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Any change in the percentage of the","page_number":15,"box":{"x":70,"y":899,"width":821,"height":11}},{"id":"b35e5587-47a8-4af9-946a-242ce139a2d7","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"c696f585-a965-4f78-b320-49baa730f3a7","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8423c670-c624-460c-9307-27cf3aab6283","block_type":"box","text":"Fund’s assets invested in certain securities or other instruments resulting from market fluctuations or other changes","page_number":16,"box":{"x":70,"y":45,"width":833,"height":11}},{"id":"6ab8c0b7-0cbe-4b38-929e-e2905d637bf0","block_type":"box","text":"in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":16,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"75297788-c186-43d3-9505-d16ecdbe9f48","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":75,"width":642,"height":11}},{"id":"ef1e239e-aac4-4cfe-9b9c-f86cff525d81","block_type":"box","text":"For purposes of fundamental investment restriction (2) above, with respect to the Fund’s industry classifications,","page_number":16,"box":{"x":102,"y":98,"width":805,"height":11}},{"id":"70d6d3b1-48a1-4fac-b7f6-bec7fbe3ba4e","block_type":"box","text":"the Fund currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized","page_number":16,"box":{"x":68,"y":113,"width":829,"height":11}},{"id":"5f164dc5-d3a7-465f-8319-2a9e0afb3517","block_type":"box","text":"market indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to","page_number":16,"box":{"x":69,"y":128,"width":839,"height":11}},{"id":"24b32ff3-f8a5-48e8-a621-a01bdec07c94","block_type":"box","text":"give broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":68,"y":143,"width":631,"height":11}},{"id":"dbc36aa9-305c-4cc9-825a-b3039b3f4cb3","block_type":"box","text":"In addition, as a non-fundamental policy that may be changed by the Directors (as defined below) and to the","page_number":16,"box":{"x":102,"y":166,"width":768,"height":11}},{"id":"a163ef35-0c48-4fa2-a9ed-030ba4e62453","block_type":"box","text":"extent required by the Commission or its staff, the Fund will, for purposes of fundamental investment restriction (1),","page_number":16,"box":{"x":69,"y":181,"width":827,"height":11}},{"id":"6feeae28-c4de-41e5-af51-911432248588","block_type":"box","text":"treat securities issued or guaranteed by the government of any one foreign country as the obligations of a single","page_number":16,"box":{"x":68,"y":196,"width":803,"height":11}},{"id":"618b0968-2679-4b59-9de3-5b0b5e3b24fd","block_type":"box","text":"issuer.","page_number":16,"box":{"x":70,"y":211,"width":45,"height":9}},{"id":"2b4c492c-cfcf-476a-af45-bb6e390f3e3b","block_type":"box","text":"III. Information on Directors and Officers","page_number":16,"box":{"x":69,"y":241,"width":294,"height":9}},{"id":"aeaea891-e00b-47d8-b414-b626a91c1ae8","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":264,"width":790,"height":11}},{"id":"7c366906-09ac-473e-8f94-0b86d699532c","block_type":"box","text":"the Corporation as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":16,"box":{"x":68,"y":279,"width":828,"height":11}},{"id":"290f941e-7f12-428a-91dd-36a8f151f316","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":294,"width":837,"height":11}},{"id":"f84f67ce-28cb-4a3e-89eb-7ed9c7f5de6e","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"44575eff-afa8-4677-a5b8-7f05beb029bf","block_type":"box","text":"Complex”). The Corporation is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":16,"box":{"x":69,"y":324,"width":799,"height":11}},{"id":"121f6471-e27e-4461-ab6f-a48f1dfa228c","block_type":"box","text":"Complex. The Directors also oversee as board members the operations of the other open-end registered investment","page_number":16,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"3295b7d0-aa87-4138-a061-2b5e51307e8f","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":355,"width":418,"height":11}},{"id":"70d54ec2-5198-466f-9bf8-31c0561a98ba","block_type":"box","text":"The Board has overall responsibility for the oversight of the Corporation and the Fund. The Chair of the Board is","page_number":16,"box":{"x":101,"y":377,"width":794,"height":12}},{"id":"1cbbf9ca-1090-49dc-9cb4-13afd328849c","block_type":"box","text":"an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director.","page_number":16,"box":{"x":69,"y":392,"width":823,"height":11}},{"id":"4e359209-ded5-4113-bf0b-28a4a893190f","block_type":"box","text":"The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a","page_number":16,"box":{"x":68,"y":407,"width":766,"height":12}},{"id":"afd3f148-5f95-484c-bf74-f16d2fc1de69","block_type":"box","text":"Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair","page_number":16,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"3633b07d-5de5-4479-a7c8-119486d6d3c5","block_type":"box","text":"of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers,","page_number":16,"box":{"x":69,"y":438,"width":778,"height":11}},{"id":"bd5f3264-8486-47b0-9f59-df4692afebfd","block_type":"box","text":"attorneys and other Directors generally between meetings. The Chair of each Committee performs a similar role with","page_number":16,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"49b622cf-9fbb-41d3-8f10-e815fc8a37c7","block_type":"box","text":"respect to the Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions","page_number":16,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"8a082f53-5db9-4bc6-b8fc-cd7c7376ae96","block_type":"box","text":"as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly","page_number":16,"box":{"x":69,"y":483,"width":805,"height":11}},{"id":"3a592b73-a40a-41fe-900b-77cf95d6d4ec","block_type":"box","text":"outside the presence of Fund management, in executive session or with other service providers to the Fund. The","page_number":16,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"dbc3f3c7-0c09-4884-9a1c-83afea26c489","block_type":"box","text":"Board has regular meetings five times a year, and may hold special meetings if required before its next regular","page_number":16,"box":{"x":70,"y":513,"width":788,"height":12}},{"id":"a2ea4e9c-ad89-4b91-bfa7-b7abe919d506","block_type":"box","text":"meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the","page_number":16,"box":{"x":69,"y":528,"width":802,"height":12}},{"id":"094d8ebc-bf95-445e-bb05-464179162387","block_type":"box","text":"Board and reports its findings to the Board. The Board and each standing Committee conduct annual assessments","page_number":16,"box":{"x":70,"y":543,"width":821,"height":12}},{"id":"81bc32af-a142-4e69-abda-e3d12e362d31","block_type":"box","text":"of their oversight function and structure. The Board has determined that the Board’s leadership structure is","page_number":16,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"11685e77-f387-4927-9fd6-d54fbc1a8f6f","block_type":"box","text":"appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":16,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"6a495cc3-f237-4772-b66a-a4cbf5ecb238","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":16,"box":{"x":69,"y":589,"width":593,"height":11}},{"id":"9ab56d2e-44ed-4949-8c4a-11677ec107c5","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":16,"box":{"x":101,"y":612,"width":777,"height":11}},{"id":"621e69eb-3924-4a6a-9c6f-7cfd1cb98f30","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":16,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"89b3565a-4b21-4867-845e-199730bd5852","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Corporation’s charter, and the","page_number":16,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"183c66bd-da45-4e01-9a34-53a3fddf4a0b","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance,","page_number":16,"box":{"x":70,"y":657,"width":784,"height":11}},{"id":"c6144c9c-e5f6-4f27-9006-c216ee238c1b","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":16,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"7b70241d-64a8-40b7-ac66-babc57a97bf6","block_type":"box","text":"in running the operations of the Fund.","page_number":16,"box":{"x":70,"y":687,"width":266,"height":11}},{"id":"f4e9ac39-aa48-4e45-9f6c-7ef0dedb36ba","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":16,"box":{"x":102,"y":710,"width":785,"height":11}},{"id":"2c5b2dd1-1e98-40e8-969c-fbe7469b1a38","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":16,"box":{"x":69,"y":725,"width":828,"height":11}},{"id":"ed2a0235-c0c8-4246-ab28-634e5a4ed47a","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":16,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"567a947e-5267-4b17-8446-bc8c25d5b5e7","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":16,"box":{"x":68,"y":755,"width":820,"height":11}},{"id":"9d97cbb3-415e-411b-913c-58bf75240235","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":16,"box":{"x":70,"y":770,"width":811,"height":12}},{"id":"70aece8f-56a5-4d90-b388-e043eaeb9aff","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":16,"box":{"x":70,"y":785,"width":767,"height":12}},{"id":"83f55a9a-bf13-42c2-8a93-c800266b95b7","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":16,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"377bbb6b-7050-44c7-b1ed-23fa36d5faf4","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":16,"box":{"x":70,"y":816,"width":803,"height":11}},{"id":"eafbf0ed-71e8-4f4a-ae17-6f5edc2a3604","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":16,"box":{"x":69,"y":831,"width":840,"height":11}},{"id":"74ee860a-d4ad-4c5a-a072-21b656be1d8b","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":16,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"8d6728e5-2c24-4734-8807-9ed6063b9938","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":16,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"a96b31ac-0a6d-45a4-8726-ad8c6cadf458","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":16,"box":{"x":69,"y":876,"width":812,"height":11}},{"id":"df3109b0-7b34-4c43-84a9-6eb271c541e1","block_type":"box","text":"testing of the Corporation’s compliance program and reports to the Board regarding compliance matters for the Fund","page_number":16,"box":{"x":68,"y":891,"width":834,"height":12}},{"id":"16f5ffed-b2b3-42fe-902a-25b93589c9eb","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"65e96545-7526-44f2-a759-c939c9317de2","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"725910d4-a11a-4d6d-92af-92100789dcd8","block_type":"box","text":"and its service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":17,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"f884402c-4393-450d-9559-4a6c98f8cdd7","block_type":"box","text":"performing their oversight responsibilities.","page_number":17,"box":{"x":70,"y":60,"width":299,"height":11}},{"id":"1a25f1fe-881b-4ecc-ae9c-96eb9e934243","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":83,"width":122,"height":8}},{"id":"376bf44c-d5cb-4ee0-ac66-138ffe5683be","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":82,"width":673,"height":12}},{"id":"fec6125b-0e8c-4a2e-ae3d-87f03d4a1fdb","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":17,"box":{"x":68,"y":98,"width":834,"height":11}},{"id":"c176365e-02f3-4e4d-b321-56db57db2d41","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":113,"width":820,"height":11}},{"id":"963443ef-31c0-46ed-a2c7-e9b47ac3bd7e","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":128,"width":823,"height":11}},{"id":"45142f5c-1f51-4dc3-8cf3-a43f645fed9f","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":143,"width":830,"height":11}},{"id":"9ac5678b-8e0b-4f2c-ac96-32de36b7bfce","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":158,"width":825,"height":11}},{"id":"14559174-5cdc-4dcc-9de8-87c177370c5a","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":173,"width":807,"height":11}},{"id":"3c8cabbc-bcf2-416c-8657-23c2ffe4b798","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":188,"width":781,"height":11}},{"id":"a434d8aa-08eb-4c0e-b63d-b4f41be45f4b","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":204,"width":834,"height":11}},{"id":"2bfda2d1-cf27-405e-b3f1-f766620c8b4c","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":218,"width":838,"height":12}},{"id":"338f624a-0d76-45fd-8676-ca6909a6cbdd","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":234,"width":825,"height":11}},{"id":"5762edef-90fd-4753-865f-ffcf989b1bee","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"7ab8d8f1-c312-4776-adba-64700061012d","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":264,"width":815,"height":11}},{"id":"8d57629d-9027-440f-9eb9-2cff67137df3","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":17,"box":{"x":69,"y":279,"width":774,"height":11}},{"id":"a2529533-4c0e-4046-8107-75aa05fc35d7","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":294,"width":815,"height":11}},{"id":"425436ba-894d-40c6-8a5c-383b79a0003b","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"c79ade8b-42de-46b0-97e6-13ca8ad5347a","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":17,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"2a6083cb-ec65-49f2-bacc-179c8f9c8e30","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":339,"width":574,"height":12}},{"id":"faf0ad03-5b18-435e-a090-412ec5296cb4","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":362,"width":286,"height":11}},{"id":"ebb0ce55-5bc1-41a0-b4c8-c04430734812","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":362,"width":464,"height":11}},{"id":"f31e779f-6d0b-4e5b-a39e-f69738534d5f","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"eef03e43-20e6-4f4b-be21-c71d31548fb7","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":392,"width":786,"height":12}},{"id":"7d4879fe-723b-4be5-876d-7e3c0282f458","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Corporation","page_number":17,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"5b1cb252-9f7a-40c4-a37f-2735b207fbc2","block_type":"box","text":"and recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise","page_number":17,"box":{"x":69,"y":423,"width":835,"height":11}},{"id":"15e27fe8-a06e-40e4-93b9-03499ab4186c","block_type":"box","text":"the Board with respect to Board composition, procedures and committees (other than the Audit Committee);","page_number":17,"box":{"x":68,"y":438,"width":772,"height":11}},{"id":"79b637f4-9037-4ee5-b966-0720657c5507","block_type":"box","text":"(3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee);","page_number":17,"box":{"x":69,"y":453,"width":820,"height":11}},{"id":"b28e464d-2d57-4b42-b4ae-2466bbaf4b43","block_type":"box","text":"(4) review and make recommendations regarding Independent Director compensation; (5) monitor corporate","page_number":17,"box":{"x":69,"y":468,"width":768,"height":11}},{"id":"c81ef3b3-a2dc-42e5-bb73-e9693e833db8","block_type":"box","text":"governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee","page_number":17,"box":{"x":68,"y":483,"width":837,"height":11}},{"id":"7ff50c0d-e3be-4631-9dcd-fc0747bc6cb0","block_type":"box","text":"with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee)","page_number":17,"box":{"x":68,"y":498,"width":827,"height":11}},{"id":"f763944e-7da0-4c74-ba5e-582a79b015df","block_type":"box","text":"and codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities","page_number":17,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"47c14dec-7346-48ac-8576-1443d80ac4f8","block_type":"box","text":"as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":17,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"e3bd1d33-130f-4ef2-9774-1fcf5be0bc33","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the","page_number":17,"box":{"x":69,"y":543,"width":744,"height":12}},{"id":"b7e79f12-5382-4438-8044-06a999fbecd7","block_type":"box","text":"Corporation’s Amended and Restated Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a","page_number":17,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"be514782-bb9c-4457-99a2-a52402ff3eb0","block_type":"box","text":"person for election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance","page_number":17,"box":{"x":70,"y":574,"width":833,"height":11}},{"id":"6d90c734-19f7-4708-a0eb-76cd11afe0db","block_type":"box","text":"notice procedures, notice of the proposed nominee to the Secretary of the Corporation must be delivered to or","page_number":17,"box":{"x":69,"y":589,"width":789,"height":11}},{"id":"e86136f9-5aa7-4a13-87a8-a9a3645de3d6","block_type":"box","text":"mailed and received at the principal executive offices of the Corporation not later than the close of business on the","page_number":17,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"297b98b9-64e9-44b4-af04-a823f98f8af8","block_type":"box","text":"fifth day following the day on which notice of the date of the meeting was mailed or public disclosure of the date of","page_number":17,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"c8e1003f-a3c5-4bac-88c2-c2350e9843b4","block_type":"box","text":"the meeting was made, whichever first occurs. The Corporation’s Bylaws provide that notice of a proposed","page_number":17,"box":{"x":68,"y":634,"width":758,"height":12}},{"id":"58f5d0aa-4aa2-44d4-b468-fa151f6be387","block_type":"box","text":"nomination must include certain information about the shareholder and the nominee, as well as certain other","page_number":17,"box":{"x":69,"y":649,"width":782,"height":11}},{"id":"ac1384e5-2460-44bb-bb9d-0e647dd2b550","block_type":"box","text":"information, including a written consent of the proposed nominee to serve if elected. Reference is made to the","page_number":17,"box":{"x":70,"y":664,"width":789,"height":12}},{"id":"b6d20f30-7067-4404-8d5a-eebdbd0c6aaf","block_type":"box","text":"Corporation’s Bylaws for more details. The Board has adopted a written charter for the Governance Committee.","page_number":17,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"1cced8c9-92c4-4f85-ad1c-7dfb0aefb718","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Governance Committee met ten times.","page_number":17,"box":{"x":70,"y":695,"width":617,"height":11}},{"id":"e1e1acd6-9614-4b61-96e8-dab81bda0a73","block_type":"box","text":"Compliance Committee.","page_number":17,"box":{"x":102,"y":718,"width":168,"height":10}},{"id":"f8b301c2-9257-45e0-abbb-f9caab9894e1","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":17,"box":{"x":276,"y":717,"width":629,"height":11}},{"id":"583b0735-abe8-4de3-9293-5271b7d827b3","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":17,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"ca661802-abf5-4cdc-a824-1d364fb62c10","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":17,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"bec5607b-c957-4fd0-9ff1-36f2dad28293","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Corporation, the fund-related","page_number":17,"box":{"x":69,"y":763,"width":794,"height":11}},{"id":"9a42767f-5b98-4c2e-92a3-4bb4825182b8","block_type":"box","text":"activities of BlackRock and any sub-adviser and the Corporation’s third-party service providers. The Compliance","page_number":17,"box":{"x":69,"y":778,"width":793,"height":11}},{"id":"e8064fd8-9218-432e-b9b0-a5f006bf407c","block_type":"box","text":"Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the","page_number":17,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"ed65dfc2-6968-41ea-a9a5-9843a6d24d66","block_type":"box","text":"Corporation and its service providers and recommend changes or additions to such policies and procedures;","page_number":17,"box":{"x":69,"y":808,"width":773,"height":11}},{"id":"74b11b58-6708-4368-808d-57af5349bcd1","block_type":"box","text":"(2) review information on and, where appropriate, recommend policies concerning the Corporation’s compliance with","page_number":17,"box":{"x":69,"y":823,"width":829,"height":12}},{"id":"e344c05f-ce0a-42ff-ace5-4ef349982d07","block_type":"box","text":"applicable law; (3) review reports from, oversee the annual performance review of, and make certain","page_number":17,"box":{"x":69,"y":838,"width":719,"height":11}},{"id":"c9ffbf18-189b-4824-9f30-e0209eec85ad","block_type":"box","text":"recommendations and determinations regarding the Corporation’s Chief Compliance Officer (the “CCO”), including","page_number":17,"box":{"x":69,"y":853,"width":814,"height":12}},{"id":"779f8dbc-2da4-4c11-a0eb-1d63c1eb344c","block_type":"box","text":"determining the amount and structure of the CCO’s compensation and recommending such amount and structure to","page_number":17,"box":{"x":69,"y":869,"width":829,"height":11}},{"id":"d5b1a5c4-6292-47df-81ed-4323c9cfc982","block_type":"box","text":"the full Board for approval and ratification; and (4) undertake such other duties and responsibilities as may from time","page_number":17,"box":{"x":68,"y":884,"width":839,"height":11}},{"id":"82b8c8bf-6ead-4055-8d2e-90a0d64d0a94","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"969745aa-c8a6-4574-aec3-fd3b42b5efa9","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d73ef99c-30bb-4eda-9448-23423a91ef36","block_type":"box","text":"to time be delegated by the Board to the Compliance Committee. The Board has adopted a written charter for the","page_number":18,"box":{"x":68,"y":45,"width":810,"height":11}},{"id":"ef3e9114-4979-4f16-8490-271134d2b41c","block_type":"box","text":"Compliance Committee. During the fiscal year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":69,"y":60,"width":798,"height":11}},{"id":"baaaf6af-d032-44a3-930d-cdaafb51142e","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":82,"width":248,"height":12}},{"id":"01bc090e-e90a-4e55-943d-0fbe6d1338f2","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":82,"width":531,"height":12}},{"id":"c449e549-723b-4c9e-aeca-af01450ac65d","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":98,"width":829,"height":11}},{"id":"e67ca22b-b283-4ac0-937b-ee7196936bf4","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"9063ebef-2fce-443f-a706-62a764ec9536","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":18,"box":{"x":68,"y":128,"width":832,"height":11}},{"id":"eacf26d6-38bf-44f0-95ed-e2bb536fe8da","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"5d05a237-5422-4823-a9de-4b9b754d3ea5","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"c442e5f5-4285-4802-b4b0-a3074571b894","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":173,"width":829,"height":11}},{"id":"d5f3684c-1384-4057-96be-b0cefd4a40b1","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"77efef98-468b-4be2-ad08-e431900c44bc","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":204,"width":803,"height":10}},{"id":"fda2c647-8e3a-4dcd-9676-984d97eadbb4","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"3e7bee5a-28d0-4ea8-9254-613b31b185de","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"d661b94a-19ff-4744-adb0-85697c446fca","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":249,"width":757,"height":11}},{"id":"869b2fbd-607b-4fa0-bdc8-becfc8f40174","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":264,"width":835,"height":11}},{"id":"2b752ed3-e7ca-4c04-931f-ef23327a9306","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":18,"box":{"x":68,"y":279,"width":800,"height":11}},{"id":"e86630f0-c16d-487c-a83d-3506849c970d","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":18,"box":{"x":69,"y":294,"width":780,"height":11}},{"id":"3fe39da9-14c5-42e1-8bac-9b0e5c1853a1","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":309,"width":838,"height":11}},{"id":"e4ecf1d8-5c24-4619-9a38-1764eeb08704","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":324,"width":544,"height":12}},{"id":"32910a3e-ec3c-4eb0-906f-28a46d7b3c5e","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":347,"width":186,"height":11}},{"id":"fd89b63f-c930-43d4-9fdc-d6ebb88cc51f","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":347,"width":598,"height":11}},{"id":"cde701ea-a044-49ec-af76-061ebc55ca8a","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"92eae7bf-dc67-4888-ae87-a5ab0f976302","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":18,"box":{"x":69,"y":377,"width":796,"height":11}},{"id":"38eb72d5-7702-4a91-9fe3-1afede8628e0","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"b59ec99a-0b20-49d1-a1c6-742132b6ad01","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":18,"box":{"x":69,"y":407,"width":813,"height":12}},{"id":"896e0387-33dd-45a5-a003-8f186aff7c86","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":18,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"e154bf01-e60c-4d09-b383-ae9d84c815df","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":438,"width":575,"height":11}},{"id":"d9cb88d8-9561-42d0-b131-258c955cd6d1","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":460,"width":771,"height":12}},{"id":"4e4838cd-946a-421b-9d55-2b06f3662688","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":18,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"adbe7b88-4ff6-4b33-a970-a465d1561816","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":18,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"c8176829-13cd-43ff-aae0-7d75cbbda7c5","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":18,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"c296d815-ceef-42da-8008-245493824345","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":18,"box":{"x":70,"y":521,"width":811,"height":11}},{"id":"ba9c53cb-6ef8-4ece-b2e9-c1a181245878","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":18,"box":{"x":70,"y":536,"width":787,"height":11}},{"id":"0b93323b-c938-42ea-9b73-9df062fcd7c1","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":18,"box":{"x":69,"y":551,"width":807,"height":11}},{"id":"786f6914-278e-43f8-bb97-92fbe418320d","block_type":"box","text":"which allow the Board to operate effectively in governing the Corporation and protecting the interests of shareholders.","page_number":18,"box":{"x":68,"y":566,"width":840,"height":11}},{"id":"6d5b4306-4b7b-4deb-acb4-e71fb0217408","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":18,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"831a784a-91bc-48f1-8f24-7701ded5fc27","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":18,"box":{"x":69,"y":596,"width":823,"height":12}},{"id":"02ac9166-e703-404c-9757-f73fc0df676c","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":18,"box":{"x":69,"y":612,"width":771,"height":11}},{"id":"11ce148b-4d34-44f5-8117-6d75a2f282f8","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":18,"box":{"x":69,"y":627,"width":475,"height":11}},{"id":"72e02b6a-79bc-4c18-955c-b0a75d0c6a01","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":18,"box":{"x":102,"y":649,"width":794,"height":12}},{"id":"a5753d1f-be50-4678-b097-bf13aaee39ad","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":18,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"ff47b9fc-5081-4637-9039-95dbacba859e","block_type":"box","text":"board member of the Corporation and the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":18,"box":{"x":69,"y":680,"width":787,"height":11}},{"id":"0e9551d1-dc21-43b3-843c-c8474ff6131e","block_type":"box","text":"funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to","page_number":18,"box":{"x":68,"y":695,"width":827,"height":11}},{"id":"72047d1c-ea0b-45d3-a192-a42709ab7e42","block_type":"box","text":"and participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":18,"box":{"x":69,"y":710,"width":717,"height":11}},{"id":"0d27605e-a9a8-4fb6-a9e9-d5e1352f48d8","block_type":"box","text":"ad hoc","page_number":18,"box":{"x":793,"y":710,"width":47,"height":9}},{"id":"8bec4941-9ebe-4dd1-8e46-f411b6c6c25f","block_type":"box","text":"committees throughout the years; or other relevant life experiences.","page_number":18,"box":{"x":69,"y":725,"width":483,"height":11}},{"id":"e6a1e972-434d-400e-8ab4-0a47ce1905ac","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3dd3b4bd-805c-4f66-8da3-4e87e3a43e21","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1c7ef23-58aa-4d0e-83cc-31977b1fc0d0","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":19,"box":{"x":101,"y":45,"width":754,"height":11}},{"id":"2a198d0b-4059-4356-8332-1e65c9729646","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":19,"box":{"x":69,"y":60,"width":494,"height":11}},{"id":"81c1a704-354f-4612-b9ca-47f5249bf280","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":19,"box":{"x":69,"y":88,"width":408,"height":9}},{"id":"ead8bba1-54a4-4f34-921d-77d499292852","block_type":"box","text":"Independent Directors","page_number":19,"box":{"x":70,"y":105,"width":156,"height":10}},{"id":"df95cf89-c2e1-41c0-ad7d-2993a4c0da6d","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"aecbc1f4-94ac-4e0f-8ed4-8bce73f43c18","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"66cb376d-a52d-4349-9eef-842a146dcdda","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"8f2aa676-b3b2-49b7-8cdd-c6a32b61958d","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"4aab08b6-6a32-42d2-beba-dbd8a15fb1cf","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"536a9baf-290f-453c-918d-749ca4592217","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":19,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"42c770a2-9888-4f95-964e-480099e34d0c","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"c65b7391-e7a3-4030-9b4d-05ec0449ee51","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"2363f0c3-473c-441f-bb0e-ea4c55b64e23","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"0dfa230c-2b60-4805-8250-118330a602be","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"4fc3e83f-c820-4edb-8811-b747a3e3ac73","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"dee84948-9b5c-4fc6-ab9b-ac873a99a7c9","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. 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(“CCI”), a","page_number":19,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"6ebc24b3-ce83-49c0-9fc5-416a2c131ec6","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"c38acff5-402d-421f-9675-ef7cfc2ae461","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"d3bcf8cf-cc43-49c6-936f-b6710b262fde","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"252b8673-fea8-4c45-94bc-4df7b2a026b7","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"5c9be16d-7dfb-4cf9-aa26-68d74dac7747","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"fcaec4bb-c9c8-443d-bd1d-5d939df00f93","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"76960c43-b6ab-456e-b9a0-a886b47f839b","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"c42e46c1-e149-4f23-a29c-daf4528b3386","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"d4086a3c-5fa7-41bc-9ee7-ba35d606720f","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"ba7cdb03-61cf-43ff-93e8-b8f89ef1f980","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"f705e0e5-1de7-42a3-bf6d-b517335be096","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"834021d5-2f34-4976-8d21-f0117f4175f7","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"96d3d485-31e4-445f-9e26-4978a0f5207e","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"b870269b-0ca3-4c32-a71e-5a35490828c2","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"b1532bbf-b919-41d8-bf15-005d7594b54a","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"04487cee-28e6-4048-a276-32d60f5b8e30","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"8f02ec03-0ca5-4f3d-afa9-30f080be5e1f","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"d0970222-986a-422f-bb59-09e49b610c47","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":19,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"3722b143-d32b-4a4c-bf1b-8320ecd4e6ab","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":19,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"b8ced8fe-7db0-492f-b007-e10e6e652459","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":19,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"5a3aeefa-04c0-436a-8f9e-bbaf3a15e257","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":19,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"210df03d-ff35-43d9-a93f-c48ab2282057","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":19,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"850bc33c-1316-4462-8f25-a0fb6b11f287","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":19,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"8385fe40-b06e-4100-b47e-0755034e5e25","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":19,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"6d76b6c6-5f7b-4e5b-8d34-f5fd8cd30445","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":19,"box":{"x":69,"y":709,"width":777,"height":11}},{"id":"4f05e1ef-c714-4de7-98d8-d935481d91d5","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":19,"box":{"x":265,"y":724,"width":613,"height":12}},{"id":"1460599d-14d3-47b7-9124-090dfe895b58","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":19,"box":{"x":265,"y":739,"width":563,"height":12}},{"id":"48508ed9-6526-4fa1-8d60-d5d17950cdf0","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":19,"box":{"x":265,"y":755,"width":607,"height":11}},{"id":"fb339f7d-f514-45b7-9172-119988980ede","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":19,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"948f661d-2a59-4010-a9e6-0a66cf43d8b3","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":19,"box":{"x":265,"y":785,"width":626,"height":11}},{"id":"824f0ad1-9f86-4bfc-84c5-50a2c892df3d","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":19,"box":{"x":265,"y":800,"width":563,"height":11}},{"id":"00e45e3e-e936-4b6c-a886-ed58458dda19","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":19,"box":{"x":265,"y":815,"width":627,"height":11}},{"id":"5726775d-d96c-4abe-857b-1353173ebb8e","block_type":"box","text":"Independent Director. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":19,"box":{"x":265,"y":830,"width":627,"height":11}},{"id":"14f21e72-3a3b-4cc0-8515-8c6106be2aa1","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":19,"box":{"x":265,"y":845,"width":623,"height":11}},{"id":"1e71cc8d-a41d-4299-a8e4-59a5e6b68be2","block_type":"box","text":"rules.","page_number":19,"box":{"x":265,"y":861,"width":38,"height":8}},{"id":"4c171036-4f0e-4fb8-beed-3b23d338a023","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9373a841-f63b-476a-8650-d128740c5d5f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"893da08b-7338-4c12-84fa-9f3d506671e4","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":20,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"b9df6881-0839-4963-8e9e-37d0d71ea4b5","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":65,"width":806,"height":12}},{"id":"2880837d-9c9e-4dfa-9837-5549e7ad1105","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":81,"width":584,"height":11}},{"id":"a8ffa395-0396-4b90-8285-ae8991c0a8e3","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":96,"width":622,"height":11}},{"id":"0a876f32-a1c3-4852-8b9f-fecbdbaa2f5e","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":111,"width":638,"height":11}},{"id":"ce12ac74-6a47-4c0f-bc28-32d292e14cee","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":126,"width":570,"height":11}},{"id":"2c2118e3-83ea-4560-ac88-9752aca394db","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"f904d86f-1d9f-4acb-b18a-2386e1657f59","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"cb7a2042-a3af-4c38-922d-25c1c851aeb3","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"6817cd79-bcbc-4de9-a245-046be25107c1","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"e98ba990-771e-4998-942d-9b5f5583e5c6","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"e8ae8a99-309e-4be2-80e6-91650260b847","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"eee11e49-f9c9-4d5a-a512-0b92c9760788","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"87cd13e0-5f8d-4b87-87ef-c615fa2db3c7","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"8cb4680c-f317-4936-886b-eabdcc5affff","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":269,"width":769,"height":12}},{"id":"dca950f7-226a-4f38-9c4a-c25675637c95","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":20,"box":{"x":265,"y":285,"width":621,"height":11}},{"id":"e14e7ae4-11c5-4a2f-8723-b3ea52fbf575","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":300,"width":599,"height":11}},{"id":"5c65b2ec-1ba4-4485-ae1f-b00dd82f8cc4","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"c1b3620e-d1ac-44a8-a0a5-f792582aa99e","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"690e627b-378e-4c3f-a450-9a8b38ea613f","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"6d34c547-fcd9-4cc0-9780-4a4fe0678e2b","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"e9e6a38b-c511-4855-809e-f9902d06b8f5","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":375,"width":628,"height":11}},{"id":"b0471b0b-361d-4454-be2f-556a94b9c705","block_type":"box","text":"articles and books on these topics.","page_number":20,"box":{"x":265,"y":391,"width":251,"height":10}},{"id":"2b32d5cb-0914-4516-a967-5578651f111c","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"b7a2949b-c01e-4239-afd0-556e22887810","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"01a975c2-94d9-4420-83d5-1ad51cde992e","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"0ee8ec8b-b210-4617-a314-9223ad7b85f2","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"9866a290-2b6e-4989-bf67-2a4b492b533e","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"64ec6c3e-eb3b-4b43-9ac4-0e0e4b866715","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"90046a4e-180f-4e2c-9238-7c1ed5ce72f3","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":20,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"0f4d80e6-372c-4a89-8b2a-8bc67ab3055b","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":20,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"fea1fa43-c9ac-4201-a789-b9f51be2c3e9","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":20,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"f48a475d-41e0-4d48-bb9a-4d2ed18f8cfd","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":20,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"dd8e5586-f809-4e7f-bfe1-fa1774aecc94","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":20,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"a6522218-5071-46e5-bb3e-6cceeb1f0b38","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":20,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"30cf00bf-2c40-41a9-a555-eb34d3170046","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":20,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"8ebeb021-e3ee-41f3-aa74-210b0a6ad2fc","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":20,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"bdda88bf-f5ea-47af-8417-410f452a1e44","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":20,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"ea365a2a-6960-436a-88bb-d754757b2c74","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":20,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"8f168526-769a-4f3a-8c26-1fa23c063702","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":20,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"6302a67b-61e0-4fad-ba62-3cd1ed7f96e6","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":20,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"797da0d1-e14f-49a2-ab07-179d74ac3d9e","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":20,"box":{"x":265,"y":738,"width":638,"height":11}},{"id":"4318d717-3099-4fe6-8a46-4878041a1523","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":20,"box":{"x":265,"y":753,"width":635,"height":12}},{"id":"eb3b7f85-4551-40a0-9c9c-ce31ce9e5a70","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":20,"box":{"x":265,"y":768,"width":642,"height":12}},{"id":"0deec66e-57c3-4892-8b5e-91c7517c4808","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":20,"box":{"x":265,"y":784,"width":627,"height":11}},{"id":"4d5aab85-efde-4944-8875-e801b5143480","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":20,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"2fb67223-3746-4ee3-8e7a-98c49825b772","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":20,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"bdc2d7c8-76e1-435d-9cb7-a69da55fdfb1","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ee3eef77-7f52-4dea-af09-d0ba9ab52459","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"492520c3-3b42-4357-a6bc-f966a0a9d0b6","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":21,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"7ba8764b-2fc5-4462-b4c6-cdff0108be2f","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"c3852541-9123-4dd1-b584-cb3a75812bf1","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"c42c6a3c-8d78-4dfb-8ebc-2a93cecce8b9","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"f8a7733f-70cd-47c8-9511-05285533864e","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"dd888094-0f0b-4052-95e6-5ee8be1bf54f","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"456ba59d-a1ec-4cd9-a3d6-c77826c8eeda","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"5771750e-ecce-4990-9cea-dd9bbf39446b","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"664c9ba6-3ac5-4cfb-ba1b-dbcb802928ac","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"e8b51393-aa0d-4b24-bd57-9662246159c7","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"3c1e6b83-0a18-4a7d-8f2b-7c8b93cb924a","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"96d862d1-c791-48de-9801-5cb80fce309f","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"dc546f19-a5d7-476c-9442-010c3fd87748","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":239,"width":639,"height":9}},{"id":"3b759bc7-3490-4d82-99a9-27d9ea6329a2","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":254,"width":573,"height":12}},{"id":"2257f778-7507-4464-a868-573dd9a3faa2","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":269,"width":625,"height":12}},{"id":"fba8f6a3-4274-4478-bc57-c0a15043407d","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"ad4576ef-7fef-44df-8bd1-95d4af18c411","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"98ca3474-b452-4fc2-b1cb-cf2ced9804bd","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"0639db57-cffd-497b-a825-0db822d4e614","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":21,"box":{"x":265,"y":330,"width":372,"height":11}},{"id":"f0639734-3aa1-4b66-bb34-964ce26fea89","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":353,"width":807,"height":11}},{"id":"f935b36e-3fc1-4c11-baf2-56e00e33afd8","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":368,"width":641,"height":11}},{"id":"d783d3cd-d9c9-48d2-a9f9-bce3d0e91d79","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":383,"width":618,"height":11}},{"id":"0003cf88-db0b-460d-a361-c5ebb865b452","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":398,"width":594,"height":11}},{"id":"a7c57136-a00d-46f2-bd5e-ba6348cb1124","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":413,"width":639,"height":11}},{"id":"58d553d1-0953-4753-a385-8eee40e36b27","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":428,"width":575,"height":11}},{"id":"a651c24f-4ae6-49c1-837b-4760f8842cff","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":443,"width":131,"height":9}},{"id":"29662229-d2c2-4fa5-983b-ec0f9afa2d07","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":21,"box":{"x":69,"y":466,"width":808,"height":11}},{"id":"8577ef7a-1e9a-4ac7-b614-aab24ac70897","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":21,"box":{"x":265,"y":481,"width":630,"height":11}},{"id":"85f0567a-6048-4582-ab57-bfb79cad2b39","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":21,"box":{"x":265,"y":496,"width":627,"height":12}},{"id":"a7f1f58e-4fa3-407e-a4af-29a34c8f6edc","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":21,"box":{"x":265,"y":512,"width":632,"height":11}},{"id":"abcd4490-3d4c-44eb-954c-e68faab76429","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":21,"box":{"x":265,"y":526,"width":615,"height":12}},{"id":"f633034c-6c51-4e33-ac21-d28b94cf1a02","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":21,"box":{"x":265,"y":542,"width":608,"height":11}},{"id":"7f57d332-68b3-4890-ad93-c458185feef7","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":21,"box":{"x":264,"y":557,"width":620,"height":11}},{"id":"f244d2a2-8530-4756-ad2d-c6d2fccdfed5","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":21,"box":{"x":265,"y":572,"width":584,"height":11}},{"id":"87d2605c-f083-4e7f-b637-379a943b47aa","block_type":"box","text":"committee financial expert, as such term is defined in the applicable Commission rules.","page_number":21,"box":{"x":264,"y":587,"width":629,"height":11}},{"id":"17aa1280-19aa-40ea-bc42-6965516d56e5","block_type":"box","text":"Interested Directors","page_number":21,"box":{"x":70,"y":610,"width":140,"height":9}},{"id":"80b57010-8864-431c-b758-f7130c9f48e9","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":21,"box":{"x":70,"y":625,"width":823,"height":11}},{"id":"88caaaf3-7ed6-4347-b3f4-669d4f5e7197","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":21,"box":{"x":264,"y":640,"width":593,"height":11}},{"id":"9de3c573-9f1a-4753-8c4e-d407845e848a","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":21,"box":{"x":265,"y":655,"width":629,"height":11}},{"id":"d1e81ec9-ceb6-451b-a0bf-f04efa66c27a","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":21,"box":{"x":265,"y":670,"width":639,"height":11}},{"id":"69747e09-dcb7-4634-9dd2-228dc591a294","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":21,"box":{"x":265,"y":685,"width":617,"height":12}},{"id":"27a679f6-e64e-44a7-a693-674baea1888b","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":21,"box":{"x":264,"y":700,"width":634,"height":12}},{"id":"4c5a0c32-b005-4a1d-a56b-a3b5c7178eb5","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":21,"box":{"x":265,"y":715,"width":624,"height":11}},{"id":"4ad84394-ee21-42e3-94f1-893ded8f1854","block_type":"box","text":"and iShares","page_number":21,"box":{"x":265,"y":731,"width":84,"height":9}},{"id":"1f17b353-da61-479a-8978-0ebf5dee152b","block_type":"box","text":"®","page_number":21,"box":{"x":350,"y":731,"width":6,"height":4}},{"id":"7e6962ea-a16d-4002-91e7-547b84e3213b","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":21,"box":{"x":362,"y":731,"width":478,"height":11}},{"id":"3c83a7e5-5ba9-410f-b840-20019521383d","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":21,"box":{"x":265,"y":746,"width":585,"height":11}},{"id":"3bf0f10f-9666-4335-9bd7-6f1f5dfea6f6","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":21,"box":{"x":265,"y":761,"width":620,"height":11}},{"id":"81b83695-37d9-45ee-988f-92c71b77ec79","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":21,"box":{"x":265,"y":776,"width":578,"height":11}},{"id":"d23eb1c6-cd04-4a41-bb1a-ae5d8d69e2a1","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"aa310cfe-d82a-44be-b8d5-6320a36fc03f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f100571-abf0-470f-b826-04187ef73da2","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":22,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"c39edd17-c467-413a-9a79-f4bfb272ff7b","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":22,"box":{"x":69,"y":65,"width":800,"height":12}},{"id":"986f5f98-e9e3-428c-ba1e-7a1d9b743044","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":81,"width":593,"height":11}},{"id":"d5a909a3-e25e-4c01-b15b-415354a5fec4","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"45185ec4-a71b-417b-9d8f-588d58c33a6c","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":111,"width":542,"height":11}},{"id":"57acf8d4-8cb4-408a-b60b-2a44fdd68699","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":126,"width":617,"height":11}},{"id":"3c9d9cec-f72b-4fd5-bdff-de68f62b523d","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":141,"width":620,"height":11}},{"id":"4e1926e6-d02b-4fc6-affa-20679b5ded4f","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":156,"width":616,"height":11}},{"id":"402ee184-5fe4-4efc-ae80-afd27062ff72","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":171,"width":639,"height":12}},{"id":"5741e44e-c9de-4f61-9680-9b246784b736","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":186,"width":603,"height":9}},{"id":"4bb51580-bca5-49b7-b773-0f2cceb5bfb2","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":201,"width":582,"height":12}},{"id":"58b28a21-82e7-44ba-9b3e-736c468c2c0c","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":217,"width":632,"height":11}},{"id":"17dff4ce-14c8-4e4e-8198-d4134bfb409b","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. 