c11-4b1d-91a2-43a28f27f4f7","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":192,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"8417ca4b-9b80-4240-a1df-d8bdf7f2f5c2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9cf7e2ca-e7f9-4227-b737-4df4f7c3cc7c","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"fcfcff16-671d-4a5b-a5bc-f657269fd61a","block_type":"box","text":"NM1026U-5985614-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b1b3da89-67cd-4a15-b30d-11bd84eeca99","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":193,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"81133d71-c3f6-4e2e-ab42-dd5fc9665bb5","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":193,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"5745a3b6-e293-48a1-91f8-ad09c268f353","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":193,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"8c0e3027-9435-44da-b021-f2da4efc3b6f","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":193,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"7b323049-3120-4b88-88c4-0bf474c527c4","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":193,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"99b2f69a-7437-41d7-84f0-15422723724d","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":193,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"8928fa3a-2689-4a22-abea-f15b873821f6","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":193,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"922a4f30-1759-4391-a16f-692ef2a4ed8b","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":193,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"3c87e398-f355-41fb-afa7-b959f7222a69","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":193,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"27846d6c-f1b5-4219-a545-fc389d49519d","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":193,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"2cc1249b-a446-4c3e-acef-0da0166af4b8","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":193,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"0909c7be-00b0-49c1-badc-b6b19526caaa","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":193,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"dfca67d9-8571-4d18-9b20-86c90254fe00","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":193,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"f2739a2a-e426-4f15-9a92-f932921ead3c","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":193,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"d28e77ae-1843-46ae-b403-9e4228686523","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":193,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"60c5d72c-c834-4406-a328-6e5963c02355","block_type":"box","text":"9","page_number":193,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"bb362803-0249-44c9-a5c7-977b06f72685","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":193,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"4338ac48-728f-4eb0-abe5-0468b2ff1768","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":193,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"542eafd7-2151-4ffc-abab-2784da2a9178","block_type":"box","text":"standards specified by policy makers.","page_number":193,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"cc701063-4297-48e3-8e2a-0180d010e717","block_type":"box","text":"10","page_number":193,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"da090992-c7e8-4de2-8c32-df3ef7d091de","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":193,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"e6c98cf5-bd82-45de-9d3c-63f28c3966c3","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":193,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"69c59cc8-6cc1-4a87-a988-1960a6a85c89","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":193,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"28c8b570-11d2-49a7-9bf5-7476e7198eda","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":193,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"1ac5c029-db7e-4044-b084-2b77f7dedf6f","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":193,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"cf0b674d-6f06-4924-8135-bdb186167331","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":193,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"f4a01ce6-2050-4c8b-bda9-183951de1cc3","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":193,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"cc2ba760-794b-4438-bcb1-900e988fd2c0","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":193,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"98651cc9-6933-44db-b5de-a6788fd09088","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":193,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"ac2a5625-170b-467e-9111-b969bf40d9b6","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":193,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"915f38da-9dce-47c6-a074-64657a832667","block_type":"box","text":"remained independent.","page_number":193,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"c8f0b334-8f38-4194-960e-4f7dca037477","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":193,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"659f88eb-b8bf-4964-851c-a5bb638833cd","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":193,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"b077216b-1cea-4af1-8faf-3a1cc6c7dcd9","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":193,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"e392b3dc-2fa8-4875-b9fe-c8d1ec791371","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":193,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"8f2dc442-109d-44fc-aa07-6f54228dcd60","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":193,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"d2b049f1-25c3-4133-9ac0-cc4d84d5e66b","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":193,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"49520445-e892-4d43-a135-fa0c26ddc2ca","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":193,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"dcc70d9e-4913-42c3-abaf-6f891107e2da","block_type":"box","text":"General shareholder meetings","page_number":193,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"122f97ad-0767-492f-bf1b-ae715bc66f85","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":193,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"f60130ac-160c-4321-82f5-557293956472","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":193,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"8e3e5f5d-c7d1-4427-beb5-a4dcec833f0b","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":193,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"badd2ad4-b859-487e-929f-7e4f4c5fd975","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":193,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"e94e3eb6-adcf-48c6-b2ac-4bebd1b46411","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":193,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"d0ccd386-6ba9-4695-bb29-24daf3e73ce3","block_type":"box","text":"an in-person meeting.","page_number":193,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"56cae628-5628-4810-b113-fba81680d5e1","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":193,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"b5810d3b-0561-4a29-89c6-de0fef096d21","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":193,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"fdc53e87-b633-4bdf-b076-f180d5e4da14","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":193,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"08caee4f-01a9-4155-ad47-846529404d76","block_type":"box","text":"par ticipation.","page_number":193,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"10b0180b-7612-46ab-a527-9e8a2de0b333","block_type":"box","text":"9","page_number":193,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"c928b68e-bcd4-4d9e-a2f0-a26fbae95a61","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":193,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"d06ab90e-4531-4ab9-b0f2-90f70990bf25","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":193,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"7f0d2bb0-d745-4974-b474-32c4d3b04568","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":193,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"e056b635-1944-4988-9127-b25598d12144","block_type":"box","text":"Disclosures.”","page_number":193,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"cb018ef3-4042-466c-97ef-dd75fb4067f6","block_type":"box","text":"10","page_number":193,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"8118cce8-679b-447e-8a10-eaf1a140b2f8","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":193,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"614dc426-256f-4dd5-abc1-302a65b3dec5","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":193,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"37e88fff-5def-4a17-8784-4d44dc8174fd","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":193,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"34846fe7-715a-4c3f-8547-f5c4e986b294","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"60151828-cd2e-458c-91ed-7ad6f04c5b04","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6137c3df-a75c-459a-92e8-60167ea78f52","block_type":"box","text":"NM1026U-5985614-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"24a9d2a9-e898-4cf9-9fe8-7d4991d115a4","block_type":"box","text":"Bylaw amendments","page_number":194,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"b74bb928-0203-498d-8936-1d75fcdad53f","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":194,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"484e7cb0-ea5e-4d8a-91ac-9ad0782d7e41","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":194,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"bc0d3a98-4edb-4817-9095-b0b09291d379","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":194,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"6ddd1475-39da-4fbd-b278-e04ba4f08c51","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":194,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"ac6f9690-f1d2-47bf-9746-2f0c8085c057","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":194,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"3e42bb00-d62e-4378-a6bb-a96588330656","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":194,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"0a699522-bb24-4cf3-8000-ebf28162184a","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":194,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"7ebd0973-1dba-48e1-a514-e5bae11d090c","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":194,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"da4586ea-46eb-4930-a380-da8e407cea88","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":194,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"31738414-e72f-4c7f-b941-9828b5777792","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":194,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"4c08a3d7-1e10-4e59-a9b0-eaf5b55b9aa8","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":194,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"f0592a4a-d83d-4301-b40a-9546f0460c72","block_type":"box","text":"nomination process.","page_number":194,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"40513e37-3862-4dbd-8c02-32eaafcdf3bb","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":194,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"95103904-c8da-4aee-b010-4b61aa0b37c2","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":194,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"ac273b4c-728d-4650-b3f4-405b668911c4","block_type":"box","text":"Change of domicile","page_number":194,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"a7dc4baf-e6da-4961-8609-3d2c70f92cc5","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":194,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"70740a90-edc9-4699-9db0-35d37d4ebe88","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":194,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"394352c6-b483-4cb8-9875-2a05adc02c39","block_type":"box","text":"immaterial.","page_number":194,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"6e40dce9-50e8-4edd-b31e-60299cdeb3ac","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":194,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"bd4d0e0d-4e88-4d08-a6bc-b33d6c0a935b","block_type":"box","text":"with our clients’ financial interests.","page_number":194,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"b6bef707-c9e5-4bd6-97a7-e35af0b9a800","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":194,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"0233102f-b102-423f-a386-8ec30424bd19","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":194,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"d9c8426e-4905-4056-9df9-7b852656851f","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":194,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"57ad8667-06e1-4b92-897d-07437291c14b","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":194,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"3d64f30f-931b-4322-a677-6b1c8d09db45","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":194,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"48aa224a-64d3-4259-9b19-32c019cd7441","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":194,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"64aaca1b-3e73-4ee7-9f27-f8e1d4cca053","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":194,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"e4b3650a-d36b-4bcd-9990-099c5c6d1e3d","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":194,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"816c15ed-ca8e-4b8a-9eaf-392080f8b562","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":194,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"85a04664-8b59-4576-868c-23e8bdfc3d01","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":194,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"91e436fd-132e-4f63-95ad-b445157653e3","block_type":"box","text":"relevant to a company’s business.","page_number":194,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"52d50f61-a2f6-4535-9fb2-d95c127050ad","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":194,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"792db2e7-9998-4702-8aba-537af2d5033b","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":194,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"7d6d8250-6f00-45dd-a44f-cd57d537944c","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":194,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"3eb4a291-ca96-463b-ada1-ceec20d08456","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":194,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"97d6f390-b570-4529-b6d6-2e753f6ef69e","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":194,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"6dd9814b-ec97-47ee-9fa8-1daf6ffe1bce","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":194,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"6b64efe8-0fb8-45d3-9345-37ef1947a25f","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":194,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"a3ceccc6-ef93-4422-b6de-31f9e9a349d0","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":194,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"a36d0a4a-75b2-4cd8-9e03-a3e16a6e37b9","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":194,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"29c9a8b2-1fac-4858-8121-1ed5034e70b3","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":194,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"05c0d761-b9de-4055-b58b-6d7ae9aad671","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":194,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"2f7e616e-b3a7-411c-83d1-08b080620029","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":194,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"5ebfe10f-c3bc-4e6d-93c9-70a87cfe869d","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":194,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"3ad722da-07fe-456d-895a-f5e6e0b15cd1","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":194,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"dcd421bd-3bc4-41e3-b554-cb8303a43b70","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":194,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"b0b4b21a-537d-4fbb-a34e-6da2253b3d97","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":194,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"e51668d6-fd77-4259-9edf-402e57b231b5","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":194,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"b1ca88b0-3804-468d-a567-ddc0999b22b0","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":194,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"dd97a8f3-39a4-449a-b89e-6413c9bbc21f","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":194,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"ac931320-5042-4dcd-a7c5-125a10906639","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":194,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"a16b01f8-9800-4484-929c-4cc486ea33f8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"06bf835e-7b9b-483e-a124-ed5c82b2af3c","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a2d42d3b-7713-4c3d-9b7a-05598cef8c6d","block_type":"box","text":"NM1026U-5985614-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b5e62228-fc0c-4045-a679-d783d7aaff45","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":195,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"e11010c2-a73a-4eb7-97a9-f6ed3c45ed8e","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":195,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"a24471e0-61a9-4873-9883-d5ab19bb30b2","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":195,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"70d8b197-e2b8-47c2-9233-8db4d2c8a9ea","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":195,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"903e42f1-5259-4001-9ef0-9e5f06ca09b3","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":195,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"df88bc9c-068d-4703-a77f-e51517863bdd","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":195,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"60a183f1-176e-4a7a-a742-8c444c0f03eb","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":195,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"ce015b4c-d0a6-40de-9138-1f6d7d520fef","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":195,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"d017b51a-5c2c-4fc0-8e3c-fa7129815f79","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"732d5dce-7c96-43a8-94b2-4d8719de98a3","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"70f0f4ea-ed16-4273-b354-79edd682706d","block_type":"box","text":"NM1026U-5985614-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c723c6c9-39b1-46d6-abed-03a640d6baf6","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":196,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"4c57dd2a-3b07-4cde-a34e-1d81b17d46ef","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":196,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"3ca08feb-b682-420b-8050-594c07d2563c","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":196,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"bdbe14a6-a403-4d70-995a-35317dd0fadd","block_type":"box","text":"11","page_number":196,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"122fd879-e5ad-4ff5-8aaf-83b8bc969a75","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":196,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"eac28165-7df4-4051-8ea9-539b05b90d9e","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":196,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"9ea2e209-e2f8-4916-b745-61dcaf026590","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":196,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"f11e5eea-19f0-44d0-86ef-37b151768706","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":196,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"c3e2c32a-2b75-4b4c-a3fa-2141b43b5202","block_type":"box","text":"regulatory