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The contractual agreement may be terminated upon 90","page_number":28,"box":{"x":69,"y":188,"width":825,"height":12}},{"id":"e2d775f0-52dd-4fdf-8029-24b9e933d9a3","block_type":"box","text":"days’ notice by a majority of the non-interested directors of the Corporation or by a vote of a majority of the","page_number":28,"box":{"x":69,"y":203,"width":761,"height":12}},{"id":"4173becc-aed1-48b5-84b6-b2ebed36fbff","block_type":"box","text":"outstanding voting securities of the Fund.","page_number":28,"box":{"x":69,"y":218,"width":293,"height":12}},{"id":"3ae56522-ab44-486c-9aef-25e442e43898","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":241,"width":800,"height":11}},{"id":"81387bef-94cf-4a99-8c89-ff4fe645810b","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":28,"box":{"x":70,"y":256,"width":834,"height":12}},{"id":"5eb93c2b-7646-4471-a33b-9d0f1156f2d3","block_type":"box","text":"to perform investment advisory services with respect to the Fund. In addition, the Manager may delegate certain of","page_number":28,"box":{"x":68,"y":271,"width":825,"height":12}},{"id":"d11b0864-f3c8-4cb9-b3c0-c059ec523d3b","block_type":"box","text":"its management functions under the Management Agreement to one or more of its affiliates to the extent permitted","page_number":28,"box":{"x":70,"y":286,"width":824,"height":12}},{"id":"ed353fb4-f4a0-47b0-ad9b-ac201510b63c","block_type":"box","text":"by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in its sole","page_number":28,"box":{"x":69,"y":302,"width":808,"height":11}},{"id":"f952696d-0bcc-4b65-94d8-589f84ff4f2f","block_type":"box","text":"discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":317,"width":451,"height":11}},{"id":"293848a9-8e4a-44ab-a86c-89ab636f84c7","block_type":"box","text":"The table below sets forth information about the management fees paid by the Corporation, on behalf of the","page_number":28,"box":{"x":101,"y":339,"width":773,"height":12}},{"id":"627b7db4-3306-4741-9295-35eb30cf7125","block_type":"box","text":"Fund, to the Manager, and the amounts waived and/or reimbursed, for the periods shown.","page_number":28,"box":{"x":70,"y":355,"width":642,"height":11}},{"id":"f4ad639b-f452-4086-ac2e-a71e05421947","block_type":"box","text":"Fees 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$829,653 $279,039","page_number":28,"box":{"x":70,"y":410,"width":825,"height":12}},{"id":"d2d968ab-1c11-4ba9-a876-fd8fb6ecd97c","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,133,340 $701,717 $220,272","page_number":28,"box":{"x":70,"y":425,"width":825,"height":12}},{"id":"b56cd841-12c0-482d-b32c-3fea48209443","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,862,991 $603,011 $271,997","page_number":28,"box":{"x":70,"y":440,"width":825,"height":12}},{"id":"39191c68-64d8-44ee-9368-7b841fe5f314","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":28,"box":{"x":69,"y":472,"width":335,"height":11}},{"id":"4f388820-8525-41ec-92bf-e3224c56ae88","block_type":"box","text":"Raffaele Savi, Travis Cooke, CFA, and Richard Mathieson are the portfolio managers and are jointly and 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Pooled","page_number":28,"box":{"x":720,"y":639,"width":75,"height":7}},{"id":"9123375e-5996-4252-a1dd-c9ea4adc6b8c","block_type":"box","text":"Investment","page_number":28,"box":{"x":726,"y":649,"width":64,"height":7}},{"id":"0a727048-58fa-4c55-add8-9beaec7a15cc","block_type":"box","text":"Vehicles","page_number":28,"box":{"x":734,"y":659,"width":48,"height":8}},{"id":"e03e61ae-5843-4cd6-9683-4a1d8808c9db","block_type":"box","text":"Other","page_number":28,"box":{"x":843,"y":649,"width":32,"height":7}},{"id":"06d6fb5c-787a-481e-9518-77bb08a55ed1","block_type":"box","text":"Accounts","page_number":28,"box":{"x":832,"y":660,"width":54,"height":7}},{"id":"a273469a-7552-4bc4-a364-6955dde8b225","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":28,"box":{"x":73,"y":673,"width":789,"height":9}},{"id":"e38e77f0-25b8-4466-b0a3-23bec288b59a","block_type":"box","text":"$31.43 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":28,"box":{"x":329,"y":685,"width":566,"height":9}},{"id":"7f456fb1-61ac-48ac-94de-ffafbecf42a6","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":28,"box":{"x":74,"y":698,"width":788,"height":8}},{"id":"26e901f1-6894-4e53-a49c-bf8a32af09db","block_type":"box","text":"$44.15 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":28,"box":{"x":329,"y":710,"width":570,"height":9}},{"id":"18a2fe89-ac36-42a7-a542-2de177b858bc","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":28,"box":{"x":74,"y":724,"width":788,"height":7}},{"id":"0579fe08-bc05-4bcb-94e2-a8cc0733fd9c","block_type":"box","text":"$55.25 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":28,"box":{"x":329,"y":736,"width":566,"height":8}},{"id":"cc0d0b99-714a-4e60-9600-7279873289d3","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":28,"box":{"x":69,"y":774,"width":304,"height":11}},{"id":"8d6c2a28-2280-4ebd-b3bb-b46cb987d58a","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":28,"box":{"x":101,"y":797,"width":656,"height":11}},{"id":"251c6a52-1256-485f-ae45-dfcee403f411","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":28,"box":{"x":102,"y":819,"width":774,"height":12}},{"id":"05096192-b5a8-4772-9362-4c6e0e1e7986","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":28,"box":{"x":70,"y":835,"width":837,"height":11}},{"id":"e20bf125-938d-479c-a30e-0f17ab5202c0","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":28,"box":{"x":69,"y":850,"width":823,"height":11}},{"id":"ff9315d0-8d94-48b4-b469-b3f39af62e11","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":28,"box":{"x":69,"y":865,"width":799,"height":11}},{"id":"3ef6e83a-d02b-438a-ad33-2971c98bf0d6","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":28,"box":{"x":70,"y":880,"width":670,"height":11}},{"id":"075c697a-6f5f-4e25-9f67-46f7552bbc53","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"f5f8898d-c678-4f7d-9204-c58bac1c60df","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a0fd86c-64e0-4139-bbb4-fd8b4e8ac1e7","block_type":"box","text":"Base Compensation.","page_number":29,"box":{"x":102,"y":45,"width":148,"height":11}},{"id":"1d9a2259-65ec-4f27-8c6e-df57c03c6249","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":29,"box":{"x":257,"y":45,"width":640,"height":11}},{"id":"058a6df5-b36e-47d9-8ee0-87a00285d04e","block_type":"box","text":"firm.","page_number":29,"box":{"x":68,"y":60,"width":32,"height":9}},{"id":"a6062f0d-d500-478a-ac25-e3f5c6c2c50c","block_type":"box","text":"Discretionary Incentive Compensation","page_number":29,"box":{"x":102,"y":90,"width":277,"height":11}},{"id":"7fd66685-5f59-4fe8-8a36-6a841d87cedc","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":29,"box":{"x":102,"y":113,"width":792,"height":11}},{"id":"a302639d-fe88-4598-b5bf-b070749a7f2e","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":29,"box":{"x":68,"y":128,"width":800,"height":11}},{"id":"3f5e034a-719e-4223-b323-111f56fb5d97","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":29,"box":{"x":69,"y":143,"width":777,"height":11}},{"id":"847db0bd-d4c1-4e79-a046-7b6bb875a502","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":29,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"d2a91ad5-6437-42ca-8c5e-6d6ae5915351","block_type":"box","text":"portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":29,"box":{"x":70,"y":173,"width":741,"height":11}},{"id":"f863cd91-6650-480b-8cc6-e395b3d94213","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Fund and","page_number":29,"box":{"x":69,"y":188,"width":809,"height":12}},{"id":"e391ca63-8614-4402-aa17-5018b0ff60d3","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally","page_number":29,"box":{"x":69,"y":203,"width":806,"height":12}},{"id":"89231025-b7ea-4abf-887c-6fca854ed104","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The performance of Messrs. Savi,","page_number":29,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"5092ea80-db21-4982-9b80-134e6f781b56","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":29,"box":{"x":69,"y":234,"width":493,"height":11}},{"id":"7199052e-0f96-46b8-a5f8-ca9a34a9da91","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":29,"box":{"x":102,"y":256,"width":389,"height":11}},{"id":"ed8e088d-3638-4ca6-9029-bffb73163c50","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":29,"box":{"x":499,"y":257,"width":383,"height":10}},{"id":"8a442b58-0f25-4db8-b28a-1ff807b6c49c","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":29,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"66b40094-8e30-4835-ae64-a9cef86f872b","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":29,"box":{"x":68,"y":286,"width":522,"height":12}},{"id":"f404f1cd-9ce7-4e8c-8cd8-8c8fdc0ad91d","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":29,"box":{"x":102,"y":309,"width":760,"height":11}},{"id":"3815936e-7960-4919-bde8-6f7579af69d9","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":29,"box":{"x":69,"y":324,"width":795,"height":12}},{"id":"8e887bef-032f-445c-ad1e-f403d5574d8f","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":29,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"18769fd2-7af5-49a2-83b5-a82a1879dbb0","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":29,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"7e634974-aa41-4fb4-b779-cf7abbff6101","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":29,"box":{"x":68,"y":370,"width":839,"height":11}},{"id":"ab5d696b-6fd8-4ce2-93cc-c6409f918871","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":29,"box":{"x":69,"y":385,"width":802,"height":11}},{"id":"d4027e60-8e5e-43e9-9ad8-ac2e9331bb0f","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":29,"box":{"x":70,"y":400,"width":820,"height":11}},{"id":"8eeb2b83-a658-4886-b63e-c3dba9553967","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":29,"box":{"x":70,"y":415,"width":801,"height":11}},{"id":"ac94dbac-e9cf-4760-a3fd-14f5a9c0939f","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":29,"box":{"x":70,"y":430,"width":831,"height":11}},{"id":"c57f36e5-6e01-4a40-8e22-16b891a2e900","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":29,"box":{"x":69,"y":445,"width":479,"height":12}},{"id":"6061a99d-690e-4b9e-837d-6718a68786ba","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":29,"box":{"x":102,"y":468,"width":785,"height":11}},{"id":"b6ed7ad2-1cbe-4ef8-8bb9-89b03625caf1","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":29,"box":{"x":68,"y":483,"width":836,"height":11}},{"id":"1e3bc811-3446-435e-9d12-ec09cb01f21f","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":29,"box":{"x":68,"y":498,"width":821,"height":11}},{"id":"85a2bc70-7385-48ec-810c-8e623840e3ae","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":29,"box":{"x":69,"y":513,"width":829,"height":11}},{"id":"ad0118db-744a-4340-b690-c54ce09ce68d","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":29,"box":{"x":70,"y":528,"width":835,"height":12}},{"id":"e40f231f-211d-4f0d-88d2-8b39b0b36301","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":29,"box":{"x":69,"y":543,"width":414,"height":12}},{"id":"8798ccb3-fee5-4255-8e30-abc115e7e18a","block_type":"box","text":"Other Compensation Benefits.","page_number":29,"box":{"x":101,"y":566,"width":218,"height":11}},{"id":"a8d956d3-513a-423d-ae7a-d17a7624a24e","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":29,"box":{"x":327,"y":566,"width":552,"height":11}},{"id":"f49309eb-d6c1-43be-847d-23b4cd6913c7","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":29,"box":{"x":69,"y":581,"width":582,"height":12}},{"id":"babca4e0-1b58-4495-8f2d-618bc3ac975a","block_type":"box","text":"Incentive Savings Plans","page_number":29,"box":{"x":102,"y":604,"width":167,"height":11}},{"id":"923dddf6-ff61-46d6-9b03-cc80e94ee543","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":29,"box":{"x":274,"y":604,"width":614,"height":11}},{"id":"e7bfd7c8-9a52-40be-9fea-098b7d3ab958","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":29,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"c409b33f-6cb3-4c1a-b200-4393cfe11770","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":29,"box":{"x":70,"y":634,"width":785,"height":11}},{"id":"ef7269f2-ff90-437e-be93-5616469f7b2a","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":29,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"0110247b-60df-4bfa-aeee-6f093c1ebfcc","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":29,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"b6b5a665-785e-498e-8e65-52e003d00a1f","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":29,"box":{"x":69,"y":679,"width":831,"height":12}},{"id":"184bcf8b-e915-42dc-b621-f5f766fb6ecf","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":29,"box":{"x":69,"y":695,"width":798,"height":11}},{"id":"74dded2e-99c6-417d-b144-8cb69c1c9eda","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":29,"box":{"x":70,"y":710,"width":809,"height":11}},{"id":"4425f968-1011-44e6-b018-f0c13431c6a2","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":29,"box":{"x":68,"y":725,"width":793,"height":11}},{"id":"660c63d7-0be6-43ff-886e-1aaf53e87f21","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":29,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"329d7f5c-bff7-48aa-9bba-649f094284c4","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":29,"box":{"x":68,"y":755,"width":805,"height":11}},{"id":"7263c69e-460d-44db-8a84-fc27043a09f8","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":29,"box":{"x":69,"y":770,"width":808,"height":12}},{"id":"0a2b5490-3be2-4388-9906-6f6905e4f251","block_type":"box","text":"participate in these plans.","page_number":29,"box":{"x":70,"y":786,"width":185,"height":10}},{"id":"e13eab3f-df69-4d8e-bdc4-0e8583e506d9","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"62c1ed0e-fe29-4019-9159-cbbc9273f470","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ec3aaaf-dfe9-41bc-9ae1-063e157a3b19","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":30,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"d6454930-3406-4372-beb4-6a117678a4c8","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":30,"box":{"x":101,"y":67,"width":731,"height":12}},{"id":"7f7ba888-d741-487e-bb42-a7013954cb3f","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":30,"box":{"x":69,"y":82,"width":519,"height":12}},{"id":"3f6f97e8-c9b6-4eef-b359-31863bfcda71","block_type":"box","text":"Portfolio Manager","page_number":30,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"49941e61-252a-44b8-bbfe-8893073dd418","block_type":"box","text":"Dollar Range of Equity","page_number":30,"box":{"x":759,"y":111,"width":129,"height":9}},{"id":"015b07a9-48fd-4ae6-945b-67e3ebc24eed","block_type":"box","text":"Securities Beneficially Owned","page_number":30,"box":{"x":736,"y":121,"width":173,"height":9}},{"id":"e5cbf2cd-ccb4-4754-977c-47149f8a96ca","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":30,"box":{"x":70,"y":138,"width":771,"height":9}},{"id":"d7d6048c-4734-4718-ab11-3f6b5289f864","block_type":"box","text":"Travis Cooke, CFA. . .","page_number":30,"box":{"x":68,"y":154,"width":148,"height":10}},{"id":"4d6738c5-d151-40aa-ae36-bd8ba5a76c1e","block_type":"box","text":"............................................................","page_number":30,"box":{"x":223,"y":161,"width":482,"height":1}},{"id":"c0339388-de6f-4bd6-9c9c-5ce0691c39c3","block_type":"box","text":"$100,001 - $500,000","page_number":30,"box":{"x":744,"y":153,"width":158,"height":11}},{"id":"d2aa5881-6957-46df-acf8-3d61a2340dd7","block_type":"box","text":"Richard Mathieson .","page_number":30,"box":{"x":70,"y":169,"width":138,"height":9}},{"id":"555185d7-4b94-46bb-aca9-5067ceba1ff9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":30,"box":{"x":214,"y":168,"width":589,"height":11}},{"id":"db26e17e-b291-4471-b41d-95972ecd2238","block_type":"box","text":"$10,000","page_number":30,"box":{"x":808,"y":168,"width":62,"height":11}},{"id":"dd3a3121-0f3e-442a-b185-ac313d7bc4b0","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":30,"box":{"x":69,"y":200,"width":403,"height":12}},{"id":"2ec88671-7a24-454b-808b-06a21b1e73a3","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":30,"box":{"x":102,"y":223,"width":727,"height":11}},{"id":"b2032d7c-0a64-4d2c-b558-8cd820fe9a08","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":30,"box":{"x":70,"y":238,"width":814,"height":11}},{"id":"e35fa6a7-d90a-4042-9c4a-46bd1a2f5b56","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":30,"box":{"x":70,"y":253,"width":837,"height":11}},{"id":"c2ff86a3-893a-42c0-b60c-f305400e051c","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":30,"box":{"x":70,"y":268,"width":810,"height":12}},{"id":"977cb690-ea25-4ddf-8acc-2ad1b1a0405d","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":30,"box":{"x":69,"y":283,"width":782,"height":12}},{"id":"166dd22a-6562-42c0-bd36-b7c987f29eed","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":30,"box":{"x":69,"y":299,"width":830,"height":11}},{"id":"c1970100-9191-4f61-af89-38c56fee48dd","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":30,"box":{"x":69,"y":314,"width":828,"height":11}},{"id":"0c2a22e9-1572-4f88-bca2-56b9e10a7805","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":30,"box":{"x":68,"y":329,"width":834,"height":11}},{"id":"99ca2d7f-c007-4ca5-bcf3-c6734297c3d3","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":30,"box":{"x":70,"y":344,"width":777,"height":11}},{"id":"07f981e6-151d-4bbf-840f-dce0b5f6d0c3","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":30,"box":{"x":70,"y":359,"width":821,"height":11}},{"id":"72258b36-065b-44ba-86c8-8c10deccb099","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":30,"box":{"x":69,"y":374,"width":819,"height":11}},{"id":"806c836b-a388-4119-8112-546183e21103","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":30,"box":{"x":69,"y":389,"width":832,"height":11}},{"id":"e05771c5-8c3c-4dc2-a8a4-f5381c3995e5","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":30,"box":{"x":68,"y":404,"width":804,"height":11}},{"id":"eef0e875-e2c0-4bf4-ae0a-a0cdacfc9a7f","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":30,"box":{"x":69,"y":419,"width":760,"height":12}},{"id":"95c8fac9-5cdd-4dae-bec9-d69d5e747e4a","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":30,"box":{"x":69,"y":435,"width":834,"height":11}},{"id":"e04a6bb1-daa9-4f26-aae4-7ca61cd2f7fc","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":30,"box":{"x":69,"y":450,"width":836,"height":11}},{"id":"86cdeabf-37ba-4216-bcdd-f6793ca7c0d4","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":30,"box":{"x":69,"y":465,"width":822,"height":11}},{"id":"3d5a0b84-a4e4-4d1e-afb8-b23e24b9a3bb","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":30,"box":{"x":70,"y":480,"width":835,"height":11}},{"id":"5ef83b39-e15b-42d3-8472-cb0818a22174","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Cooke, Mathieson and Savi","page_number":30,"box":{"x":69,"y":495,"width":806,"height":11}},{"id":"31bd2f44-a3a2-46e0-a1b8-8c554d99f7dc","block_type":"box","text":"may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long","page_number":30,"box":{"x":69,"y":510,"width":834,"height":11}},{"id":"acada079-9ef9-4696-8887-f1e811f83337","block_type":"box","text":"only accounts, subject to incentive fees. Messrs. Cooke, Mathieson and Savi may therefore be entitled to receive a","page_number":30,"box":{"x":69,"y":525,"width":822,"height":11}},{"id":"00471310-7082-4491-9666-1bc69a30fef0","block_type":"box","text":"portion of any incentive fees earned on such accounts.","page_number":30,"box":{"x":70,"y":540,"width":390,"height":12}},{"id":"b7a048dd-e221-4abe-9346-162371e60a48","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":30,"box":{"x":101,"y":563,"width":788,"height":11}},{"id":"2fd1aa47-03ea-4d91-a587-0b04e1dd0dbb","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":30,"box":{"x":70,"y":578,"width":839,"height":11}},{"id":"caa516a9-0a4b-4bf2-8075-4cd19ebf9e0d","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":30,"box":{"x":68,"y":593,"width":823,"height":12}},{"id":"370b9d3e-08d9-4659-8785-b5280f6ede02","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":30,"box":{"x":68,"y":608,"width":812,"height":12}},{"id":"c5559e33-a6c7-4c21-a100-c0a0ef05a2cf","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":30,"box":{"x":69,"y":623,"width":777,"height":12}},{"id":"b84124c2-bce0-4552-b693-9bc03aeed627","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":30,"box":{"x":70,"y":639,"width":826,"height":11}},{"id":"0356ae6b-6735-41b6-8129-d9b07005701b","block_type":"box","text":"Administration Agreement","page_number":30,"box":{"x":68,"y":669,"width":191,"height":11}},{"id":"719991b8-beec-4425-9d4a-1041d6add37f","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":30,"box":{"x":102,"y":692,"width":711,"height":11}},{"id":"b9ad6d70-4772-4efd-915c-5b984a90c0ec","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":30,"box":{"x":69,"y":707,"width":838,"height":11}},{"id":"0e952cb6-4a1d-4745-a19e-6ad58dd0dbab","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":30,"box":{"x":68,"y":722,"width":830,"height":11}},{"id":"fe0dc3bb-5d18-4512-85c9-9e492612f159","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":30,"box":{"x":70,"y":737,"width":813,"height":11}},{"id":"8ddb6938-ee1e-4eed-9711-f30202c0a535","block_type":"box","text":"returns; prepare certain reports required by regulatory authorities; calculate various contractual expenses; determine","page_number":30,"box":{"x":69,"y":752,"width":837,"height":11}},{"id":"44f5f57f-95cb-405c-8b1a-8744c5b5d6fc","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":30,"box":{"x":68,"y":767,"width":836,"height":11}},{"id":"5ba67721-384e-4e7c-9436-e55f1da05955","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":30,"box":{"x":68,"y":782,"width":785,"height":12}},{"id":"9f22eef1-dfcf-4bbe-89db-baae936130ab","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Corporation’s officers,","page_number":30,"box":{"x":69,"y":797,"width":811,"height":12}},{"id":"12877a52-c75e-486a-adbb-a299506f9d33","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":30,"box":{"x":70,"y":812,"width":819,"height":12}},{"id":"a073acf5-c533-4c49-b23d-6a40e653bd5e","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":30,"box":{"x":69,"y":828,"width":818,"height":11}},{"id":"89361288-ae6c-4128-a9b1-9e9fa2ed3c4c","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":30,"box":{"x":68,"y":843,"width":840,"height":11}},{"id":"5ff88135-4b9a-4c46-bbdb-418a7c9b6d3e","block_type":"box","text":"reimburse the Fund for expenses.","page_number":30,"box":{"x":69,"y":858,"width":238,"height":11}},{"id":"2a28a279-40e1-4c92-ba15-ee1fa8ae4896","block_type":"box","text":"Under the Administration Agreement, the Corporation, on behalf of the Fund, pays to the Administrator a fee,","page_number":30,"box":{"x":102,"y":881,"width":773,"height":11}},{"id":"5238e4a1-09df-4877-8b9d-f64f9f737af5","block_type":"box","text":"computed daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the","page_number":30,"box":{"x":69,"y":895,"width":792,"height":12}},{"id":"0393a6c0-9c8b-44fe-adf5-8cba7f53e351","block_type":"box","text":"Fund’s average daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of","page_number":30,"box":{"x":70,"y":910,"width":838,"height":12}},{"id":"7ea4abb1-3d80-47b5-9ee3-c6400ca005af","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"154f6ae6-4221-45eb-af4a-1e1abca8abc6","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a954d60-784f-435b-9505-af64b0ccb3b5","block_type":"box","text":"the next $1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily","page_number":31,"box":{"x":68,"y":44,"width":821,"height":12}},{"id":"5e8e802b-9581-4b18-afc4-b986fc3be0a8","block_type":"box","text":"net assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily","page_number":31,"box":{"x":69,"y":59,"width":816,"height":12}},{"id":"007c81ac-676c-4269-859c-29d6cb756621","block_type":"box","text":"net 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":31,"box":{"x":69,"y":74,"width":833,"height":12}},{"id":"6abc775a-f220-4590-8c93-1cc81de45a7b","block_type":"box","text":"shares of the Fund.","page_number":31,"box":{"x":69,"y":90,"width":137,"height":9}},{"id":"6f728060-d809-40a0-94de-0d121e81806c","block_type":"box","text":"The table below sets forth information about the total administration fees paid by the Corporation, on behalf of","page_number":31,"box":{"x":101,"y":113,"width":792,"height":11}},{"id":"0590cfa9-4d32-45a0-9272-30ae4ed78bf4","block_type":"box","text":"the Fund, to the Administrator (and waived and/or reimbursed by the Administrator) for the periods shown.","page_number":31,"box":{"x":68,"y":128,"width":758,"height":11}},{"id":"f60269af-42b5-4c5f-8885-aafde664f4ca","block_type":"box","text":"Fees Paid to","page_number":31,"box":{"x":674,"y":166,"width":72,"height":7}},{"id":"3777573d-3f55-4067-97a5-4b93e7d0ccbb","block_type":"box","text":"the Administrator","page_number":31,"box":{"x":659,"y":176,"width":102,"height":7}},{"id":"c7bb5712-698c-47e0-a3b7-43f5ed7e26b1","block_type":"box","text":"Fees Waived","page_number":31,"box":{"x":814,"y":156,"width":72,"height":7}},{"id":"2be6f238-93d3-4316-a100-9155774d3290","block_type":"box","text":"and/or Reimbursed","page_number":31,"box":{"x":794,"y":166,"width":112,"height":9}},{"id":"9adabc81-a329-4cd2-ae73-aa87b14aba13","block_type":"box","text":"by the Administrator","page_number":31,"box":{"x":791,"y":176,"width":118,"height":9}},{"id":"ff0ec6fa-dbf7-44e5-b1c9-af02b808426e","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":194,"width":330,"height":11}},{"id":"3d0da0bd-4a74-4092-903f-595dcc65a699","block_type":"box","text":"............................","page_number":31,"box":{"x":406,"y":201,"width":222,"height":2}},{"id":"81fcacd6-78b0-47be-a8de-7a3cfa085fef","block_type":"box","text":"$438,575 $142,030","page_number":31,"box":{"x":674,"y":193,"width":212,"height":11}},{"id":"f558ed9d-248e-4719-830f-c024e00aaec3","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":209,"width":330,"height":11}},{"id":"dc106980-b0b4-4c85-9810-3c2da99a3a8f","block_type":"box","text":"............................","page_number":31,"box":{"x":406,"y":217,"width":222,"height":1}},{"id":"c50c8a00-074b-4148-b196-9d577f0d6ab6","block_type":"box","text":"$396,196 $127,947","page_number":31,"box":{"x":674,"y":208,"width":211,"height":12}},{"id":"6c11962b-d72b-4008-967f-9cedbe6c98a1","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":224,"width":330,"height":11}},{"id":"26e9dbb3-e363-4b72-bccb-5d014ad2db26","block_type":"box","text":"............................","page_number":31,"box":{"x":406,"y":232,"width":222,"height":1}},{"id":"269686f0-3a97-40b2-8203-adbdee559bb6","block_type":"box","text":"$363,119 $116,905","page_number":31,"box":{"x":674,"y":224,"width":212,"height":11}},{"id":"1984c6f7-d898-4229-91c0-b4987d59df40","block_type":"box","text":"Accounting Services","page_number":31,"box":{"x":68,"y":256,"width":150,"height":11}},{"id":"fbb601e5-311c-4b34-9989-5e8395e5d035","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 240 Greenwich Street,","page_number":31,"box":{"x":101,"y":278,"width":803,"height":11}},{"id":"b7a0f2c5-bcdd-4da7-af77-2fa721a8d020","block_type":"box","text":"New York, New York 10286, serves as the accounting services provider for the Fund. BNY Mellon records investment,","page_number":31,"box":{"x":70,"y":293,"width":837,"height":12}},{"id":"a5891b38-cfa9-4202-aa31-c16e9bed7138","block_type":"box","text":"capital share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers","page_number":31,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"be46ee7a-4a56-4f0c-bd2a-83fd7980b415","block_type":"box","text":"for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports cash balances to the","page_number":31,"box":{"x":68,"y":324,"width":839,"height":11}},{"id":"b0c48a35-bff5-480f-9a57-42f415580ee1","block_type":"box","text":"Manager; prepares certain financial statements; calculates expenses, gains, losses and income; controls","page_number":31,"box":{"x":70,"y":339,"width":753,"height":11}},{"id":"c9a9090f-6e34-4587-bdb4-689e7a77c928","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and reports net asset value. In connection","page_number":31,"box":{"x":69,"y":354,"width":815,"height":11}},{"id":"d1cedfb0-95f1-4039-8aeb-80b499be252b","block_type":"box","text":"with its accounting services, BNY Mellon also provides certain administration services.","page_number":31,"box":{"x":68,"y":369,"width":621,"height":11}},{"id":"9ca362f2-9b8f-4437-a89b-b2ffc5a209a1","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":31,"box":{"x":101,"y":392,"width":765,"height":11}},{"id":"92be8e1b-3a49-45c0-bc24-0400fa906c03","block_type":"box","text":"indicated below.","page_number":31,"box":{"x":70,"y":407,"width":111,"height":9}},{"id":"3afa1b89-0b7b-4b6e-ad53-23410a4e6eb7","block_type":"box","text":"Fees Paid","page_number":31,"box":{"x":810,"y":435,"width":56,"height":7}},{"id":"e6a10eb1-6b95-4554-ac1f-7e56ac821d03","block_type":"box","text":"to BNY Mellon","page_number":31,"box":{"x":796,"y":445,"width":84,"height":7}},{"id":"a8790710-e586-476f-8c5c-b484314cb78c","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":463,"width":459,"height":11}},{"id":"aea3f7b4-2983-44e4-bece-14022401f7e0","block_type":"box","text":".............................","page_number":31,"box":{"x":535,"y":470,"width":230,"height":2}},{"id":"88c2136a-ef6d-4d73-83db-a9add49c1d81","block_type":"box","text":"$74,647","page_number":31,"box":{"x":807,"y":462,"width":62,"height":11}},{"id":"4818ed9b-468d-4c7b-8d49-414156c8ad5c","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":478,"width":459,"height":11}},{"id":"bcef497d-ba27-4d66-bbb9-707089a53eb6","block_type":"box","text":".............................","page_number":31,"box":{"x":535,"y":485,"width":230,"height":2}},{"id":"20921f09-7500-49ef-aa70-ccf87c2983ab","block_type":"box","text":"$71,503","page_number":31,"box":{"x":807,"y":477,"width":62,"height":12}},{"id":"5a049632-2a53-40e1-8f72-f55899bbdb93","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":493,"width":459,"height":11}},{"id":"b638c12c-ad9c-4f10-b9f6-87c7f1732b3f","block_type":"box","text":".............................","page_number":31,"box":{"x":535,"y":501,"width":230,"height":1}},{"id":"7cb52e46-b2ed-4e1c-8627-448723181ea2","block_type":"box","text":"$68,104","page_number":31,"box":{"x":807,"y":492,"width":62,"height":12}},{"id":"5629669a-04e8-4929-806e-285552285aeb","block_type":"box","text":"Custodian","page_number":31,"box":{"x":69,"y":525,"width":72,"height":9}},{"id":"ac47fb4e-6858-48c8-80ff-dc612ee8399d","block_type":"box","text":"BNY Mellon, which has its principal offices at 240 Greenwich Street, New York, New York 10286, serves as the","page_number":31,"box":{"x":102,"y":547,"width":794,"height":11}},{"id":"182063da-6130-4c96-aacc-c52e6a5af067","block_type":"box","text":"custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a custody account","page_number":31,"box":{"x":69,"y":562,"width":828,"height":12}},{"id":"9f5b70d3-2fe6-4c11-b764-9d25163f929e","block_type":"box","text":"or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":31,"box":{"x":69,"y":578,"width":820,"height":11}},{"id":"f01dc903-a0d5-42bd-9046-c303f41380e0","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":31,"box":{"x":69,"y":593,"width":825,"height":11}},{"id":"244b74f1-2d41-4b12-9f5e-e15298a39969","block_type":"box","text":"Fund.","page_number":31,"box":{"x":70,"y":608,"width":36,"height":9}},{"id":"e5615faf-6e21-4c34-bc17-07b629c5793e","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":31,"box":{"x":68,"y":638,"width":432,"height":11}},{"id":"f362b299-b6c9-4301-9cbb-40b05b398bac","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. serves as the transfer agent and dividend disbursement agent for the","page_number":31,"box":{"x":102,"y":661,"width":803,"height":11}},{"id":"5f2ffa12-40d3-417f-b2e3-204165223bbd","block_type":"box","text":"Fund.","page_number":31,"box":{"x":70,"y":676,"width":36,"height":9}},{"id":"06a43d0f-bd6f-4ccb-83c7-530122f838ed","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides certain shareholder liaison","page_number":31,"box":{"x":102,"y":699,"width":797,"height":11}},{"id":"ac6f1f5a-c784-4d7e-b7df-13c2dd0f2d9b","block_type":"box","text":"services in connection with the Corporation’s investor service center. The Corporation, on behalf of the Fund,","page_number":31,"box":{"x":69,"y":714,"width":776,"height":11}},{"id":"010bb88b-e15a-4c77-8b65-16834b46bde2","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":31,"box":{"x":69,"y":729,"width":787,"height":11}},{"id":"a83f0f6f-de22-4cdb-a9ae-78f4f8e39fd4","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":31,"box":{"x":69,"y":744,"width":531,"height":11}},{"id":"29d33ecb-b267-4fdc-96ff-8da5f88738e8","block_type":"box","text":"For the periods shown, the Corporation, on behalf of the Fund, reimbursed to BlackRock fees for shareholder","page_number":31,"box":{"x":102,"y":766,"width":775,"height":11}},{"id":"d509b37f-1a0f-4a3b-b5cc-90b0fe2a27c0","block_type":"box","text":"liaison services pursuant to such agreement as follows.","page_number":31,"box":{"x":70,"y":782,"width":397,"height":11}},{"id":"76317c05-ae70-438a-af89-a898b504f2b4","block_type":"box","text":"Fees Paid","page_number":31,"box":{"x":732,"y":810,"width":56,"height":7}},{"id":"a20e20d7-4c62-427d-bcf1-1c7bb2f4d1e6","block_type":"box","text":"to BlackRock","page_number":31,"box":{"x":720,"y":820,"width":80,"height":7}},{"id":"c65b7a7e-d3f6-490c-afc6-6402a5aaf684","block_type":"box","text":"Fees Waived","page_number":31,"box":{"x":833,"y":810,"width":72,"height":7}},{"id":"11871067-7e33-475b-af80-f9228486fa45","block_type":"box","text":"by BlackRock","page_number":31,"box":{"x":830,"y":820,"width":80,"height":9}},{"id":"bc1c07c5-bf74-46f0-824c-9375b2a8b665","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":838,"width":457,"height":11}},{"id":"d1e4c2cc-fe77-4630-b910-f6a0674a2b1d","block_type":"box","text":"....................","page_number":31,"box":{"x":533,"y":845,"width":157,"height":2}},{"id":"c59fb372-5ea9-47ee-929f-730496c6ba2f","block_type":"box","text":"$41,136 $41,136","page_number":31,"box":{"x":729,"y":837,"width":171,"height":11}},{"id":"ff547167-1931-4b42-b5d4-43aa44358a16","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":853,"width":457,"height":11}},{"id":"3cc0d924-bcc5-46ac-b0d8-a228f83489ad","block_type":"box","text":"....................","page_number":31,"box":{"x":533,"y":860,"width":157,"height":2}},{"id":"5574a671-529f-475d-b43d-e1970c11d02f","block_type":"box","text":"$27,015 $27,015","page_number":31,"box":{"x":729,"y":852,"width":171,"height":11}},{"id":"79aa7868-4194-4379-9efc-62de2bc77fd5","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":868,"width":457,"height":11}},{"id":"2189d3ad-5896-49be-b58d-456728b54fa5","block_type":"box","text":"....................","page_number":31,"box":{"x":533,"y":875,"width":157,"height":2}},{"id":"f92316ed-0089-49e5-9abb-cf13f5e8b7c0","block_type":"box","text":"$36,805 $36,805","page_number":31,"box":{"x":729,"y":867,"width":171,"height":11}},{"id":"f8d8908d-eef3-4928-aa49-e1d0eeb3771f","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"690291c9-962f-4967-9264-c025314e77d3","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1183ab8f-dce1-4245-92cc-27006779caa0","block_type":"box","text":"Credit Agreement","page_number":32,"box":{"x":69,"y":45,"width":129,"height":11}},{"id":"fad4227d-aa70-446c-9687-6258ce7f4821","block_type":"box","text":"The Corporation, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":32,"box":{"x":101,"y":67,"width":804,"height":12}},{"id":"53350ba6-5eff-4087-b9ca-dc35ae63fb31","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":32,"box":{"x":69,"y":82,"width":817,"height":12}},{"id":"ff20b424-ec7a-4319-94e7-58e7d83eba32","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":32,"box":{"x":68,"y":98,"width":743,"height":11}},{"id":"8aaaf03f-cb4b-47bb-a769-9fea8813610a","block_type":"box","text":"commitments designated for certain Participating Funds, the Participating Funds, including the Fund, can borrow up","page_number":32,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"65ff2280-0553-4809-8677-02484890fc8a","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":32,"box":{"x":68,"y":127,"width":818,"height":12}},{"id":"770688e7-e23f-4733-a07c-c706b448a1b0","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":32,"box":{"x":70,"y":143,"width":761,"height":11}},{"id":"331b336a-a2e2-478e-812e-6a5ef98e1c15","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":32,"box":{"x":69,"y":158,"width":768,"height":11}},{"id":"b3611b77-bf3a-4074-bbfb-aede80bdd75a","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":32,"box":{"x":68,"y":173,"width":825,"height":11}},{"id":"cecca443-73dd-47cb-9ef3-e80674230373","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":32,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"f4f3e380-c938-40a8-b31a-b420eaabbdcb","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":32,"box":{"x":69,"y":203,"width":838,"height":12}},{"id":"ab176a65-e73b-43c0-94e8-08fa571c5309","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":32,"box":{"x":68,"y":218,"width":801,"height":12}},{"id":"cd99a6d8-0f5b-4982-8749-060094bf0ede","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":32,"box":{"x":69,"y":234,"width":833,"height":11}},{"id":"0783b971-acf0-408c-8afb-f7215732a96e","block_type":"box","text":"charged interest at a variable rate.","page_number":32,"box":{"x":69,"y":249,"width":245,"height":11}},{"id":"05994706-73e3-4ced-aaa0-65d5bead3e22","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":279,"width":491,"height":11}},{"id":"b8893ee1-20ce-4ddc-96f7-722bec0e2264","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":32,"box":{"x":102,"y":302,"width":773,"height":11}},{"id":"df4392ce-e356-4203-bb3e-c50bb40d554a","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for the periods indicated.","page_number":32,"box":{"x":69,"y":317,"width":808,"height":11}},{"id":"d3d0c02b-b7d2-492f-b086-587e1f9b3d6d","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of BlackRock, acts as the distributor to the","page_number":32,"box":{"x":70,"y":332,"width":801,"height":11}},{"id":"a4be9dbf-27eb-4c09-85d4-ea9d408b3bcd","block_type":"box","text":"Fund.","page_number":32,"box":{"x":70,"y":347,"width":36,"height":9}},{"id":"83712772-1fd1-4b6d-82b7-8609cf730fa1","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":636,"y":375,"width":102,"height":7}},{"id":"f07ffc6f-c94e-46a9-bba7-fe0917a4b896","block_type":"box","text":"Gross Sales","page_number":32,"box":{"x":466,"y":391,"width":69,"height":7}},{"id":"44a02bc5-e3b2-4b60-b481-592b4f874c02","block_type":"box","text":"Charges","page_number":32,"box":{"x":477,"y":401,"width":47,"height":9}},{"id":"7cbd786f-8442-4d50-a91e-caea73e848c6","block_type":"box","text":"Collected","page_number":32,"box":{"x":473,"y":411,"width":55,"height":7}},{"id":"4e0b779e-e710-4884-8309-4869c75e8505","block_type":"box","text":"Sales Charges","page_number":32,"box":{"x":567,"y":391,"width":83,"height":9}},{"id":"c0dfc684-940e-4702-98cd-af2e06d39ab8","block_type":"box","text":"Retained","page_number":32,"box":{"x":583,"y":401,"width":51,"height":7}},{"id":"df6761c7-4f91-4422-a4de-a5dc44ab67a6","block_type":"box","text":"by BRIL","page_number":32,"box":{"x":587,"y":411,"width":44,"height":9}},{"id":"d9f016e6-cdbe-4f7e-909e-df9c0e6fac31","block_type":"box","text":"Sales Charges","page_number":32,"box":{"x":680,"y":391,"width":83,"height":9}},{"id":"0bc3a27d-791c-49f3-ac36-62992eedf87c","block_type":"box","text":"Paid to","page_number":32,"box":{"x":702,"y":401,"width":40,"height":7}},{"id":"f78fc892-c181-4cec-ac06-237942b42bb5","block_type":"box","text":"Affiliates","page_number":32,"box":{"x":696,"y":411,"width":52,"height":7}},{"id":"b3170f51-8977-42b7-a694-d54b69e07001","block_type":"box","text":"CDSCs Received on","page_number":32,"box":{"x":794,"y":391,"width":115,"height":7}},{"id":"d8ecc009-71eb-416b-8aea-269c4750bee7","block_type":"box","text":"Redemption of Load","page_number":32,"box":{"x":794,"y":401,"width":115,"height":9}},{"id":"5cdd9946-44dd-4bf9-9318-cc602b428cdb","block_type":"box","text":"Waived Shares","page_number":32,"box":{"x":808,"y":411,"width":86,"height":7}},{"id":"5c5d2eaf-e70e-4b97-adf4-bc8af1d4d600","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . .","page_number":32,"box":{"x":70,"y":429,"width":265,"height":11}},{"id":"dbef0ea8-1f39-4bc1-ac44-6089a78d1855","block_type":"box","text":". . . . . . . . . . . . $ 85,521 $6,741 $6,741","page_number":32,"box":{"x":342,"y":428,"width":406,"height":11}},{"id":"103c391c-c1ac-4f35-a808-e1333ca8cf97","block_type":"box","text":"$245","page_number":32,"box":{"x":833,"y":428,"width":37,"height":11}},{"id":"441252c7-356b-4b95-b66f-f2d1136cf523","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . .","page_number":32,"box":{"x":70,"y":444,"width":265,"height":11}},{"id":"04158b40-989f-4e69-bc20-83e311fb5116","block_type":"box","text":"............","page_number":32,"box":{"x":342,"y":451,"width":91,"height":2}},{"id":"bea053ce-c539-4fa7-85e2-0a45d004e02e","block_type":"box","text":"$103,882 $8,603 $8,603 $479","page_number":32,"box":{"x":465,"y":443,"width":405,"height":11}},{"id":"44788b3c-cc1d-4cc7-863f-52e3b6b1a505","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . .","page_number":32,"box":{"x":70,"y":459,"width":265,"height":11}},{"id":"8f1aef75-d752-445f-a304-8d992c0cdca9","block_type":"box","text":". . . . . . . . . . . . $ 65,587 $5,151 $5,151","page_number":32,"box":{"x":342,"y":458,"width":406,"height":12}},{"id":"fe42c453-94fd-49cd-aa80-37744c3ee1d2","block_type":"box","text":"$461","page_number":32,"box":{"x":833,"y":458,"width":37,"height":11}},{"id":"608e9750-1aff-4cc7-9480-719b82179464","block_type":"box","text":"Investor C Shares","page_number":32,"box":{"x":700,"y":489,"width":102,"height":7}},{"id":"b9ba3837-eca3-4fcb-bd2b-b51a6c560b99","block_type":"box","text":"CDSCs Received by BRIL CDSCs Paid to Affiliates","page_number":32,"box":{"x":592,"y":504,"width":317,"height":9}},{"id":"71413f39-7864-42cc-96a8-6428845f307e","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":32,"box":{"x":70,"y":522,"width":239,"height":11}},{"id":"25ab39e9-58c3-4b45-9bbf-a4041b01a913","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 161 $ 161","page_number":32,"box":{"x":315,"y":521,"width":550,"height":11}},{"id":"2b35c37a-da9f-48fe-b8d3-7934979b9e44","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":32,"box":{"x":70,"y":537,"width":239,"height":11}},{"id":"f7c94a9d-f199-4e48-b3b1-29daef0241e6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,770 $3,770","page_number":32,"box":{"x":315,"y":537,"width":550,"height":11}},{"id":"42bd89c1-d66e-47c4-ac60-f2f9b7f15353","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":32,"box":{"x":70,"y":552,"width":239,"height":12}},{"id":"dad70c89-5a1f-45bc-8922-84fac8ebecee","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 891 $ 891","page_number":32,"box":{"x":315,"y":552,"width":550,"height":10}},{"id":"5ae1340e-c4c2-4ce7-bd61-0b1a76244954","block_type":"box","text":"The table below sets forth the 12b-1 fees that were paid by the Fund for the fiscal year ended May 31, 2026","page_number":32,"box":{"x":101,"y":576,"width":776,"height":11}},{"id":"8d00b718-bcef-4e50-b0a6-4b64a6fdc5ea","block_type":"box","text":"pursuant to the Fund’s 12b-1 plan. A portion of the fees collected by BRIL was paid to affiliates for providing","page_number":32,"box":{"x":70,"y":591,"width":773,"height":12}},{"id":"a1477a16-19d0-4cb3-8c8a-a3dfebde079c","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":32,"box":{"x":69,"y":606,"width":827,"height":12}},{"id":"b8dd9f34-2303-43d2-9f28-3522d12e8b1b","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":32,"box":{"x":69,"y":622,"width":409,"height":9}},{"id":"af898b24-eef8-4bf1-9fbb-1f7804b49da9","block_type":"box","text":"Class Name","page_number":32,"box":{"x":69,"y":650,"width":68,"height":7}},{"id":"cf9ff5bc-7a01-4c60-a808-a77b8d782bcd","block_type":"box","text":"Fees Paid to BRIL","page_number":32,"box":{"x":806,"y":650,"width":103,"height":7}},{"id":"a6507d43-13ab-4155-9b16-c8dbf7ec3b57","block_type":"box","text":"Investor A Shares .","page_number":32,"box":{"x":70,"y":668,"width":134,"height":9}},{"id":"06cbcdf4-91c9-4dd3-a45c-34b00c51ddd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":32,"box":{"x":210,"y":667,"width":626,"height":11}},{"id":"474e40f4-37aa-473b-a6e3-f24a1ab524e8","block_type":"box","text":"045,660","page_number":32,"box":{"x":838,"y":668,"width":63,"height":10}},{"id":"f8601cbc-6907-42a0-8771-15f0ba0bc5d6","block_type":"box","text":"Investor C Shares . . .","page_number":32,"box":{"x":70,"y":683,"width":150,"height":9}},{"id":"30f2d2e1-ad4d-4835-a4bc-1673b5e97558","block_type":"box","text":".................................................................... $","page_number":32,"box":{"x":226,"y":682,"width":596,"height":11}},{"id":"fe19998e-8308-491d-87d3-8d5fb3835edf","block_type":"box","text":"137,601","page_number":32,"box":{"x":839,"y":683,"width":62,"height":10}},{"id":"76499c95-9fe0-47c6-855a-d9e8a60d31c8","block_type":"box","text":"Class R Shares","page_number":32,"box":{"x":69,"y":698,"width":109,"height":9}},{"id":"7c5ffced-597d-4a6f-a878-2ed6edf87584","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,820","page_number":32,"box":{"x":185,"y":697,"width":716,"height":11}},{"id":"99efa109-fbf4-4548-ae0b-a555c87b46b1","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":32,"box":{"x":68,"y":729,"width":318,"height":11}},{"id":"1a86cc1b-b118-4806-9e37-06a50875c41f","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":32,"box":{"x":101,"y":752,"width":790,"height":11}},{"id":"91ee200d-c0c7-4afc-a366-a1f2b6342499","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":32,"box":{"x":68,"y":767,"width":731,"height":11}},{"id":"c411cf79-3db5-46db-927f-dd0c2c524ebf","block_type":"box","text":"May 31, 2026, is set forth below.","page_number":32,"box":{"x":70,"y":782,"width":238,"height":11}},{"id":"1606e627-3fcd-4e2c-bd2b-11d6997057bc","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":805,"y":811,"width":102,"height":7}},{"id":"ed07b0ec-cb24-4e05-8c93-d84f5d660573","block_type":"box","text":"Net Assets","page_number":32,"box":{"x":70,"y":828,"width":76,"height":9}},{"id":"5166f123-9727-4217-b5e6-e3adbead56a4","block_type":"box","text":".............................................................................","page_number":32,"box":{"x":150,"y":836,"width":621,"height":1}},{"id":"1abee512-efe9-484f-8032-30bdf01fa2ac","block_type":"box","text":"$464,094,596","page_number":32,"box":{"x":803,"y":828,"width":106,"height":11}},{"id":"13ee85cb-dc70-4346-a065-9268dc08720b","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":32,"box":{"x":70,"y":843,"width":245,"height":12}},{"id":"00f16e2c-d166-4222-9871-c7472199d9c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":32,"box":{"x":321,"y":843,"width":524,"height":11}},{"id":"8465c665-1643-4be5-a9d3-505da10f08f3","block_type":"box","text":"877,368","page_number":32,"box":{"x":847,"y":843,"width":62,"height":11}},{"id":"967e0b9e-172e-4478-aa1c-c0aa2955819b","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":32,"box":{"x":70,"y":858,"width":571,"height":12}},{"id":"760d4f60-7ded-4394-99ce-be6eda49c245","block_type":"box","text":"................","page_number":32,"box":{"x":647,"y":866,"width":124,"height":1}},{"id":"4d72c718-9431-47e3-a339-61e02b27b518","block_type":"box","text":"$36.04","page_number":32,"box":{"x":857,"y":858,"width":52,"height":10}},{"id":"2f14db7b-b4fa-41ed-9d1c-578ce1253cb0","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":32,"box":{"x":69,"y":874,"width":534,"height":11}},{"id":"3e4b4f76-6997-41a5-b198-1cdd7fa6ffca","block_type":"box","text":"1","page_number":32,"box":{"x":604,"y":874,"width":4,"height":4}},{"id":"bbff30d6-1834-4541-ab6d-d89af1e089de","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $2.00","page_number":32,"box":{"x":615,"y":873,"width":294,"height":10}},{"id":"1ab06b91-6f08-4016-93f4-1ee9297fd66d","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":69,"y":893,"width":702,"height":11}},{"id":"08478552-bc74-44c8-afd0-1c4f37966ecc","block_type":"box","text":"$38.04","page_number":32,"box":{"x":857,"y":892,"width":52,"height":11}},{"id":"a661fbbb-8e0d-426b-88d8-0921ac2d1fc1","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"2e03f7e5-75e1-4a5d-b28b-2e2d914595a7","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d39c939c-d42a-4798-beca-757b118718c9","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"7620ba6d-c2d7-4762-9f90-0a8dccb4c95e","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":33,"box":{"x":94,"y":58,"width":541,"height":9}},{"id":"7aa013d2-f2e1-4b14-afdc-a58ef68f60b0","block_type":"box","text":"The offering price for the other share classes of the Fund is equal to the share class’s net asset value computed","page_number":33,"box":{"x":101,"y":79,"width":806,"height":11}},{"id":"b21031fe-ae88-42b1-8ee4-213edb5c26f9","block_type":"box","text":"as set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject","page_number":33,"box":{"x":69,"y":94,"width":837,"height":11}},{"id":"757b7bbe-94c2-4aa7-a29e-bfc06e87fc27","block_type":"box","text":"to a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":33,"box":{"x":68,"y":109,"width":833,"height":11}},{"id":"eeb237e9-984b-4731-9ce1-4a225e699666","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":33,"box":{"x":69,"y":124,"width":377,"height":11}},{"id":"6b38de4a-7375-411a-b408-6704fb6d6c4d","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":33,"box":{"x":68,"y":154,"width":302,"height":11}},{"id":"cd3f6250-b07b-49da-b343-987eb58d4ead","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":33,"box":{"x":102,"y":177,"width":609,"height":11}},{"id":"7f0ff257-b417-463e-9218-f7e7afbad3e7","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, for the","page_number":33,"box":{"x":102,"y":200,"width":800,"height":11}},{"id":"8adb5a77-0287-4e76-82c2-67bcd3a652a7","block_type":"box","text":"periods shown is set forth below.","page_number":33,"box":{"x":70,"y":215,"width":234,"height":11}},{"id":"f4a66b37-a471-4679-a9ac-7eafdc4b0cfb","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":613,"y":243,"width":125,"height":9}},{"id":"cb876001-4f58-49b4-9f1f-3f0c08d3e737","block_type":"box","text":"Commissions Paid","page_number":33,"box":{"x":623,"y":253,"width":106,"height":7}},{"id":"f0010730-0465-47b6-bf06-2fe8f9e75e82","block_type":"box","text":"Brokerage Commissions","page_number":33,"box":{"x":769,"y":243,"width":140,"height":9}},{"id":"b3645eb3-1fb4-4926-b063-9ffc8aa82e9e","block_type":"box","text":"Paid to Affiliates","page_number":33,"box":{"x":791,"y":253,"width":96,"height":7}},{"id":"50c776de-8ca9-49eb-ba4d-fa7c06c37479","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":33,"box":{"x":70,"y":271,"width":292,"height":11}},{"id":"ddc4935e-b532-46f8-85ec-5833d5800222","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":278,"width":213,"height":2}},{"id":"07f100e5-8c8c-4bae-aca0-981c68fb4365","block_type":"box","text":"$125,640 $0","page_number":33,"box":{"x":640,"y":270,"width":208,"height":11}},{"id":"f33e4210-3e5c-4561-939b-ae6bb35a8536","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":33,"box":{"x":70,"y":286,"width":292,"height":11}},{"id":"c86da992-960b-4c9c-b27a-84539784f243","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":293,"width":213,"height":2}},{"id":"4c34c6c8-8c1b-4b0c-9b64-b42693cb3275","block_type":"box","text":"$144,171 $0","page_number":33,"box":{"x":640,"y":285,"width":208,"height":11}},{"id":"d14a5525-b8f0-41b5-8f59-4ff5dc457a93","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":33,"box":{"x":70,"y":301,"width":292,"height":11}},{"id":"4c426d24-d2e1-408f-8414-51590faf42a2","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":308,"width":213,"height":2}},{"id":"fdcdd38b-9bf8-4780-9300-5ea4aa53a7fb","block_type":"box","text":"$192,456 $0","page_number":33,"box":{"x":640,"y":300,"width":208,"height":12}},{"id":"60752ae8-6879-4dd7-9a6a-b7a326e8fafa","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":33,"box":{"x":101,"y":325,"width":770,"height":11}},{"id":"478e6760-7afa-4f6c-8370-eb3e48cbd1e3","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":33,"box":{"x":69,"y":340,"width":814,"height":11}},{"id":"59637e31-bca5-4358-972a-871db6c03302","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":33,"box":{"x":68,"y":355,"width":829,"height":11}},{"id":"de942cf2-44f4-4590-ae1c-552b3d97e19f","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":33,"box":{"x":69,"y":370,"width":822,"height":12}},{"id":"bae5140a-4659-4475-9745-1cf541f479f7","block_type":"box","text":"with such brokers.","page_number":33,"box":{"x":68,"y":386,"width":130,"height":8}},{"id":"903c31b0-d0e3-4ff6-80e7-fad55e6cc18b","block_type":"box","text":"Amount of Commissions","page_number":33,"box":{"x":355,"y":414,"width":141,"height":7}},{"id":"3f8ea3f4-b936-46b8-81e4-31d02a6e7d97","block_type":"box","text":"Paid to Brokers for Providing","page_number":33,"box":{"x":342,"y":424,"width":168,"height":9}},{"id":"54909c6b-f2d5-45be-bada-cc395edee7f5","block_type":"box","text":"28(e) Eligible Research Services","page_number":33,"box":{"x":330,"y":434,"width":191,"height":9}},{"id":"5152d3d3-20d9-46ea-a809-b26a2337e377","block_type":"box","text":"Amount of Brokerage","page_number":33,"box":{"x":588,"y":424,"width":124,"height":9}},{"id":"21e2faf0-b151-417d-8724-c503e562a7ba","block_type":"box","text":"Transactions Involved","page_number":33,"box":{"x":587,"y":434,"width":126,"height":7}},{"id":"398169e0-1d13-4bc7-bc1c-92848c89be0b","block_type":"box","text":"$66,131 $417,414,591","page_number":33,"box":{"x":395,"y":451,"width":309,"height":11}},{"id":"b0f1bed0-5526-4e58-b3cc-bc1ccbdd114a","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":33,"box":{"x":101,"y":475,"width":796,"height":12}},{"id":"5ee628a8-6050-416e-b86e-1c0f0ec1e819","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of May 31, 2026 if any portion of such holdings were","page_number":33,"box":{"x":70,"y":491,"width":821,"height":11}},{"id":"1495d7be-4dd7-4397-99fd-f3c256198b74","block_type":"box","text":"purchased during the fiscal year ended May 31, 2026, is as follows:","page_number":33,"box":{"x":70,"y":506,"width":485,"height":11}},{"id":"1512cadf-c7c7-4537-8f6b-d6bd78618e5b","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":33,"box":{"x":69,"y":534,"width":840,"height":9}},{"id":"1122cfc7-57c3-4bda-a810-bd5f4dade8dc","block_type":"box","text":"J.P. Morgan Securities LLC . .","page_number":33,"box":{"x":69,"y":552,"width":209,"height":11}},{"id":"9122edba-afd1-454d-a1ad-1253b9966fb2","block_type":"box","text":".................................... E","page_number":33,"box":{"x":284,"y":552,"width":380,"height":9}},{"id":"a5795034-d9c6-4e12-a923-5f3d92eac126","block_type":"box","text":"$19,754","page_number":33,"box":{"x":797,"y":551,"width":62,"height":11}},{"id":"2fda0ec3-89f5-46da-9b54-2c56b0466fd7","block_type":"box","text":"BofA Securities, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":33,"box":{"x":70,"y":567,"width":594,"height":10}},{"id":"ff50af04-e252-46b0-89af-521ce6ba339b","block_type":"box","text":"$13,466","page_number":33,"box":{"x":797,"y":566,"width":62,"height":11}},{"id":"ec1aaf35-1dd1-46a8-8cea-5a8e45b74615","block_type":"box","text":"Morgan Stanley & Co. LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":33,"box":{"x":70,"y":582,"width":594,"height":11}},{"id":"6e6dfb1f-d531-452c-b734-7281f99715c4","block_type":"box","text":"$13,095","page_number":33,"box":{"x":797,"y":581,"width":62,"height":11}},{"id":"3c147dd6-2875-4cd9-8978-ea534b8b6929","block_type":"box","text":"Citigroup Global Markets Inc. .","page_number":33,"box":{"x":69,"y":597,"width":217,"height":11}},{"id":"aedec53f-a0f0-42dc-95fe-b25ded3872ea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 7,837","page_number":33,"box":{"x":292,"y":596,"width":567,"height":12}},{"id":"3c4d8561-b333-4bd4-8ec0-d1472bb7a8cc","block_type":"box","text":"Goldman Sachs & Co. LLC.","page_number":33,"box":{"x":69,"y":612,"width":192,"height":9}},{"id":"1e09184c-9e94-4e65-a8c9-e1ed1346765a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 7,545","page_number":33,"box":{"x":268,"y":612,"width":591,"height":11}},{"id":"9a3f0ef7-de4e-40c1-8032-e7a88a51e763","block_type":"box","text":"Securities Lending","page_number":33,"box":{"x":68,"y":644,"width":135,"height":11}},{"id":"e47ec2f7-748f-40c6-86a1-d8fe379a2794","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":33,"box":{"x":101,"y":667,"width":807,"height":11}},{"id":"c223ea6c-86a6-41b9-8f0d-08e776d7bc87","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":33,"box":{"x":69,"y":681,"width":817,"height":12}},{"id":"33e1cd3f-2c0e-4d6c-a8dd-e10778db6bdb","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":33,"box":{"x":69,"y":697,"width":813,"height":11}},{"id":"e0a1acb0-cadc-4c47-9349-8e3abbf6f4da","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":33,"box":{"x":70,"y":712,"width":838,"height":11}},{"id":"2e5e6272-500c-4733-ad92-8760444117f8","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":33,"box":{"x":69,"y":727,"width":813,"height":11}},{"id":"6e20ea63-93ad-47f1-ba3e-d70cacc161c0","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board of Directors.","page_number":33,"box":{"x":70,"y":742,"width":734,"height":11}},{"id":"b548ad0f-b5b7-4fe2-84eb-c39404f5116c","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":33,"box":{"x":101,"y":765,"width":735,"height":11}},{"id":"830a719e-5fa8-4ed9-8459-51c5e1d09e9d","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":33,"box":{"x":69,"y":780,"width":834,"height":11}},{"id":"1c6d8753-6708-43af-9c16-f1a85e378349","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":33,"box":{"x":70,"y":795,"width":822,"height":11}},{"id":"de0e895d-34f7-4b6f-8af6-9daebd2da7e5","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":33,"box":{"x":69,"y":810,"width":787,"height":11}},{"id":"b6852378-55bb-4c13-9da7-5418ba23dffc","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":33,"box":{"x":69,"y":825,"width":783,"height":11}},{"id":"dc7e6baa-5194-4803-9c4d-20333181a8f8","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":33,"box":{"x":70,"y":840,"width":816,"height":12}},{"id":"f4cd7fcb-ff8d-443b-985e-121c557106d1","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":33,"box":{"x":70,"y":855,"width":813,"height":12}},{"id":"22e31b54-a652-4021-a50d-5a7b5ab1fc78","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":33,"box":{"x":70,"y":870,"width":830,"height":12}},{"id":"ea649837-0c80-41ad-ba4a-9e5eb7317c8e","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":33,"box":{"x":69,"y":886,"width":773,"height":11}},{"id":"3754cf4f-0eb0-4d4f-b625-a3cff5b7484f","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"64dd983d-0a17-4069-9537-a7d5caac6093","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f538085-288e-47ea-979c-bccdbaf4007b","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":34,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"f5c3816a-e15b-4768-b448-be6a09d220af","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":34,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"72de99c3-ecca-4251-b125-e8f3210eb6a9","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":34,"box":{"x":68,"y":75,"width":812,"height":11}},{"id":"a4074bf5-a958-4154-999b-ee7744528d02","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":34,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"9da8a526-1a53-495b-8026-765768e38b0a","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":34,"box":{"x":68,"y":105,"width":835,"height":11}},{"id":"10a6d1f6-ac79-4985-86e7-f40a6efce079","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":34,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"17eb09f2-c8da-45c4-a007-cafacf8f8754","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":34,"box":{"x":68,"y":135,"width":789,"height":11}},{"id":"cc81ca4d-3b6f-422c-bb8e-2272392ccbb4","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":34,"box":{"x":69,"y":150,"width":829,"height":12}},{"id":"803f3cb7-5d0b-451c-85a5-455d682cb66f","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":34,"box":{"x":69,"y":166,"width":839,"height":11}},{"id":"1d034c5d-a278-4db0-856f-8d62090f856a","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":34,"box":{"x":69,"y":181,"width":802,"height":11}},{"id":"edb7bed2-bf0d-4989-bda9-ec3050e05384","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":34,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"5d298ab8-a659-49c1-86dc-c55441ae3d77","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":34,"box":{"x":69,"y":211,"width":838,"height":11}},{"id":"b78e3821-69dd-4ab3-b152-b90589d2b511","block_type":"box","text":"Fund’s returns on securities lending.","page_number":34,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"5c3d95b7-af02-4e05-8035-5e2b5746f306","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":34,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"91559d62-2a56-4232-b5af-58d75df9f6e1","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":34,"box":{"x":69,"y":264,"width":794,"height":11}},{"id":"381e84c9-6d7c-4138-9e8b-67c4746ea4a4","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":34,"box":{"x":68,"y":279,"width":809,"height":11}},{"id":"b4940cfc-0d34-43cb-af5b-d7d111280fea","block_type":"box","text":"Corporation and BIM.","page_number":34,"box":{"x":69,"y":294,"width":149,"height":11}},{"id":"b6b766e7-494c-4ddc-988b-ff1d0ac879c1","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":34,"box":{"x":102,"y":317,"width":783,"height":11}},{"id":"fd8d6ef7-3cae-4b51-b927-f7e76c66ed8e","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":34,"box":{"x":70,"y":332,"width":815,"height":11}},{"id":"0a1fbab7-d5b7-448a-9c50-12a86d5e6b3e","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":347,"width":463,"height":11}},{"id":"90c12573-efa0-4e11-80c5-5e1cc9be179d","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":34,"box":{"x":102,"y":370,"width":753,"height":11}},{"id":"a077a681-a3e9-4a6b-9573-687e009d7ddc","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":34,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"fbd033a1-6c32-472d-acea-c06da0467801","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":34,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"78927b88-983e-48a3-b1ef-09c288f5877b","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":34,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"6caf929b-76a2-44b2-9322-92408b991bbb","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":34,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"b5293869-482b-451e-9f85-a129ec3db6f6","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":34,"box":{"x":102,"y":453,"width":683,"height":11}},{"id":"19452cef-7bba-4cb5-9316-d8edf147b139","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":34,"box":{"x":101,"y":475,"width":803,"height":12}},{"id":"39359bd2-e43a-4c00-b9ee-7563bd487a41","block_type":"box","text":"the following:","page_number":34,"box":{"x":68,"y":491,"width":93,"height":11}},{"id":"4a344f0d-d583-463e-82f5-5e8ac21beccf","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":34,"box":{"x":69,"y":511,"width":818,"height":11}},{"id":"fa9ff9ce-86d6-4d99-8c49-90908eee69ab","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":34,"box":{"x":102,"y":526,"width":333,"height":10}},{"id":"14ca5810-ae91-4913-8f32-7f2edbf76170","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":34,"box":{"x":69,"y":546,"width":538,"height":11}},{"id":"f068990f-98c6-4dad-9eed-7489f09324d3","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":34,"box":{"x":69,"y":566,"width":330,"height":11}},{"id":"793bb715-823b-481a-b97a-dcbf2cd419ca","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":34,"box":{"x":69,"y":586,"width":834,"height":12}},{"id":"afec4f16-f4d5-4854-8ea5-39c6b66465d6","block_type":"box","text":"of excess collateral, as necessary;","page_number":34,"box":{"x":102,"y":601,"width":246,"height":12}},{"id":"47cac1dc-c647-4e85-8b06-6f1166da2b88","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":34,"box":{"x":69,"y":622,"width":562,"height":11}},{"id":"b3781dba-32ef-4fb8-a95e-27d9f5f31fac","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":34,"box":{"x":69,"y":642,"width":665,"height":11}},{"id":"1308cb6a-0fec-4255-9900-c53b057c3af4","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":34,"box":{"x":69,"y":662,"width":822,"height":11}},{"id":"4ed49291-fde9-4e28-b373-2140fd6f8d21","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":34,"box":{"x":101,"y":677,"width":803,"height":11}},{"id":"41e33654-7553-4284-a39e-aa417ce070fa","block_type":"box","text":"of the loaned securities; and","page_number":34,"box":{"x":102,"y":692,"width":203,"height":11}},{"id":"05fc3d95-7580-4acd-b34a-c354bee392a7","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":34,"box":{"x":69,"y":712,"width":808,"height":12}},{"id":"87ed8619-db1d-4de0-844b-a01ae6783497","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7196eaca-2d70-470f-b2be-186e54710805","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c239f76f-1dd2-4bcd-b478-e5d0c529d14a","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":35,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"a9031220-5bf7-4ca3-9ed5-d90c0c267de4","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":35,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"d24e5bff-35e0-4063-8696-a7b6eb17af42","block_type":"box","text":"Gross income from securities lending activities","page_number":35,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"8a9316d3-b117-4c10-a0c3-9c7b76425ff4","block_type":"box","text":"...................................................","page_number":35,"box":{"x":416,"y":95,"width":409,"height":1}},{"id":"694c8587-e217-4d98-9d22-ead5dfa3ded2","block_type":"box","text":"$34,100","page_number":35,"box":{"x":847,"y":87,"width":62,"height":11}},{"id":"78828dd0-5fbb-499f-9f72-7060fbcf62eb","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":35,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"eb3b4ac4-ebe3-4004-8af1-b9180f5bdae6","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":35,"box":{"x":79,"y":122,"width":599,"height":11}},{"id":"8aaf7d3a-72bc-4e96-8f7f-04ec10b3d053","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 2,341","page_number":35,"box":{"x":685,"y":121,"width":224,"height":12}},{"id":"14eb2d92-57b0-4f88-8905-8015c8696316","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":35,"box":{"x":79,"y":137,"width":673,"height":12}},{"id":"aff71bfc-9beb-4273-bfdc-6a7f746869bb","block_type":"box","text":". . . . . . . . . $ 294","page_number":35,"box":{"x":758,"y":137,"width":151,"height":10}},{"id":"8fac9ba5-1b97-48c1-9dba-ef494591b352","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":35,"box":{"x":78,"y":152,"width":551,"height":12}},{"id":"d7fd828b-dcd9-4bda-b4ce-39ba4ef4e576","block_type":"box","text":"........................ $ 0","page_number":35,"box":{"x":636,"y":152,"width":273,"height":10}},{"id":"9cd3ab5b-99ab-42f1-9734-34cf46a7a23d","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":35,"box":{"x":79,"y":167,"width":567,"height":12}},{"id":"035b5b71-56bd-4e1f-b53a-a6c58b2c7ec1","block_type":"box","text":"...................... $ 0","page_number":35,"box":{"x":652,"y":167,"width":257,"height":10}},{"id":"9b95d843-dca2-4c19-94f5-ce3ef58670c5","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":35,"box":{"x":79,"y":183,"width":289,"height":11}},{"id":"f5ae8c6e-eb66-4241-b0b4-ca04495513c9","block_type":"box","text":"........................................................","page_number":35,"box":{"x":375,"y":190,"width":450,"height":1}},{"id":"80512c44-9c00-44f9-8ae0-33215eceb8ea","block_type":"box","text":"$21,400","page_number":35,"box":{"x":847,"y":182,"width":62,"height":11}},{"id":"97042663-062d-46a3-9722-2f28dc6a562a","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":35,"box":{"x":79,"y":198,"width":542,"height":11}},{"id":"605e7b45-67d7-4cc0-9333-8d92e5d8fb68","block_type":"box","text":"......................... $ 0","page_number":35,"box":{"x":628,"y":197,"width":281,"height":11}},{"id":"ad6f05db-d953-4227-b0c2-46cb24063afb","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":35,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"d55760fa-5e31-4f7f-90f3-a2d9d38d6213","block_type":"box","text":".....................................","page_number":35,"box":{"x":530,"y":220,"width":295,"height":2}},{"id":"e120fa67-fdc2-4c73-b119-75fc8c2ec95c","block_type":"box","text":"$24,035","page_number":35,"box":{"x":847,"y":212,"width":62,"height":12}},{"id":"c37a8978-09d6-41db-8e1c-6319e3be2e2b","block_type":"box","text":"Net income from securities lending activities","page_number":35,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"c5d3dece-9f1c-4fcb-971e-0654837ae49e","block_type":"box","text":".....................................................","page_number":35,"box":{"x":399,"y":240,"width":426,"height":1}},{"id":"886a6eda-1762-4217-a568-a723b982535f","block_type":"box","text":"$10,065","page_number":35,"box":{"x":847,"y":232,"width":62,"height":11}},{"id":"ba64bfa0-1479-46e2-8eea-7e19b7e8692b","block_type":"box","text":"VIII. Additional Information","page_number":35,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"d9782acb-eb4f-403c-a8c8-b716e34c3ea8","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":35,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"48f993c9-eda9-409c-9da7-96f57a4712c7","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":35,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"32c497bc-dc82-40fb-a8cc-815931c6a6dc","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":35,"box":{"x":69,"y":306,"width":772,"height":11}},{"id":"21883a12-64cb-4df2-9f3e-33ee37d05e00","block_type":"box","text":"Counsel.","page_number":35,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"c47d08de-2a27-4233-a490-156e52a34e83","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":35,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"85004e3f-b830-4d53-ab4e-9d160e49cea3","block_type":"box","text":"the Fund’s counsel.","page_number":35,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"1487b348-0f04-450f-9e4f-47795d72af07","block_type":"box","text":"Description of Shares","page_number":35,"box":{"x":69,"y":374,"width":156,"height":11}},{"id":"00eb5279-d1fa-4026-bcd5-41d9b0b44de7","block_type":"box","text":"The Corporation is a Maryland corporation incorporated on October 20, 1999 as Merrill Lynch Large Cap Series","page_number":35,"box":{"x":101,"y":397,"width":794,"height":11}},{"id":"dfbaa427-70f4-4788-9230-7c747bd4a9bb","block_type":"box","text":"Funds, Inc. and is registered under the Investment Company Act as an open-end management investment company.","page_number":35,"box":{"x":70,"y":412,"width":823,"height":11}},{"id":"46d3f5c2-665a-48b5-a929-f3bf1a532ba5","block_type":"box","text":"The Fund is diversified. Effective September 29, 2006, the Corporation changed its name to BlackRock Large Cap","page_number":35,"box":{"x":68,"y":427,"width":814,"height":11}},{"id":"add926b2-a2fd-44c6-8004-28e109cf32de","block_type":"box","text":"Series Funds, Inc. Currently, the Corporation is comprised of three series: BlackRock Advantage Large Cap Value","page_number":35,"box":{"x":69,"y":442,"width":802,"height":11}},{"id":"55d89acf-0e28-4a8f-a931-ddd9c2d0d78a","block_type":"box","text":"Fund, BlackRock Advantage Large Cap Core Fund and BlackRock Event Driven Equity Fund. The Corporation has an","page_number":35,"box":{"x":70,"y":457,"width":814,"height":12}},{"id":"41847215-4ae2-4eb4-9903-2dfb9de534b2","block_type":"box","text":"authorized capital of 11,650,000,000 shares of Common Stock, par value $0.10 per share. 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For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":38,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"28f0deb6-58d5-48b6-82e1-da9d683da44e","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":38,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"b0dd2376-e881-4dc0-be0c-04bd861608a9","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":38,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"27d8eeaf-9074-4e8d-8fbd-99628288dc22","block_type":"box","text":"particular Fund.","page_number":38,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"9db08861-2507-498d-b98f-8dc632e2d86b","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":38,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"2a0579dd-1443-4212-9657-1bbdf34115c1","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":38,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"97dc52db-4c07-4fbd-8769-b88009f050b8","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":38,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"54a9f929-90cf-4039-96bf-f5e66a8e3792","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":38,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"46180aa3-2fed-4512-a775-61a80cdc4fce","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":38,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"5d4fb7c6-6d27-4410-bb14-55f8c2b64c1f","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":38,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"5f8f8882-ab0b-4c94-817a-55ed9c397815","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":38,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"90abace3-281f-4028-ba6d-386f69067b7a","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":38,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"6cbaa32e-a21b-441d-b1b3-0e23105e3a0f","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":38,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"b90ca137-3427-49bb-8952-a3a51a337ac6","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":38,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"f955328d-2b57-47d3-8328-79e599e498fe","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":38,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"00a17853-4cd1-48de-885b-f2fcaa9fd3de","block_type":"box","text":"Asset-Backed Securities.","page_number":38,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"4c9e9502-5e39-44ce-a1bc-2736360f93d6","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":38,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"9db23f4a-1730-4b94-8766-64544b7facae","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":38,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"48e94052-16eb-4880-a4b2-de7146347a48","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":38,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"23d2c87f-791f-440c-99dd-1171d4632c5d","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":38,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"4c56ad2c-b37b-4110-8bb6-b8932fd90c36","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":38,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"9497e1e5-6925-4169-98c0-17a971b9d6a0","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":38,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"2bdbd58d-7184-4df7-99f6-82f075c7ca29","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":38,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"7cf2fa6d-c052-4c67-b571-35d2bf9f2157","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":38,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"7de6a449-c88f-449a-a32a-89d2c22808ec","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":38,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"0452d4a1-4535-41e0-b40e-e0c218da30c2","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":38,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"2967a697-1136-4885-8140-9dd92eaecba0","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":38,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"8153ed8e-0a1f-4f37-9f37-a8088a7b1d8e","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":38,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"fda14e5e-df0a-48dc-869d-1d32960f6909","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":38,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"df89758d-0826-4897-8b72-ebba6286f73f","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":38,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"adfe6b26-ed01-446e-a081-2864db45c0a2","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":38,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"5142f4f5-4c09-43b1-986c-3a7fe5b58a7f","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":38,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"701edcab-fad1-46ef-95d5-f2a54cbc9b0a","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":38,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"6deb674b-e45e-4ed3-bad3-a69859561e79","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":38,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"a6c525d1-71c9-449e-a9ab-24510902bea3","block_type":"box","text":"II-1","page_number":38,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"d47eb3ad-37ef-4557-a343-b4396686a8e2","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2883b91b-07d4-4ff0-9134-a4fc901a35f4","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":39,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"bf4f8935-49b0-4de3-b398-656948568650","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":39,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"27778903-63ce-4c3d-b8da-93d68cdec74b","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":39,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"a5cc0fb3-0ef6-4025-a85f-f2f401a922cf","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":39,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"3b0aeb2d-c1e2-4635-9788-87013de60730","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":39,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"619f1a08-bb92-41ff-a5b5-e4389aa14527","block_type":"box","text":"Asset-Based Securities.","page_number":39,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"44312868-aa84-4ccb-9f1d-06b41bcf173f","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":39,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"b22d844d-1b01-4a3c-a512-0fc01ba6fb2d","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"dc153674-b322-410e-8bed-ca02089bc4f7","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":39,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"6d1d883e-83b3-4d2d-8e7c-a42d65c88d5e","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":39,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"a788e03f-3b57-41cf-af15-013da20fdf25","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":39,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"070963a7-1633-4833-b541-2634d63b4186","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":39,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"5d5576a0-2227-4aa8-82d3-59cc53acb94c","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":39,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"7b263d9d-686f-423c-b437-49c66bc55943","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":39,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"472cbc44-f3cc-452f-8643-745f7c8b5931","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":39,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"61f97941-f2b7-477a-9339-4b99085c17ce","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":39,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"250b2ec2-1673-4242-9bf4-85504bbdb123","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":39,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"5beada92-2274-43f1-9dd2-2db305413ded","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":39,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"ec54b5ab-95f5-4e1d-9e8e-fa602d0aaa10","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":39,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"c16d8841-d464-4dcf-9147-86b10ef6923d","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":39,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"ea10cb26-c64b-4c29-ad2d-1d4ec188bcc6","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":39,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"ce37df30-dfb5-4a05-a107-630da8b925a8","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":39,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"61633c83-915b-4895-8147-ca4c3121432f","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":39,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"0fd7f9f3-b8d5-4146-b973-bf525544d9b9","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":39,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"81116e2d-f5bd-4d97-ad59-feb1a3419e1a","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":39,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"f4c828b8-081c-4535-9199-e114942928ad","block_type":"box","text":"appreciation in the underlying asset.","page_number":39,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"f06afcd0-630d-429f-91ef-a2fd7a1a5003","block_type":"box","text":"Precious Metal-Related Securities.","page_number":39,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"bad99db9-ec8e-4753-9026-8b965149cada","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":39,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"698b6d76-7b01-4f0c-a328-e709cfe83256","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":39,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"4f5382f3-b409-4a71-a1cf-34e196642374","block_type":"box","text":"e.g.","page_number":39,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"78b2575c-f78d-409e-bac8-70420b042e4b","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":39,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"d10e825b-4c90-4956-8c2e-68027b3e4ef4","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":39,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"d403123e-91c9-4d1d-aa9f-070e85e3f90d","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":39,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"16f66352-9f33-4f80-8e82-31a0f6316abd","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":39,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"21bd2ef4-3675-45d8-84fd-0f9f9b9e25c7","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":39,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"a399ef7f-0bf8-496c-b976-0f85e15a110d","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":39,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"d50f8e7e-105e-4cb5-b221-63a3a747dcbb","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":39,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"dfed5add-c21b-4471-b4c1-830064b08112","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":39,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"ae215988-1a03-4648-a032-00a0b2c4f2b6","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":39,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"3221aecf-26e1-47e7-803a-05c56066ce7c","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":39,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"d1e2c0d1-d5e8-4550-9777-5f3f1f19639c","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":39,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"d12fc306-3f5f-4b8f-aff4-ace5db0bc8d9","block_type":"box","text":"South African gold production.","page_number":39,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"e4eedc82-f670-4ad4-a4d4-a71338c253e3","block_type":"box","text":"Borrowing and Leverage.","page_number":39,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"985d569f-146b-4416-97a3-3a9d8a6dad71","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":39,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"ae84039e-da9a-41fe-ae42-344722202e21","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":39,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"649e12d5-53c4-4c27-91a7-16d81c07854f","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":39,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"e00f705b-bcd6-4911-ba1b-edf5663ee648","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":39,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"e33827a8-99a8-49cc-a62e-b0a990148a76","block_type":"box","text":"other securities transactions.","page_number":39,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"4179038b-5b5c-42f0-a7ef-652aee2e3812","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":39,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"8e3bfca4-b166-40a5-91ec-449bf7552593","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":39,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"f75dadb3-fd8c-40b5-99ae-0bff4676f5ab","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":39,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"a2a5f241-820e-4ffc-85ef-1c3ef8ca0bea","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":39,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"62bf0910-f72e-46ba-8c32-3e64060bdab6","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":39,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"e815dbc0-0bf3-48f8-b3fe-b8fb8e7c8dbc","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":39,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"a97f7407-b5a4-4a25-9ac8-ddfa895063b5","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":39,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"d0987da6-8701-4d3f-9d38-69882d8cd81e","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":39,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"732f5ec4-9629-4edb-bc36-5f3418847420","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":39,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"9bdb6700-3461-4162-ba1c-0817dec21dad","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":39,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"a34aa900-6843-41c1-9c8b-e02286fb747d","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":39,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"c91329eb-1c1b-4178-94a7-f7fb176c0547","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":39,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"a1d96c3a-9444-43f8-9cdb-1450567a8155","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":39,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"c76e1d41-397d-483d-b8d6-2b5c5740f402","block_type":"box","text":"II-2","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"62fb8805-1f24-4d0c-b7c8-05f0840714d5","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20134e24-cf41-4fb5-8a4c-5ef036787d1d","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":40,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"58bd5c1a-1ac2-4aa1-bb1a-c69d79df1774","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":40,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"38cb8a32-f821-4d95-b8ac-b1dc7e3b7923","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":40,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"0ea5dc20-60d1-4554-a56f-a1bfd8412812","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":40,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"94003d91-37fa-4753-8508-85d6b99fa85e","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":40,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"c469ae31-56ae-4f5c-a53b-c6e2438b99cf","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":40,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"55dfc604-f855-4603-80fe-3a89700ae20e","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":40,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"3fb3c532-f653-4e0e-9cc1-0c3e8f6f6bb7","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":40,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"3997e90c-b62d-44ba-9597-d97a2b6062af","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":40,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"5c9ebde6-cf6e-448d-b934-dc8eda6f95d4","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":40,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"dc62a032-7aa1-4b41-b784-19c5621a458d","block_type":"box","text":"Cash Management.","page_number":40,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"40f2117a-d9aa-467b-88f7-3d4ba8b31443","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":40,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"7ea201b5-b4ee-4aff-a04d-6e56a5da24f6","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"7cc54562-5008-4124-bdbb-c355fd775e61","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":40,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"ef3ac63b-5fd8-4528-b4f4-d37877dc6471","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":40,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"ccd5076e-4522-47c8-a572-fcfd69bb3c8b","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":40,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"fe16d1d1-ebb7-4295-8a96-5c20335c7736","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":40,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"4fd56ae7-f6bf-42c9-b17d-c7ff4109023b","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":40,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"4e37d375-0702-4d66-b4db-6737591fffa3","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":40,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"a6919a51-fa2a-4b8b-9657-831f46b858b5","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":40,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"7f777955-5d73-471f-80ec-38d5d72b7363","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":40,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"a1fcea18-d954-441b-9246-ea5371591514","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":40,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"afb5f90f-daac-475a-ac60-74780c2012b6","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":40,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"cf082dd4-ad05-4d8d-b65f-4c0e227ef695","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":40,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"81f656b4-0378-4f90-bc6c-930b1d9e2dd3","block_type":"box","text":"Collateralized Debt Obligations.","page_number":40,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"60aada4b-055f-4532-9e1f-7800696bc89a","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":40,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"5885bd8d-1200-43f3-ba94-6f07ceee36ec","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":40,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"d70d55e5-45cb-417e-b189-269d98575336","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":40,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"3505ad59-7916-437b-a5c3-c5adf28ec788","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":40,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"2e06cc9e-3d85-4d0c-bbd0-ab2f5291cc39","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":40,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"86c715ef-82cb-4c42-91b5-b45aab12b483","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":40,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"80b44165-2efd-4b24-a2b9-2300af28e330","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":40,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"41fb0aa6-a62e-49b7-96c8-af6453533767","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":40,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"be69e5fd-a124-4522-b6a6-bb041be7b873","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":40,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"7abf1081-ba80-4535-a4c9-611382301f3d","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":40,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"80c45d7e-f032-4f08-951b-1a6dc462463e","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":40,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"df59e6be-320d-4cee-b610-e1272e96553b","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":40,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"0db4ac0d-7303-4602-87ae-5f2fd4680ebd","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":40,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"85708868-58cf-4af8-b276-11562d04bf25","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":40,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"0180de5d-b24d-431b-a67f-d3d9f007cf2b","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":40,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"ea6b2aa8-6ca0-415a-8352-47a4e88a19c6","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":40,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"c95e1548-74fd-4478-9c17-5aca52c07aaa","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":40,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"6d9e0200-1d73-4845-b17f-a8c901b20675","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":40,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"43f2ce07-d214-4ccf-86bd-daa3146fda11","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":40,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"e3cc5f69-e786-41db-ba36-071ae60b9f54","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":40,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"22080ebd-bdd2-453d-9177-f55a304876bf","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":40,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"04b50f93-2913-4abf-8136-44dce510e617","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":40,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"e9a0d18e-e3fd-43f3-8158-63c014758cc8","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":40,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"bc804a31-030d-49fc-a50e-4d6cc90b01cf","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":40,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"bcc59a30-7c6b-40ac-8e00-0a6d2b566844","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":40,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"8675da4b-a7a5-4113-95dc-ef7b4597da8e","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":40,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"036834fe-e512-488a-8552-56989e7d7261","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":40,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"a82e4af4-630a-46d4-adad-c0808e2edf3e","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":40,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"dbe5d8f6-21a9-484d-950f-ac34aa240fc1","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":40,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"6791749a-f09a-46e9-ad5b-ff11a4d7d25f","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":40,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"b116dfcd-4a27-4c27-86e2-fa6425f1c06c","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":40,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"b985910d-b36f-4b2f-afe0-1c09a355984a","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":40,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"856428d0-a06b-4508-ba42-ad1fcc3d5386","block_type":"box","text":"II-3","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8b28e9ff-51b1-4664-b3b9-c821223c8e54","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fca4f133-060e-4a56-81f5-d6c85558fdd9","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":41,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"9c6a4028-5747-4569-99f0-a18554a0ca8c","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":41,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"dddc864f-40b5-4ac7-85be-51dded1b18c6","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":41,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"219f8a51-d6fa-4132-8a2d-a0c31cfb844b","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":41,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"96322e44-1530-48a2-968e-cb8edcae8e96","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":41,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"7007e0f8-2183-42ae-b9c8-1c95093fb5cc","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":41,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"40c02dfe-328e-4640-95a7-daccbc4aae35","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":41,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"f77604e7-4654-4e9a-8f63-33e194a0635c","block_type":"box","text":"Commercial Paper.","page_number":41,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"4232834e-5354-473d-bbe8-88a48b73b980","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":41,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"b6906d63-44ae-470e-8fa9-916def0cfffb","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":41,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"757ca339-4fad-496e-b92c-08150edf71b7","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":41,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"ad4ec89b-30a9-4198-a0b9-84d32442e21f","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":41,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"d35393af-9258-4c8b-9a0e-2ac5e8b533d8","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":41,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"60618867-3514-4c20-b0a0-ada60eb3ae4c","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":41,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"cee615e8-abc1-41a9-946e-12ad3f20d6ff","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":41,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"ce667eda-205f-4664-a5b0-376326a196d1","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":41,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"e970a27e-2283-4f41-bd01-1f8b74c7e0cd","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":41,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"c08acc19-6559-435e-b44c-b5177a8688f9","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":41,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"2e8c9206-af8f-4ceb-a89d-4c464e710923","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":41,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"657ee2f5-26ba-4244-b82e-1b817ee857e2","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":41,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"7c770b41-12cb-4220-81fb-faa0bb8abf83","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":41,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"6347acf1-2b95-46aa-8d30-9d2854c5650b","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":41,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"43f4ff74-4c6f-40a4-b55e-3f41625a871c","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":41,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"9dfca353-75bf-4f86-b9f6-bf07051d6b78","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":41,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"9e244b5a-1000-466a-ab15-e8d1c8697501","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":41,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"75f40652-ed92-494c-bf50-ce954c12e8fe","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":41,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"08cbf54f-e7ea-474b-a05e-566f1a05f401","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":41,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"bd388bb7-64b8-40cb-adb1-59d9305c3ef8","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":41,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"49ec6300-385c-4ad1-8bd2-8b6e4aa57990","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":41,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"381420cb-59bc-4c14-a40c-d65531af3143","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":41,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"cb6c725b-9516-430a-b669-6131f81ee570","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"35a65a4f-c665-4831-9972-5e5651fc8f00","block_type":"box","text":"variable.","page_number":41,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"dc1ac545-26be-4f62-87b5-cd126fea89fd","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":41,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"caad9608-93d4-4e4f-8982-ad354b7f0da4","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":41,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"6940ea99-d972-4fc7-abf3-6c3399a3e57e","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":41,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"7e7d9405-50be-413d-aed1-ce408c514540","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":41,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"26ed9a8c-9d82-4d32-ba1c-b1ecd3eb7030","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":41,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"bfa3d6fb-d94c-4f43-bc1d-3ef42dc14bfa","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":41,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"22df3d86-ac4d-4721-bcf0-7e9a4a4339ca","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":41,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"9833a560-464d-4ec6-a00c-3c4e3e70ce71","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":41,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"c9fc5852-a9e0-4f90-99d3-da70a729386a","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":41,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"81ff670a-05a9-4be4-b603-3160a244b9dc","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":41,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"e56517e4-9063-4473-bd99-aca264901c2f","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":41,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"8e54a05f-bdb9-45a3-8d77-8da3a906fcfd","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":41,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"66196e1b-49f6-4ae3-ac16-c6ab0e675c54","block_type":"box","text":"correlation with stocks and bonds.","page_number":41,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"e1b034f6-1dc4-4f41-b917-3f34bf6049e3","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":41,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"9b5f513d-10d2-477f-b4c0-0fd9174e7eeb","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":41,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"8878d454-914e-48dc-ace2-f78e2fcd5f0a","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":41,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"3a7f3fb6-14fb-4d8e-88e9-5fe8b0deff75","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":41,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"d0b3aa6d-2b11-4280-aa40-8e560263144c","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":41,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"21190039-3ff5-4971-a812-c08fd2122a4d","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":41,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"845b958a-1875-4939-aaf6-1bee22a90a44","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":41,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"e10a33f5-1330-41f4-b8ca-c084d0d60791","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":41,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"e7c7bf1d-b58a-4b06-8eb3-b1a8372d0417","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":41,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"132c505e-c927-45e1-94e8-b270b38372b3","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":41,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"62e2bf6e-0031-4537-8df6-c37220b4fa91","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":41,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"f2280ded-fb0c-4079-83c5-cf8a42a2ce4e","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":41,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"e9e55cfc-0d21-43b9-a26f-99ed260a5784","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":41,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"384ef321-d88b-4b7d-9f66-7b895f12884b","block_type":"box","text":"II-4","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5d1fa9c2-45ae-4d06-a2af-72cc7017e04f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5a48f2c-dd71-48c6-8ee5-ea083aca7288","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":42,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"7a362a6d-4f2c-4d08-a219-36b3321bcd27","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":42,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"7bad65bb-e619-4ef4-a8c0-2336a8ee3b73","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":42,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"c62705f7-dad8-49d7-aece-2f46456f5c49","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":42,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"bedb21e1-49ae-4330-a96a-c4f5d45c410b","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":42,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"712fbf16-999f-4ae5-9532-c37839b5ee9c","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":42,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"ad3bb30e-04c4-4f8e-8b68-e03cb4ae85ec","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":42,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"aaf637f2-182f-4103-9f17-5d9b0d294a62","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":42,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"7776480a-1dc5-4136-bd22-83d509a52527","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":42,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"06fd08e5-db81-4886-b815-f7dcaa32b535","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":42,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"beef303e-611c-4b6e-9bcf-da2f29ee77d7","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":42,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"b51e4ea5-93f5-46ff-9e51-6d100b01644f","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":42,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"a8462116-a646-4b01-b342-ecbfdf90e4b3","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":42,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"4b7dd751-59f8-412b-9104-c6e275877636","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":42,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"9ea24dd1-a6b2-46fc-854d-77f5d77b529d","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":42,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"d9ff6f4e-2f76-4640-bb2a-71169fef527f","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":42,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"98b47e1c-6a7c-470d-9ced-74f3daf9b3ad","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":42,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"ed789ad7-4bc3-4984-b874-d4f8eff86f5f","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":42,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"d649885b-0c61-4bf1-b5a5-0a3d729e4883","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":42,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"2a1e0caf-647e-498d-b25c-4657a46b0c33","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":42,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"ed4a1817-f316-4640-8332-1d9f90f1ed55","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":42,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"56ec0221-1595-44a7-afd5-60286017d140","block_type":"box","text":"the