requirements.","page_number":196,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"3eada9b1-1755-4e2d-b11e-94037c5a4e00","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":196,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"0fd6bb63-d336-4794-8ad9-d330eb5a0ff8","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":196,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"19bdf6fc-6fa2-4c67-abd4-67b2251f5d1f","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":196,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"d8dd9329-7c18-4683-9dfd-fd0dae1b6a9b","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":196,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"a2ba6c2c-b88f-4e8f-8e3c-b444cc17636c","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":196,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"ea5fc9bd-3d9b-4a5c-887a-14a2c9d247cd","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":196,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"a3590cf3-e86a-4f81-949b-d48bc9316e3f","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":196,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"f862305d-098a-46ba-baba-80775382b01b","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":196,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"6663f46a-7b74-4d64-9573-2b391545d885","block_type":"box","text":"returns.","page_number":196,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"4e4bb0df-ad71-4d68-a7a7-8a3b799dbda0","block_type":"box","text":"KEY STAKEHOLDERS","page_number":196,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"75a632bc-ba84-46a4-9e71-6a162e08864d","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":196,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"d9fd1e68-7033-4577-a5bd-8552a6001629","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":196,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"09674d94-393f-4718-b66b-e69602ef1684","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":196,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"e640026a-2871-45b9-b8da-56cfccff6858","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":196,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"77846f80-26bf-4f00-8448-1bd4ea3d851c","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":196,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"a0a35f4a-42ff-423f-ab24-bb60c4338347","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":196,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"a7c83517-e7a8-417b-bd73-5d0bb94d6225","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":196,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"72ceb4c0-4872-4e89-b0d5-9f235a529432","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":196,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"28ee70f1-4550-4b0f-9138-3afd48534f1f","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":196,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"963a1f8b-eeec-472f-ac81-6641036da572","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":196,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"1653f2a5-487e-4df5-8016-847ff70a80e8","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":196,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"df2f16ea-b849-4921-b2d2-c7a1547d9b8a","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":196,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"beaa9bba-6604-44f5-a4a2-7a0ba6a12510","block_type":"box","text":"i.e.","page_number":196,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"1faf999b-b741-426e-b74a-501f0a8b5432","block_type":"box","text":", one in which global","page_number":196,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"fbf8fd41-d22a-460c-8868-604c1234aa6f","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":196,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"41b5e9fd-e5f4-4a85-952c-5daef5a14378","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":196,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"23246804-ecfc-4964-adef-d33be872f668","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":196,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"ed8b17c8-8ed1-4949-a77c-9cfed4d1dcd8","block_type":"box","text":"client.","page_number":196,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"2c7c8d68-32fb-41b5-a0c6-570aa23b9438","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":196,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"db79f592-7cdc-46a9-90c0-58e530b1bf82","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":196,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"83e891bc-34af-45bb-84f4-ded1bb3e2ed4","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":196,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"c4e65c41-6310-4aa1-8083-4c7a5f49b784","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":196,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"f180c930-9036-4700-86d1-f78764d8b360","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":196,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"b8df6790-07b9-4433-8992-1bdce56240a6","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":196,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"49d61046-dd6a-443b-8429-6944cd5134b4","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":196,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"a6e8696f-efbb-420d-9a89-5af0cd38c283","block_type":"box","text":"1 and 2 emissions.","page_number":196,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"1057163e-610e-43a6-8829-39cc34d84463","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":196,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"cf273f95-43e2-4e35-9941-39c9da6d4562","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":196,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"7d378388-2794-4570-a691-b6568c79fd9e","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":196,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"56184a56-4d3f-490d-9e84-4818b75c8fab","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":196,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"c95d4078-1198-4dc8-a559-fec333c1bd38","block_type":"box","text":"11","page_number":196,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"2b4a1fde-158d-4f16-87a9-c2eff4e33a57","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":196,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"b7d0afce-26f1-45df-867e-93d546a94298","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":196,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"7b172786-0361-4849-8513-9bda10d8fbd6","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":196,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"875f261b-7a2a-4d0e-a081-94627659b668","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":196,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"03e87d64-375a-415c-84c7-0f479dad26e8","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":196,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"08de2952-1c47-4a87-8ee1-ce37e8246f38","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":196,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"e89092a3-0971-4c60-9612-ebdd6ab280cc","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":196,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"a108e85e-1fc0-4aac-91f0-9cfc6204ef09","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":196,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"eeb5091d-82dc-400e-8056-b7e7b96ee9f7","block_type":"box","text":"sound governance framework.","page_number":196,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"3ef9e6c0-c3b5-405a-a754-f048becaac86","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"038c3835-9a43-4060-8fa6-e3495f1dc05b","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"5986143f-82a1-4e98-9593-438516b2f908","block_type":"box","text":"NM1026U-5985614-196/232","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b8f5c318-8728-46cd-b73c-9d8daeed3e43","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":197,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"85e1a0bb-5cc6-49c5-a074-51ec8c9bcf0c","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":197,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"c89ca781-c8d1-4945-aaa7-d8b78f0aa211","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":197,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"d07f945d-0a7e-4760-a0c5-a9a57cba0699","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":197,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"ce0e9ab8-4fb0-428a-9400-2270de32c521","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":197,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"7b8cdcb7-6d6a-4a11-a2f7-362a0611e34b","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":197,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"af76d151-9342-455f-bca9-3fe0c69d6147","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cc67a1c8-cfa4-471e-9c8b-0be35ce39daf","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"55d3168d-d33f-4817-984e-b6f50a4ef1a7","block_type":"box","text":"NM1026U-5985614-197/232","page_number":197,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cd6919de-af55-44dc-8a47-6e5430a89195","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":198,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"a44c3b00-3e30-46ca-8b55-29f51707f5cc","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":198,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"ab3433b6-7ca5-4d7f-9593-933962ebcc3e","block_type":"box","text":"Oversight","page_number":198,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"2cc18670-d065-44f8-8bdb-047039c515a3","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":198,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"80ae4182-d16f-4ec7-9f53-4f586e0970c0","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":198,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"9acfa42c-3069-49a9-bed1-118a0bb4ee3f","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":198,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"1281e1b6-0fc0-4a0f-aedf-0d1f43259056","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":198,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"7a38723a-497f-413a-b35a-2d420b772adb","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":198,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"dbe7129e-2a6a-40d8-96bf-662c2cda0f60","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":198,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"6fc13126-235a-4f39-99e9-c37c0b44da5b","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":198,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"cd6f3d39-0b59-4c2d-81ec-9eac3ed87517","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":198,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"9c034cb2-80bf-4ff2-baad-df5362bcd588","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":198,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"3113c57b-e598-4a20-a26d-5fb3a44c08a1","block_type":"box","text":"relevant active equity investors.","page_number":198,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"934616a8-4c52-4170-b38e-703a16977aa1","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":198,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"6170e73c-a752-45d1-8e50-f9bececd27e1","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":198,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"4ff8e394-69de-4d88-bbbb-9f2e5a98f630","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":198,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"c927fca7-9987-411e-b70b-ca2856ae76b7","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":198,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"55e65433-2d3a-4061-b0b6-ad06211e6abb","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":198,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"0a9cb0d4-bb6a-436e-9c5f-30e499ed6b33","block_type":"box","text":"third-par ty vote services providers” below).","page_number":198,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"aa1eb073-ac70-47a1-8c14-4bd26367554b","block_type":"box","text":"Voting guidelines and vote execution","page_number":198,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"7bfc5616-8b30-4efb-a6a8-a141cca020e5","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":198,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"a22deb80-9346-45b6-9149-01b210f1dcd4","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":198,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"9efe57d4-6392-4f9f-96f6-1cccf5e5ca63","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":198,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"758c295c-f9ff-424c-ae82-3ea47b4ef46e","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":198,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"9e9b6c4f-c724-4479-aa90-f51ba6be4416","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":198,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"561cc4f2-77d2-4ddb-816f-d6ee877897dc","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":198,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"7cdcee16-97ab-4a7c-915a-93e37da5c7a0","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":198,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"0d2b6143-7b2a-4ffc-bc44-77b4b4017a20","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":198,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"fa244db8-21d5-4917-b0ca-2f67b7dc9b89","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":198,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"4ff0b9dc-4791-404e-8e0e-6a34f1c77e2c","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":198,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"ecc46550-18b3-4f2c-9d72-e22b6ca311f8","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":198,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"93eff6d8-5360-4361-a7a4-1bf509c074f3","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":198,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"7b5e0aa1-4299-4171-a546-af0abb84aca7","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":198,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"cf513c24-0c89-4b8a-b009-448dcd023971","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":198,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"45d7efd4-667e-43c2-a097-185b397144fb","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":198,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"6b653d96-1310-4f9c-b408-1ef24108b5cd","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":198,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"df5e397d-2ee2-4a41-ab20-24451cdab743","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":198,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"b6adb599-f622-4bb0-9ca8-58c079c6682e","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":198,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"6ccaec7d-f802-4e87-996a-636a634bba2f","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":198,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"bf1f11d5-c996-486e-a178-45d1af1f49cc","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":198,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"3609ed87-3906-4202-b7bc-21a1bb35b230","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":198,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"d4cda4d2-629f-403b-b52e-cc4ca10db7b1","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":198,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"1656eea4-1c0a-414c-a745-729d3dd1b26a","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":198,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"21e13cf1-4f6e-4797-b030-c9c406437f37","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":198,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"61b46ea3-c85d-452c-90fa-b640b43f0676","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":198,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"be476e44-8dc9-401d-804d-56a7fde1c9e4","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":198,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"03288fbe-65bf-405c-bf70-58019a545891","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":198,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"6beb913b-78ff-437d-9fb5-241aa1276858","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":198,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"882373f8-a461-4ed2-880a-afc017e4cbe7","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":198,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"0e10087c-9374-4130-bc70-3d25057088b2","block_type":"box","text":"Voting