Manager believes are relevant.","page_number":42,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"caa918e1-f382-45ba-94ba-3620968f9c36","block_type":"box","text":"Limitations on Leverage.","page_number":42,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"69b8c0f9-e26f-4b48-8a8f-7585ca979524","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":42,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"e06abece-38ce-4fdd-9324-0278dfc606b0","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":42,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"4aa92a4d-4571-4e6e-a7c3-5c4b9e022d9f","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":42,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"4af9bb20-e412-476b-95e8-9dbbbea9d8b2","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":42,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"a4dbc567-bf9d-459e-96d9-d4692e521dbd","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":42,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"c64ad536-2feb-42eb-8a11-845d4e0b7471","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":42,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3c5f7367-d8a3-4098-895f-476febe3f586","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":42,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"15ddcda5-57da-4c85-b271-1bbee0657376","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":42,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"f39b8442-1781-489f-bc9a-8c7aea4dba07","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":42,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"6e6944dd-0ff3-41a1-b8ce-7b4b79409299","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":42,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"ee0df6b6-fe63-4647-a0ca-b4ca372bca4c","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":42,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"23952359-4c82-437b-9332-b2070533bcd2","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":42,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"af9385b9-f2b3-408a-990a-cd12f308f2ee","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":42,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"2ce6f7e3-5a63-4461-a769-5f3ea1aa78c8","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":42,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"7ce621d1-49ad-4fb3-97b7-cec63abdf888","block_type":"box","text":"Counterpar ty Risk.","page_number":42,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"ed1e451a-fe01-46ca-b10e-6ea724ac4521","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":42,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"c4a01f9c-86d3-4a1c-ba05-c28d36f992e9","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":42,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"5b129631-14df-4c81-9ba8-b03a5dbd34ab","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":42,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"2f5f301a-c768-4eb1-a399-49c4c540e60d","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":42,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"2d8d32d4-d375-4142-8a81-bb27b8d4d983","block_type":"box","text":"e.g.","page_number":42,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"56a60b03-cb16-47dc-a811-46d71a41b5ae","block_type":"box","text":",","page_number":42,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"97358c72-f194-48d9-ac67-38cc3adce62f","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":42,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"04c694f3-2be1-4250-987a-c43b9a943d02","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":42,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"801dc88e-2680-4d0c-9df0-c1d0c99f4784","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":42,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"0690335b-ed83-4d9a-b86e-4987b55483f4","block_type":"box","text":"obligations under the structured note.","page_number":42,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"d2d82767-3fb6-4966-8fff-44fcc6dea896","block_type":"box","text":"Convertible Securities.","page_number":42,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"e3e34189-2e3b-4a51-8d36-06440e753d1a","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":42,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"39a47f4b-03d3-42f8-9816-625107fee5c8","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":42,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"aafce235-2b58-42f3-871f-598ed57dab5e","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":42,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"5e70c4dc-d52f-4be8-9066-6943fac6c13a","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":42,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"85c83e5c-140c-414c-a4c9-d2969450df77","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":42,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"88d1ee56-a3a3-4904-8ea3-2764412ce841","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":42,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"285b18ce-5dbc-419a-a68d-2c8a6a6d7da3","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":42,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"c7cfec15-bcb9-4985-a090-0d7322af5818","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":42,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"fc0fe090-b573-43df-9e85-182d819a4a98","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":42,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"a75449aa-dacc-44d8-910c-33da8ceb454e","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":42,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"e9f552e5-c756-4112-b3f9-72234fcc620a","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":42,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"0ecd5022-869f-430e-938c-d8f02c594b3c","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":42,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"2fcffb93-dbd2-48b9-a393-72eba51a5812","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":42,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"b7c40722-a7a6-4bef-b2ee-56fc0e28d64c","block_type":"box","text":"II-5","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5674de6b-6da7-4715-b8bc-6a60b3421c1f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e7c9c5d-6dc2-41a0-bf66-766cfb63221d","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":43,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"dc0d1a5d-0517-4840-b260-c6b5f27f9a37","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":43,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"b3153999-000c-49a3-a01f-64ff57c61f6b","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":43,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"88810c38-3a7f-4c08-8851-3aee3f2f0cf9","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":43,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"413522ee-6c6b-431e-a153-efe183924408","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":43,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"9305a01a-95ae-4f01-93ed-0eff5d8a3148","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":43,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"8f49e41a-45ab-4f5e-94d3-9bdd9d4ba993","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":43,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"cf908287-4cf0-4e29-8580-a5c7d292b6f0","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":43,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"dcad1126-5c30-432b-a4c7-bae3d75c588a","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":43,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"455b6175-f462-4c14-b575-520a85d8eb34","block_type":"box","text":"things.","page_number":43,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"03e81e60-181e-4f6e-afa1-ff8e6a8a6c0f","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":43,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"445f9393-2a17-407a-871c-4f70c566e22e","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":43,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"94665bde-b09d-4c75-9067-d194e399a47f","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":43,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"310ad85f-3411-4928-8d95-1484ad557f58","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":43,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"04bc1779-0fe8-48b6-af9b-480d08f6a1eb","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":43,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"216289d4-4d62-4707-8b06-1730a14d410b","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":43,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"2f8c3c6b-03fa-4325-b139-8188b53523e8","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":43,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"6d703153-4d3c-4d14-990f-6fd7edb8f78d","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":43,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b8e57a13-0ad0-4f3d-90ef-0aa7d76a24b3","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":43,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"32fcfa33-ae25-4c9b-b50a-038abc915418","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":43,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"433656da-3dfe-472a-86c8-c18f94ffe1b2","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":43,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"a6202418-9368-4d31-97ac-3e5f2f01cece","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":43,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"33a3a6d3-c8bb-4257-8d5b-7df17af8f025","block_type":"box","text":"i.e.","page_number":43,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"4bfc7645-9569-4dd9-9c20-7297577d76d4","block_type":"box","text":", strictly on the basis of its yield) is","page_number":43,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"c9b317d7-8975-42cd-9595-7692fdccf79f","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":43,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"69c408ae-8364-4946-9113-eae191d31d6b","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":43,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"005485f1-5729-484c-8232-97c130bf5601","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":43,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"adf58ed8-4c0d-49ef-8fa4-ac487631a459","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":43,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"27209d2f-c89d-4a78-93e0-68285a0d3c13","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":43,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"616d9357-fb64-4c3d-8d6c-5fb03b3cf333","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":43,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"366a4d08-08a5-4abd-bfae-398dd19a17d3","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":43,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"3e2e4fac-26a3-4939-95e1-51c2e98b058c","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":43,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"d54087a8-bffc-45d9-8ddc-a5f87326ab89","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":43,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"bee02212-8f38-4c6c-a3e1-6c5d0775afdc","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":43,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"b64d906e-c3a4-4943-aeeb-55d80c2b009f","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":43,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"a8e564f1-e36c-4a2e-b0b2-a96c4a3f23a3","block_type":"box","text":"than the securities’ investment value.","page_number":43,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"24db7fc2-cc21-4855-96fb-06eca838a54b","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":43,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"f8140f2d-6607-4c51-be87-7a8695bf8bad","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":43,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"406c3b5f-a35a-456f-a409-f06eeb789d33","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":43,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"0b5e074e-aa4d-4279-9322-3496218b8ebf","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":43,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"9dee7b3c-8ce2-4e9b-ab5c-6918c6e34abd","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":43,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"5128bab4-2ac1-4575-aeef-db48a6b6b224","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":43,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"41a2d7a4-2f29-405e-8f54-07c62dca0b4b","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":43,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"55df8278-cf35-4241-9eb8-c1ecb4165e8b","block_type":"box","text":"security under certain circumstances.","page_number":43,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"e2674913-f3bf-47c2-9281-3d773f6a2f18","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":43,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"7acbfa20-b9e7-4042-b53e-4ea6c3f1542f","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":43,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"8db4cc7d-4276-4473-b660-c29939f800c3","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":43,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"fc4c4c16-0a68-4ccc-b2bd-ae4b4267ae92","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":43,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"882665bc-155a-4e91-955f-305fc54c5f9b","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":43,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"be91b107-7713-4009-a0b2-5e88af67582d","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":43,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"6ecc7869-f641-4c2e-a8c1-de01e5cf0aca","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":43,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"f10da434-ab19-4a60-a1d9-6f6e943b528f","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":43,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"4aa5d308-d687-4e9d-96d5-5a43f3792419","block_type":"box","text":"i.e.","page_number":43,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"c2946782-8cf7-45c6-aa57-0f785594b6f5","block_type":"box","text":", fixed-income (“fixed","page_number":43,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"6a6bb311-4c29-45ad-8b84-a49764e795d5","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":43,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"604461fd-220a-4da0-b79a-e7f416a13852","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":43,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"ebbd0070-3c7d-4bfb-a3a0-b90b387a63c0","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":43,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"209af3e9-aa7c-4382-945f-7077e5ef47c2","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":43,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"3cbeb3d2-4efb-4991-acdb-bcc253bffed7","block_type":"box","text":"II-6","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1483415b-3349-499d-a87d-f51f2ae8b5d4","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd877379-f42b-4cfc-9adb-da3cd4112c3d","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":44,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"0c3a96db-5c9f-4b89-9ad8-158f36b6e2f3","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":44,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"c1853736-45d9-4167-b76a-05845cf1285c","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":44,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"0c52e481-c9c6-4e57-a3c4-39fcae977978","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":44,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"ecb7ad04-fe7e-4579-8557-e0a51cf98cb7","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":44,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"b206cfc3-32eb-49a0-939e-397ee8175c95","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":44,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"f3d822c9-aff2-4e76-810a-b9f54d19bdc8","block_type":"box","text":"component.","page_number":44,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"e31de697-166e-48eb-bbe9-c54a216f874c","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":44,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"287ef81b-b306-4b15-9518-afc96a6e5179","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":44,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"0cff402d-ff2d-4b1e-a497-31af074aa829","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":44,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"df40017d-7c73-4924-9784-75360653a801","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":44,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"60c77e38-1eaf-42ba-a4b6-aa90164841f0","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":44,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"65d08d62-c7b6-4d8a-aa57-624c667fbcc8","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":44,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"288fb2a8-42b1-4645-b31c-f8fb9c157b58","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":44,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"54ea97ea-d7f0-4d62-a357-5d7f091f8bc9","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":44,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"641b5890-37ba-4183-91d5-e5ec8ee2c18c","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":44,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"e2b86d66-d54a-46f0-9eaa-3f77b03d15d7","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":44,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"1429c14b-a736-48e6-a437-ce8df506e641","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":44,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"7960294f-cd51-42a7-a25f-29cde61158c8","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":44,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"f32f858b-3961-4944-9895-628db63e8160","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":44,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"68c5e7e4-125a-44ba-87d0-05187013ff9d","block_type":"box","text":"favorable market conditions.","page_number":44,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"0fc6b72a-7b9e-4eed-95f3-63e5d102eacc","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":44,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"abd5f183-1863-47c4-ab43-21c9d06c7be4","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":44,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"5438b830-2e2a-4a3b-b725-ab5cbe74ee62","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":44,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"96c042e7-1163-4354-a803-e0e029210e73","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":44,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"80d6a360-7727-434a-96c3-ed0396877736","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":44,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"6be2490c-18c6-4810-bd33-e04e915056fd","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":44,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"3f9ad718-ef8b-4779-a71f-05efbc9ba389","block_type":"box","text":"Corporate Loans.","page_number":44,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"21971040-ef79-4345-ba43-b253f5ecc138","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":44,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"83d6871e-4c1d-4842-bdbe-0328bd894749","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":44,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"4821ddcd-af81-486f-bb39-789979174bbe","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":44,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"f4c566d8-2a04-4c9f-b36c-7b050aae03b6","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":44,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"dc24163c-bf07-4ac8-8d3a-4dd5feb95d63","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":44,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"e7544375-d548-4163-9814-203ec53421b5","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":44,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"4bb65da8-f92f-40f0-99f5-f24441e977b3","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":44,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"1ece2223-d5b2-4a86-a8de-5625668d80e0","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":44,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"ae19de95-9943-45f1-8b46-073d9b0ca106","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":44,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"6b6e07e1-e389-44d3-86ba-943ea9d39e08","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":44,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"36976cf8-a9ee-41f7-b74e-f4dcc96da5ab","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":44,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"76d2f0b4-8671-4862-be12-67688455dd7d","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":44,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"64b0be10-58cf-4a00-89ef-ce292363a74b","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":44,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"43937554-1483-46bd-ac06-0e8256ca4c44","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":44,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"5758aead-ad65-4cd4-9157-8c800260ceba","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":44,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"35b273e1-86c2-4c8d-8efa-a3345bc5a3a6","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":44,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"70b4d672-6905-4725-9e54-e992fc3d9ecc","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":44,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a39e4f23-a9ac-44f5-961c-f5c7c6559575","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":44,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"b16e4e1f-f794-4f6e-bc3e-78e893aae77a","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":44,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"1ea2ce7b-637c-4f70-bc69-fa37b8a4201d","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":44,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"64cffbc3-98f5-40a1-9464-87228010f36a","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":44,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"7e0761a5-5c33-4724-8869-a492fe99fe6e","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":44,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"0f33bc98-0133-4c86-a66c-6b41b7d6b7ef","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":44,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"5717d84a-1f5c-4949-88db-3ba9d1bd322f","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":44,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"f23eda21-2a9a-4930-9246-72c79c10e01a","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":44,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"38157f0f-af5c-4a4e-86b1-2f0c3e105f51","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":44,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"9abb49a1-a402-4e83-ba44-bc2a8de87851","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":44,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"82f9dd36-eea1-4dfd-8326-3de87391a865","block_type":"box","text":"of the borrower.","page_number":44,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"62e7d6e8-a178-4121-aa62-9660e9d5b697","block_type":"box","text":"II-7","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8fd5b710-d2b7-478d-91f8-161895b88e63","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9487a833-9a9e-4283-80ff-88d3d6e5c7ae","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":45,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"fe9728bf-4ddb-4815-b8c4-a279a814c2a5","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":45,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"4f383562-4a12-4c14-b3d5-912bc2f53ecb","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":45,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"574b36c3-debe-41fb-b92e-fa7bd48ad43c","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":45,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"7312be45-227e-46bf-b627-56a9594d9fe0","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":45,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"cb353d46-0192-40f6-8f84-1ea154c14b14","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":45,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"59ff3db5-e023-4ef3-a9eb-d53cc5804e26","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":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"4a52b279-3df8-4b71-9a53-9722f3a46076","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":45,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"e72305f1-f48c-43d5-944f-32ad11696d4e","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":45,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"73609ac0-75d7-4d8c-989d-acaff78f9205","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":45,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"1080720a-c244-438c-a1dd-dc2fe609e0fd","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":45,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"8c96a9dd-4961-47fc-a768-66397886dc4a","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":45,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"43a26931-bec9-441d-916f-43e403d5b6f3","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":45,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"4883960b-e5c3-42ca-bd0d-c4ada2a08ea8","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":45,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"22fe5251-acb1-4aa6-a974-6a65bd6b8f2d","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":45,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"71bbe766-7580-4065-a481-507c74bdfdc0","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":45,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"f7ee2dd6-ff9a-43f7-b901-ef2333f68848","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":45,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"51093b00-f6d3-4611-b746-0cca9389cf14","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":45,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"402676fa-6a0b-4063-8707-6fc31d82f236","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":45,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"5680dfde-7598-44cc-bb9d-9f779ccbfd36","block_type":"box","text":"state law.","page_number":45,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"ae291bf7-ee4f-497e-be51-894f07807635","block_type":"box","text":"Direct Lending.","page_number":45,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"19a336e4-2b10-4f82-b438-c321cbc1f0d9","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":45,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"35b66668-0587-428e-93af-4355a74c13a6","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":45,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"e3ce4a80-b487-45a3-b5e8-f4a734a7f348","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":45,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"3d6b1358-ff7c-488c-b0b8-ed2866f41d25","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":45,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"cd4f8fd0-999b-40a6-8ac3-763c1a98a399","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":45,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"4a50ae8c-fe59-4b44-a723-2f1f003cb856","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":45,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"3018f2a9-e5a0-4e1c-9de3-716fb1a7c442","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":45,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"70faa828-0f23-46bb-bd81-67d8457d9359","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":45,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"b22e06b2-0453-4352-ba9a-908dcb1c6b82","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":45,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"274e7378-1e7c-42a4-bc83-387c109495e1","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":45,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"27fe406f-2207-4a2a-afd6-8a1ff344fcfe","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":45,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"e0d220ad-19bc-423e-b6cd-11abd2b25d7c","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":45,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"fd565f04-9f5f-46dc-b367-8b07d46ec2e3","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":45,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"61ae7580-afed-4029-b3f6-2c4bee8f5af2","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":45,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"3d3a0587-9906-4cae-9e68-ee30bb3576b0","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":45,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"d3187e35-19bf-4d90-9a3f-758c686780a8","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":45,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"1e44168e-bab6-4e35-890d-da13787c60c1","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":45,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"160487d6-46f0-44a5-8ca5-ce6345c23307","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":45,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"05a0352c-d275-4952-b3aa-ffdd77a48a62","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":45,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"38b51319-084c-4802-bfe6-2b0d3e035328","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":45,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"ba572788-510a-4f18-8f0b-749170ae07bf","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":45,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"b1fccd58-6ce0-4f0c-bf52-c9c462790527","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":45,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"29bce17e-bb6d-4210-b94c-3b765ace9be8","block_type":"box","text":"Credit Linked Securities.","page_number":45,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"404c62c8-127a-4332-9b5a-5792b16c465e","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":45,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"95e9f892-fa30-4bd7-9528-85a83455bd8e","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":45,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"848ddb46-64f7-40d6-9b46-700c2356e801","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":45,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"ab8eb0af-2df4-490f-9f8b-76cd59af55be","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":45,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"1cb297f1-7bc9-4c53-ba38-79f937a12f04","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":45,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"5707ad8a-5df8-485a-948d-b9f6761922f8","block_type":"box","text":"traditional income producing securities are not available.","page_number":45,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"ca66510f-fbca-4686-861f-2f9e0047ad49","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":45,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"89812107-8796-4088-ac54-d71e4936f52c","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":45,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"27121db3-c807-4b67-8ff6-6c81bcea3419","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":45,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"8b75622e-f1ff-43f4-b5af-2788d9116c26","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":45,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"acbd8b71-7eb3-49cd-b6b1-5644c482388a","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":45,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"8f6a8075-7754-4117-9d60-bce5a0b57b34","block_type":"box","text":"II-8","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9c7142b0-5f00-475b-9c3d-77af39d28a2b","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b2af6634-2127-4c4f-be7a-6d532e9cb2d6","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":46,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"e693bbc5-a3a0-4fe6-9929-603f8d533c1a","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":46,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a1bcf6cf-238f-467f-97d2-86bd9db144a2","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":46,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"ac48407b-9859-4160-b65c-92abe05ea610","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":46,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"ab09db6c-3486-45cf-949a-0e6c91654502","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":46,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"27cc8d92-3e1e-4884-b238-31847e2ed652","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":46,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"cf249a32-b4ba-41bd-97fd-fa3c036fe115","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":46,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"7053ec53-be7e-4ac3-9d6a-e8e977fe2107","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":46,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"8191276d-603a-45fe-84c4-f0c2ead72bce","block_type":"box","text":"investments.","page_number":46,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"090caa8e-e7ac-4197-845d-126b5ace39af","block_type":"box","text":"Debt Securities.","page_number":46,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"b9ec05ce-a1da-4f49-b52c-3df365f4bbe5","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":46,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"143f22aa-693d-4104-8d96-fbcd756f009f","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":46,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"3815df51-68f0-47f6-9d36-2a22df1aa7da","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":46,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"6b51b6d5-28e7-47c3-b1c8-5dd9069df7e0","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8b01e2ed-094e-4d03-830f-4eed270f1d8f","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":46,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"41008c80-bd50-44ee-82c9-c064f960af1f","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":46,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"7471d664-5222-4097-aa18-dfdfb23246ef","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":46,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"7c795bd3-968d-4c9c-bfa7-b3332b56a62b","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":46,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"4e64b94a-e7e9-42a9-bcf4-1e131adfe1cf","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":46,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"7496e617-d5b5-4724-bf68-1f7e882cf84f","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":46,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"7439e1be-08b6-4788-b828-286e25f05b6a","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":46,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"69f1a576-8e0e-441a-bdd2-e0ba65d1b9fd","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":46,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"45f6e404-8e7c-434a-941c-365f27b51179","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":46,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"00f4108f-44df-4886-880b-9e9523c20c32","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":46,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"b53aa8d0-6734-4147-afd5-83a53a6c98b9","block_type":"box","text":"lose value. This is known as extension risk.","page_number":46,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"2cbc8fd5-621d-4027-afd0-6d3678165a80","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":46,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"43288a6c-fc73-437b-a16f-6a6e25b70135","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":46,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"88d610fb-acfc-4f75-b86b-d44dbac010b1","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":46,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"335115e9-ac28-438c-ba70-74d23d11cf77","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":46,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"a55dcd67-a3cb-43b0-91b9-e43eb655d8ce","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":46,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"dca0d2fb-5146-48e2-a391-04a7b50a5f6c","block_type":"box","text":"Floating and Variable Rate Securities","page_number":46,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"295c9b7e-cb5e-4153-90f9-d4a64f3015c6","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":46,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"7bc50ae1-4d4b-420e-9ceb-b132e1197766","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":46,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"90a7bd7f-4a0b-4cd5-951a-fab4cabb5531","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":46,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"b609236f-261e-4b9a-b235-f92e8159a141","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":46,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"db4dca19-e3bf-4df6-aad2-6e9c41adf361","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":46,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"be3ccf85-92f8-4ecf-9bf3-adb4edf025b7","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":46,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"7681926e-f466-4b32-8553-5ef86aa0d937","block_type":"box","text":"market interest rates.","page_number":46,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"c812a891-4808-4008-910a-fd42df39ab65","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":46,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"cf49be97-d435-4dd4-9129-84defd2162d9","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":46,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"568945c2-eecd-4dfc-8cbd-1d6b91fc1edc","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":46,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"e7a661a6-7d50-4862-aea9-a7bbe06d27bb","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":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"8f01b28c-ddba-4670-b60d-a4352d99c904","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":46,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"6e23f008-c431-489f-9268-58e168609dd1","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":46,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"e2868744-eb57-4984-88a8-9733cadc9cde","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":46,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"c92f1d97-35d1-4b11-910e-c657563265da","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":46,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"adef9dec-8697-4751-a18f-8b4d00b35e94","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":46,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"cb621344-6746-42ef-a381-05a8970b1aff","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":46,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"e18bb6e8-0de4-4b09-8eca-6feaa3ad20f2","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":46,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"0012969c-439a-4d59-99a7-e7fc8c2a15eb","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":46,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"fd468246-fe17-4367-bd58-f93b317904a8","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":46,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"9d0480f0-7e3e-49ab-a6e7-e3b3997d4fb4","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":46,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"fe21fd98-251a-455e-8e44-d2cbc888f74e","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":46,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"e7c9b9c7-ea63-44f3-8e3b-5ff9b6defacf","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":46,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"6271e281-9b7b-4461-8b4f-439762ee75f9","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":46,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"4e010b2a-de82-4fcf-9356-115d07d64637","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":46,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"3875d591-c279-45df-81c4-44573ecf40e3","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":46,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"dc9d8d2d-1267-478f-8b88-1165fe228313","block_type":"box","text":"II-9","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ac61dff6-306a-471d-9994-1e78b3b39fa6","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6edcfe98-4984-4f76-97f3-27f54b218054","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":47,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"4c8c24f6-0757-47db-b8a4-52fd289b5aac","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":47,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"cdc82183-62a9-4591-845a-3fe4df95e544","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":47,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"d4e73267-9eb4-49f4-9ba5-782b567e94bf","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":47,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"7507693b-3050-4d46-98f7-8c1546c01534","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":47,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"9f5f818c-7dc8-48f2-b3a9-4b93f5174119","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":47,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"2a2aa15d-e335-48a9-b40b-cc4831b4053c","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":47,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"24c3582a-e580-4b20-a64d-10db9884318b","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":47,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"cb7f0cfd-eb01-4802-a757-d8c98c8ba72e","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":47,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"d40bcbc9-a7e9-4b6e-961b-24254472d6f4","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":47,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"8fa3b867-7c67-429f-ae5f-dc6bc7cac953","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":47,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"6dc5f135-613d-48de-a5ef-2756798f1668","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":47,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"ad9a0ca5-f7b0-47a5-8791-71bddaecd2b2","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":47,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"08074471-83fe-4e39-b734-4eebcdc29028","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":47,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"af9d00d3-ffa8-47a2-801b-64a1b065449a","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":47,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"7436ccb2-092e-463a-b08b-127ca6e1c4a5","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":47,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"07e35b54-89d5-41ea-9904-e78139a789cb","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":47,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"31bff0b1-6e2b-4b1a-a260-d27709f562ba","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":47,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"67bd130e-2614-430d-b42e-15cd5ae607ba","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":47,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"4b07beee-d6a3-40e7-b110-8be1820b99ad","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":47,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"39f5c98f-4b6b-40c8-b561-29b64c7fdc75","block_type":"box","text":"United States.","page_number":47,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"338499f7-1bdd-42c8-b713-8a59479a4967","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":47,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"08ad232c-441c-4a87-83c1-ff486e86d796","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":47,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"b6a642af-46ce-4205-8d32-a543ae1b9110","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":47,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"096a060f-16d9-498c-80ad-32a7710f2aa2","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":47,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"13b36265-6fe2-4a9c-a9df-282cced43b62","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":47,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"8f487631-5969-4511-8226-bed20ae53d31","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":47,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"19423c6d-f6e3-4e12-ab0a-1c3384916455","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":47,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"f5edc490-d778-4cd5-9b47-8962e89c730f","block_type":"box","text":"i.e.","page_number":47,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"401d79d7-dcf6-43cf-8064-5b904f1a71be","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":47,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"e8a53b18-e9d6-401b-9848-928084b42135","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":47,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"28b70139-6f59-41c8-8d1a-bc8cfc8899c1","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":47,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"fa2e0212-81ad-40ea-9ddc-02b81d629f79","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":47,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"a8dd023f-341d-42d7-8cc2-4919ed83b255","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":47,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"2a36c76c-4120-4d73-ac3f-c6a87f999ce0","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":47,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"70d1236b-f5fe-4ca1-9d3e-63d4025bc53d","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":47,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"2959dd7f-6b79-47f6-9f59-383bc170332e","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":47,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"8052f9a6-c1e6-480b-8cbc-5234b8c4c01a","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":47,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"e2414925-c9bd-41f6-bfbf-08b9b143a03f","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":47,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"6fb5db97-e7f6-4925-bd0c-f58ae6d7206b","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":47,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"cb82adf2-c796-4685-a9cb-da62c733d24c","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":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"768b42c6-e01e-42a2-8d8a-f031ce5bf240","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":47,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"ce7166e8-4cc3-4831-ac71-041af043a78a","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":47,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"2ad4e41b-ae6a-4129-bb82-701a954214f5","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":47,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"599ab28e-a007-4d47-aa04-03dbcc0d9f1b","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":47,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"68bf06f4-acb7-436e-862d-bf4b15f9b96e","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":47,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"292cc6d4-2a16-4ccd-8a5d-5ebd1f63166a","block_type":"box","text":"risk than higher rated securities.","page_number":47,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"b38ed989-e8b4-46a1-b031-f1878f183172","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":47,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"961b61eb-36a8-47d8-bf11-a465247f268f","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"b0f8b773-71c8-4c35-ae62-5506f56edfab","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":47,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"bff3227a-eb8a-4d1d-b12c-afc85b1bb278","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":47,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"d40b9bf6-7d86-48b3-81a3-c1b0455bc32f","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":47,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"8c1d2670-13d4-49cc-9eab-96e2f4a8eef5","block_type":"box","text":"unavailability of additional financing.","page_number":47,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"9a666ac9-b6d1-4844-8953-b62428e199bf","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"cef53d6f-9dac-4c4e-9b24-7e54315e8cd1","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":47,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"5ee91c99-3a18-412e-a508-ea01f0812c8f","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":47,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"040cba40-62f6-4f66-999b-c0781c4bf3a1","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":47,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"8d4ff346-a123-41eb-844d-681bb1fd8d45","block_type":"box","text":"II-10","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"355d42f0-a33d-4106-80e4-87c26beb0e6d","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a9c1c49-07ab-4533-9483-a03ad5af818b","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":48,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"9f04e748-16d7-444f-8a6f-655842410ad4","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":48,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"96f87c6b-8536-411d-9593-d418512a5913","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"f81f11b1-f75c-4e46-8d13-6c17cc3cd4aa","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":48,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"0c118421-32be-4e67-ab42-0da1a690964f","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":48,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"5da0facf-3184-43d7-a004-399b8e34ebc1","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":48,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"f3b60d9a-a53d-4e5f-a0be-1545b02c6c5e","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":48,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"451c1d64-0940-4ffd-bea4-852dd409e0a7","block_type":"box","text":"investors in higher rated securities.","page_number":48,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"b2d89b82-5bc4-4db4-9b89-1d82684fe40a","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"fef8eb5c-e636-41db-91bf-f29760a43214","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":48,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"d2b679cc-add3-420f-ac2a-983600e58393","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":48,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"c09f407f-7b85-4451-bbdf-1362f48552cb","block_type":"box","text":"lower yields and may lose income.","page_number":48,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"d345f1c7-30f1-49f4-ae9d-e0ad3ccee777","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"5c6c8951-ac23-47ed-a4dc-90dcf278d0ea","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":48,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"8c012a54-2f93-4cc8-8216-6965c04f38ce","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":48,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"f9c71023-cc75-4b00-ad1c-fc59d0a0475b","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"e208d34f-cb4a-48d2-960d-160434dd411a","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":48,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"2b87fbc3-f943-4949-a882-64b855d72cad","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":48,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"659a0e13-2cc0-461d-ac8a-8df5660db598","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":48,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"bffade8b-a691-468b-9805-eee36b795c82","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":48,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"14786744-6769-449c-b24c-021476f95585","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":48,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"fdaeb622-a5c8-4f4d-9b60-a1c536de9487","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":48,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"096d4619-b867-488d-9d36-06e107d2fa5d","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":48,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"a30b381e-4c38-448d-9c10-2e7b41232cb3","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"39bfcd70-18a9-4473-81db-11d8a01d8aca","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":48,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"c8b40a6d-f401-4dfc-afb3-a088e7ccda60","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":48,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"16361740-3245-4cf0-b099-f02eee72fcc0","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":48,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"f6ae8f7a-aebe-4540-910c-283a7978695e","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":48,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"fb8fbbbb-0a01-4954-9dd0-2752038fd612","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":48,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"0799f65d-1238-40fa-8c35-f3822640df30","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":48,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"f9168882-36a0-4d75-be1a-d9a41699aa4d","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":48,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"86d26799-4db7-460e-a796-bd4468322655","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":48,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"9188ebfd-5d1c-4161-b9ab-0d29c73a53a9","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":48,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"064419f9-be30-4f72-8611-6fcada3a6af3","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":48,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"5b13248a-41fe-47e4-9f7d-77ffc4e6335f","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":48,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"14a604ff-bea8-4898-bad0-b23f0d6f58b5","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":48,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"6f5c8c4e-793c-47f0-a115-2788851459fe","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":48,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"c16f84b2-be4b-4ce3-8c1e-c6f8d358062f","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":48,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"0630e7e4-5549-4533-a666-de46499180da","block_type":"box","text":"role in determining such valuations.","page_number":48,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"799e52a8-2e79-4de6-8e53-ab5d75a01c9a","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"b73c9ec2-d410-4a56-97e1-fdbc8216f790","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":48,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"01d8f5ec-b7a5-4b77-ac3f-1d013b9aac25","block_type":"box","text":"a defaulting issuer.","page_number":48,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"1f7ccd97-8aca-490d-ab9e-b9b8a0db4872","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"089c5d03-7f32-4b60-ade5-d84f7b1a13c1","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":48,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"724fc352-97a9-42f4-a422-8a47c74a9fc3","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":48,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"44697941-e936-4090-80c1-c59bcf64baf2","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":48,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"498bb05e-8879-4601-a8d0-5f5b5090eb26","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":48,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"b29aa96b-efc5-4fe2-889b-0e4425016a90","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":48,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"c03fcda3-9a52-429d-8935-417f3cd044c5","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":48,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"db7e4314-42cc-4720-94d0-1c703c0803cb","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":48,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"f0ca0916-d205-4bd2-9472-3273ec9d87cc","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":48,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"a57cea7d-5d14-4fbd-82d0-8b6393166d92","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"c9fa7459-17cf-4221-a5b5-b2186dd7c564","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":48,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"42fa4605-10ba-41ee-829c-52428829684c","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":48,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"76a121f4-6bd4-4fc7-9c06-a3fa6d2f3876","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":48,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"46517cb6-947e-479c-99e8-2ce04ee09920","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":48,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"f0524646-3fdc-406e-8b2f-90bae92a6dd5","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":48,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"cb67b646-fd24-4acf-b60f-b5a103aa3c7a","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":48,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"71190369-1c5f-4546-82ef-0cb1cd3afa37","block_type":"box","text":"higher-rated securities.","page_number":48,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"0c373e6e-56c9-4df4-aea9-c426544e7dca","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":48,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"a9ca5b05-5806-45a3-94be-67ef4c32830e","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":48,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"5ca471f5-79e9-42a5-bee7-86c2c0f9b747","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":48,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"f13b7c58-74fd-4d87-8645-f787a2c78d62","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":48,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"1c699863-e9b6-47ed-8bda-fdcedc93c11a","block_type":"box","text":"II-11","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ffa79c1e-20a9-4253-83e6-cd8f656a4ec5","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99dc7afa-bdf3-4650-a054-37a250b7375c","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":49,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"d7be9af0-489a-4378-bc08-800de4163e75","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":49,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"57d4f99d-6144-4eb0-8d54-a683ac372630","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":49,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"f4a9a9fe-24c8-4059-ad09-c2502d8b5ff1","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":49,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"796539fe-f821-4711-a274-ba65b67dce03","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":49,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"3b159deb-e0ac-478f-8499-f834b3e57728","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":49,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"99a8f48b-0c84-4ae6-be47-d9237d9f653c","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":49,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"096f109a-9e50-4f9c-a0ed-a845388bf8d1","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":49,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"dd08c1ce-f842-4e03-9b96-38e24a1ae6cb","block_type":"box","text":"Mezzanine Investments.","page_number":49,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"b1d8e528-2017-42b7-9001-94a433338539","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":49,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"e2c2b320-0468-4625-a2c7-adeffe520f64","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":49,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"8f36a71c-1677-4fcf-ae7d-bcef3d1dc8a9","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":49,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"dcf58074-1a7a-4bf4-b1c3-eb629ef4ec2e","block_type":"box","text":"e.g.","page_number":49,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"f59bbc29-70fe-49a0-92be-d1000d06ea6b","block_type":"box","text":", with","page_number":49,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"a30efa09-ed5e-43c5-a263-726b2bc6be9f","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":49,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"8a6f28f6-240f-41cf-9c89-ff9f8dfb7741","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":49,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"21d0cbe7-8a4e-4491-b8f5-c40a45ccb4a6","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":49,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"6aa8cb04-fd28-4cf2-a40c-48caeca99b8b","block_type":"box","text":"other obligations of the issuer.","page_number":49,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"54a6536f-4fcc-4b7b-8f17-35cc4c2d6808","block_type":"box","text":"Pay-in-kind Bonds.","page_number":49,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"2ffe8dcb-f7e5-4384-8682-395ff40bddb3","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":49,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"c5821c5f-f755-4237-b6ea-fecd4a14b8cc","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":49,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"6b5cfa7f-fc33-4fb9-bc36-90ca96c8388b","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":49,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"d963fc89-30ce-4016-b8ec-39012218e1f9","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":49,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"f9506972-a9c1-4ce2-81c2-5122ba30eb91","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":49,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"ddd8286d-3247-4b59-acb5-f6a4796a662f","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":49,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"b00dcf3a-5fea-44d4-a486-da449f74dffc","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":49,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"20a9eb31-2aaa-42b4-8294-a347f64b217a","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":49,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"778f18b5-be96-452d-9d37-d50c28c432ff","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":49,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"4cc763ca-35fe-4165-8cd8-fa1b1b316e01","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":49,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"57419619-3948-46b3-a70d-3f61411a0f8d","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":49,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"cf97bdcc-ca68-4ab4-bbfd-9c0c694f92cb","block_type":"box","text":"Supranational Entities.","page_number":49,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"9a08d10c-6f4c-4fd9-8646-c4d0488e6576","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":49,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"af46cbe8-9728-46af-8670-b5d57ff1a17f","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":49,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"6398795d-d5d4-40fe-84b9-3b9198c18953","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":49,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"fd045d4a-62bf-49bb-9bf2-302fd3029300","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":49,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"2237b4ba-bd8a-428c-9214-d707177ed5a2","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":49,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"26877200-3d12-4c97-a0c1-5b23fb1cd855","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":49,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"13bb6a35-6e72-4b99-bb72-af1380b56948","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":49,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"2f51ba83-7bcb-4500-bec2-c240352e2461","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":49,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"b0fe8554-8ab2-4d1b-8a73-26688af53d9c","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":49,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"9f75437a-dcb3-4aff-85e9-77559664975f","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":49,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"13b872a3-1b15-4041-a270-a559b67a0850","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":49,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"75e1c5ca-7f76-4c9f-b871-8e127ad49085","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":49,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"b066b590-670d-458d-8d42-860c9ecbac6a","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":49,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"ffdceaad-103f-4511-b917-f29b51672667","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":49,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"034a1759-1913-4f9e-b2b5-53b966e281e9","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":49,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"ef9baf42-f95d-4b49-8afa-a3bb3c34a109","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":49,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"41221ed2-4a88-4a57-aa43-039a85efbc13","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":49,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"e07e7942-28ff-405f-b142-e3500f43db62","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":49,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"eb6302e4-0bc2-4a49-994d-9d6a2d0e4323","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":49,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"638e38c0-0eec-4e01-ae58-b78453f67ffa","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":49,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"4cbcf609-5e12-460e-8122-124b94557ef1","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":49,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"283dce5a-a864-4941-987f-ef898751c1aa","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":49,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"e7c9f2fd-d113-45e2-9386-effcfe61c151","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":49,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"7fe1010c-d41c-4713-91d9-792dae1f2280","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":49,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"fd8f29f7-c936-4095-b47f-0d703fe72ee4","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":49,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"3878d333-f15d-410d-815d-3d0dd8b5b333","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":49,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"03286ac2-f57a-48b4-9f97-f316a18e929f","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":49,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"cd88601d-2cce-49ba-951f-0dc122504dfc","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":49,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"12bf109f-9b82-48bc-ba8c-6b8f3714d3d8","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":49,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"92720df3-111b-4105-9381-c534498db169","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":49,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"b6faf8f7-7ca5-4140-b4b2-4617b2f9d453","block_type":"box","text":"II-12","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2e9110e-2c90-43a5-a5d3-d19897476dde","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0daf05f6-a798-4401-8b77-4e3bbd19a28e","block_type":"box","text":"Derivatives.","page_number":50,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"ce5bd1bd-5854-4470-b72d-2c0022c7e50e","block_type":"box","text":"General.","page_number":50,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"1b3b0aac-688e-4f39-92eb-759a8470c3fe","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":50,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"3de3f299-6bc7-45be-ad44-c54ac2751891","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":50,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"a0f0f42c-4e37-4473-90e8-d8bddc3beacf","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":50,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"672cef99-756e-4037-b0fb-726038a23d4b","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":50,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"494ad23d-ef3a-4dcf-9fe1-c36c7bad6b3b","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":50,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"caa20cfc-46eb-44cf-871b-ab9cf792d428","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":50,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"3012372f-e66e-46f1-886d-ebde44f12bbc","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":50,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"9cebb6f1-39f0-49fc-aeeb-1ebc6076f5b5","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":50,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"72ec997b-530f-4042-8dd4-d4d9f0a8615a","block_type":"box","text":"i.e.","page_number":50,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"1f3954ea-3b9a-4c14-8fae-b8b4f4b27e87","block_type":"box","text":", the payment","page_number":50,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"c54abe60-451e-4429-aa14-9852c4a1a4c3","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":50,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"e2e96ef7-c49d-4c77-9659-73e30d7576a0","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":50,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"75ee2ac2-71de-4f0b-a1d1-ae0d9954799e","block_type":"box","text":"Hedging.","page_number":50,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"cf7e5502-9d55-417e-8759-416b67408664","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":50,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"4a7965dc-a075-4da4-a75d-e203894ae05a","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":50,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"527b41ee-97bc-4a66-8578-f8db425f4242","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":50,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"498b1323-bb23-43a7-b7f8-ea6188aae14c","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":50,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"563304ec-4f2b-42a1-9d20-ad17882f2eb4","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":50,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"0ab3b89f-46f9-4369-a34e-f9fd28755e84","block_type":"box","text":"correlation risk,","page_number":50,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"976381a4-e901-437b-90e8-3b2ce0adf3f4","block_type":"box","text":"i.e.","page_number":50,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"7680f00f-78b0-4546-b5e0-ee29e4da9040","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":50,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"a20fae09-95a0-4405-8301-a4a51135f0c5","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":50,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"5e924c36-e409-437c-9b09-b651fc3cfc9f","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":50,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"654deb74-1a08-420b-ac22-c09d80b43fad","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":50,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"77e12cf7-574c-41bb-869b-6e5d8ebf6ab0","block_type":"box","text":"Speculation.","page_number":50,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"93db2ca9-d24f-4854-afa0-5b28356a8885","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":50,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"49a28493-e1dd-4b60-81a1-80202140135e","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":50,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"2c124942-cd8d-4066-b3ba-24fecf2e6a3b","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":50,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"cc8bb824-bd88-49c1-9c35-5ccdc2600dc8","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":50,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"09a895fb-5456-4a93-b540-cfc9e4fc9cf1","block_type":"box","text":"in certain cases may be unlimited.","page_number":50,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"b0357b27-32e2-4c80-8ada-b4b5fc7c4768","block_type":"box","text":"Regulation of Derivatives.","page_number":50,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"92dfec58-e990-416a-aa0d-cbc7581f2661","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":50,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"24dd2622-8ec3-4a6d-97e3-490e84fa49bf","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":50,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"8c94e6c8-c021-4b8f-aecf-2560d2fbe382","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":50,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"7db0e16d-4a28-486f-8d6c-303fed68c88f","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":50,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"8571016a-f35a-4b42-8e82-0bae1e5b7a26","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":50,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"bba29fc9-8fcd-4466-8554-72f3f459a62b","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":50,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"0fdf62cd-d2b3-4936-b24a-4a515d1d532a","block_type":"box","text":"coverage”).","page_number":50,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"267847ca-19ad-4a32-bca0-6a9681cfe84d","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":50,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"529a4261-2c6e-41b5-8800-904826e70861","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":50,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"d725815b-259f-418a-847a-0146e24d4c79","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":50,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"98ccde8d-8fcd-475a-ad05-b19eece77070","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":50,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"93bb7025-6574-421f-9b41-e49258f79c04","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":50,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"a7551d43-8eef-47bd-81d2-880eaa846b65","block_type":"box","text":"financing transactions (","page_number":50,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"1a6f74ed-b3b5-4eda-9d5b-cf656499047d","block_type":"box","text":"e.g.","page_number":50,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"93030363-5900-492c-8c84-a765f053613e","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":50,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"8ec7c132-c808-4865-a679-ae622355be05","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":50,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"bd341a7b-131b-4f42-9976-e9c84ad94e9e","block_type":"box","text":"securities (","page_number":50,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"e737c12e-cfc8-4270-9f93-3dbec1d99a9a","block_type":"box","text":"e.g.","page_number":50,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"ebf2ec63-bc0f-4e76-b9b4-4583e7875820","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":50,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"4bafb1ec-689e-4f52-a0d3-6c12c3cb6108","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":50,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"b5924f14-cdb0-4f55-b6de-1fb2a6be3612","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":50,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"4166456b-f4e3-4cf0-8c81-a8473e4830a6","block_type":"box","text":"Commitments”).","page_number":50,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"e26ca5c8-9297-4ae1-8855-e480a0173602","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":50,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"ffe3c6f2-8d6f-4134-92ac-29dd96161010","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":50,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"a15589bd-0158-4f50-bb62-433378e9fd74","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":50,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"0e1e2228-f992-4038-87a4-21d6987c5b6e","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":50,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"80a77cb9-31b2-470b-89b3-3000d5142f60","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":50,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"eb95cd4a-a5b7-4317-9c54-06eead228908","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":50,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"5ec16c2a-6fe7-4227-a4c6-105fb5c63211","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":50,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"71a5be0f-c676-4bac-a609-20ebf7861572","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":50,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"5b9d99bc-ee39-4853-bcad-fed6d5b244ce","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":50,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"9f7c0f42-3f87-460c-b822-c51040d1d237","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":50,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"37b48d07-064b-4537-9dc5-d285f0d4d0cf","block_type":"box","text":"II-13","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d7c2459-a9ad-458f-bce0-554d481836c0","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1442f882-1271-48f6-bdd9-447ff0f4290e","block_type":"box","text":"Dodd-Frank Regulations.","page_number":51,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"2778544a-66d7-4c0f-9e5c-165233471672","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":51,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"3e8f2267-a817-43d9-9ed7-6d9e1b183357","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":51,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"8c1b2dbc-850a-4d7b-a9c6-1f16fcb92854","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":51,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"59cce2ac-8fac-4058-95fa-2d321bda112d","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":51,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"9a53a6af-c2e0-4879-ac97-f6f2a0bac813","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":51,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"7947d9bd-ff1e-4e4d-93a3-41cf30389090","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":51,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"40c8e804-c095-461d-90bb-d9ae0b3dba34","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":51,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"c92f0ced-244b-4427-b905-6708d118d2b9","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":51,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"25bcf05c-7768-41ba-8c36-82eeee761a7b","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":51,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"30063c69-53b5-4146-9841-c7f489cf5aa4","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":51,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"c1befa31-2bb0-4176-9e3b-203d9b7e3ec0","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":51,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"24feb70a-6358-430f-a34d-e38e625afa4c","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":51,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"8ca1d384-cba0-43ef-ab9f-642b37a31875","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":51,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"a96e0227-a670-4078-b45a-d3da0a518d94","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":51,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"74a98dce-4e7d-4c03-a270-a4df6601ae80","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":51,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"1807a683-f130-4881-b131-bbd55a8bac26","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":51,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"080a06de-4c0d-4b5b-b32d-6af1e19eecab","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":51,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"0e163f22-c45a-4413-9f4c-5fa8074e9f44","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":51,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"d6eb2354-537f-452d-a3f6-78cbc31501ee","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":51,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"91a1830b-80a9-49ce-8829-beef1975335b","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":51,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"c573dbec-c2c4-4394-9ca4-9dba9d697d35","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":51,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"161a4d48-36a2-4674-9510-9dc533a4b0d9","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":51,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"cdee5c21-4675-48e7-a32d-3999518a7084","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":51,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"d76058bc-a70e-408a-ac31-c89c901974e8","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":51,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"2b4ff702-81dc-416e-bdac-15d7cd1c34a6","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":51,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"656016cc-b757-4f0f-b17a-e453ba86e9ff","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":51,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"7efa417b-818f-422c-8501-82b81e85dfe6","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":51,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"80b220a8-9667-41f3-b980-e1c79f99c88a","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":51,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"663fae51-7f68-420c-af84-b16219b050e5","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":51,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"8e8f3d34-815e-473d-b3bc-a9969cf315c8","block_type":"box","text":"member.","page_number":51,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"869a7b51-c587-4636-8ca3-6406791b9bd9","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":51,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"c54d0de7-da3b-40e1-82f5-013d0e20a54e","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":51,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"dba385a1-a6d1-4e54-a9b2-85e847825207","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":51,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"020259f3-7c94-49d5-9662-127d3d3f3e55","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":51,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"7e05c633-97fd-4e8c-9178-81df37b4199d","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":51,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"75204a6e-8dd9-4352-bee3-921755062b3b","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":51,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"ab4424e7-173f-42c6-bd14-540c8cc2a231","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":51,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"69fc105c-03a3-455b-863c-a1d2b58e3ab4","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":51,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"8b100405-96b6-4c24-ae7c-6a0c7cc34292","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":51,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"5b058fc0-e7f6-4983-900d-f966b4aff3a7","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":51,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"bef72ab7-f2ef-44ff-8efa-8d646526fc13","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":51,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"cb344f5c-f8c5-42da-b803-016bf8d6461d","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":51,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"d385091b-126b-4029-899a-b6e8462e519f","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":51,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"64a929e3-0bf2-446b-9648-92ed595ba98b","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":51,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"77278bd3-1d32-4a43-ba49-fea3e44bb152","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":51,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"57e8f285-8ba7-4762-94ba-3d4b43c3c357","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":51,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"1a441874-2bb8-48ac-9213-87ef63ccab8b","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":51,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"50536421-bcd8-4cd8-a6ad-e89235f463aa","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":51,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"18688cae-72dc-4786-92eb-43091ad21dcb","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":51,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"9746e577-9622-458a-9222-4ad9d7b9d7ee","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":51,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"0a21a28b-9586-4b16-acd6-385ac513292c","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":51,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"37068155-2ea9-4552-b807-a3d15f5cb884","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":51,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"bf8f3ca5-975a-4514-bc84-5e722eb93faf","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":51,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"14da0e6f-09e4-47ab-9a65-ace9d84c3d96","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":51,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"7ad95fe3-6ea6-499c-9d58-7ed457a0b796","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":51,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"c1d8bce8-7665-40d3-a2b9-0f9cdc31165b","block_type":"box","text":"II-14","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c81dbb7e-e966-432d-a45d-e8fd1cdffa72","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d60923e8-0a9f-4246-b47a-4bef77169cd7","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":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"cd0e8da7-01f0-45e0-a177-74fc64f95846","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":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"f6d2c0d7-c329-42bc-ab48-639baf551483","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":52,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"9d4177ea-fa12-44f2-bbf4-b810ef793613","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":52,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"16e803dd-0dd4-4c8a-bbcd-89616ac1486f","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":52,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"e71f8fa1-5de4-4e81-ab2c-ec7eaaa7249a","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":52,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"848d04a0-f071-4f32-9fe7-2e2d971ccb03","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":52,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"24a09391-ace4-471d-99a5-a78075708565","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":52,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"8343bc8f-9c17-47f2-b0d7-b934dbeef7a7","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":52,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"998d0877-a512-4bde-b408-9bfb28f6e5ec","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":52,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"c87209b6-186d-4fa9-9b5a-6ddc9cb4122d","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":52,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"d3b558d1-cc79-46db-907e-7c880b3609fd","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":52,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"dc33d346-4f72-4f77-911b-595190c0aba0","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":52,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"592cfd00-5266-499c-8927-81fb3b76d217","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":52,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"809a9802-1a8d-44a4-a7de-579263cb2de9","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":52,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"77c5ce67-1f40-44cc-80ec-79bc702c7273","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":52,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"29484c95-dbb6-49aa-a019-f76c5282ab9a","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":52,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"aa88d469-187e-493c-82b6-fa92142ccaf9","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":52,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"de7ac24f-4394-46a8-8c93-4f97d2691f94","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":52,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"d7dbf293-9b65-4188-b3f8-4fbac00f8a07","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":52,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"5e2fdb0b-800b-44ba-8e42-556952201fb2","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":52,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"eba43cd0-849e-47e5-83df-c948439b24df","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":52,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"da1ee6c8-8a3f-474b-91e6-3a6a45a3aa62","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":52,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"5eca3ae5-634b-4c3f-82dc-03ba969a8343","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":52,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"3e0175c3-bb29-4bdd-819c-a57739b4ce23","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":52,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"0e54aee5-1ee2-460a-89e3-2df591f4df5d","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":52,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"b0d1ee69-281a-4feb-943c-328388a486e1","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":52,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"bb02b838-1ba9-4cd6-8cb5-98f5987ec95a","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":52,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"fa25a253-9a90-4f5d-af9c-b8c0f5efc1ae","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":52,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"cc3ffe7e-fdd0-42ad-9e39-027a6d8a0c27","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":52,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"47bb686a-1e3a-4070-bb37-1b3437b8fe9d","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":52,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"99eb7657-1c6b-4988-9421-ce4ccd9ab380","block_type":"box","text":"collateral received under such contracts.","page_number":52,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"a318f427-51b6-4d55-8000-2d91c1284343","block_type":"box","text":"Risk Factors in Derivatives.","page_number":52,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"22954062-d872-4ac1-9086-ddfd87f33e94","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":52,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"924a3bd7-4c3c-4887-b253-b366c99cd94b","block_type":"box","text":"Correlation Risk","page_number":52,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"81a80aca-b4b6-4fb8-8702-92d8af8a360f","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":52,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"f651f130-c534-446f-a050-d58558775734","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":52,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"5ac47f24-2fa5-4afe-8fd2-b45c24152521","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":52,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"f3cab5f6-bd88-482d-acda-0abe5711ee0f","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":52,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"cbeb9d4f-284e-4c85-b567-295322063387","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":52,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"66d83458-025c-4b57-9666-6fd6f046873f","block_type":"box","text":"Counterpar ty Risk","page_number":52,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"17e45326-68e2-4444-9582-7b26f2b3a26e","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":52,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"9a56b264-747a-45f2-9d30-107d8fdac3f2","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":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"a5af1366-c9ce-4e9b-89a8-121e5e83fe55","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"3d820e98-f087-4d56-8864-8deb24d601da","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":52,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"3b11db9a-0237-4cce-8740-6eba83c7c9cc","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":52,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"174fba62-6b08-48d1-9b10-138718d05444","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":52,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"786fe439-4ac6-4e1d-b39f-6dc5807d8db4","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":52,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"755c4cbd-09d4-49ef-bcd5-32f723b260ef","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":52,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"6960a8ad-ed9c-4258-91d9-18b785f6e10c","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":52,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"01bb330f-acf6-47f4-adf7-e48a68fc5c21","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":52,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"d08b647d-89f0-4d6e-a023-885b1f34ebad","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":52,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"fb3cb370-bc38-4a61-be4f-75e311b3c949","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":52,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"f1e22b58-b77f-4eee-866a-7fd45523e61c","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":52,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"09fbb8ef-bd74-4cee-a1f8-42b61d5d06a6","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":52,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"4458f3f1-7d6e-457a-bc0e-e585af980f28","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":52,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"0182f029-6c00-450b-bcea-28286654e932","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":52,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"d114428c-1e46-4535-89ea-d4d1906972f6","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":52,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"efe4b4eb-0e4c-45f8-b772-5c6ea3a134ca","block_type":"box","text":"II-15","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2707282f-26db-4b4e-9fdc-c475be9dd0a3","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f58b8846-6046-43a5-812e-581f5828d2c4","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":53,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"55ea43f8-f220-4df3-b13b-503aad3dbdf6","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":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d4cdce81-d4e1-4b1f-939f-6cf48f526924","block_type":"box","text":"by the clearing member.","page_number":53,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"9e904d7a-6bff-4f39-8213-ca1668a6d916","block_type":"box","text":"Credit Risk","page_number":53,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"75adce0c-0c83-4d21-81d2-6817f2e148e1","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":53,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"a8e3d121-8cf2-4990-9cd9-68a727253f1b","block_type":"box","text":"honor its financial obligations.","page_number":53,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"50a2f658-13c9-4dd7-94e2-19939539c0c9","block_type":"box","text":"Currency Risk","page_number":53,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"0946c05a-428a-4a53-aeb4-cb0387121675","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":53,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"4bc15f89-e02b-4698-a51f-3ab9c32bef55","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":53,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"eba138d1-7b60-4c3f-a490-6820c645c57b","block_type":"box","text":"Illiquidity Risk","page_number":53,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"45fa7d3a-a261-40b3-955e-b195dc56c2c9","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":53,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"c612bb13-ca87-4763-b540-b031bad70cf3","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":53,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"67bf4ace-389e-4f62-a473-a9d6273362f5","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":53,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"e3dcafd0-320e-46eb-9b3c-ca570d2ab5a5","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":53,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"99d4277b-998c-4cce-8184-ebaef66f2621","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":53,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"c7464ba1-74fc-4350-b25e-f5c15dc64180","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":53,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"e1474a1d-8e47-4ac8-b2d7-7b7d5938bb52","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":53,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"f809c79f-393d-4fde-a579-c28e7ae0361a","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":53,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"d95a950a-1baa-4738-bb98-873f03dfb093","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":53,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"2ef53890-ced8-49a7-9c85-768135719db6","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":53,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"309daceb-9055-4963-b1da-ba5e9ebd6f25","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":53,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"8f8851c2-e636-4366-8377-35acc34a3c5c","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":53,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"79e992b1-8d7c-4cde-a7b9-0af50a1bf98e","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":53,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"e9989222-e6bb-41e3-a49e-8af207fd1365","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":53,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"036f7b04-9a3b-4278-a72a-e51bfed56bcd","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":53,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"5be7da8d-c416-4b7e-be99-9c01a0e335bc","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":53,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"950d90f6-2458-4517-8a63-3b27e96344a3","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":53,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"bf8b44a9-038c-49d0-a0f8-b2cd79f450ed","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":53,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"fd3f1efb-1e44-4222-8f83-c5111481c83c","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":53,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"5ed138e1-cf8b-4273-9bdd-5bcc764239fa","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":53,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"b0ded1ff-3eab-40b9-8bfd-a4b51abd95da","block_type":"box","text":"may