Choice","page_number":198,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"840be0e6-ff62-4ad9-9fb9-7b8e57cc697e","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":198,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"3b09129d-bc03-4cfb-8a83-eb972c0d568d","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":198,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"461e05d1-941c-4976-96e3-46b0dc4f8c8e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8323a0c2-4784-462f-ab88-c12e064ddf00","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f125afc2-00d0-48e5-9e88-67b6afb778a4","block_type":"box","text":"NM1026U-5985614-198/232","page_number":198,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"34282c04-0f6e-4e4f-9e61-dba67c539abf","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":199,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"fb4bc05b-4221-43f8-a40b-5898772a13ba","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":199,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"ed803a62-f3bd-4b6d-a9d3-973109529056","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":199,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"d2c1f885-0527-429b-bc04-38a184925a11","block_type":"box","text":"strategies.","page_number":199,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"ca8672b6-8bca-4420-81fd-d1b842f236d3","block_type":"box","text":"12","page_number":199,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"96ec7785-bd93-4834-9f42-973dbc14ef57","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":199,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"0b3a1920-e3be-4fcc-97f2-ab984a680fb1","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":199,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"5d88764f-6006-4d79-9a96-21e230097636","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":199,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"1bec213d-5fa6-444a-9ba5-3ec0ed0e6905","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":199,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"3720a2dd-600d-4288-ae0d-f1fecb063b56","block_type":"box","text":"13","page_number":199,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"69a1bbd6-bb0e-48f8-8744-725247f3e0fc","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":199,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"bc90ec1c-0a5d-454d-8b94-035e7daa15ab","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":199,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"b19bcd33-9aaa-43e9-8682-9ba6aa808ec6","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":199,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"b5706a86-5793-47d4-818f-a3eb5cdd7150","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":199,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"41d88f9c-97ff-4116-b76f-69757b86466f","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":199,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"caf54c42-f251-41e9-904e-398a18e47f41","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":199,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"4425045f-9cc2-49c1-8134-c2f48f9e9102","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":199,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"ac267538-a39a-419f-bfab-fb130199a383","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":199,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"6e339a16-d85d-43a0-bc09-b8e37526d4bf","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":199,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"3bab478e-b302-40d1-a075-350825c4d0a1","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":199,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"2c7542d5-e495-4159-9555-faabc9ce0042","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":199,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"e7c7e0a2-d2d8-4653-b862-7e1276d82418","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":199,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"868a91fc-9c23-43fa-ab8d-f5d871b849ce","block_type":"box","text":"vote services provider at any time prior to the vote deadline. 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All other trademarks are those of their respective owners.","page_number":201,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"de4b7006-0997-4aa4-8580-783ba6904ee5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0c05b04b-b9c5-45a4-a9f8-1e11bb750bdd","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0bd550d8-940b-41dd-81a7-b43c7d44e461","block_type":"box","text":"NM1026U-5985614-201/232","page_number":201,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"38f44429-8125-46df-ae6d-7b36d6c7a97d","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":202,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"bbc22edd-c0ef-4e04-8bec-21fdb13c5503","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":202,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"34dbc308-64a3-44fc-9967-f15f6bc45120","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":202,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"be80ace8-05a1-4002-b3c1-4112b53467b8","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":202,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"46d04f60-d87f-4434-9367-bea56969450f","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":202,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"25ef5257-4901-42f4-ac5b-5606438678b7","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":202,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"33c2bce8-6378-4a61-8380-37064f42f438","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":202,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"fb91014f-e136-402c-a07b-3daf22c9ef66","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":202,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"e1274ab8-8ba3-4aaf-83c3-81ba2df69710","block_type":"box","text":"Appendix A.","page_number":202,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"d315ae8f-9ee8-45f9-ab47-66324a66f265","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":202,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"be1a81ef-a144-4a6c-b87f-1e1916a3dfef","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":202,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"e01602e8-4ced-42b8-bfa4-88a0021d0ec0","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":202,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"80326e21-e3ee-4acc-803a-b728fb675979","block_type":"box","text":"Conflicts Management","page_number":202,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"10e1a603-3b51-43ce-a82f-ba5ea63d1cdc","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":202,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"f15ba7fd-3bdd-4e50-8e88-10c9a389d1ce","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":202,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"4ca0ca61-39d7-4384-b73d-ebb5a0ecd6fe","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":202,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"b0c6ef2c-1be6-4c7a-979c-bbda37af2531","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":202,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"c87d647e-d8bb-4854-bbbb-e0af2846e0fc","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":202,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"d888988c-9e5c-4afe-976d-a5c84b8f2184","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":202,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"9ef515a1-d9ac-4a9e-a57f-6278d68f255f","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":202,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"49dcbe09-b11a-486a-acfa-219c278c4e15","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":202,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"36b906b3-1143-4357-ad36-7bf49cde58bd","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":202,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"a6cedddd-a0c1-464c-8a75-85ab13eed83e","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":202,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"6984959a-f88c-4884-8182-73edc566929f","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":202,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"52e6e735-2769-4c4e-94a2-8ad06149fae2","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":202,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"4d1b61a6-b70e-4a60-9dd2-64c131890c6c","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":202,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"6d7f820a-675b-4191-968a-793c2688fb53","block_type":"box","text":"connection with proxy voting.","page_number":202,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"98daa9c0-a3fb-47bd-9fc9-2abe2ec3c0bd","block_type":"box","text":"Reports to the Board","page_number":202,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"5b6f669e-9635-457a-ab4c-6b4013790b33","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":202,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"86323655-e0e8-4b1e-b46f-2d256e6931f5","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":202,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"c14e2aa9-d3dc-40c2-a3bc-ee6c6d2c9a8e","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":202,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"69d7543f-68e4-47d7-bf74-58b9b05e496c","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":202,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"c9ff3e14-fdb3-4c10-a961-26a6ff54d696","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":202,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"3917390d-118d-4891-8cd1-742167b1f6d2","block_type":"box","text":"been repor 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":207,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"6fadacb9-7983-4408-8e6f-f7c2fc266047","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":207,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"367d5e42-ac19-400a-b34b-4aaf76d7bc7d","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":207,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"7c0f3d3c-31bf-47da-84ec-59aae7bc1441","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":207,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"8572efed-02e3-4016-b1b6-d81ec5f5aaba","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":207,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"45e703b2-9335-4eb1-9d28-956d6261e0d3","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":207,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"7d773d4a-c740-4486-8536-f5e2d8380048","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":207,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"68bb19cd-a4a2-4111-a3e5-3d6ee32d9ab1","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":207,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"98a1f30c-03e8-4d4f-af62-e5cf9eff6b94","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":207,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"68529f01-ce8d-4445-920b-49e981f6cdf7","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":207,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"f7e2a50b-e5dc-4f89-b007-b2104b4db58a","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":207,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"3f8ca074-f9ab-4716-abae-da0fc37a28f2","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":207,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"a4fb2767-939b-4a49-a873-e0f1dc6423a5","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":207,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"ec338343-de4c-4295-9f68-b84c4c8873e0","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":207,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"8efe331b-b3da-4289-8c87-df997dd328e0","block_type":"box","text":"3","page_number":207,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"6545f892-7c84-47ed-9b48-240f08566c07","block_type":"box","text":"For example, in","page_number":207,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"5e61db11-6262-470c-a26d-832a30738895","block_type":"box","text":"most markets, shareholders have the right to:","page_number":207,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"b48797cd-d458-4ccc-bcb0-8fbeccfb9fd9","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"173f9aa8-f66b-4109-9eda-5ff9923036f3","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":207,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"a6ad8656-6f4d-4b74-a979-2da73cdd691c","block_type":"box","text":"char ter or bylaws.","page_number":207,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"dc55a4f5-4218-43c1-b8bb-368317520c0a","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"a4427f51-faa2-414b-93a0-5d20fd346429","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":207,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"64ccc7be-7f14-488d-b0ea-2ad2eb77e5a5","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":207,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"5ccc5eb5-8e06-49a8-9ada-119ca0a67825","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"d88f138a-1ec0-4afa-a0c4-a6c1f04876be","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":207,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"0b0411ae-384f-49b9-a32a-da7c83b80088","block_type":"box","text":"are material — to make informed decisions.","page_number":207,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"cb783647-9789-4ed7-8c68-2e213c77d075","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":207,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"987d6f7c-761e-4576-9200-b046a2c21210","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":207,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"cbebd902-27cd-41bd-a6ba-89074bf0d643","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":207,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"bbf385f5-a618-4c3e-b666-0293381a09be","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":207,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"007c8baa-f7b0-4c76-9c3f-9c2e5fc3ee3d","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"a14b9853-eda7-499f-a611-65a964a17db9","block_type":"box","text":"Boards and directors","page_number":207,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"82d2bfa2-41d2-4200-a77c-aa9c9cc0d2d6","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"cf2066af-f8bd-47aa-b18f-84e33cdc26df","block_type":"box","text":"Auditors and audit-related issues","page_number":207,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"83711acb-0913-4bc7-9402-b1a96d02bc95","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"b38aa1b3-9832-4083-82c2-67f93a90e8f6","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":207,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"4b9624fc-0223-4e25-bb26-d23835c116ab","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"feabfc77-1558-44d9-b596-2113a72ba746","block_type":"box","text":"Executive compensation","page_number":207,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"766f953f-727b-4df8-b8c4-1d0f3d9ef292","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"10d1e49d-0470-40dc-aa16-e87da971e0ed","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":207,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"53dc4eef-2a49-4f2a-9d63-f8ec4c61a0f3","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"de40f9e8-3b65-4df4-8663-441e04073d72","block_type":"box","text":"Shareholder proposals","page_number":207,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"745bd93a-1403-4e8f-bbad-0eeffa5e71f0","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":207,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"442ea11d-3db9-4871-9985-409d93c90abd","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":207,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"545b1404-6ef0-4030-bf16-15207cc5798f","block_type":"box","text":"which companies operate.","page_number":207,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"d0b34c83-e91c-431b-a62c-5d7927c3446c","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":207,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"703d6cb1-699d-4f8e-aec8-0de501df20fd","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":207,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"9d0ca0e1-20b2-4360-81ca-88e03f274dc7","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":207,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"267c52b5-cc03-4de9-bffa-705d95da67cf","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":207,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"b9cd543c-a404-4d37-b03c-66a483f30937","block_type":"box","text":"4","page_number":207,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"f4d8d17f-e9a6-46e5-a866-00e93185a66c","block_type":"box","text":"3","page_number":207,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"4beba1f3-3223-4ed7-ae64-345941f60b04","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":207,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"e62f6be8-21a4-43d9-a861-f163f2fc25db","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":207,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"78e29bb4-3d24-4783-a9c7-9533ebdbc649","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":207,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"315818e8-f1a8-4177-a9d2-ea515e847d10","block_type":"box","text":"4","page_number":207,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"cc403205-e9ec-4613-82be-571ca292b687","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":207,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"c9a6e745-4eb1-4c35-9bae-557fd3da59a4","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":207,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"3e464df0-920c-44c0-8b61-d12b5b651070","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":207,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"1b5e1d5e-514d-44bc-a5b6-d15250f7f69a","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":207,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"13f485ad-6f41-4940-a12e-40f2ae644977","block_type":"box","text":"guidelines.","page_number":207,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"7004de63-1293-4df4-9134-d4ed42a9c781","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7af68431-d957-47a7-94d0-c01e088ab509","block_type":"box","text":"Global Principles | 4","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ae534267-0ba0-431b-9487-e624f2403cb3","block_type":"box","text":"NM1026U-5985614-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a6277aac-6303-459d-9159-4c4824e05b6b","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":208,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"41ddc18c-1243-4777-98ff-21a788d0f068","block_type":"box","text":"Oversight role of the board","page_number":208,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"bbc38e86-fed4-4be2-9007-4c31f5c29742","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":208,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"202fbb9f-ef6f-4ad4-801a-4d1511ee2768","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":208,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"d2db378a-9970-4186-a54b-507bd1a926c7","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":208,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"adb001d6-b893-4967-91b8-7ad1e6a79a47","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":208,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"82358984-19d6-4f50-ba07-265af568f16c","block_type":"box","text":"long-term financial per