be disadvantageous to do so.","page_number":53,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"539619c7-7761-40ca-bf71-5b71bc22fc52","block_type":"box","text":"Index Risk","page_number":53,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"925e18f8-fd59-4e9f-8e19-09fad5519fb3","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":53,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"36938d65-49bd-4479-9134-0085614ccecf","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":53,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"8f56bf44-5bfd-4fb6-a409-9ec16d60c789","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":53,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"9b50a071-e727-4bca-9988-8f0172a86ccb","block_type":"box","text":"Legal Risk","page_number":53,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"b52a97f5-629f-4981-ab1c-077868424908","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":53,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"4daf6968-3e38-49e6-98f9-5a61da9fe75d","block_type":"box","text":"or enforceability of a contract.","page_number":53,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"f2535649-ad63-45c3-9bd9-41f2f5e6431b","block_type":"box","text":"Leverage Risk","page_number":53,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"b3e8dc8e-a527-4d81-846e-22a63eca906d","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":53,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"620eba45-eb4b-4ef3-be6d-b1fb458b93b1","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":53,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"4c447618-672c-44ed-8f5e-a02f5202d24d","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":53,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"39cf7663-f892-404a-9179-fa50f0c64438","block_type":"box","text":"Market Risk","page_number":53,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"ad5e3b09-6020-4814-ad6f-9a83b1a0ea33","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":53,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"c87e35d9-ce3a-4b07-b4de-dc1c798cd8c3","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":53,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"c6e305cf-bc45-4187-9b90-6d23ede771e8","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":53,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"62aa7c19-a58e-46c2-aa0d-18efbc90e71a","block_type":"box","text":"affected.","page_number":53,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"f64c4cdf-b779-4d9d-9dde-7f08ad94132c","block_type":"box","text":"Operational Risk","page_number":53,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"95cbb600-1695-4ab7-a6ee-66692c987013","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":53,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"56918abb-f3c5-493e-8ba2-7402d97ec073","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":53,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"a33193c2-e574-426a-a374-2a2ad51ef177","block_type":"box","text":"Valuation Risk","page_number":53,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"28db82ab-ab85-4daa-8bcd-0d12f0359b41","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":53,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"af25b3da-6124-4594-bb4b-fd1c79f624ea","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":53,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"f044af49-8ec8-45c2-8979-f29aefb0e87e","block_type":"box","text":"complex instruments or quote prices for them.","page_number":53,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"20cb7038-085c-45d6-b276-b61929814e95","block_type":"box","text":"Volatility Risk","page_number":53,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"844e4730-9934-4408-a378-32a5e0e8652a","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":53,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"2635b4f8-7db5-4973-bb5c-d580b7f2792a","block_type":"box","text":"Types of Derivatives Transactions.","page_number":53,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"da4c7815-e1c7-400d-8272-e1a16f9af3cf","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":53,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"e6311c72-f566-4217-8d4d-e0200c8bf9a7","block_type":"box","text":"including the following:","page_number":53,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"7fa2d4a3-edc1-411c-bd54-653712d12ff7","block_type":"box","text":"Futures.","page_number":53,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"9cace000-2148-4ec4-816a-dbffd77bd9cd","block_type":"box","text":"II-16","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e53b4d1b-4733-4916-8a4f-7ddea54583fd","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4714a6cf-c1db-4f64-ba8b-dc6039d17ef2","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":54,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"97c39037-095b-4c93-b82b-29ad4d80457a","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":54,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"65ba87b6-d65f-4d74-af04-f81e984ad9ac","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":54,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"638ca607-ba26-4578-b2df-12cd7bce4a37","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":54,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"ae5010a7-b088-45b9-8274-f8b37cae9c90","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":54,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"369b3fa0-cf2e-4b13-92a5-2c322f49bed9","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":54,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"cf157330-c3db-4aaa-b969-3e4b4686d3af","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":54,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"4fd452e0-e0c4-4529-b34a-bd76ed5b38ec","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":54,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"497ee7c3-de9c-4f2d-909b-ed39da428b2c","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":54,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"84c44dd8-c7b8-4327-b673-38dd76d9b01a","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":54,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"a6110b96-9255-4588-9c0c-2c89ca2d0709","block_type":"box","text":"of the futures contract.","page_number":54,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"6e1351a3-b72c-433e-a91c-575d87e07fe7","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":54,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"b653d3ad-121e-469f-8a04-884e5b6439ae","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":54,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"c06761d9-2094-4509-8838-b0d1a3ae5ea1","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":54,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"2375e71a-b2bd-4986-8557-c9b848dacd28","block_type":"box","text":"relating to the futures position.","page_number":54,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"ce0342be-e45e-46c7-80f0-dcb9906720ac","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":54,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"c30aba1f-49c7-48ce-9f0d-755b3722c0cf","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":54,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"ee6db8ef-3e50-4a96-83c6-be2c58681ede","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":54,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"6a17d7c4-dccd-4989-8993-2da69c3e26be","block_type":"box","text":"Regulations” above.","page_number":54,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"0c77be40-de14-4998-9acb-055ca1b78e7c","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":54,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"19680f1b-1688-4aac-af9f-ed8dd9193f83","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":54,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"28154a1a-9d6a-4b12-adbf-44a3fce8b485","block_type":"box","text":"(","page_number":54,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"e0d5e29c-b3fa-4ba3-aac2-05469d0898fb","block_type":"box","text":"i.e.","page_number":54,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"535abc12-6615-4e8a-ad2b-4c40b03ebc1a","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":54,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"63263bba-507a-47b3-a066-d505f77975d3","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":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"ea31fe09-2c62-4ad2-940e-c3574440233c","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":54,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"1861427b-d82b-4346-bccc-f1bf8e1d6b4f","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":54,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"0c5c3814-22a9-4fd5-8fb7-681c451e5049","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":54,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"9b878442-7b57-43ee-82c7-6b81f8270c29","block_type":"box","text":"Fund intends to purchase.","page_number":54,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"bb14fa23-9689-4d90-b56d-ef15d3293eae","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":54,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"e9bb48b9-1d74-4f11-ae33-c99d5c0daefe","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":54,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"493c1a00-884c-43ba-8c18-03192bfa655f","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":54,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"969473fb-5c13-484d-876a-b02001cb8f2f","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":54,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"2c45ba88-7602-4a82-9576-0edfd31b8435","block_type":"box","text":"illiquidity.","page_number":54,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"cad703af-f3dc-4c43-8f84-2e83b28e7b47","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":54,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"8c498e41-0f35-4b85-b750-fbb2178c1ea2","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":54,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"03cf3564-46d3-4e42-9718-3ab0bf3ed5b2","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"c0f34635-7c2c-434a-a649-d4c4d8f8d5f9","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":54,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"4ca0f3f4-97e2-43ba-9864-dfe356d9edd3","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":54,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"7920817c-83c8-403d-b1bb-5597c2950be6","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":54,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"23588214-2ded-43e0-9888-467646c23726","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":54,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"933cef1d-00a6-4d49-9f22-f1f8310e3086","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":54,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"b98c3d89-09e6-4cea-9574-1907316f6626","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":54,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"dd91a089-b505-4879-9f95-5f04b5f82b1e","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":54,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"78998f00-0e64-4bf3-a9d5-5b36e2c03a8b","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":54,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"6d3f4776-aaa9-439c-bb96-08914f91fcb9","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":54,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"0a21b0b0-158c-40f1-a356-61cf69072e02","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":54,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"dde61615-149e-4d47-bb53-da21c5145318","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":54,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"b5229159-1a2e-4661-a14e-8dd79a2e2369","block_type":"box","text":"Swap Agreements.","page_number":54,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"1489650a-6abe-412f-92d7-890c82eb40c0","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":54,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"e56a1b1c-2426-4734-a2d7-567095fb3003","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":54,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"67b4e710-71f7-4047-b1a8-cc474f85807b","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":54,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"820f7b8c-d95c-4c62-93d8-11caf3340118","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":54,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"365c7daf-fe4a-4bd5-85b5-70db5f8eb35b","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":54,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"60a3366b-441e-4002-89fe-566c21e2f3cb","block_type":"box","text":"a “notional amount,”","page_number":54,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"0f65a6d8-301a-4dd9-bddd-bff9580eef5d","block_type":"box","text":"e.g.","page_number":54,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"f17f8083-0c61-48b4-9508-e7db9b2c34ea","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":54,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"5e2eac5d-1bc6-4c06-b27e-bfb3a3c2c786","block_type":"box","text":"II-17","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2c28224-309d-4db2-ade9-e27f34b9629f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ccd97fac-d914-461f-889e-efd85be7df33","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":55,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"8c9c5244-500c-4685-bdcf-1c5dc01de39d","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":55,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"7355b675-0566-40db-8e15-fcfaa553dff1","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":55,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"e35286a7-116d-4153-a588-a63346dc13f5","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":55,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"9dd954d2-2926-4868-9739-28399ae5c6ae","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":55,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"7925f94c-22ae-4bfb-85ba-1f6296a57b74","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":55,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"46731aaf-7ead-48b8-b0d1-44c4eb63d8e9","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":55,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"4d9397a2-c3c9-401d-bfe7-8ea47f20cde8","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":55,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"de330df6-04a4-4a8e-a478-2472c59182a6","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":55,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"6dec76ff-7a3f-493c-87c2-449ab6e6d6d5","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":55,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"19bb7ebf-d1b2-4faa-bfc1-a8950b55c5ca","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":55,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"6cab58b3-43b7-4749-938e-2ef194b93a9a","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":55,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"78ecef3b-2271-4f84-8e7c-3e29cbfe2b56","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":55,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"85008730-255d-4ed0-a872-107382a54352","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":55,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"eb4717e6-b355-4661-b19d-b410727aa516","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":55,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"0d381992-bf1f-4685-a124-3403e05c7566","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":55,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"c3469621-12a5-46ac-9f07-cc18473ff593","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":55,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"168e09f5-432c-4fd2-98e3-32abd73993fc","block_type":"box","text":"index CDS.","page_number":55,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"fad414ac-a7c6-496a-b277-b738354c6bfd","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":55,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"b03221f2-c034-48ce-88ba-97299e0258eb","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":55,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"758c8e99-9e2e-4069-8e32-46f140af563e","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":55,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c7b613b6-e239-420f-87c6-d9405684970c","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":55,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"f8fc344e-bbc7-4a25-99ce-896e8c349aff","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":55,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"bc3601b1-8085-4ddf-afe8-68a86dd475b8","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":55,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"047119e0-a4ac-4c19-99e4-a7d2d8a7b016","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":55,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"5873ee52-3b49-4292-9f7b-40196d75eea9","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":55,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"3467605c-95f1-41e5-b729-b1ad7b1054bd","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":55,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"11c141fe-948e-4aec-bc56-b092e1ff4f26","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":55,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"fe7d5929-bc98-4c24-817a-ac20f9dc54a1","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":55,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"b7a9b398-78c4-426e-98c5-85054b0aff86","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":55,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"75e1a0d3-3e58-41fd-9ec5-6aad7f01d8b7","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":55,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"c3fd2b58-186c-4f77-abeb-40980aaf57ea","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":55,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"5e8af488-9f1f-482d-ac6b-07546a9ffa62","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":55,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"024f7aeb-ab7f-4be1-b6d7-5251a29f76d2","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":55,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"6889c1f7-85a3-4d57-b539-5ac7df684408","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":55,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"99dd83f5-7e6c-43c9-8faf-ba4f7f946539","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":55,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"c366dc89-620a-4c88-9251-760295bd9fc5","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":55,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"eb78d612-3f1a-4720-ae76-3410e9d5c798","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":55,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"8b5c6c39-c4a9-4764-a36f-fe191bec63d0","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":55,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"01706d3b-d094-4c74-b0e1-289cb57a359a","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":55,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"65d74236-b507-4f8d-96be-094b24e8ba25","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"96c547b3-8082-49b6-82f7-24fc95803dbd","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":55,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"a1bee838-cb6a-4856-b482-f34698fcf475","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":55,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"47cee74b-15bd-4dd9-878f-dfcf22cdb697","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":55,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"7bc74b1a-417f-498a-8c47-934cb513698d","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":55,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"18ba5688-c2b6-42e7-82f7-1bf9e1b0238e","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":55,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"0c9f17f3-0dba-4825-9eda-9eda60c8e7a0","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":55,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"75b7c625-af57-4114-b395-33b3ac94476f","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":55,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"bc382631-0429-4093-9aa1-0b222349ff34","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":55,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"5c9143e5-d53a-47c4-834b-49e66071e8ec","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":55,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"bd74616a-c040-4531-a168-ea04627a0474","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":55,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"534ecb4f-2dc5-479a-9397-7a8672f8cd75","block_type":"box","text":"conditions.","page_number":55,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"5e044444-7f21-4d36-85ab-b78c7d3f0005","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":55,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"43223b88-0d07-410c-8566-35f28e54a627","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"400ecc22-9fc2-4500-87b4-b35f48957989","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":55,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"f4aab75e-38d4-4f8f-a2f7-735e079463c8","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":55,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"127a3e93-f4e2-4037-9159-f2ca4a35e3bf","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":55,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"be35c542-271a-450d-bd37-eb2cd0faa6da","block_type":"box","text":"II-18","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ee982aad-35f4-45c2-bcdd-b1d77f8d8441","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad4a2ac3-62ee-4785-abe3-7be17e575cae","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":56,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"692ff2c1-1359-497f-a9b8-e10f44cb1d9a","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":56,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"92cc8fd5-382d-40fb-a271-c089b8ecd187","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":56,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"95672f06-e7c3-457e-83df-32d71875c24e","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":56,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"9cfa7ab2-b358-4fca-a9a9-62b5de33f45f","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":56,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"63adfbca-4dd6-4d90-bd2d-7f505c934232","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":56,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"ed3b7a08-7445-4391-b2a9-f12b3935fe0f","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":56,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"22e2d7e4-803d-48be-a14b-0f486326472e","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":56,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"48f178b1-63be-451c-8a28-057505912f13","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":56,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"be9ee201-bd5c-44e3-8bb2-9a8b390bcb46","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":56,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"029b86c7-acec-4ccf-aa5c-ddd1a823f89b","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":56,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"2bfef493-9f20-4a61-b1da-ebdbfdeea789","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":56,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"28f85056-c47a-4740-91d9-f04c2aa993c3","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":56,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"e3f8f0d9-545c-402c-8426-59a749b26a07","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":56,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"21868d9f-b888-4512-9943-25d8b12cf3c2","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"660044e6-cb26-4f38-8e4c-755fb5676bde","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":56,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"0ebf7099-65ab-428c-9b34-4b03e28c76e0","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":56,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"eeb8edea-e4fd-4c7e-8164-8326427347b1","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":56,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"16328fd6-8d9b-4f2d-abab-4bac9ddad517","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":56,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"e25fd6b9-a803-4b41-9656-8a7ee3054880","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":56,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"0403d206-3106-4503-b022-2a10d2aae9d2","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":56,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"02d2f925-d956-43b9-abdb-f6c106cb2bc9","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":56,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"267a1058-75d7-44a9-b967-d69dd116b682","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"d2133fc1-2a00-433d-881c-b963d417f266","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":56,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"9301d160-bba4-40b8-8546-dc079bd21055","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":56,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"6cf1ba66-bae9-4015-ad0c-a2ff259f701d","block_type":"box","text":"cleared interest rate swaps.","page_number":56,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"44cd8c03-57bd-4d2d-ae1b-dc6285d11da5","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":56,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"c2f27fb7-e3ff-480d-9e9e-f2cadc39f998","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":56,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"c78b1229-1e2f-4370-b757-de1d1fe99c5a","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":56,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"4d41849f-54ff-4d33-9011-2d53f1194679","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":56,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"72629c69-78a5-4333-a936-7d30d5997e38","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":56,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"36c85b58-868d-4bbe-a81b-f63c438a52c4","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":56,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"b3141329-b901-4737-aeb5-81475f6eef3f","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":56,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"db6657ac-1f7e-49e6-a3b8-65582506293a","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":56,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"45056e75-0c0d-4044-b574-a60743801b91","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":56,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"445f75a9-44d7-466d-ad4f-d7db8db6a216","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"4de75638-1c3a-4f7a-9892-e6b7bffdcf3c","block_type":"box","text":"or variable interest rate, index or asset.","page_number":56,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"963e8fb4-71ee-4d44-aef8-101753d4a296","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":56,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"43445cf9-dfd5-459a-a6f4-4c04dac5008d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":56,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"06f42baf-64f1-4c59-9aa4-559dc7e6e1cf","block_type":"box","text":"such interest rate floor.","page_number":56,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"c0b37ee1-1ee4-4d2e-9957-4f2c1f4068c2","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":56,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"7dd3ab9b-f78c-4022-95d9-3bddaebd90a0","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":56,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"9fae29a5-e57f-4d1d-8a3e-1c9461054f85","block_type":"box","text":"such interest rate cap.","page_number":56,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"53e2a5c2-9ea9-49ba-9222-b8f4f72c55f8","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":56,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"5bad0008-20f7-4ae8-b2bf-ad355eda600f","block_type":"box","text":"commitments to pay or receive interest,","page_number":56,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"ef7be7fe-01c4-449e-a080-866b73d67e77","block_type":"box","text":"e.g.","page_number":56,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"be94ed48-aa72-4666-a59a-4b4ce1bf4f69","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":56,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"a081e259-91da-4c70-9aa7-9f95f7d48f37","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":56,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"1433420d-243a-49fa-9c68-14f2798b4ae2","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":56,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"528e9b70-a3c5-4dca-a01d-b2a9f71e9f64","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":56,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"70537012-3aec-4d48-8966-8390ad87bdd5","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":56,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"8c72fb21-c389-402d-b6a5-74f2cdf80298","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":56,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"22d9070e-bf81-4ef7-bf4e-e7dad50a5884","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":56,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"715ddfd4-1bf5-4eee-a958-0bddea7a0dfe","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":56,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"e8423b7e-36ca-4705-91c7-c7d78f6d3406","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":56,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"f42a974e-fee5-46df-a870-8ce3ab4bf7b5","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":56,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"7442d4bd-a2b4-4967-bc54-84cf74ebbfeb","block_type":"box","text":"II-19","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e6df7cf-8109-4d20-8963-72e0a9a5e707","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69fbee5b-aff1-4f2f-b816-ed3715786351","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":57,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"411ab4c1-a79e-4f38-8e99-d42e4d7d84ec","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":57,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"95218ccc-9b63-42be-9e8b-dd1e775ba042","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":57,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"100d3005-f514-44e1-9109-d776303c42cf","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"2df724c7-b8cc-4b4f-8105-5e05a8411ff3","block_type":"box","text":"Total Return Swaps.","page_number":57,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"b4d0455e-39da-4432-92b4-e0fd573f9319","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":57,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"a6dfa2cc-ed69-4f48-9f3e-c71b5dba9e88","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":57,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"bc88260d-9a3a-48f3-a775-13604f42fb43","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":57,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"7290f61a-0961-4bf8-92a7-2e14af741a69","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":57,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"62b89e4a-b6e3-4112-a912-f7a011156c6c","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":57,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"ded63374-a147-4cc4-829c-9431464f6861","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":57,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"de2f3160-3822-4e4d-8686-a847090a5f42","block_type":"box","text":"“contracts for difference.”","page_number":57,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"52ba4332-9eb3-492f-a501-119615174012","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":57,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"f146d78d-1133-44b4-bda9-072c9da110a8","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":57,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"7029a446-0177-4c7b-a931-fd6fe2bbc545","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":57,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"00d7e8f1-2e65-42a8-aca2-bbf626087e03","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":57,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"f1e8fff2-94e4-4d24-a0b4-19848f7e6280","block_type":"box","text":"the notional amount of the swap.","page_number":57,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"1c8950aa-ee08-4dcc-9b8d-a0da0e8b11e1","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":57,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"64116b36-0207-4f00-a9bb-43981423471f","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"b1bf60b6-c38f-4b50-a963-71a8a4c576f7","block_type":"box","text":"Options.","page_number":57,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"034f2217-f371-4711-8f31-f75db1c1e2f8","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":57,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"d1bf49a9-4576-40e6-a817-84163b29ab13","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":57,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"5a705f27-5f23-4a13-8fea-db6889f055ba","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":57,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"bd937e4c-53ff-4ab6-9eae-174ef3c81e29","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":57,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"8e09173e-e898-4adc-8d5d-2e7bef0325ac","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":57,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"bdb48f8c-4808-4e81-af9c-e59d7c49cafc","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":57,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"9c219ba3-011e-42a6-922f-5291dd70ee8b","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":57,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"ef549f3b-91f2-4353-8e0f-e25c9cc389a7","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":57,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"807439a8-20ed-41ba-ac6b-b666c12a774a","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":57,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"64602ae5-7ebb-4151-ad75-83e31f489d5a","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":57,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"04c7eb80-16dd-4312-baf7-71defcd55ed9","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":57,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"96321e48-1384-4eea-9c09-cd7e483d6250","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":57,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"a7e475ce-083b-4388-a80e-b2d55c0c3a8e","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":57,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"cb9ce26b-fbcc-4c02-9de8-aec4e4b1885d","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":57,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"66b63b18-6158-497c-8312-95f27a48b0c9","block_type":"box","text":"OTC markets.","page_number":57,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"c6e95167-9502-4685-87f8-56e2ce258065","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":57,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"b0e3e97c-dc48-4ea1-ae2a-f52d82354cfc","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":57,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"bb862e84-309d-4de0-9dd5-dda77bc56fd2","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":57,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"535c6a5a-da63-40aa-a7c7-5421fca49f88","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":57,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"1a2848da-6b10-483e-a491-623514a40e09","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":57,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"35a2cf5e-02e7-4911-99cf-95b052cc1d7a","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":57,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"a284e02d-15d5-4ffe-90d9-785630662bd0","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"5ac6be20-775c-42d9-a6e8-5688ba2da1ae","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":57,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"39716c2a-efd1-4699-9ed0-2e14ff7d8905","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":57,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"04b513be-e069-418a-bc8c-fe24a52a6f77","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":57,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"40f935ac-0a2f-4dcb-8764-ba3ea00d8b7d","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":57,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"800e9246-f2e2-49ec-acb7-3f295ccacb01","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":57,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"93322961-5d4f-46d6-961e-ba1a14bfeeb7","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":57,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"dec01825-dc98-4bb7-8949-5d4aa319fd5b","block_type":"box","text":"terms.","page_number":57,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"98cddb37-74e1-4ca9-b76b-c97c5358c714","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":57,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"1cebf726-7ed8-4bfb-a7b3-bfe8c210eae1","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":57,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"fdeb1dea-e0ea-4a6f-ae0b-c278834d4298","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":57,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"531480f8-d505-472a-8abd-f893db5c7a01","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":57,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"ff01a894-842d-4f2d-953a-4f6c755e2e18","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":57,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"c48681e0-20f4-4828-b1d2-66b4b8a67ae9","block_type":"box","text":"II-20","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9925362-cdee-4d19-9769-ff691857ef81","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28d2efea-8e32-4d1f-a105-272e8ba439fb","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"80f53496-c865-40cf-bb84-124e49286273","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":58,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"3e21960f-d7e1-44f2-aef4-c836530595a7","block_type":"box","text":"Call Options.","page_number":58,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"f5022cdc-2b1a-42e7-aa5e-3c15607c0b05","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":58,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"70146e09-107c-4bf4-97dd-9c431f874387","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":58,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"e278f6f7-8299-4890-9018-93cb54431398","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":58,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"24d04776-e458-4d43-bfce-3146a103884a","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":58,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"6e2a4d85-3461-4623-97f0-f604d9dd26fa","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":58,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"62893e49-f1b9-4d03-9dcd-b4dab8c5b5d5","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":58,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"b83ccb48-b570-40e3-991c-c96d0fbea8d3","block_type":"box","text":"of the option.","page_number":58,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"cd701969-7840-4316-9dbb-b020f6563693","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":58,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"47730f90-3070-4054-b644-911b65b7be77","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":58,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"269e8b7b-5a4f-4669-8851-a08abeb91d17","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":58,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"d90d6784-d422-4aa0-86e5-214ec4ef6140","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":58,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"9ae3d68d-1f4b-4cea-98fd-c0a49c5f93ec","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":58,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"bb87475e-78c2-41f1-98e5-653ea429a9ad","block_type":"box","text":"A Fund may write (","page_number":58,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"ed1f152b-df7b-43e1-a758-9fdcb26c8b7e","block_type":"box","text":"i.e.","page_number":58,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"f17457e7-eb7d-48bf-9ed9-f63d541c9ea5","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":58,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"d0714a35-bda3-43d8-9c75-127fca71246d","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":58,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"5dd83113-f17c-4fc1-b477-5a8042504a6a","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":58,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"3c2f6213-f70f-451d-baf1-4c39a0755124","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":58,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"d018e909-1bdf-4f81-acfc-60da9632778d","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":58,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"916cccbe-91e2-464c-a4bc-c73d2474e73d","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":58,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"5718c724-ca13-4327-9cc0-370fef4e41fd","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":58,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"46f57ad8-1763-4f89-9ce8-bcba8e75933a","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":58,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"e4e17f10-a131-4dfb-bc7b-58c9b280b546","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":58,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"276cf69f-dce0-4ece-b69b-491cf788b206","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":58,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"881eddb6-b4fd-4816-bf0b-ab79b0b51ea8","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":58,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"01438d4e-d41b-439e-a1fe-31424cff9bb5","block_type":"box","text":"A Fund may write","page_number":58,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"04812019-cb85-4458-8ae4-1ed3253fc288","block_type":"box","text":"(i.e.","page_number":58,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"052fa013-c339-47fc-ae1b-729d35d7eeae","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":58,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"443496f0-32da-4db3-8fba-63821691957f","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":58,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"0468e0d1-7693-4699-8c68-51acdf164b31","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":58,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"4585a275-b0a7-4625-8516-0c84e0afb152","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":58,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7d9adedf-895c-4b55-bfc5-eba41e91529e","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":58,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"794c6be6-ccd8-4324-ade3-bfddef717983","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":58,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"749526cd-e835-4086-a569-8d356c93b6cd","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":58,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"a0ce42bb-04ef-4852-b077-272d991b05a9","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":58,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"e680c44c-cde4-423a-bc92-8eb88b895e1b","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":58,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ad633c97-caba-42df-9aea-363b6b1ccc7d","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":58,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"acc6ddb8-126c-4f03-8f99-97ab104f712c","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":58,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"67f6d2ae-a454-42ed-9f7a-a4c332d9a672","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":58,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"035e3fba-e645-43b5-b01e-6fa001156cf3","block_type":"box","text":"Put Options.","page_number":58,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"d7c356d7-2277-4572-8705-dc3ad3cabbe4","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":58,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"14557d82-0d38-4468-8e1c-b5e9d536ef75","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":58,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"0cad6183-1528-460e-af07-0b0e8a6a43c2","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":58,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"f4289723-ace7-4ce1-b144-80c4d256fda5","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":58,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"4b0f8780-550e-464f-8768-124486cac9c8","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":58,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"11e86426-8191-4326-a5e3-38cf41148f99","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":58,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"7f8f988c-fd0b-41f1-97d9-c5b370c68896","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":58,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"d5df4ae2-f57b-491c-88e4-63f18806a918","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":58,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"f490b6bc-109b-435d-8ade-82c0b84c6265","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":58,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"87150d94-f55a-44d8-ad43-5e51c262d589","block_type":"box","text":"purchase uncovered put options.","page_number":58,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"637b48c0-80af-4e1c-9461-143b52797dbe","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"a75f6693-f198-481a-97a1-5d9184f64c4c","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"e02b8dbb-1a65-42fe-bb4c-04a859949bac","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":58,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"5a515bfd-ac84-44ca-a201-b623fbf4f0c6","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":58,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"4f873826-f221-461d-9b11-af33e4829672","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"bf4f7b3d-a9e0-4f98-9639-6b270eb9b46c","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"7faa8867-d317-4a26-a1af-e4c2ca3aafb5","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":58,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"5f1fb8de-891d-4cce-9be3-d198f6f80ece","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":58,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"14fdcc64-2d81-4485-8813-091346e3c2e5","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":58,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"8ec07778-6a96-49e3-90b4-ac68145866f3","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":58,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"6c18287e-1275-402d-ac8e-73ae3c709bdc","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":58,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"dc655f91-630c-4a03-aa56-6441494854d9","block_type":"box","text":"II-21","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"366d3e76-aa01-457c-b8f8-8d5771c18f86","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc67f470-1187-4af5-8e09-3fde6d8cfbba","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":59,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"c98ce9f1-1060-4747-b6e8-a8d95c4a7c9e","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":59,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"4e274019-c19e-4e32-959f-cc5659c7a53c","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":59,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"0a2f2e32-aaec-4858-a569-0ebe07e9f858","block_type":"box","text":"the exercise price.","page_number":59,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"160494c7-d03e-40b7-bd5b-578521a59367","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":59,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"d3e47b3b-1611-4dad-a728-8afe1e0f0090","block_type":"box","text":"The following information relates","page_number":59,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"a77af83c-2133-4a19-9002-8d13cddcea9c","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":59,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"d4ff7dde-034c-4e0f-ba90-7a90ced39d98","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":59,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"87898087-f77d-4c4d-8208-e6cd083a77b4","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":59,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"90277a1f-61b9-418a-90bf-826104550d84","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":59,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"154909f1-2df0-4957-a09f-be2661887a00","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":59,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"e826f4e7-9e2a-4c8d-97a7-2980ed7c70ed","block_type":"box","text":"market in order to maintain its “cover.”","page_number":59,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"ce29a29e-a85d-4f24-949c-a02b8858212e","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":59,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"bae184b9-a04b-447e-8f5c-5ba61345e07c","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":59,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"c364d46a-20be-454d-8a90-e2303221b309","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":59,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"8bd92c5d-57e4-4ee2-8a9b-8b26b94d1bba","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":59,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"cea23c99-76e8-425a-a7dc-6ad861fcc5b7","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":59,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"55c30c52-edfb-44c5-a28d-7b365ac90ac5","block_type":"box","text":"and