formance.","page_number":208,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"2525d411-3316-436e-8597-254165e8ddcf","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":208,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"9481e938-1ba8-406b-94ce-46cc994c4dff","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":208,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"99b8990e-6a4f-4d04-ae2a-0ddeef50bc26","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":208,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"05da8095-c291-40bf-9bcb-cdd7976aeb03","block_type":"box","text":"the business environment in which a company is operating.","page_number":208,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"a7ae9958-d10c-4887-9ff5-769dd8a65b50","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":208,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"f40e0875-f901-44a7-8da2-a6ce3c532ce0","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":208,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"8698c880-f260-4a61-a0ae-9e6400b6281c","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":208,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"d1a2355b-5db5-4a5d-a62b-8b63da8a0c28","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":208,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"9fa960bd-cb3c-40aa-bf08-ce30947ac803","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":208,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"3dd81fb0-c139-40b7-b70e-9cd6039d5693","block_type":"box","text":"mitigating such risks.","page_number":208,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"1f315b9d-d740-4449-99ed-d8dbf3495e20","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":208,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"f75af72f-9984-4a4d-9fdd-fec972aab9be","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":208,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"2a1df27b-f62b-451a-a5af-dee70ba570d0","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":208,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"0867041f-ff61-49d0-867d-48a548587a5a","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":208,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"26223569-5b07-46da-9444-0df76e4ad859","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":208,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"454640e4-4a46-45f4-af15-1a214d9de550","block_type":"box","text":"strategy.","page_number":208,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"3239ef73-f227-446d-99cb-a6e6876dbaa0","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":208,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"bb03c412-68a9-43a6-ace8-329eccea8391","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":208,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"8ab8ae5a-128f-41fd-8871-945b668203d4","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":208,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"507a1c14-1aae-4dd9-bec0-6ad9508f099a","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":208,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"1089efdb-25ef-4b85-8307-0cd563063fe4","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":208,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"db8aba72-759a-46b0-beb8-17a8a9e0fc25","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":208,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"63deda64-7664-4f26-994f-11be6cdd9c38","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":208,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"71df02e8-6b2f-4ad4-a99e-05a589bc9b7d","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":208,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"6ec2a785-ee50-461a-9f16-7aae43298e79","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":208,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"ddb24f4a-b22c-476f-8f9a-bd89c887b68e","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":208,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"ee46ae21-1f94-4d3c-8edf-75bacb182063","block_type":"box","text":"Regular accountability through director elections","page_number":208,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"6e6637d5-3cae-410d-9736-bdd82a81a7eb","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":208,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"7881534d-2757-4858-adad-c387f10016b5","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":208,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"0b24c7ea-7869-4102-b93b-369bc10409ae","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":208,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"ce7679e1-1829-4d6c-b2f6-dbaa30bd9eb6","block_type":"box","text":"5","page_number":208,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"16eebb61-d51f-4d19-95eb-9c4575765dbd","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":208,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"9703f9be-1628-4481-84e0-190bdedf3b36","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":208,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"abfa71bd-e23f-4c76-8155-1aa824855e8c","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":208,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"3fa8f8ae-c082-4de6-8167-641bb1a7924d","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":208,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"c5336e6a-b204-4c71-a64d-4ae9c5a1c11c","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":208,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"8d1939d7-aaef-420b-9257-54fa113d9c33","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":208,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"552e77e1-a304-4aee-a9b3-5e6d3a8a6262","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":208,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"ae8b6e0c-0d90-421d-a4b7-cef88bc53f99","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":208,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"c5c38401-a275-4271-9f50-83ad56526886","block_type":"box","text":"5","page_number":208,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"219fa662-19c9-4660-b33b-f0c6c0760a78","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":208,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"616c3d2c-33ad-4694-aa92-a38654fc22cd","block_type":"box","text":"market regulation or voluntary best practice.","page_number":208,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"75df4beb-0f5e-44fd-ba34-255c395ccd3e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"afa208b7-f9d5-487b-9840-d2ff847d8298","block_type":"box","text":"Global Principles | 5","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3c69511d-b557-4e6e-93f1-9330b7ef40e4","block_type":"box","text":"NM1026U-5985614-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"72678b19-ae57-4c4a-818e-28a7037c7b56","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":209,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"53444820-a469-4cfc-be7d-df51df0e9060","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":209,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"f2322c31-a533-4c65-924d-a3f2955652cc","block_type":"box","text":"recently.","page_number":209,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"7fcc5663-3f7b-472b-9778-b21dd349a941","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":209,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"ac270a75-c304-4366-ade7-dbda0b52b0c5","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":209,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"ae190886-7f98-45b0-aa38-3cd12aab3cad","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":209,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"8223d487-5f41-4793-b84a-fe8d16cd3230","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":209,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"8312c14a-a9f8-4374-bacc-902925916cd9","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":209,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"1604a955-160a-4edd-bd67-2472bbedfcb7","block_type":"box","text":"Director independence","page_number":209,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"f6f8d7b1-471a-4289-872d-a72b063510fe","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":209,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"7349b12f-6399-4e9d-b3df-e53da6401af9","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":209,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"00f63d0e-ebe3-4a17-9242-260a7957e458","block_type":"box","text":"6","page_number":209,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"b4e95970-448e-411f-8cff-edc2b99dd6e0","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":209,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"b677303a-8fec-4ca5-be7e-dbf63a1e3b4c","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":209,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"a75d2c37-8592-42a7-995d-e3a04b7ca0eb","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":209,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"7d4c695e-5650-459f-9e89-12ede84cadd3","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":209,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"50c325c0-423a-4a2b-9e52-9b3346c823fa","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":209,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"46c025c0-4a71-4524-a55a-e3e03805baa7","block_type":"box","text":"•","page_number":209,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"c2967726-a0ee-4ef5-b753-4cf13cb14585","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":209,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"51d51ea6-a597-424a-bc63-8937329c093b","block_type":"box","text":"•","page_number":209,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"196b80d0-da62-4826-a832-2e6f001cb791","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":209,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"8c54202a-249d-408a-8866-d9dc5b157a46","block_type":"box","text":"•","page_number":209,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e1b4bab3-2fb2-4661-a669-6798404a0a8f","block_type":"box","text":"Interlocking directorates","page_number":209,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"c3e4bff1-a576-48bc-b6c4-593c2e49dfd4","block_type":"box","text":"•","page_number":209,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"f00f5596-723f-4ffc-ad28-cfc7a8757630","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":209,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"03825a0d-8cac-4849-9eef-dd26d781ade7","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":209,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"6299f273-6ff8-4a70-b2e7-340f8bef7cbb","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":209,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"55bd7e35-fba7-4ade-b558-9f2381fa4568","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":209,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"3d29050f-29f5-4ad6-b357-ea5c7f283757","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":209,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"2fb6c50b-1461-46ba-a435-ac134d6d7a1c","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":209,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"41c7676e-d3bc-4ea6-a83a-b3495d963b2e","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":209,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"3c85d91a-f927-4324-8652-1692cb2e4f76","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":209,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"c0bda8d7-8dc2-44f8-ae4a-7d27e3d424f6","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":209,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"1e7afb3a-db39-4db4-87df-ab90f0c1f77e","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":209,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"ac1abfbd-b0b5-45e7-9c3a-0eceef87b2c0","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":209,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"ef278b56-eca0-4e9c-b8d8-fba2fb71b6b9","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":209,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"ea9494f6-35ee-400b-8c8c-ac7646ad2dfc","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":209,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"d673b95e-c5f9-4682-89dc-d6fc098be712","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":209,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"58e2241c-dc10-48c3-a693-6a86bdf18153","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":209,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"f1adf2d4-6c8e-49a7-b7cf-b504e4f9cfd9","block_type":"box","text":"Sufficient capacity","page_number":209,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"89ec6ced-596c-43c5-a5be-f5ab91efb0bf","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":209,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"f4062b98-c1fd-45cf-97c3-41c63c59b192","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":209,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"770b7b04-8277-40d0-86a4-9c2b252abdce","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":209,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"5169fbc7-e000-4d34-bd5e-0ba5cfcc5513","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":209,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"d4b77938-6b47-45bf-8259-cfc00e4b3a58","block_type":"box","text":"Board composition","page_number":209,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"8f55eedd-1a25-436c-bb96-bb01a9c0fd99","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":209,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"b1f9d028-e75b-4cd7-b6aa-c11d7c735f4a","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":209,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"02eeb24c-2731-4afe-a760-cfe5bde2fdbd","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":209,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"e76d8b01-b249-447a-8eac-18e8b4165181","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":209,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"e57c57e3-29a0-496f-82e6-80ce55eed6bc","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":209,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"1506b40a-5351-4fe0-86a4-724bf6fd2ada","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":209,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"3f9a2354-6bf5-461e-bb87-61c2385d7c4d","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":209,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"4be2ae17-b6cd-4da3-b4e6-d50b4aefb76c","block_type":"box","text":"6","page_number":209,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"e620e9fd-f05d-4a96-aa51-1c4db5f6d81f","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":209,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"ab9e1a68-679b-494c-8d67-e813acf7d9db","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":209,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"1ad221a9-0d0b-42f5-b117-05da6931a997","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ad88f14e-3af3-4081-a6d3-a1fdd3786648","block_type":"box","text":"Global Principles | 6","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"597d0ecd-b849-4150-9cd8-1e8cdc179eee","block_type":"box","text":"NM1026U-5985614-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ca718947-0afb-4403-86be-f7d3d72245ff","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":210,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"f21d51e2-b6d4-4519-b481-0e46ba2ae03c","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":210,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"444d1798-9697-4c2b-953d-5ac70ee83190","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":210,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"16e32d74-f003-46c2-8dcb-87fd7094dca3","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":210,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"e402c5ee-587e-46d5-b1d7-f35eb0701971","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":210,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"69ab8300-3760-4efb-8cbb-8671a25c0275","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":210,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"2c04f6ce-e065-4656-91fe-ec022192eda3","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":210,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"42001473-9be1-4375-9606-d8610e902bf1","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":210,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"ff94b39f-c04b-407e-ba6f-ad0677865974","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":210,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"1ec8ee0e-9792-43b6-81c1-a4c247040949","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":210,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"df6b88d6-aa50-457c-996c-fee3a249430e","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":210,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"4763ca3b-f27e-418e-bd78-553f2b249388","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":210,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"7ffbdc91-a825-46ed-8183-46e7187c9999","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":210,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"09dc8283-a0d7-4a55-bea8-1bd4128b988b","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":210,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"14488989-9c57-46e9-b328-fb42a9c9705c","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":210,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"753883e5-0a78-4267-8da7-edde9c469cab","block_type":"box","text":"systems.","page_number":210,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"dd069131-bfbb-4337-812d-e3da97441cae","block_type":"box","text":"7","page_number":210,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"5ecde513-85b5-418c-bbe9-9e5c70ba061e","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":210,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"0819261f-88c4-4b4d-b15a-4e2ad4367c77","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":210,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"0aad8347-e130-4982-b08a-4c6d1f4fb2fd","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":210,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"67681d87-7cf6-4be8-acdd-ad58243c5d50","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":210,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"2feccff3-6086-4756-a354-69f83a47bd85","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":210,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"2f491687-dced-4204-bac8-7315a9fd3123","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":210,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"0cc37f5c-0135-4e6c-90c1-a1165a0481ce","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":210,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"64adf163-0330-4ccf-b519-359b17a94a16","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":210,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"3b3ebe6b-61c1-4637-99d9-621aa258d934","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":210,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"a9bced44-a81e-46db-a115-08f49440b3bc","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":210,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"73eebebd-035e-4d85-8b44-fcdf7e4392d8","block_type":"box","text":"or