incur transaction costs.","page_number":59,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"428039ff-08b1-4daf-a980-4bd9b27e1b77","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":59,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"e4434cd1-6748-4fb0-8e7f-ff68c4683965","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":59,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"6684c425-683e-42f1-826e-55e97d4749a3","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":59,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"0ba4e28b-6433-422e-85df-f1df7b3aeee6","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":59,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"c59689e7-443e-4e4c-b679-927abd383298","block_type":"box","text":"i.e.","page_number":59,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"278ceae1-0f7f-452a-8914-af3629d9fc15","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":59,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"8eb2e028-9c10-43fe-813c-5160334ffe83","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":59,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"b31c5694-05a8-4983-9d4c-70450916d4b5","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":59,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"69763bc5-bc94-4ee7-8064-dc10cf031870","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":59,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"4d447ec5-b833-42d5-b7b4-a9bfe2be46e9","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":59,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"d06e53b2-788e-42a8-87c2-284b4fbc07b1","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":59,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"3030e7c3-511c-4b1e-930b-856bbe42a08e","block_type":"box","text":"required, to be cleared.","page_number":59,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"a6d7808e-a338-4ebe-ab17-3abacf2ce745","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":59,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"85253e5b-695a-4c68-a380-fca6bcf61424","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":59,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"15efd30b-b918-4043-9b83-bad3a3f7a716","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":59,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"a0ece9d8-2781-46ea-a903-65010d22c2d9","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":59,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"6cad13be-95e2-4179-b0b5-160de7681240","block_type":"box","text":"Derivatives” above.","page_number":59,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"363d93fd-c31d-4010-83a4-717332148906","block_type":"box","text":"FLEX Options.","page_number":59,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"894ce4b3-9434-4202-a770-014ab1f13d2c","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":59,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"f7e5974f-e71f-4e33-961c-778fc8cb7c5e","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":59,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"63a6b030-01ad-41de-8d46-162c7a77ecac","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":59,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"a0653101-937c-4a3b-9da0-8084d7c30e10","block_type":"box","text":"exercise prices, exercise styles (","page_number":59,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"3a86442b-fc79-4bc3-9606-6b96053dcd51","block_type":"box","text":"i.e.","page_number":59,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"ef2babac-e1dd-42fc-b18e-a7b4f1fb53a1","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":59,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"a68112fd-b476-40bd-a0ea-db440cef5865","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":59,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"e08592ae-af94-44c1-bfa1-ecb8418b7124","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":59,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"0778bf50-d1b9-47fd-a8e7-77d7c3d4e71d","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":59,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"4a7e8415-03b8-4afd-96de-8099fadcc786","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":59,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"8c19200f-474b-4f67-882b-b987b72a5863","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":59,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"e43f768a-cdd5-49be-8e2f-601cbed2593f","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":59,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"7785776a-9436-48c7-9ed6-c7aaf072664d","block_type":"box","text":"FLEX Option’s expiration date.","page_number":59,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"2bd54f50-56b9-44da-97c6-dd30d993f64b","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":59,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"f04813e2-8c02-405a-af0b-33c7323150e6","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":59,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"93c450a6-3bec-4a16-ac7e-585df98d0beb","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":59,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"f8339ac5-7215-4074-b106-03240bc5467d","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":59,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"6eda9994-f58f-4491-b85a-0ea41888ab7a","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":59,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"98ecb2de-60b7-45b6-9f5c-05109f63605f","block_type":"box","text":"FLEX Options contracts.","page_number":59,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"dde49559-06e7-4c02-8e44-562825756fc4","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":59,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"1015b583-b2ea-42cf-91df-66cdce67aea6","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":59,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"1226b26f-3e32-4937-8205-1e4ca4847174","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":59,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"8cad92c4-3d9c-4a9f-8d55-08065bf96d20","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":59,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"8180d0b8-8e02-408b-8e6a-2a448e838ec5","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":59,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"b9c21eee-42a1-4d72-9f60-f360c0c898d4","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":59,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"8af7944e-f011-47b1-8cf5-00da99233052","block_type":"box","text":"II-22","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3bad7dd8-6931-47df-9b6a-cd58f33f27f0","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd74a1e0-544d-43a2-8178-fe0e9b791332","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":60,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"b9ba7796-c7af-4bd8-ac88-7e8bac8552a3","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":60,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"2cfa8ed8-2d6b-4321-8b37-a4157ce38c7e","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":60,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"9cee6a5f-23d9-4993-8d0b-0b259391665b","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":60,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"80c2e647-52f9-4a3a-8ca3-9d67feb32de9","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":60,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"9161d7c9-149e-4270-8290-1589b49ab001","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":60,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"2b56b3cf-9060-468c-9def-a31c04e0d47c","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":60,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"3344a6e1-f233-42d8-af96-32489c8fb7f6","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":60,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"69bf324b-f5b8-4818-a3ea-ce71dc5a069b","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":60,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"afc013b1-aa4a-46ae-99d4-bede8e61a578","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":60,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"3dd9e66d-68a4-4828-b8c2-8f48c34cebb9","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":60,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"c7385db2-9a45-4086-8fef-ceb277d1c49e","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":60,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"bb82d234-d85b-42d6-a303-bdac4a5f4729","block_type":"box","text":"expire unexercised have no value.","page_number":60,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"3250cc37-48a6-4309-bc4c-129c2d995b7d","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":60,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"0be692a8-631c-4a73-ba99-a96086231ce0","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":60,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"05ab761d-da52-4264-a278-2246a643f6ef","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":60,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"0b5ff678-5c9e-4509-8d04-5ec06a9420a0","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":60,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"0b064c23-8a96-405e-b942-1880a55030ed","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":60,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"1076c143-8f8f-4168-82f9-d00f85fde9f1","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":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"135ab665-5577-4336-9bf7-7d7e037a17fb","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":60,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"85fefef1-674a-4070-8c1a-b542bb5142e2","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":60,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"de49a5f2-21f2-4870-8b14-c95a54fd921a","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":60,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"a68f0b96-1828-42ab-88ea-6467c22d083a","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":60,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"4aeae85c-3bb7-47fa-b209-1d07731725e2","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":60,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"2829a8d9-a6e6-44f4-8a42-22993a58dbe9","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":60,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"9dfdd471-8797-4234-a73e-e4fc37353b8a","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":60,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"de9c4cff-f43e-4cd7-89cf-9b0df4d7370c","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":60,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"f56171d2-25a9-429a-8ef8-09797e8762a1","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":60,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"a4583f6b-66cc-461a-8863-48a3d7971dc2","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":60,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"98a66118-1aac-4fc2-a914-c121f03425cf","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":60,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"3f951e93-2bd0-4c9c-89f6-e835c2b7b385","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":60,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"764cf1ea-fb9d-4138-ad2e-bf037d31bd28","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":60,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"d7d8ed1f-691f-43f3-ad6d-571775770bb8","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":60,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"2ffae73a-6a5d-43af-870e-ddef522e3ea8","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":60,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"b73e1471-16b1-4e9c-b57e-3134f42c30fa","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":60,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"99b41829-7c0a-45bd-959d-b252a1c1d859","block_type":"box","text":"Foreign Exchange Transactions.","page_number":60,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"2872b1d9-4d83-4686-9a9a-4fdcda8b1c2e","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":60,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"a491e6d4-ed18-4bd0-82de-8230d4767db5","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":60,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"697f53ef-c88b-4553-9c42-716f3b741699","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":60,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"030e3b3d-f8c8-4a39-963e-1154381a25c3","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":60,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"3c800a4e-448b-427f-85b8-15398dda46a6","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":60,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"3b89778a-3ae9-4ca3-aceb-5091120a4cf3","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":60,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"a4734abc-b058-40d4-bf1c-1f96c59af81b","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":60,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"5bef4d86-7c4e-497b-aa84-d48948753552","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":60,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"164fb95e-989c-4bc6-bdcc-e87d0d951672","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":60,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"34baafd0-fba2-4b73-a01f-cc932c4897bf","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":60,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"45cbdea9-bc8a-4c6c-8bfb-04b6c08b729f","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":60,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"ed6400ab-d464-4b74-b24e-eab49aa64d4a","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":60,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"59dee902-d565-496d-adb1-21492ea150a9","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":60,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"944baabf-775d-4e30-8396-37a8550b8fe4","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":60,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"6e6dfeb6-3719-4d32-96e4-8b00a672adce","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":60,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"6cc6039d-f89e-40d0-bd38-7b699d5e8b35","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":60,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"3575a9f7-5baf-4b52-9a6b-ff303e1bec70","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":60,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"52f5b635-cb5f-4ac1-a085-6fddad7d81d5","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":60,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"d95c69e7-6510-486b-bf03-9ec518196e1d","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":60,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"1e999b82-afe6-4fc2-96a8-68aac6af35a8","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":60,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6ffdfa89-9684-4434-8073-7daebcaca837","block_type":"box","text":"II-23","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"075ecead-5c06-45d0-abee-aa326ca73069","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de54cc9b-a03d-4fae-8f7c-8b803ea9fb1d","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":61,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"75f27fa0-a3a4-4adc-a16f-fda1a6fc2954","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":61,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"43b6387e-1aba-4e5c-bbdc-875ef4789690","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":61,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"701f9792-f92d-4805-a8f5-ae02a239523d","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":61,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"62bf4d8a-7369-4f6a-b88e-36a88bae7a79","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":61,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"304e3172-6f44-4821-9f18-683bd1742249","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":61,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"902a71cb-2d79-4401-ad78-588f260a5243","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":61,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"b03b8518-074f-45ac-a452-5ac8b7f0348e","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":61,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"1663fcf3-99a3-4fec-b679-f54416d9e1e7","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":61,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"34986650-c634-420c-a975-31e31a988619","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":61,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"f5889b37-8fd4-44df-bbf7-7d9e32b38538","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":61,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"6d6e51a7-4682-4756-9ffb-0367a655f17a","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":61,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"2d737149-f94c-498b-b978-cf0e9977543d","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":61,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"d2a90b53-e4e6-4987-a694-b16e8e74ac25","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":61,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"e978d05b-ea0e-425c-9bf8-6eb915f79d7f","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":61,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"62b601c5-f48b-4d9a-b35b-f442c0642846","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":61,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"920c11fa-d051-45ad-9134-954b21e78d7e","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":61,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"8822bf17-5e26-4cd2-9284-f6e0da2482eb","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":61,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"89e15762-8012-427c-8f66-0e2218ccb41c","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":61,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"454d430d-19fa-41b3-b21f-9e2026a07b29","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":61,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"c7285c14-6aaa-4bde-a505-473b30a33c20","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":61,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"099f7e5b-7005-4c89-bdf9-442f62d8318b","block_type":"box","text":"involved.","page_number":61,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"96137b84-e3c2-4718-afa4-9bc9c014ee0d","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":61,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"0401854d-598e-4953-b3e2-dc3b324f5f24","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":61,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"f4303f3b-f94f-420a-a52c-1520635e130c","block_type":"box","text":"denominated in such currency.","page_number":61,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"b26b8c6c-bf7e-4047-8ab3-b19bf36ee36d","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":61,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"f7531999-3a80-474c-a418-1b08dd6965aa","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":61,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"00b8afc1-7b83-4ca9-b749-7a519e4a9ed5","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":61,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"adb9a7b7-5168-4957-8439-bc1a2589f080","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":61,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"1b5c6e2f-ff3f-471a-b2b9-4a196c942616","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":61,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"df37f5d8-8427-489a-add4-4b292540e18d","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":61,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"b8b1412d-c3aa-4909-980f-611b182e6b5a","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":61,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"3af05dcf-f8e4-4a7c-82ec-e3f817ac666a","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":61,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"398327d0-2f1d-4d49-9ffc-4274b7ed8efb","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":61,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"fe3e83fe-0f79-40ba-8fcd-809df1840798","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":61,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"15cf3b27-eb25-4282-bf76-48105cfdd322","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":61,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"01c070ab-5d0e-41e0-baf1-e36a1515283d","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":61,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"8c05daeb-91a9-45d9-89e9-fbc4dbedf3c8","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":61,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"3de3ebd5-2a05-4995-9678-de8b343430be","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":61,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"69038a4a-a4af-40a5-a992-75c46dd209db","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":61,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"e8c444c5-856f-4004-a1ae-d26c4755ba43","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":61,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"dfed0b69-c415-481d-8381-2ad94cd2e416","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":61,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"c06cd0d0-46fc-4e66-8570-8b4e09fab7c0","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":61,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"5db8f6cb-cde7-444d-bfc1-484671f39d9e","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":61,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"c26381ed-b8a0-4044-9f03-211de9e4c2fb","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":61,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"e12d310c-86a3-4866-be4f-d5bc1b545501","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":61,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"fa45e5b6-3dd8-4c5e-9ea3-8f917d03f911","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":61,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"0df067da-88f4-4747-9cad-d6afc1043384","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":61,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"652e05e8-affa-47d9-913a-f7901fc84516","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":61,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"05774baf-8255-44fa-aefc-08b0e6fd1262","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":61,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"763e892b-1544-4693-92fa-9764d589b555","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":61,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"c8fda016-af30-4f23-a25e-7ed6d1086b9a","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":61,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"32cb124e-52eb-4885-bd2d-33d2e919af2a","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":61,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"92c73df0-a644-4fa1-bc0b-8861f1d2e15f","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":61,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"034bfe96-b856-45ae-b731-4fad2e160e7d","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":61,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"1a598cb3-892e-401a-a316-bfa10fd1548f","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":61,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"68d6d714-36da-4264-bd57-08db65f3c28c","block_type":"box","text":"II-24","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab8ddd2a-61ca-47f0-ad88-d0d175f88f2d","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"65cff56e-0612-4d82-bfdb-8bb7ffaac59e","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":62,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"f280c4e8-afe0-413f-8b57-ecbfdac1118a","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":62,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"13d5da52-a2a3-45bf-993a-9260402790b4","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":62,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"3f51da81-43e8-4ba4-98c9-59772f8b4881","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":62,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"7132fba8-3177-427a-80f2-d983066e9bab","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":62,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"842b6665-f59f-4c85-92f7-364f11ab5053","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":62,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"b9b1acea-acdb-45f6-8a46-2532455c1e1c","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":62,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"a083c5bc-5e91-467f-b0bb-621f0ecea147","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":62,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"663cdbd3-6929-4339-916c-0d79db77b09e","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":62,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"49b60aef-36cc-48a8-8bcc-1cf7c23b6f20","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":62,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"f644bfda-bf02-456d-a7c4-63ba4f2e74ee","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":62,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"1a38ad90-636a-4ba3-ae3e-f04fae9dc594","block_type":"box","text":"traded.","page_number":62,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"fb24fb97-e710-4bd3-b706-8c740a77bc94","block_type":"box","text":"Currency Futures.","page_number":62,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"d222d9f5-3582-4845-9d28-0bdeaa9f8452","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"fb867729-8c8e-47a6-9ff1-b20e9ec9b87c","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":62,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"9eb2e83a-2488-4122-81b9-bb8471c0159e","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":62,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"434204a8-bc57-4957-b884-94b7f72ebdc8","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":62,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"aaa090cd-8c3f-4cdf-877e-e8cef814efd0","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":62,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"6f726f24-958b-4471-b4fc-c744974eeb9c","block_type":"box","text":"Currency Options.","page_number":62,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"8ee63ba4-5416-4318-9f2e-1d0cb0dc64aa","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"4c97332a-91e7-4394-a081-b89fa8565c99","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":62,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"7f0eda6d-bb3d-418b-bd93-285c054f5b72","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":62,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"92977329-7796-4a2d-bcf4-68ed810384dd","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":62,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"45371dce-10a5-4bd0-aa92-e8e9567c2f06","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":62,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"afa217da-b86d-41bf-9448-70eddc57e35e","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":62,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"b55a58a6-f5d9-4b47-8a71-645e8cf0e9e2","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":62,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"e495d694-6e4f-49f4-9db2-0ee8b66421bb","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":62,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"c966d6fa-c800-4650-9997-72b0b00f5823","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":62,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"a4e4b864-a461-4504-8cd1-5bbac59dd725","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":62,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"07f2f8c0-4d18-42d2-a46b-4f94a6418e25","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":62,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"da06b0dd-bcd0-4249-8a0a-5c3e2db7f6d9","block_type":"box","text":"Currency Swaps.","page_number":62,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"d26e55fb-782c-451a-8595-075abed53e74","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":62,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"6787008d-4e01-4f15-a1d2-e33ea3d1dee9","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":62,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"33b1f36a-7ec3-44f1-a07e-2d61518a2440","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":62,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"f87e0c4f-55c4-4c47-8efc-f4ff1fc1e09b","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":62,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"b4b5346e-d9a8-4845-adeb-c6760005e6f6","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":62,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"111b8cb3-60fb-4464-9f5e-bec326470d07","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":62,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"2152c61f-69d8-4ac1-8dfd-d9b8a73a5a72","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":62,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"935a35f9-87bf-40a8-bc0c-9590c2a73101","block_type":"box","text":"Distressed Securities.","page_number":62,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"6773a09e-3f2f-4709-bb7b-be08af73b945","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":62,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"76a8ff11-2fcb-47ad-acce-03501d6617fd","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":62,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"8d664ad0-92af-484b-92a9-b35d5245d2aa","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":62,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"3b045616-faed-4bd0-941a-82b23485bcc7","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":62,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"00cdb234-7b07-40a2-a426-c984a5ff26f2","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":62,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"20818ba0-2a11-4382-99e7-158eb9aeaf35","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":62,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"99b61bcb-64ca-4e4b-9f8c-9376f69f894d","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":62,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"608e73db-02f4-48cb-9228-e45667318ee7","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":62,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"195264d5-ce81-4312-83f0-783eed5c8c57","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":62,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"5cfae0b5-e19b-453c-b8fe-4184bcf1ec3e","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":62,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"f5964a26-2b93-4f32-b7d2-c1a4411efc2f","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":62,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"36b67d2d-84a9-4e52-8fb4-bec50f414246","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":62,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"ff65cdda-be1c-4778-afcd-995d69bedf28","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":62,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"a252dfc0-3cd4-4821-b085-8b3532c0fd04","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":62,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"44a63a69-884a-408f-a7aa-235a13a19798","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":62,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"129378c1-0ca8-4f75-b2dc-cc4f5e5c3ad2","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":62,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"9fed6c67-ceef-47e0-b4da-fa85ab62b5de","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":62,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"8ad86545-0189-4e98-abbb-d33465dbb955","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":62,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"191fba95-485a-4039-8186-70c7221a9d16","block_type":"box","text":"satisfied (","page_number":62,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"97b59672-53c4-462e-8665-c2a8eaf4181e","block_type":"box","text":"e.g.","page_number":62,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"d30c2eb3-630f-4c1a-9fa9-6ecabe6e5147","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":62,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"933e7026-df60-42fe-b609-e748c46ce406","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":62,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"466dacf0-60e1-4943-bb40-13ad4a1655d3","block_type":"box","text":"II-25","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f4ab0efc-4240-4b52-afb9-d6e1c11af8ed","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da9108a0-76fa-4238-9bce-b426524ccdc7","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":63,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"e40c9ae8-c41b-4981-aeec-938a2cb03219","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":63,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"55dd5267-1475-47a0-bb88-143f4438973f","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":63,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"0ddfb02f-fb21-46e6-93b7-fb74a30dbbe9","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":63,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"3e8c48a6-06c5-46a0-9e8f-30c2f6f8714a","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":63,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"54e00f68-153c-4cd7-a3b9-798c771d296d","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":63,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"1097a5b0-4ad2-4679-87c4-c8a4aee389a4","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":63,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"0a9fce52-dfc3-4b8f-a9b8-264798cc7f67","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":63,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"6acbba63-f3cb-42bb-b4e7-ca9e2a375bed","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":63,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"a0587476-f613-404c-a3cb-4b854ca273f9","block_type":"box","text":"affairs.","page_number":63,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"84ee7c4b-b236-41a7-a5e5-c526261d7318","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":63,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"c84ac521-b2b8-41eb-9188-8ee695069c9c","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":63,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"e3daf34f-110f-4307-8ea0-3471b6873145","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":63,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"d62e1caa-0fdd-4ff3-8930-3f810ce4062b","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":63,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"a141d97c-3a2f-4139-8fa4-d5bbc1b3823e","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":63,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"0ae277b1-ab13-4b6f-aea2-742cce12b3e3","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":63,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"2cc24c91-a843-41d0-831d-17def903ac80","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":63,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"955fde1a-48fc-47bc-abe5-57d624e29423","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":63,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"75f9309b-d4ba-4453-8402-8327654bfa77","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":63,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"f08e71ad-d032-4540-8a88-f6d33d41e535","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":63,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"771a9758-7442-4607-8e7c-e00f59e8d580","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":63,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"0e076cdf-75ee-4bf7-8565-6d216dc6e71b","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":63,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"a320de99-ccfb-4ea5-a627-9b66b0aedcc2","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":63,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"bb0db51b-3168-4e0b-a99e-b34a0b826eb9","block_type":"box","text":"Equity Securities.","page_number":63,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"14e1e9e9-0c8c-497d-8f9b-9e938c9ebdf4","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":63,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"36840290-6843-46d0-81a3-7d5135a84c5c","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":63,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"1b2329f1-1389-4a51-a9ee-83c5fbd71702","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"508f0c15-f352-4016-b844-199035816189","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":63,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"00df6967-2307-4583-86cb-3feedaa19da3","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":63,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"6f49ec5c-637e-4823-acdd-01368db7d361","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":63,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"3df31628-8b2b-40aa-a277-d635cc493752","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":63,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"fbf2235d-0860-43ed-b86e-59f2e72b7589","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":63,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"e9c7ea63-ea1b-4368-9b4d-bb4247be8eee","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":63,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"a1c4e79f-3d8b-4560-a696-39067ff0e699","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":63,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"8cdbf245-1d1d-439f-baff-f72478cd3cd6","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":63,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"f5d05c96-51d4-458c-a082-4f27a3fd30fe","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":63,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"a7c2a2c4-246b-4e78-aaff-c4689df9f840","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":63,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"857bb772-0e7a-4e2e-9442-87860a7067a0","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":63,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"719ffa6e-604b-4272-9157-c994a95228c4","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":63,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"83b60468-c5e0-4e32-80dc-f946d8708fc4","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":63,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"b85bb20b-29a1-4670-a20f-5a201474f9c2","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":63,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"1ebbf460-beb4-4a48-9585-d8c83d872df9","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":63,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"0f9bb9fb-50e3-47ce-9da5-42ac3598c7a9","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":63,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"2bf983e7-c709-428d-b063-6ecae71c0482","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":63,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"2f180c59-f193-4700-a332-550b94408448","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":63,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"fc7f2bdb-26bf-4035-ac6e-ad12d4218a21","block_type":"box","text":"initial public offering.","page_number":63,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"0b0c173f-27d6-43be-89b9-c835f5b954b1","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":63,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"70089d52-3c16-4aef-9442-c9010c8f166c","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":63,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"057645e7-df7d-4f56-bd2c-6a04620931e3","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":63,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"45ce13de-096d-42b6-bf02-202889a5a0cb","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":63,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"0beeb2ba-8cb1-47eb-af54-6735e7c393aa","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":63,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"827ea5ef-db7c-4d3d-8e88-c5267a27355b","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":63,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"ef8c7076-fdc1-464b-8e15-e55f4d89387b","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":63,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"3f3d3770-5e9a-4d75-b2d2-3343be9ffeca","block_type":"box","text":"more established companies.","page_number":63,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"ef6c756d-5ebb-4d96-a425-f0ff024da5c1","block_type":"box","text":"II-26","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ccdfa479-09dc-4ffc-818d-4f5639253341","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01b8e56a-49a4-4b85-8c6d-a562da22caba","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":64,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"700a2402-077e-4366-926d-6cfb8c60b855","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":64,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"90aa31da-3a9a-4615-8861-6f83a39a9ef5","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":64,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"1ffc2de7-dc0a-4e47-8fae-b267a41f98cc","block_type":"box","text":"below.","page_number":64,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"84fb21b2-0395-4fef-8c34-f59fa7a05740","block_type":"box","text":"Real Estate-Related Securities.","page_number":64,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"36634751-b4ae-4b79-ab6f-9ca8800dca34","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":64,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"94b2a341-caa2-41ff-af1f-c50d7ed2b8d8","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":64,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"f3f4c712-ede3-49a1-9d96-a16a71c2f751","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":64,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"350988a2-ced8-4610-8711-9b6b679aa47c","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":64,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"e986fcbb-5aa1-46c1-aca9-8631eb9c42ec","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":64,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"81c4868d-652a-4cc6-8870-fc37d03609de","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":64,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"2df2c60d-16fd-4b97-bd07-2ec15f74bd24","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":64,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"53b6acec-821f-44db-b6a5-b6bac8461a79","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":64,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"32319f33-e8e8-4359-a846-5a57dd5662e3","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":64,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"16c3f1c9-a1ec-41aa-bd2f-1e33bb2357b4","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":64,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"46503eb8-fda6-45ca-a666-6aef281ee0bd","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":64,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"bae61226-f3ee-4714-9458-c2064ecbdc30","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":64,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"e68f238b-2034-47b1-b08b-7f13a7560cd0","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":64,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"19e6a3c1-8696-4c36-920e-840f4a48f4a1","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":64,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"f3a9cd78-12e4-4e34-99d6-b89183eb8e6e","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":64,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"8d7e58d8-ea2f-4143-80ae-204a10e1d8a8","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":64,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"81338fff-b330-4b74-aba7-52ad7a3f73d0","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":64,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"1f11588e-5db3-461d-b879-1da79fdf9d1d","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":64,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"86e8b14c-22fb-4b96-a212-0c13a4d194a8","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":64,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"893984fd-d30d-489d-9588-0e2228212ef9","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":64,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"7baf4a31-da56-40f6-8228-bdab467d635e","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":64,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"7335588f-fa0a-4bd7-a710-1edb0675ac8b","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":64,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"71f36f88-7151-41d2-bfd8-8a7144889c1d","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":64,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"15c52899-7a7b-4429-898b-7c20b3fee821","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":64,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"682a32fd-ed90-4689-9087-857474a9ef08","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":64,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"657cad56-cfbe-4f7b-8cbd-f8fbce94413c","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":64,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"a3a9a75d-6325-4ef9-9089-f5fa332a1189","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":64,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"5a002f64-2c06-4d5a-8ae4-f94dc308b0be","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":64,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"41a0eedd-35a3-4b9a-b6ee-1f5426a190ec","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":64,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"9e7dbd2d-4712-4243-81af-b1ecd2f0c63d","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":64,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"434680e9-a8c0-496d-8b90-11aa20f2552e","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":64,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"34ce0e00-9c66-43da-a271-f02d6d53cfe3","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":64,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"8e32ed33-72d1-4723-bd63-bc7ef0c96016","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":64,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"ac002ee0-a59d-4ef8-9350-93111f2d111c","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":64,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"0e559e30-a7c7-4c85-9f92-18cad3483f6c","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":64,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"3200d819-b34d-4257-a75b-d99e00768524","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":64,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"f737a7eb-4f39-41e7-af5c-a58e448fc212","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":64,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"a99d4c40-aadf-4b13-a370-1469d0795854","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":64,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"08f31bb8-9585-4d85-9f79-9b42aad04c21","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":64,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"477f2833-d6ae-468e-8322-03733160a191","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":64,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"6fb1a1c5-d137-4ad1-9bcd-5f426ae30225","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":64,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"fafcb2d2-4004-4e8a-ba9a-6830a7a653fa","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":64,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"95a016be-932e-43d0-9ba0-ad8bfa080d64","block_type":"box","text":"cycles.","page_number":64,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"8ef56e8e-8166-42c4-a5e1-3b21f70020e4","block_type":"box","text":"Tracking