internal audit function.","page_number":210,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"bfb74973-60c4-4dde-b1bb-b5f74a738cf1","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":210,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"96c97524-29b0-40f1-990c-8ae19594c741","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":210,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"995e2a17-b3ea-4b2a-ba12-dd3da186ff28","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":210,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"519ffb31-8e3e-48bd-9349-1217ce273cc8","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":210,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"6c04a325-d80a-4688-9fec-bb1024e0f88c","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":210,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"ee8f29f8-5bde-4949-a6d0-653b8ec4b3ef","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":210,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"e53f812a-5225-46d3-806d-f030bd44ed12","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":210,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"05a3809a-e78b-4d28-85e6-44c0569f7d20","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":210,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"72ac6cf6-82f5-453b-9987-5d0d9224439e","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":210,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"150fd1ec-e8a4-44a4-bfe8-5cc91e2679ac","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":210,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"c75183b4-4012-489f-83f7-0e7be1a4d2a5","block_type":"box","text":"risk.","page_number":210,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"8443b522-bb8e-4fab-b09b-2670797a3e19","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":210,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"717c541d-bfdc-4a04-bb17-f74cca27a73f","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":210,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"79ecbd7e-82ac-4131-a6fd-cb5435a81812","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":210,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"8b6a8446-cf28-4bc2-82f3-f653a4d904e2","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":210,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"b4725be3-72ff-4e95-9022-c81119c76c1d","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":210,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"fa1f8139-c5db-4237-a26e-76386aaef16e","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":210,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"bb0e0057-0a0b-4048-9096-01b8bf9c419a","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":210,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"6012da7b-6717-4b74-b9be-7bbdd477b5e2","block_type":"box","text":"7","page_number":210,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"58bb35a6-9998-4269-8d99-3b019c39a077","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":210,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"7ebf2868-5bd0-4ebc-867f-238b6d9a3dde","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":210,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"62912cb8-b478-4fb0-b502-1445395ec69a","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":210,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"42c5f5e2-9514-43ce-9d3c-59bfd36032ba","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":210,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"6d06716e-75e1-4e61-9437-15a5751c3c28","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":210,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"91d98a50-36c0-4e1b-84a3-5b139c4b2903","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e9ca1b07-eba2-48e4-81f1-7fb9f24d7197","block_type":"box","text":"Global Principles | 7","page_number":210,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"9c6b64c2-dfc6-4db7-bbca-0d58187efafa","block_type":"box","text":"NM1026U-5985614-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4a1cfc82-a923-4605-a78e-7da19bc90631","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":211,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"0b453b3b-2b4b-46c8-a273-909d9c264b57","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":211,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"c975c04d-547e-4f84-aa67-366236f99f3e","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":211,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"515f964d-741e-437f-a720-0d7b641dd948","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":211,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"69692866-a4c9-4cf7-a60d-97eb4e95d183","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":211,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"97080076-72c0-43d8-8c84-a9172c73e355","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":211,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"ac869be9-63ff-463d-9286-49a9868b03ec","block_type":"box","text":"minimizing costs to shareholders.","page_number":211,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"0c8301eb-5b81-42b3-84b5-79397076825a","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":211,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"be8819f4-da66-4d66-9d94-a66a84b0dcd7","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":211,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"16ef58b5-520f-4636-91ec-252eb467c812","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":211,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"ce042695-c551-438f-a4c8-1fe7b2bf18d7","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":211,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"588d8d5e-c9c9-4ae6-8990-9bb0210fc1bf","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":211,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"b8d94da2-d64a-4e21-8459-68bb6917fa0c","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":211,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"17c22109-4017-4eaa-90ad-6dbab8cc2fb4","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":211,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"6538080d-4f49-4db7-9d8b-c4301d2330a9","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":211,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"0cf8b87c-f0b8-4b6a-a4c0-572d47cef76f","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":211,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"9f33f13a-b519-4e72-bf11-f9b2397ebed3","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":211,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"24101cf1-be2e-4cbe-bc97-459b0f936f33","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":211,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"0dc42ad0-fc63-406f-97b0-d58f6c2454a8","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":211,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"7cafabca-c06f-4fe4-8847-c847353f04ce","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":211,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"f8ec2ff0-00db-4939-a095-f342b2833cb3","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":211,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"47ea4b1d-42a2-4dd9-986f-c2570449b32c","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":211,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"7cddf01e-3b19-40c4-8f01-a2f4cadd3f61","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":211,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"69c68393-fabd-4eb8-83bc-96bc79e4d845","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":211,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"65fa529f-f5f9-4f46-bacc-2aae1be283b2","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":211,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"ce21dc5a-e167-4c13-8801-8f42438c77c2","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":211,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"25c8eddf-57a9-4967-8a29-2f6e03cf137e","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":211,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"bf547643-655b-480f-bcca-dc3a5d72ca8c","block_type":"box","text":"ownership.","page_number":211,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"888eb3e9-3e4b-484b-af61-89bc68a583cb","block_type":"box","text":"8","page_number":211,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"7ff297e5-b335-47e8-94c5-7dd1d9d6250c","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":211,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"9fe4d9d2-972c-4314-8784-565ed8130ab3","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":211,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"19c71c7f-7af6-4d49-88c1-d2b94521540c","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":211,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"7f2650a0-ac46-4c71-a0d6-4e64fed8b722","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":211,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"c06a25ea-58a7-4cb9-b77d-6e79494a9f79","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":211,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"3f79bfda-4c67-4bff-b851-792c5efe4a69","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":211,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"65940136-2cbe-4a97-82e3-cda550c52a55","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":211,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"34c5220c-ab89-47f4-a6c4-a441f95eb057","block_type":"box","text":"results over a period of years.","page_number":211,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"ba15b8c0-540b-4288-9bd5-13f52c1ef66c","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":211,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"cee42fbc-0086-430b-9876-0ef098cac8d9","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":211,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"de16d93a-26e5-44ce-b2eb-a16fc895bcdf","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":211,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"bec07811-6191-4623-a4df-ad79c3f35117","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":211,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"d863ca26-1be7-45fe-a4b6-5f2c84afc034","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":211,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"b9ca85ba-ad14-486f-b870-0c46970f76f4","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":211,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"592e8d6e-f1b4-49c6-801a-7848e50a1568","block_type":"box","text":"executive compensation strategies.","page_number":211,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"e950dbc0-8ff1-4207-b76e-796dd8dd3a96","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":211,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"610ab1ce-7383-49de-9ece-2c05d334a933","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":211,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"3e566f8b-9372-41e3-8efa-0966f17b84a7","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":211,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"045d71a7-fa71-4822-8efe-f52a5ede5753","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":211,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"22c3ec11-7eef-4d73-8fc4-9c71d0f77f9a","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":211,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"33819faa-edbc-4b33-a6c7-0821f8efc604","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":211,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"5c0104d1-53ab-40ad-a2b4-986b842935c0","block_type":"box","text":"8","page_number":211,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"342b059b-575a-4b08-a683-75976d892166","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":211,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"5bbe0514-4212-4f3e-8034-2ec85e2e5684","block_type":"box","text":"different markets.","page_number":211,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"547087b5-b29e-4aa6-a4ce-fe75f1d43d07","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e2473a5f-6407-47fb-9670-045e7786977c","block_type":"box","text":"Global Principles | 8","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"2f6e92f8-d9bf-49e7-abf3-47d28518a5ed","block_type":"box","text":"NM1026U-5985614-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b8565524-0a97-4416-8da1-6f536ed26289","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":212,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"53c309f7-35a4-4ada-95f4-26366f19196c","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":212,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c66f58af-a663-41fd-ba74-820143077102","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":212,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"93811990-9f4d-4f9c-90d2-c2d4c878d854","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":212,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"1246d13c-a781-4462-b1f4-c22e931a530d","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":212,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"4f752e52-3d8e-4ab6-bc6d-868f3661dfbd","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":212,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"3d6238df-164c-43f2-ba07-116bf6f30e2f","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":212,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"2838f792-098e-4dea-bcc6-71fb7c82fc43","block_type":"box","text":"whom they are charged with overseeing.","page_number":212,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"696fcc8a-e5e1-445d-ba49-a8297926f4aa","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":212,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"e1adb886-2310-408a-9690-9aff3a9b7bdd","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":212,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"fb04ddf8-f407-4b79-b1e7-d79a7ca06936","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":212,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"d63b2f13-74a4-4add-929c-d31c76b834eb","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":212,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"0953f1f1-2119-4234-b340-acd9c67247fb","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":212,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"d7e7b7c7-5b46-4489-af07-41380139563e","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":212,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"ef8640e9-95bf-4c16-bf07-fc9c18c26f8d","block_type":"box","text":"structures.","page_number":212,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"551621be-76ef-4c97-994c-2938ed37681e","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":212,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"0883b7ae-374c-4fe7-ab5a-53856a034cce","block_type":"box","text":"Corporate form","page_number":212,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"ae7d5c63-c5d7-4c88-a664-f040c3f29736","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":212,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"1a168dd5-39fb-49ba-8f15-57077fe6efc8","block_type":"box","text":"the company’s purpose and business model.","page_number":212,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"57dd0b1d-03a1-464a-a73b-9e0fad620897","block_type":"box","text":"9","page_number":212,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"5a269fbb-76ac-4e96-acd5-32352b9b2d4a","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":212,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"a66acdb8-db06-49c6-9488-e2f441dffc50","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":212,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"ba35ee96-c8fd-40dc-a9bb-bf2de413183f","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":212,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"f1eac12d-30e8-44fe-bf62-827fdaf08d16","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":212,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"7ef320ce-2dce-4092-bc74-504dac4bcea1","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":212,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"ed009732-d06b-4750-9eb1-997d8ca190be","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":212,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"815b08ea-eab4-4da6-98ed-be28bddfc4d0","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":212,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"2d06c90a-e84e-4a94-8dbb-e49c1957ece8","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":212,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"4217b078-26a6-496e-a2da-716364a6a8b2","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":212,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"7ad41c73-8dce-4e4b-b82e-ac4be3fa4057","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":212,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"ddd13b0a-a4ee-486a-902a-1fb465398745","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":212,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"ecfe916e-2cc7-4a46-9b91-71a5bf902e1c","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":212,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"1a326222-b587-4a43-b714-bde4938d9cdf","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":212,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"4df00647-292f-4550-8740-b11a1159ca29","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":212,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"efc4c445-e49c-43c4-a396-dd47255b14d7","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":212,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"7eb89d5b-0e07-4499-bd37-ad958434e843","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":212,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"16a5997e-efbb-4b7d-ae0a-9521059bd2e0","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":212,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"4be5ddd4-89fa-4e79-97b8-60e48541640e","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":212,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"1eeae539-92fd-4d63-8c36-3ce99c4b02ac","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":212,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"b643e789-240f-42c1-b122-cf09c85eef5f","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":212,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"e54477c8-c3b8-4ab6-83b6-40eb221765e9","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":212,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"e4aa11a6-1b86-4f99-96c0-c7eff0acca34","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":212,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"ba69a11c-4640-444c-a1e3-c008bdee48b3","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":212,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"8918e4c6-9b69-4263-a32f-df8d19aad568","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":212,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"567ccc6d-3adf-4325-8e29-091a354b0072","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":212,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"8caa67e8-eaa3-4455-b395-a3ba90e465f9","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":212,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"ad60da44-2d81-4637-909b-c10e0c7bf5fc","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":212,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"35eb05cd-d246-4609-990b-fb1fe387a480","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":212,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"b02b3278-bf20-4cff-a65a-b0b75682c7b2","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":212,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"7b82fae8-131d-440c-9c34-ca610aab185e","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":212,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"2eaa5f38-13e2-4141-aaa7-d894aa4f31ce","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":212,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"bd962c04-4225-4f32-a326-1fdb0df9b65f","block_type":"box","text":"9","page_number":212,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"414a6315-5732-455f-a651-61a581dbdc77","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":212,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"5f23b32e-69d0-4e03-8782-f16d9e65635b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4e3fc7c5-fb45-4cc1-8435-f880dd78219e","block_type":"box","text":"Global Principles | 9","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8825b1bd-9a49-442e-a8b3-3ae6b9a840df","block_type":"box","text":"NM1026U-5985614-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b31be2d6-1f85-49c6-92f7-94def2198a98","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":213,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"0a7ed9cf-dfd4-412e-a4a6-6b37fa556239","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":213,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"845b7f55-b084-49e8-b8f1-412569b6d4d8","block_type":"box","text":"long-term financial interests.","page_number":213,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"6d903d5e-e6e9-405a-868f-21b5f801ef7e","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":213,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"42f93295-fd75-4b39-bc17-5f06535676a4","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":213,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"183ca619-118c-40dc-8ba6-19cd3e87bb3b","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":213,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"da7985c0-a4d4-4541-92af-56e33a7ea79d","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":213,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"cecd661a-0225-440f-8af2-fd507199daf1","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":213,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"5fc1cd0c-e54f-4eca-b08d-f0457151d0f7","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":213,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"7360b191-8753-45ed-aacd-787aa092f86c","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":213,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"5d5797de-1606-4734-8ed1-17c73d1cc8df","block_type":"box","text":"term financial value creation.","page_number":213,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"77bf0ccf-9882-4869-8a6d-3ce7e1b660ca","block_type":"box","text":"10","page_number":213,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"6787ba52-89e0-4e9f-84b3-b8a3ba6a1ae6","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":213,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"32187e11-b4c3-4890-af3d-d2218e5cc492","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":213,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"5c2a93f8-b2bd-4edf-9d28-00658a957abe","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":213,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"231c0e0a-35b6-4034-b680-3b43b11e22ca","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":213,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"4be06431-7f9f-4697-b102-95c939011e43","block_type":"box","text":"industry-specific metrics.","page_number":213,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"2dd06daf-8494-4231-850a-30fbc26dc80f","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":213,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"5a97cb82-efd8-40ec-b4d2-c285f7b3f2ef","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":213,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"92135e9c-a534-4f73-8580-a24607d569b5","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":213,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"2f85b531-15c1-4463-b389-518bda31add6","block_type":"box","text":"11","page_number":213,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"5860981f-a374-47af-b0b6-a9486362296f","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":213,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"76189745-fd15-4157-b366-7da5d1022680","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":213,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"273732c5-edb1-42ce-aacb-69aa14db8823","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":213,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"a4960763-4a9a-4172-be52-cd3d4c4bae09","block_type":"box","text":"specific.","page_number":213,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"8d39cdab-6db3-4d30-b90d-1833c1fbc643","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":213,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"7a9f1480-f83a-4b07-a33d-ff648c1c8a40","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":213,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"e8aa9e30-f967-4fba-94c8-eb5d02ca81b3","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":213,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"77dd556a-1908-4089-a82b-56bf22c9c8dd","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":213,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"6ca3d998-4718-427d-844d-9d3d75515aa4","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":213,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"7a414a25-2cee-4e71-afdc-6896f6ad00a6","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":213,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"7ed9f078-68e4-4649-a021-974e7837e81d","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":213,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"0f57d211-4d4f-431e-9bf7-ac32adf5742a","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":213,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"a947168c-9d50-4863-8474-000ff6bd1c03","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":213,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"c44c5213-8dde-42c3-9b00-df23ea2d5cd5","block_type":"box","text":"10","page_number":213,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"5edb06d3-707e-40cc-a51c-43d51226d154","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":213,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"410082b9-c14b-4d04-a98a-21a9182fc17c","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":213,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"2ce37a25-9ff1-4be0-a800-702e6267c1d5","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":213,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"d144bac3-d366-4518-8171-61188b36b7c7","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":213,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"ec58c72a-c1b0-4609-a858-3069c140f838","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":213,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"841c1621-afa3-42aa-974a-4207a2569213","block_type":"box","text":"11","page_number":213,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"bbe8edba-89cc-4517-a775-59ef565613c2","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":213,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"fbab4799-1684-4bdc-84ce-d51ba4286117","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":213,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"cf3b42a7-107d-4d00-93ff-0046775f2e81","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":213,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"9881335c-7621-4c9f-941b-d669b7a3d70d","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":213,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"093b1d19-af97-4798-a8b5-e4c4bc0efd3c","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":213,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"413aca73-25fb-4c38-9192-2cd7bcf18846","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":213,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"6376820e-4721-4ec6-8535-399cce2c06b7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1461cc07-84cb-4285-9360-8a2f86bab2da","block_type":"box","text":"Global Principles | 10","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"037caa47-3f43-445e-9112-7f74cec9d757","block_type":"box","text":"NM1026U-5985614-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4461ca39-ac69-4e55-8d2f-73f7f23c53f2","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":214,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"c9de87e7-7f9d-431f-a66a-4d3c3871ff0e","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":214,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"15775350-aedd-4ec2-99a4-892e9dc876af","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":214,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"c5868fe6-fade-4225-b4a6-641bdc31338a","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":214,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"63da96c4-a3ef-4b9c-be6e-b34ab322df3b","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":214,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"a21a4fc6-c607-4902-95c0-2473c2fb233b","block_type":"box","text":"12, 13","page_number":214,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"b79e75c9-236f-440d-84da-ef193da712ca","block_type":"box","text":"From company disclosures and","page_number":214,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"06c93018-38eb-4359-89d3-892e7b8232da","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":214,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"9bf9693b-689b-4aad-a727-4c758c9bb6f7","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":214,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"a86db59f-3869-4a5d-96d7-d0d7abc6b344","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":214,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"f7bf5810-9115-4d9f-892c-98959e5a6a9c","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":214,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"dfd42f13-1b1c-43e6-a953-cf3eebf99a3e","block_type":"box","text":"viewed as best practice in the market.","page_number":214,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"37c2b8e8-f18a-429b-b6bc-ac2b50a84385","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":214,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"34195362-02d1-474c-b3a7-972faf66e82c","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":214,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"386e72d5-7115-4346-90b6-75c0b7d96cab","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":214,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"ecc59e90-654d-445a-b81d-fc302f7cf09a","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":214,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"f867d066-e632-4582-a946-b175e372b348","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":214,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"16ea3651-7e98-4be2-be36-8d9f0028cdf2","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":214,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"8c40977e-3122-4c74-9031-18cabd93eac5","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":214,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"d19876b0-656f-4f47-9db8-e6a82316a4a2","block_type":"box","text":"interests of their investors.","page_number":214,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"05df28e7-6205-41a2-97a4-51ecfa329b87","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":214,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"543e63d9-f66e-41d3-a3e9-fec0b738e432","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":214,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"7a105db7-beba-41a8-82e1-ac45bfc2b404","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":214,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"7d4ef77e-bb0a-47ed-8d13-5e52fc615dcc","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":214,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"23520e22-360b-44ae-ba59-744132857290","block_type":"box","text":"good-faith basis as methodology develops.","page_number":214,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"a965ba2d-97e5-4064-8f32-338c96ccf816","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":214,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"ca12c60e-e16c-45ca-8a2c-0873ca5237b8","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":214,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"4011ed7a-4fef-4666-b43a-e2df1efeed5e","block_type":"box","text":"generate long-term financial returns.","page_number":214,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"3471cf7e-288f-4b16-b029-202487485900","block_type":"box","text":"14","page_number":214,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"a85df428-0a0e-4284-bc14-d81d58f9e496","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":214,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"81dc29b6-bcb4-490b-a2bf-3648c6ec2f25","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":214,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"3e0a19ad-8630-4ba3-9119-d780d6041403","block_type":"box","text":"15","page_number":214,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"291b7a76-713e-4f11-a091-29ec06c1f40f","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":214,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"3af97aae-a5fa-40dd-be11-860c3323464a","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":214,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"097080a6-5d89-44bf-8201-a87aa935b0a4","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":214,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"70dfe4f3-aefb-4138-9098-b1fa93fe5dc3","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":214,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"1f1c844b-8666-4ba6-a5ef-a9603927ed5d","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":214,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"4ac5e907-30e4-44da-bc3e-eb2a3c85dbf8","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":214,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"8ffda071-f866-44d0-bcb5-81e7703affb9","block_type":"box","text":"12","page_number":214,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"3c385a15-43e8-4369-9284-997929a4cbfb","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":214,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"3776deb3-66d6-49df-b382-d5e4e2ada77d","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":214,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"a66abfa9-8bc7-49dc-b09a-59707b3e750a","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":214,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"b98b5bab-ffc3-41dc-8d90-83c267cb2ae5","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":214,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"e35421e1-9ec2-45a5-8462-42ee829de3a6","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":214,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"d44654a4-9f37-44ca-b8c9-54f2c09a0585","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":214,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"c97b8b83-a2fd-43d8-bdfc-321dd1bbf875","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":214,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"c87121d4-7c9c-4bfc-be43-efcb7ad7f068","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":214,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"6e1cd05c-7cc2-4a8b-9f68-857bebc44fa4","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":214,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"f2597f22-0fa3-4743-bd1f-9bb479b4326f","block_type":"box","text":"13","page_number":214,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"6c38be3e-b432-4892-8ee9-ec40ac9c81a6","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":214,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"174c8392-956a-45af-a1ea-67ddd6ef22c1","block_type":"box","text":"2025.","page_number":214,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"1f8eb417-263f-4899-83f8-3158af97888c","block_type":"box","text":"14","page_number":214,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"14767a75-2316-4531-be35-35acbc84943d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":214,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"4aed6603-1243-49d0-a7cc-a62dc7d35c68","block_type":"box","text":"2025.","page_number":214,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"ac8e4660-bb6a-4c44-a442-4c19c0757610","block_type":"box","text":"15","page_number":214,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"654cfd15-ceef-491c-8a92-e8e23cdaca77","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":214,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"8630a71d-6d78-472b-8050-97ff8e7324bc","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":214,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"0c51aba9-bb00-4f05-87ce-2ab1fd463658","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":214,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"266ecf73-f450-4999-9dc0-ad483aabfc5b","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":214,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"6e291a90-5d12-49a6-bedb-8d8cb6eee368","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":214,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"ff754959-849c-4b5d-8def-cdb8181c1bff","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8ebad863-c583-4e4d-9a53-4c716513f4b4","block_type":"box","text":"Global Principles | 11","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1e0ea3fc-2379-4d58-a99e-2cc8873c7816","block_type":"box","text":"NM1026U-5985614-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e25c448f-1b32-4943-ac37-fcc909384d45","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":215,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"ab2fe2da-9141-489d-bfe0-2ea06d786a35","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":215,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"2a923358-9754-4f18-a282-f4187bb1a336","block_type":"box","text":"16","page_number":215,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"2e5c9894-d65c-4f59-b980-45c299e31d1f","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":215,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"5076c8d1-f7ca-43e5-8928-7e0a90e2a020","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":215,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"8c462cee-ec41-46de-8213-5ef8781865d4","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":215,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"e52a7459-c3c0-45e1-97b8-8e9d3914f171","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":215,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"2b73b2cf-0b46-435e-8ccf-1ab4d54fd07b","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":215,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"fecb35b1-452c-444a-ab22-75db6165aa40","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":215,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"39a4ea0e-ec28-4aff-ae09-dc6cb2228981","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":215,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"1236c1a7-d817-4ac3-a226-edc8b8ad0305","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":215,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"531f5a34-ce03-45d1-80fa-5a3b1b989001","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":215,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"cb3ac2bb-336b-4d37-81c6-5839e3878fc0","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":215,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"7ca1debc-bfce-4713-a73c-c0c211368c6f","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":215,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"f39e69d7-c161-4002-84aa-f7f2db5e0327","block_type":"box","text":"impacts.","page_number":215,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"a2721e3a-1f2d-482a-8520-573a8d78ff33","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":215,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"e4ca8427-7600-4cec-8afa-39704ae8c67d","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":215,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b8e44e3f-e807-4bb2-ac73-3a10095bbd2d","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":215,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"8c7b9099-550f-4796-938d-7c4e8e837bf7","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":215,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"69b85958-b193-4fcf-9bd9-6253bd387944","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":215,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"57f3c990-4528-42b2-8c80-1594c3fbab19","block_type":"box","text":"clients at the global and regional level.","page_number":215,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"c4511e7b-d2a4-4fe5-a757-66fe856470fd","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":215,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"4e4b01e6-f5f7-4ac2-a775-51a76659b305","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":215,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"0ce3915a-9a99-4b5e-be03-00492419891b","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":215,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"6e9ecef8-2d23-4612-a398-b7f91882bce2","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":215,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"cd443a46-4da6-48b2-9931-b2594c294628","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":215,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"5d98da02-f1e7-4e29-b6e9-7a7f33f0f823","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":215,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"a2f34565-e7d6-4781-b9f5-cac7af4ab743","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":215,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"056f5fab-d184-4f1d-a0de-b97238828eb1","block_type":"box","text":"are independent from the investment stewardship function.","page_number":215,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"e0766e15-6e15-4f8b-b111-af0eb2e4248b","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":215,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"7add7950-499d-4bf2-b004-33df540ea4c3","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":215,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"0eb0a68f-c145-472a-bd7c-4214d79d2a34","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":215,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"f63a471a-dc5f-46cc-8802-37f238efe210","block_type":"box","text":"VOTE EXECUTION","page_number":215,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"a881a2ae-6830-4b9c-8607-75fe27c39221","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":215,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"446f4d80-e876-4ccf-aaa0-0659bf7edea9","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":215,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"38daab8f-8531-4cd0-a4d0-114391555cc8","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":215,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"b611ca45-0b6f-436e-9c86-7add2ee4ec9c","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":215,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"87492e34-2d7d-4bd5-92f3-4258069b2cfb","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":215,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"190a1443-751c-446b-b00b-e4808431be99","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":215,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"68d7d8e7-34e1-4019-a938-36c9835fb7df","block_type":"box","text":"management policies and procedures,” below).","page_number":215,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"74eaea57-9614-45fc-a8e7-c56eeea9f5d0","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":215,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"4f85a9dc-3f74-486c-8c94-e916155d8beb","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":215,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"db000468-1b8d-4347-a7c6-07201d9dcd9f","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":215,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"29f50937-0beb-4281-81c0-53f641fd916e","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":215,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"c6795ad2-e05b-4470-85c6-b51a3dc47f06","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":215,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"8f576711-dfd6-4d66-830c-c7bc09a81c38","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":215,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a540a451-9933-4b1d-94a3-499950226074","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":215,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"53621f80-908a-4b7c-8c6c-202c2a9f9cf1","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":215,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"b0f7891e-000d-49ee-8990-178af48fe9a6","block_type":"box","text":"16","page_number":215,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"9d028214-93cc-443b-9196-73813257ab74","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":215,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"f839be17-17f7-42f3-946c-d0b92c5cb9ee","block_type":"box","text":"December 2025.","page_number":215,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"2592b8d6-0473-4ad3-8a82-e0a986ea5b44","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5279069a-1f97-4238-afbf-d4ac28fe735f","block_type":"box","text":"Global Principles | 12","page_number":215,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"58802f9d-3b9f-4038-b937-891dc8489371","block_type":"box","text":"NM1026U-5985614-215/232","page_number":215,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"71a827c6-6c48-474d-ba2d-2461205d6e60","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":216,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"bea8e08b-6a9f-4807-9cde-65968c386762","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":216,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"f043f622-108e-4762-9e3b-66ae57b2257e","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":216,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"846181df-e0c4-48af-813c-fbb97e30d4c5","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":216,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"6311527d-5cd8-42cc-a342-0c06b06ac9be","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":216,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"5bdb6cce-afb1-46b6-900e-1cea9f590bbd","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":216,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"f7434fcb-8104-4b9a-9cc7-d629574318ef","block_type":"box","text":"enterprise-level vendor management activities.","page_number":216,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"967c5f39-84c6-4408-8691-07a3a90bb470","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":216,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"d9112fb8-638e-4d77-aaf9-d5208ee48335","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":216,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"1ff25292-0b70-4309-b948-d39f71bdd407","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":216,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"e0af803e-1ea2-44f4-a68d-4d9ff915ee90","block_type":"box","text":"BlackRock employees.","page_number":216,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"64436d81-507a-4c56-8e5d-a87157c95ffe","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":216,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"edfe2ff5-84ca-4178-81a8-fcc067c21dc4","block_type":"box","text":"SECURITIES LENDING","page_number":216,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"e434332d-5e55-4121-8e89-319f444f1be5","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":216,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"8a3d5f90-af93-4d23-81ae-26102ea8f9ab","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":216,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"5fcfe762-8fcf-4544-8a47-688e1b352a94","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":216,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"b196e9e8-42dd-4cf9-8ff5-8bcafb52fca5","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":216,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"a4053fd3-fbf9-4dee-9287-3c95abfa1995","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":216,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"d602741a-63e4-43d8-baea-4be35a8355b0","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":216,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"bc3d6912-d6ed-467e-b93f-d7938551d159","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":216,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"19df49cf-3fac-4771-8ea6-996cb759db76","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":216,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"b6ca1302-fa17-4118-a3b3-ab706f88a394","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":216,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"9d523ac5-8fb3-4756-afae-bd115b3e3cbb","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":216,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"973bc4bd-0b7f-436e-a060-15c2850026c4","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":216,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"b0869e89-526b-4700-8c67-55690f574d01","block_type":"box","text":"of recall consideration).","page_number":216,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"07bac895-56e0-44a5-a19f-1fc9c86feae9","block_type":"box","text":"17","page_number":216,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"fe22b006-aa28-4c1e-a83a-224e41bf2783","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":216,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"fe9457ec-544f-447d-a90f-0dd1d610475f","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":216,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"6e692d63-faeb-4227-b0fe-82e4d53de6ec","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":216,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"029107f9-6e96-4760-8541-e8127efc15de","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":216,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"26a5968e-7306-4c21-8669-e49953d21ec7","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":216,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"4e0b5da4-fea2-42ff-bed9-f96787e579f2","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":216,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"269169ed-369c-45de-854c-7ac76940b088","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":216,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"9fc633fb-abd1-4f80-8d4c-5cd05975f153","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":216,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"e76c2680-1b62-4b1e-bc3a-e85f07660475","block_type":"box","text":"and may modify it as necessary.","page_number":216,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"a828d04c-78b5-4e79-8197-6a77c02b9fb7","block_type":"box","text":"VOTING CHOICE","page_number":216,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"8fbc5425-3b40-4d72-ba19-3c0cb25cdb5d","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":216,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"598f5909-a683-4de6-bd0c-05bfa24a86d2","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":216,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"0a3e804b-8814-4e81-b461-56f61fb27542","block_type":"box","text":"18","page_number":216,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"2d0288e2-aa05-4fd2-a256-1792e8003efd","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":216,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"8f37e6c9-2a87-4d12-8710-e7f448238300","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":216,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"c8b5a1d3-d2b5-4215-854f-32c27187723e","block_type":"box","text":"17","page_number":216,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"c3307cee-eb98-4938-bb1a-7a0482a28b5c","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":216,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"87b3d506-71cb-4d98-8df0-07cede477879","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":216,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"ff03dbec-4de2-4c2f-ae13-3b009ff10eb8","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":216,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"a7e00757-0837-4126-92df-5cba286a1f29","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. 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The Guidelines are applied by the dedicated","page_number":223,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"db54a514-14ee-4de0-803e-547cc3050aba","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":223,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"07779275-a1e3-4653-9cd3-10ff072ddafb","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":223,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"11b663cd-7ebf-4350-8d6e-1aade5318a97","block_type":"box","text":"13","page_number":223,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"163fb224-4591-4aa9-b9bb-b7010a7f63cf","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":223,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"f00f8b36-ebc4-4a09-922c-52264f1b584d","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":223,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"8757b5b6-abbb-4857-99ce-47c69b4360b8","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":223,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"6aa07ae5-c4dc-408c-88f2-956f30863e2c","block_type":"box","text":"14","page_number":223,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"e652df8f-df03-4a03-964f-2125474496e3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":223,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"a151f946-b4fc-4749-a762-5ff51a899000","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":223,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"2b461fef-0f5d-47b2-96ec-59dfdd08a168","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":223,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"10dad423-ef2f-41a5-8d3e-83ae2c7ac1f0","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":223,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"edef181f-f5d5-49ce-a19f-b9bacddceaff","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":223,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"aff502d3-155a-4722-a5ce-b2827adb8f59","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":223,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"acb606b7-aa34-4c2b-bdea-e6a65069647b","block_type":"box","text":"15","page_number":223,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"52e3c396-3d78-4d7c-bc56-9f0969279d97","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":223,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"b6ab8aaf-796c-4ae8-90c8-0d8f090e3a3b","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":223,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"b163ceba-9355-46cf-9d32-f249807a8666","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":223,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"1be7b616-8190-4a2a-864e-6cdc2a5081e7","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":223,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"9395f375-2321-4d52-a693-2d93851dcfc0","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":223,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"05b12f6b-35d1-4269-a6d0-7f21fa14b7e8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d507d610-050c-4f63-a3b8-ac307f31978f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"1ad458a4-6107-4ee2-b690-e08c20aefad1","block_type":"box","text":"NM1026U-5985614-223/232","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"05330d70-9fd8-42ba-b53b-f5c1abab374d","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":224,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"e2a772d6-64ab-4ca5-9543-451a9d416187","block_type":"box","text":"16, 17","page_number":224,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"c490b60a-5a97-4465-bc9b-5c197c601fa1","block_type":"box","text":"In addition, the dedicated team looks to","page_number":224,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"55cea786-ffa5-4309-97d2-11e4b6aecaf7","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":224,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"7fd781b4-f3bb-4277-82d3-9a5a5b1074a6","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":224,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"ea1ff70e-bee9-4f65-905b-1022fad77dfd","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":224,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"d802f89e-a4dc-45c3-b16e-ec5b22adc4fe","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":224,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"9cef54f0-3efd-4fee-8508-9439a19d6028","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":224,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"8aae840b-0219-4669-a052-08bb86ede117","block_type":"box","text":"18","page_number":224,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"1f257c57-84ae-46b2-939f-04fa74088595","block_type":"box","text":"However,","page_number":224,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"fbd70ea1-446e-4d1d-a27e-4430c9d16422","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":224,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"1b36261e-aae6-453d-927e-4ce72ab36668","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":224,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"8360d36a-dbb9-40c1-bfa2-13e2a43e12c3","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":224,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"1e09c75f-3ed9-4fb1-b29b-d1b56a2c2514","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":224,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"e342a422-66da-47a3-b16c-0f442419af35","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":224,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"8ddddd6b-e797-4711-879f-1c3c8d33d8ba","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":224,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"b90778bb-a308-4b50-a1be-df09fe8e23f2","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":224,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"53da113f-47c3-4222-b1b2-4ba55b51b912","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":224,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"7f6f1d9d-8e8f-4e44-81c3-51582cc354e8","block_type":"box","text":"transition risks.","page_number":224,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"ae1922f2-7ecd-4188-997a-affae4a27dc6","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":224,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"8ad0ce09-dbcd-4d00-8a5b-2b618cf6bcea","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":224,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"59a8a439-7146-4e20-bca7-7316763d4a7f","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":224,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"c65df9a3-faa6-42d0-ba2c-50ccd379b5cb","block_type":"box","text":"Transition plans","page_number":224,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"0c997581-6f5c-494a-9a00-1f9597753911","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":224,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"b0e830c0-7967-43b9-a183-f8a859ad5071","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":224,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"3946c206-72eb-4d71-9c44-ef44d47d7c8c","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":224,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"e13b081c-e4c0-4be2-b409-2b8d65a0efed","block_type":"box","text":"(see Appendix 1).","page_number":224,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"409a6a65-bde6-434a-8ab7-83ceaba67e5d","block_type":"box","text":"19","page_number":224,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"dab045f5-6a41-4a75-b4a9-f2fd313b5bc9","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":224,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"a401ded8-34b8-4b49-becf-507a04979073","block_type":"box","text":"transition plans.","page_number":224,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"a76db30a-af9d-412b-b7dd-a9cdc878b1d8","block_type":"box","text":"20","page_number":224,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"27257375-8227-4d57-8ba2-d162573244bf","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":224,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"53cb2bc1-7335-46b9-845e-9c9975928a0e","block_type":"box","text":"repor ting approaches.","page_number":224,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"352b9dff-14f7-49da-94f7-e9c2ab39b22c","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":224,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"e221556d-a119-4cb4-83df-90fb2c94dfe7","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":224,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"90809d89-7960-4d72-b4b7-af1f5f187aea","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":224,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"5c8eb2d3-4435-4a88-88e7-55b28889f26f","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":224,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"c5ec6606-76db-4833-8cc9-1c56d6f2a23d","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":224,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"226c6bcb-0a7b-4064-aaf8-2f5baab76392","block_type":"box","text":"informed voting decisions.","page_number":224,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"f18e31bd-65f0-4f75-91ce-135bb9eb9210","block_type":"box","text":"16","page_number":224,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"dec24325-5630-4353-ab0e-36bf2057a619","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":224,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"b13cc922-eee5-4b58-84ba-e9b24d9e81ac","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":224,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"34e1d137-4a1e-468e-9539-9522941ba40e","block_type":"box","text":"December 2025.","page_number":224,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"6f2418af-4ea6-4b3c-a946-c8c641fc52f5","block_type":"box","text":"17","page_number":224,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"b68ac0c0-69a4-4e96-b3f7-4997eb45a232","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":224,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"d290f40e-20e9-45a4-9500-5fd969481644","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":224,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"e2ea781f-6a96-4456-b1e4-3523abbf6544","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":224,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"2507ffdc-4f89-478f-88ee-c8a2b10c96e7","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":224,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"7908dd28-7e0c-41fd-93b6-5f1cc4cb8d6c","block_type":"box","text":"18","page_number":224,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"1400f53b-e2b7-48d4-9638-57a393370b2f","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":224,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"11e03a34-d7a5-4296-a2c3-2bf59d0c9903","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":224,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"8759ccd5-e22d-443c-b494-aba4baac15ef","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":224,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"3ccb4aa7-c42e-47ab-89ac-093c7b41549c","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":224,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"f1c7799f-5c6e-405d-9884-c42aa2dd6c7b","block_type":"box","text":"material to their business models.","page_number":224,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"3d9d32ee-9317-4da5-b6e0-1def4aa34d80","block_type":"box","text":"19","page_number":224,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"9b0ab6db-fb34-4443-a9c2-a65dc4fcb465","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":224,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"ffb2aa44-07da-4dea-a73f-14a958e118f6","block_type":"box","text":"December 2025.","page_number":224,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"a532e2a2-9f7a-427a-b881-d58df7e29c4f","block_type":"box","text":"20","page_number":224,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"60faa887-6e2a-4ca8-9bd8-53e2dc7b536b","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":224,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"b74e641d-ef93-4a8c-85da-cc45aeabece5","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":224,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"76727385-7bf0-41ce-89e3-64b231e30790","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":224,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"dd811b59-fb07-4932-89f3-a452d20e4381","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":224,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"39be1784-548a-4882-8700-9dd525f3c23c","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":224,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"701f9ec8-0eb0-4727-8c8f-2fa13f64ffda","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may suppor t","page_number":226,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"47b59cad-590f-4f1b-b62f-d906c17b09af","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":226,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"44cff834-1d04-41ca-a5ec-465624b83adc","block_type":"box","text":"•","page_number":226,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"472b1dff-4370-4995-a8bf-af687edfccdd","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":226,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"133cf118-92a2-4d8f-9150-bf46be5b48d9","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":226,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"8949636d-e6d0-413c-984e-a6e51dd4ce65","block_type":"box","text":"•","page_number":226,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"23d3c8a6-f24a-43f5-9493-a09d2f2ea013","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":226,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"1a9f8f80-bc0c-4f8b-be9b-ff32fe03ee6d","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":226,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"e6c28785-f613-4a92-b57b-e7b4dfaefb2e","block_type":"box","text":"•","page_number":226,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"fa8fe4a6-1700-4eef-91a6-b2519e8e7bcb","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":226,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"deb287ee-78a7-4d7d-9165-d574b419ba9c","block_type":"box","text":"•","page_number":226,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"06bf48a8-6d21-4325-9a5b-2f7de46e05b5","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":226,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"2e6451c1-c90d-4dee-8dff-3bb068b13517","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":226,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"ac20a00d-f54e-43f9-bc88-1e03560a08d2","block_type":"box","text":"25","page_number":226,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"1ea6783e-5792-4706-9155-ecb36185faf2","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":226,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"15bc275d-c480-42ac-8565-ab4ec0d83b52","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":226,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"76a11708-2e55-40ad-9c59-0e3f1e1064a7","block_type":"box","text":"RELATED MATTERS","page_number":226,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"022ff926-29f6-4fb2-b3c0-7c54de0182f7","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":226,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"0db122ed-3d1a-4a93-b2d1-6fbd82bd8dda","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":226,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"da97bc32-ab96-44cb-9589-7085b14307bb","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":226,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"b85281ac-b6a5-40dc-95be-e9532e14f0d3","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":226,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"8f168c7c-e9f3-41c1-9747-36f7afbccf27","block_type":"box","text":"Executive compensation","page_number":226,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"b91f1023-1c5a-4e9c-bbdf-105d75b572c6","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":226,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"c2f4d351-6049-44d7-a303-e2ee9a52a7d4","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":226,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"e5ba1c21-8c97-44f7-b771-11fe46c44523","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":226,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"b1efe4ad-8750-4bac-ac49-1cd8e8ea5eb4","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":226,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"67f2a59e-e065-410a-b93e-34a7d4befaed","block_type":"box","text":"24","page_number":226,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"726d7330-19cc-4cd8-844e-4df2dd69de2d","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":226,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"4f1ae652-04f9-4d2f-940f-b6f44c9b7d83","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":226,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"c2f83e9e-0cb6-41b3-984f-7e23d5be6f1a","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":226,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"743e82c3-b17a-4c9c-8919-626c4300f8ad","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":226,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"db55f2ad-e94a-4338-b600-9a3b58a90b36","block_type":"box","text":"25","page_number":226,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"d14958bd-d99d-4499-84b8-c31bd9f5c230","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":226,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"3965cb1e-a794-405b-a9ba-6e396c1ed9c6","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":226,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"0fe86bac-48ac-492b-9209-60390da8c75c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4c7fff78-e85d-454a-96a7-88fd20a722c4","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d84dfb81-0561-43ae-bb86-b3ac200d4a58","block_type":"box","text":"NM1026U-5985614-226/232","page_number":226,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6a9e658c-fe46-452e-bda3-8bde977ecbbd","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":227,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"b5a0ea1d-7794-4d41-8add-0c9464ae4750","block_type":"box","text":"strategy and risk management.","page_number":227,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"793167c2-743d-42b3-b426-d6addcf4bcd2","block_type":"box","text":"Auditors and audit-related issues","page_number":227,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"9ccb3f85-55cc-4fe6-89ea-e28fb1869bbe","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":227,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"7361dec1-b673-4ab3-a37b-9bec9db43b39","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":227,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"70f59a48-3752-4202-8c97-beecaac8a64e","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":227,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"719a6b5c-04a7-41cf-9080-3a2d415585ac","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":227,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"76dd16aa-7050-4a1e-bf5b-777fac99f113","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":227,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"3446764a-6706-43fa-a530-aa2c91efc8cd","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":227,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"d11a030c-8da1-442d-876d-56bc66632487","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":227,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"d4b91492-45da-48d8-9524-6f242064028e","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":227,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"caa86a32-801a-44cf-ab2a-80a7e6de58be","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":227,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"7afb2006-b7da-4ff5-a1ca-3ba9451ec88c","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":227,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"55fc4384-93ed-49b8-8701-d059bfee25e5","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":227,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"91121068-3151-49fa-a69c-bbef513644a9","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":227,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"423d31ec-6513-4d8b-af7d-2fd49a2fddad","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":227,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"07e520c7-301a-456d-be39-76d80b562081","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":227,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"fc4beabf-039b-4304-aafc-d00f89270eb9","block_type":"box","text":"stakeholders.","page_number":227,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"a48ad210-8c51-451a-9276-d8ffec980e4a","block_type":"box","text":"26","page_number":227,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"e5ea80b2-062e-49d4-b81b-5654f35980bb","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":227,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"f5bb0593-e8fa-403d-b56c-2ca34cc21908","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":227,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"a643a9b1-43e3-4274-9370-bc171475a195","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":228,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"c1f5d8da-b16a-440a-84ff-f7cd708aca2d","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":228,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"f1f4d402-7dae-459b-95ed-0815c3e717b3","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":228,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"8a09cad7-610c-4b3b-a210-88de0f06f509","block_type":"box","text":"Decarbonization:","page_number":228,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"25858620-53bc-486e-8eaf-aed65ad332ea","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":228,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"9d03a892-0cbe-479b-b7b7-78284fb912aa","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":228,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"eb1ee0f0-cfab-4b57-9597-dd5bac3c66cc","block_type":"box","text":"individual consumers. 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