Stocks","page_number":64,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"fd62b43e-6740-43b5-ba9e-f2203f2106e0","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":64,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"ce80318f-f27e-4cb2-a9f8-1aae32557bca","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":64,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"d60c1d37-02b7-4e58-b465-e61ce9a63ca0","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":64,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"c071f71f-acec-46a3-8142-4ce8f8988f21","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":64,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"40462ee6-aa54-49de-bf2b-bc2826274492","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":64,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"2662ef11-6594-4ced-99cf-7619fb0891f2","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":64,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"5b014e2f-0433-4de3-bce1-61e190fc044d","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":64,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"d59e417e-6cae-46c8-82cf-166a858be018","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":64,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"e2aae80a-8dab-4de8-8d30-4bbfbd511c5b","block_type":"box","text":"II-27","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20ecaf12-1777-4c97-a910-652c4285dc71","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a23954c-e8b3-4d80-815f-19102b01cca3","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":65,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"ea177dff-fcd9-45bf-951b-763ffa3f8572","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":65,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"77337667-8ee1-4487-93a4-b44349b6a58f","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":65,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"553dafc1-cdcc-4796-a85c-ef0be608ed8c","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":65,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"02009bd1-c969-4f17-893d-b8e942716c34","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":65,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"01abd32a-7f66-415c-bf0e-808a1aa6894a","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":65,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"4b75e990-8781-40c8-9086-023f7ee85e4c","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":65,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"b424c657-dc60-4f33-850b-096c809ce7e7","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":65,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"05af8a45-245e-498b-a7fc-cc0d3d01b9e2","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":65,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"77f605f2-ef7c-4fec-bb6e-ab3b2cb4703b","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":65,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"d905374c-17e1-4f71-b9c9-d67d180eb970","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":65,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"0b042723-e544-4462-88a2-34fdfa6244e6","block_type":"box","text":"ETN.","page_number":65,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"8b3f075a-a30b-45c5-863f-e8587559f867","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":65,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"153a8aad-66c8-4ebe-9d66-8989df2dce50","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":65,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"2f62924e-6ee0-4082-943a-c8c7244fe769","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":65,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"1f7381c7-964e-4e5c-b5bd-c6d52ac06236","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":65,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"47caabc5-039f-410d-a433-e0c6d770692a","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":65,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"d652522b-0fb1-48bb-a746-ff8069058925","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":65,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"cffae2e8-f74b-457b-92fc-4ea6b7931654","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":65,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"3280df38-49ce-4739-9af7-0af56bce027d","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":65,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"c9d08859-73a9-479e-9c44-b29a2033ad53","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":65,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"48d141bd-10d7-47ff-a79f-f399e2448883","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":65,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"703b2afe-b4f0-49e8-91a7-b1f1d3459e6b","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":65,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"419bdf4e-0ab6-4e66-ae9c-c1bd2f7483fa","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":65,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"5308b0d2-94b4-41ef-92b2-e1b6e690746e","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":65,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"7ab44491-3ca5-4ffa-8976-5fe9f5019ef3","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":65,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"3b715dfc-3b62-4163-b41d-231a1188c319","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":65,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"ae54b5fb-ddbd-4da7-862a-2d6fdf43e9c7","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":65,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"1b820154-8208-4c08-a35e-23e5460da831","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":65,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"436f6654-460b-4ff7-8750-7b49ab94abef","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":65,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"26c18254-27cb-4ba0-bf74-12fd0a4e5616","block_type":"box","text":"Foreign Investments.","page_number":65,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"bd7c2457-c60e-421c-8876-2a7f705b5549","block_type":"box","text":"Foreign Investment Risks.","page_number":65,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"e2c714d4-9b51-48e0-b00f-a38eadfeae65","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":65,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"11adb55b-9aea-456d-bef3-5266805fd70a","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":65,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"0f76d048-fb3e-4347-b019-f0d428540b9f","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":65,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"8b2ced75-ab57-4807-859b-3f4c26a0a1ae","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":65,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"320c47f9-b081-48a1-b6fd-be1c844d8ce7","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":65,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"46b8ffa6-0826-421c-a78c-b517c8ea482e","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":65,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"061f24a1-a599-4539-b5b2-179c9c495639","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":65,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"ff74fe85-550d-45f4-9d52-9c71a4dfdb88","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":65,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"b07b5704-40c6-44f9-ad55-a1a0729d13d8","block_type":"box","text":"benchmark index.","page_number":65,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"371a772b-8e4b-4aa4-b666-4d774f9cd1a7","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":65,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"e6b992f4-fdb4-486f-9020-8e0fe6dc21c7","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":65,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"e5da64ec-377d-4d6d-99c6-6f319b1f2cb4","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":65,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"99050f66-aef1-4f0a-a2a7-9a992cdff056","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":65,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"456fce73-56ad-4368-a737-579085169e77","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":65,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"18d04fe9-e6b0-4989-aae8-fcaff6c9e34c","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":65,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"47de5a07-a89c-4d7b-94d8-2f7d347075cb","block_type":"box","text":"securities and zero-coupon securities.","page_number":65,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"756230f1-3470-4d7a-ad8c-f51d58a14793","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":65,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"28fdcf9e-6b38-4d18-b777-122bd77aa145","block_type":"box","text":"taxes.","page_number":65,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"9fe78f64-9e76-4873-96ab-e10c3c1fc3f4","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":65,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"c5832c4d-604d-44b0-a5f3-b14b6e778cab","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":65,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"81bebae5-4635-45cc-8533-fbb322204a49","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":65,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"5039a4e0-fffb-4d3a-a4e7-cf9889eff77f","block_type":"box","text":"II-28","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"70020c99-61de-4734-acba-b4f7aa159520","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53b7c92e-31eb-434a-befd-29b974dc2e88","block_type":"box","text":"underlying security (","page_number":66,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"e4aaa5a4-9d91-498a-a533-01147f88dd3e","block_type":"box","text":"i.e.","page_number":66,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"c8a01626-ecc9-4dc1-b6f3-6ee4b7829c80","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":66,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"fa3e065b-334b-437b-8cc9-151ce7c78c43","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":66,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"496b2b77-5b3b-4d1f-aa55-297e671005f2","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":66,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"b797afb8-53a4-41d2-b2a1-2069077c0452","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":66,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"27932b29-c3d7-4e6e-9983-5d0a655aac84","block_type":"box","text":"Foreign Market Risk.","page_number":66,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"fa443259-fec5-4107-9ef8-db32663d803f","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":66,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"61aff8b0-f82a-415c-8b49-2a3bd1d8f0c3","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":66,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"ee41b53a-4cc4-4122-be6e-1acb9075e275","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":66,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"49181c11-cffc-4b12-9a71-57da3694f1e3","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":66,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"f54ddb0c-95bb-4f3b-9b0e-2f5ce86c466b","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":66,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d5c9f676-53a0-4eab-bba2-3999fbf86c77","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":66,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"4bb2c27a-c4d4-4da3-95ac-b7cae67c4a4e","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":66,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"4c2fbc04-41c1-4676-a649-9e6a836e09ea","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":66,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"9b3cc38d-78f6-475e-aa29-0694fbde4e76","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"20befd65-9204-4da1-9421-632230001295","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":66,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"9d16ac7f-4afc-4c51-824b-1689ba6b5189","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":66,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"6fbdb8b6-e5f3-434b-ab50-2017a43f6d13","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"b22daa9a-db41-4b3c-96df-460a3f712f86","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":66,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"2e0d986d-1f1f-422a-a8ba-a7076f070951","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":66,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"661cc733-5bd6-4da2-a395-be816286ba6a","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":66,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"f32e3e33-3c4b-4a1a-8a2c-f0dfabf71627","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":66,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"6f091c20-3671-4567-b212-e64ddce243fc","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":66,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"0a9c688a-3583-4c74-bcea-9bd4819d553e","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":66,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"86b5a843-a42c-4353-89ec-77ee12a56a52","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":66,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"69a05c42-781d-403c-b7c6-ecc559eb710e","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":66,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"47f916cb-734c-44df-99bf-e389e39104f6","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":66,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"83a9a1a2-3e04-45e5-aaf4-9d57c08b9f6c","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":66,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"09e93a63-7914-4127-974c-2d33364c0ddc","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":66,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"9ca9870f-9ef4-4a5f-b98b-04f5a43e06aa","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":66,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"4612bcd5-9ab5-4b50-b5d5-dc4a8273a236","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":66,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"15429093-ca6c-4b95-ae79-19f74922f5c5","block_type":"box","text":"Fund’s operations.","page_number":66,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"2ab2401d-9ef1-4d81-befa-6ee2e5b34340","block_type":"box","text":"Foreign Economy Risk.","page_number":66,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"56cea85a-daf3-4d2d-a27e-13eb5d8b427b","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":66,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"841a9ec9-4039-40c1-9c5e-0e6c3ab88ebd","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":66,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"de583f0c-8dbb-4bf0-88e4-e7247e36c384","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":66,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"608a7d79-bfd3-4338-99bb-3fa06298f671","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":66,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"1f6d96e4-15f0-4db0-b35b-d8fd8b874602","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":66,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"2e0ee053-2a17-4233-93a6-6483bd4361d6","block_type":"box","text":"measures.","page_number":66,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"5b438ea6-046d-48ea-b89f-111b94f337e4","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":66,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"884c961d-01fa-4cb7-99ed-76e8019e5847","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":66,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"a64922b6-e7a6-4802-be78-b43e436e34c6","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":66,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"82fb20f8-fafe-474d-9c3d-034f54c7bc3b","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":66,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"1665cdd3-4e7e-487e-b3d3-4e30d1cae683","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":66,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"00322fed-6043-4ba6-85c1-1a29782817bf","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":66,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"dfa81c58-adc0-4a95-8266-97e4a8fb69d7","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":66,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"2f7c3dc8-a9e2-42dd-8ade-95faaf117e26","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":66,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"d377b557-da6d-477c-9a28-9a5d56b81f19","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":66,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"8423bdac-6b75-4a09-b33b-a466095946a2","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":66,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"9742f1a2-eb9f-496f-9deb-7431983a580d","block_type":"box","text":"United States or abroad.","page_number":66,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"215a7069-57a6-4237-93ef-5fcd389b2e91","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":66,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"db2da66f-4df9-42a1-9abb-c0171e003aa2","block_type":"box","text":"Many foreign governments supervise and","page_number":66,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"f6819744-0532-4727-b89c-281ae909f690","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":66,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"2299259a-8de9-4f03-9c38-aa708649fc1f","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":66,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"7d3397e8-8d7f-44ff-8b7f-ddc36ede56ea","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":66,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"a76ab683-71e5-44d7-bdd5-fd8d80fa12b2","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":66,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"7e3d46f6-25fa-4f20-add4-26771398ea73","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":66,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"2d686fe8-b677-47a0-b13e-a2ca38d41b7d","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":66,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"846366e4-ed1b-4d05-ad32-8a5e7ae994f0","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":66,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"269107bf-b1a5-4322-8033-2a197ad450d2","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":66,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"2cbb00f9-7e91-4441-be6b-97863230df5b","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":66,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"0f1a207d-e5eb-4024-a184-1e9d9839d68b","block_type":"box","text":"II-29","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"401036f1-0c04-4bd2-a083-933c2092a1fa","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8dbe6eb-7f75-46dd-a5d3-e3248205849a","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":67,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"ab2f5c81-cb84-4b90-8915-8c1b22df6fb6","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":67,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"cc63c9e4-0d7e-4c04-82f8-5077bc9f8330","block_type":"box","text":"investments.","page_number":67,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"b65c05aa-44ec-4d61-8e65-eebb314d251f","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":67,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"74178acf-54bc-4119-855f-47591d728604","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":67,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"b4deb694-800f-48df-9668-9060a318d8fa","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":67,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"78f4e42c-a971-4a9a-9406-b6712080ec50","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":67,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"eea2399e-4d95-4920-a45f-f19cd5d4e117","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":67,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"f242eb64-a096-4c46-9a0e-108ea24f19e2","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":67,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"61d769bd-fc05-4db0-9eb4-bdcf01aeec25","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":67,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"4ab948a4-a42e-4d6b-af58-629dd7406cf0","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":67,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"c12404af-55de-469d-a843-7a49484f2833","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":67,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"96596193-f1a0-4666-a2bc-ccb58d57a351","block_type":"box","text":"States.","page_number":67,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"6c36a553-2abc-4dba-afbd-ea56ee1e9cc7","block_type":"box","text":"Publicly Available Information.","page_number":67,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"d353bb8e-cea4-447f-b858-28bde727fa73","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":67,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"1f9fe403-9584-4932-96fd-6e12ebf38715","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":67,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"4467709f-0208-42b9-b853-2467db312d3e","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":67,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"cdcf41a7-8510-4c5f-af07-47f20fdbb27a","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":67,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"1b8d682b-d4a0-4b65-a9a3-5b8d92ea11fb","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":67,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"b51afa3d-4696-4db1-b339-fc154239d38c","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":67,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"2bd14657-4a50-4fbe-9f4a-15795cfa5e00","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":67,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"7f2191d6-b3ee-443a-b00e-880416ba32eb","block_type":"box","text":"United States.","page_number":67,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"d2d5a455-2eb9-412e-83b4-94bcdc65c2bc","block_type":"box","text":"Settlement Risk.","page_number":67,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"764e051e-8639-4cf9-8846-bbf83eed2eb4","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":67,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"3c3066c3-dd48-444e-8700-c17530c463e4","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":67,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"0d17ce67-fb01-460d-952a-862cdbd7a9cb","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":67,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"2de6da3c-a166-4518-a164-0c9a1d827a7d","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":67,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"8d1b41cd-8d33-49dc-923c-59e395a56eec","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":67,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"a0570b63-c194-4a54-8df8-a11ab26f06c8","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":67,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"6f44deaa-1ef0-4993-aed1-9d6ab922b90b","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":67,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"e47efbf5-cb37-475e-b124-fc4b4cccfe2f","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":67,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"67bacc8b-e6bb-4d19-9781-5068e6b98724","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":67,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"396d3997-7eb6-4c04-916d-c8863e812e46","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":67,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"5a581e28-a855-410a-a3be-ed88d9e330a4","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":67,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"0afaed2f-2654-4198-b38a-84bc2a616f47","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":67,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"2d94fe56-65ad-46ff-9bfe-51cbfbdb9302","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":67,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"9cfdb2db-bde6-427c-85da-bff9f8a22b51","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":67,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"d4df1980-09d7-4e5b-9c94-a2f355c54837","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":67,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"c1d85552-23a8-4762-b53c-0a86a86a328b","block_type":"box","text":"Sovereign Debt.","page_number":67,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"c457ad0a-51fe-49db-bb9a-906ec5fc5a11","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":67,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"a673449d-4701-4e5f-a58f-00031418d60d","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":67,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"fe04552f-cc75-415d-8f5d-d1c0dd7b172e","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":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"9620bd75-6be8-4db8-8ee4-318252784038","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":67,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"21043207-630a-4c9a-a306-53607a131f25","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":67,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"281bd52a-fa00-4c23-b168-9512ddb08e49","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":67,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"78e68af3-7b55-4f79-b489-6136621f22a1","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":67,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"bac0d685-6ac8-4d0b-ac21-8dce1bedee20","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":67,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"1843db60-7ead-45f4-afea-371799fdc926","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":67,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"61411561-1d6c-49e7-a808-9c9deb4a1d1a","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":67,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"4c34119e-ef86-4177-b005-e31ee5e200ce","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":67,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"b7e9cdd9-4bd1-4334-8944-22df29da2302","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":67,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"f0ae6ee6-c35c-4968-a31d-4ded9eac510e","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":67,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"02c62e69-fb21-4497-98f0-8eb94d6e9525","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":67,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"3651a587-3e85-4d9a-bd64-fbc8a1451689","block_type":"box","text":"debt.","page_number":67,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"e2025582-ec38-4002-847b-4989deeabec4","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":67,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"751733bb-f1de-4584-a81b-0f7112393e48","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":67,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"a2952077-3a4a-45f1-b1ea-c98de7b141f3","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":67,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"3801392c-c88c-4f61-842f-e49c77ee313f","block_type":"box","text":"II-30","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cc60635d-ce58-48f9-b528-53fe396007ff","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b79de0a9-3c91-4354-877f-ceac8f250b0a","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":68,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"cdf83e4e-b8b8-4b90-a400-2e6869cdcadc","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":68,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"c7d35cbe-2420-46ad-966f-37591f46ba9a","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":68,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"97808f1a-d1a7-46d2-9b23-2d55b4950c37","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":68,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"a006f4c1-0fc2-492c-ac82-a81f06462dfa","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":68,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"e16a2049-ba51-4999-a5ae-8a2366d4fab1","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":68,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"34c8e368-24f8-44b5-b95e-42765021ccf0","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":68,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"0775c119-f6a7-432e-bcb1-cb0a90cbe64a","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":68,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"d6d7dbee-5c93-41a4-b975-971268efb254","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":68,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"a460d769-3532-4f59-860a-23142b8b50b0","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":68,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"4dbdb096-c4c7-41e1-a473-2142db4967c6","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":68,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"c9eafe75-6f83-4d5b-bfd6-50631cf85f10","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":68,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"9e3d337f-a55b-41da-9dab-a9ffd3d7d72f","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":68,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"0287555d-bf08-41c6-bfdb-5a8faba94830","block_type":"box","text":"in the Fund’s net asset value.","page_number":68,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"40d24126-f7b0-4bad-bc2b-b60da2c3a50c","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":68,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"0cb91f14-e3d6-4cef-95a0-5df5fd452108","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":68,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"328b6fb7-5a27-4907-9255-ab7f648dfe84","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":68,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"5c19e09b-e1cc-469b-9a45-4f90a2ed7f0b","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":68,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"e997a912-d201-41e2-a0e5-71cb357a37ec","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":68,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"42bc4e90-b405-472e-9b44-c93b3dc0fc3b","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":68,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"79c9c678-ccb9-436d-b6ba-41c79ebbf659","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":68,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"2eab33a4-8737-4c0d-b06c-59eedcf15cc6","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":68,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"9f621bb1-2857-488c-88aa-b55a464b47b5","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":68,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"d718e586-8d82-43ee-b285-b1e2f7e0c39a","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":68,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"65fd0620-8e14-4396-8e68-03921dcd21ba","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":68,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"bfd423ef-112d-4699-ba10-8350e9dc66c2","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":68,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"ac39bc75-520e-49f4-bc46-543896b96959","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":68,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"7b6a35f1-b782-4223-914f-8df34f9dd2ce","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":68,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"ce1e972c-7907-4208-8553-b26ae11b1b7a","block_type":"box","text":"Fund may invest.","page_number":68,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"b34a434b-b30d-4312-b47c-bbb595b78ace","block_type":"box","text":"Funding Agreements.","page_number":68,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"a7b35c9b-1ea7-4f3e-99e1-454c1fcbf11e","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":68,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"25a8bd38-9305-4f3c-b87b-be9dd0d6f1e2","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":68,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"ea8893ab-d87a-4ac7-b835-3cb3fb1ab90a","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":68,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"e7b22e91-2641-48b0-ba5b-7139b69bfd74","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":68,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"28296d3e-9755-4d31-a1c3-3d5354d8a856","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":68,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"a83905ea-06ef-459c-9216-85a941fe0823","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":68,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"0548f029-4147-4e06-9cbf-2923a4f811b8","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":68,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"cdc15da8-07de-4611-a1a5-0035b5690e95","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":68,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"7dd650be-0db9-415b-b086-9f1f8a0a4ac2","block_type":"box","text":"Guarantees.","page_number":68,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"1518d411-58ab-4f50-ba68-f2f95000854c","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":68,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"0808924f-386f-4c8e-8caf-9affab8fdae8","block_type":"box","text":"issuer of the security. 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An illiquid investment is any","page_number":68,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"9876c7ca-62e2-4ca4-80c6-f90bfe9a9b68","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":68,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"dcd3b3b2-4531-46b8-93e2-391b8233710a","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":68,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"b0948ae3-ab4c-4df9-bd45-bb3cab75ab32","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":69,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"5de9c909-5249-4de3-bfd0-9292583aabbf","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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Finally, since each Fund seeks to","page_number":69,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"359d9b5c-9bf0-4f99-a03d-a9c959da95a7","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":69,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"bda19b6b-fc20-4b6c-90d9-99dc5926fc4f","block_type":"box","text":"particular security as an investment.","page_number":69,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"04549431-ea0a-4fba-a190-40466047f557","block_type":"box","text":"Tracking Error Risk","page_number":69,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"57f25272-8e89-4da7-b819-c1a2a45c6f67","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":69,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"bdc99af2-2aa2-43f1-978b-d0f27b4ed7cc","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":69,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"97e298d0-995b-48cf-8c86-5029420da747","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":69,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"3792cf01-7440-400f-bc14-97450618f693","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":69,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"a72b3d5d-90e5-4a59-b426-df0116c38cd2","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":69,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"bc97ee5f-b42d-40d5-a0e9-a948b46822fe","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":69,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"4c9319dc-0843-43cc-a935-708552fe5ff8","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":69,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"e8c9b70e-e35a-4680-9bbe-f03c4fbd01d7","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":69,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"b6498e14-1d00-4851-881f-53ad187e5c24","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":69,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"4837a957-e6ec-415b-a9bf-18f4d462aa19","block_type":"box","text":"increased market volatility or other unusual market conditions. 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S&P is not responsible for and has not","page_number":69,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"1ad3335a-eb9c-46bd-9f64-dca01b0161af","block_type":"box","text":"participated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":69,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"5d65a2ef-7ba1-4045-a886-4d3d4680f7c6","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be converted into cash.","page_number":69,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"2b946aeb-88b9-4449-8409-9ff3e2e4567a","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":69,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"621b294f-48cd-47ea-97a7-85f8521a0bec","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":69,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"b04399e2-811d-4e04-b81e-1b30acac17bb","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. 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To","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"030a059a-d602-4688-add1-c5215829d74d","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":71,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"330364bc-beb9-4d98-b983-90b87aae0246","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":71,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"f8a5443e-66a7-4a01-8852-777a70836300","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":71,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"7e93ffee-a476-40b8-9bce-2fdfb57fcae6","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":71,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"468671b1-d658-482a-aafc-ee9dcdd03db4","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":71,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"593c56d5-55e3-44b6-b26d-2269f7fa7ab5","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":71,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"fb220dde-bfe0-4341-ab81-d9b5fa309622","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":71,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"d71b2d40-d48e-4cdf-8f5d-adbd4137cfb7","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":71,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"8d05f251-10b6-4944-a9b0-c8d58a315272","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":71,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"8781b0db-7475-4fa2-9e93-af1d8c650462","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":71,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"a4199eea-9487-41d6-bb4c-8d34ac62e44a","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":71,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"6b2544e5-169b-4979-9f99-1c452f3c8eb1","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":71,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"e97487bf-d97c-42e8-894c-80cd40fb02ee","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":71,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"1305f636-1e56-4bcf-bbfe-66b8d6ff6914","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":71,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"f6d58b73-3beb-4b14-b195-f0f2e38b46b2","block_type":"box","text":"Inflation Risk.","page_number":71,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"9b1233f3-c521-4922-aada-df77520c4ddb","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":71,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"a1571842-dc68-4516-b561-7df50c9b27a3","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":71,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"3a2009e8-886a-45b8-a8b2-31138da06698","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":71,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"8fff6501-93cd-41f0-aee8-ffab17ea8040","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":71,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"6f63cb0d-a269-4ee2-bb9c-9ceab4a73e7a","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":71,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"b5167fe9-6445-4a48-9fde-dae59b0e2cc4","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":71,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"5e644ff0-41f2-4454-b41f-b411dcd475c8","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":71,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"f59ab7f0-a219-4a4e-acf1-9056b4a6baa9","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":71,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"567ed646-3dbc-419c-835d-1fac54392b32","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":71,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"3052fb3e-40d7-4e21-9835-19a8ed6aeeab","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":71,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"40614ebf-efb6-4a6d-af61-a220b185ad41","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":71,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"50d160f2-ba66-4479-ad6f-fb5254c1d4c5","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":71,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"e046b1ee-648b-4e96-bd3f-f5456b73db47","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":71,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"55ddc2c0-70fe-4f57-a73c-73918b158a3e","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":71,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"13b806a0-7ad2-437e-a697-9e66a256d4c8","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":71,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"6fbe4334-31f6-4cf3-ac0b-7642b2233c20","block_type":"box","text":"II-34","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1438134-681d-43e9-af7b-b4a296fe729c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"778b3246-d359-4ec8-a575-13a5d2bb3f20","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":72,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"fb7f3c5c-bf48-4d8e-945a-7fc428823a50","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":72,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"a9596705-0e2d-44bc-b4d2-e0de9cfc440f","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":72,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"959eaf98-0121-44f2-b8b5-c922178ca34a","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":72,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"656b909b-70bd-4227-9a8d-9f6207d60083","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":72,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"7262fbd8-687d-4247-8878-d11843f568d9","block_type":"box","text":"be available for very limited periods.","page_number":72,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"4678d322-1ea6-4651-9d57-7095686fac4a","block_type":"box","text":"Investment in Emerging Markets.","page_number":72,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"53f7cb3f-5f35-4b36-97ef-005747e68e6e","block_type":"box","text":"General.","page_number":72,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"cee8f30f-684d-4118-8e02-480f3fee1e72","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":72,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"9893a78b-fe12-42d7-8014-095759d7957e","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":72,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"a5f0905f-299a-4e9c-af15-8590f32e77d8","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":72,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"0d8626c5-c584-4da6-902b-3d3e7d3ab62c","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":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"93407ab6-4e91-461c-9f89-bab000bf10dd","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":72,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"e4fa9958-ad3d-4394-badb-f5d736f52695","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"74e80086-8785-4e97-ba04-c3bb9f13fb6e","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":72,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"8a0a2968-b5cd-437a-bcf1-832c6fd47d91","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":72,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"78745328-8aff-4a4f-b046-b233866868f0","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":72,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"50d6d41e-42e9-40b0-aa98-7bcaab5f290b","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":72,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"890b9e66-6884-4577-bc29-63e0fb94df4c","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":72,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"9429e0d1-05d6-47d3-8495-b47dd738aa54","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":72,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"0e0a1db6-32ce-4f21-9381-d2fd0a5a1e47","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":72,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"8d0d3e1b-cf27-4c74-ba47-7b1cf89e234b","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":72,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"42779058-73b6-4bea-ac23-a99639c069ae","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":72,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"832c5e28-a46e-4cd1-ad04-8462c2168a39","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":72,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"46b4bcb7-03fb-4870-8a0d-3dfd9abf87d0","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":72,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"343e858b-71fb-4a8b-9ec1-49b67ad453c0","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":72,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"658ba48d-e687-4682-8cc0-238ce51c9d16","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":72,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"fca73405-0b4d-4d9f-8d64-e8db731cae77","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"5d4e8b2a-3b6b-4f4a-8304-7d8d2ee830ed","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"ffe57c5b-f7a4-4d2e-a669-bb971b3463ee","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":72,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"e3f229fd-05df-4971-ab37-085a0e7982b9","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":72,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"97e5ab24-677f-4ab6-8a1c-5b726446b521","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":72,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"58cd923e-8b0f-4900-a487-33bff6ee93f1","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":72,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"1f2808d3-c98f-411b-b05c-75101586af11","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":72,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"100c4dfa-4d3d-4c24-8ca5-72fd1c3e7437","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"636a7d9f-9ee3-46d0-bfb1-038c8375c16b","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":72,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"ac2d0d85-45f8-41c1-924d-8e931127d9f2","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":72,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"ca076e98-ef8f-433c-a0d7-f333fa72a96f","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":72,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"a909e198-ff19-434b-a703-d940cea80e3e","block_type":"box","text":"volatile than investments in more established markets.","page_number":72,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"e140a2d4-3582-45f5-aaec-febe5e46b133","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":72,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"3bc9f608-282a-4f20-b64c-13b5f175fca9","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":72,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"1dce43e3-3ec6-4088-abfa-7a1c71fff446","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":72,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"eb47e6be-0a97-49d1-9ff6-291f1b7056a9","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":72,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"d2677643-4df4-41da-8b69-7e3f92ab934e","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":72,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"08eaacf7-a455-4745-a363-4bd5e515c49d","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":72,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"d23216a2-9203-4f1e-8a07-f3edc4609fc2","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":72,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"b0563cdf-6704-4584-8bf7-c1be0ed73077","block_type":"box","text":"acquisition or disposal of securities.","page_number":72,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"90e72203-6194-4797-9d2b-7c5bd803d7ac","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":72,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"ab044d8a-46b7-4185-87f8-eae68f117d41","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":72,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"d640bea2-3e9d-4375-9a3c-708e8405c9b2","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":72,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"574e50f8-d315-41b4-8ff0-0058d815c5a5","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":72,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"d95da2c6-1587-4dca-b789-1ced1e6cbc47","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":72,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"1c895487-ac26-4ae9-9cbd-2a03ea55fea9","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":72,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"b30222fa-a5be-4e7e-8fc6-9a4dd5872ac6","block_type":"box","text":"II-35","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7b3f8d5-2b98-4791-9fe0-5d2409e02b4b","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98c3f5e3-42f1-4013-a04d-11fed60debf4","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":73,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"94df6be3-0f05-461f-96cd-d2c81d4d6800","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":73,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"126d99f5-4945-4658-9316-4d8b4369be58","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":73,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"4abb37c8-14ba-4f98-86b0-991d46c5cc09","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":73,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"60923a75-f8f3-41ab-9b61-7988fe71e8e7","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":73,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"1fbf04e4-9fbb-4cfc-859d-e603fc44fd7e","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":73,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"7036e5e6-0963-499d-b74b-15541386e5a4","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":73,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"673e90a1-8b55-4740-be8a-f8b9177303ab","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"27dee14b-550e-49c5-b234-8f2c019dfc86","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":73,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"d3882f1b-cbcf-4d53-be65-1742c44267cd","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":73,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"4acd8afe-d634-4e67-bf17-30ea175edd11","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":73,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"ab3a99d2-129b-46d4-b0ab-2b7f50072aac","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":73,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"ab09a4c9-5af2-4e31-85ec-44ba60d0cb45","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":73,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"1f3be10c-12e9-47bf-85a7-ea58849d2e20","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":73,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"d298d32e-fc33-452e-b19c-755ba2cc7a63","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":73,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"f2dbdd77-e573-4ae1-8095-459ba7e1370a","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":73,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"6d0185dd-55f7-4403-816b-9438d34d1a46","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":73,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"aa26aa4e-805a-442f-a4ad-147e038a8467","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":73,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"5b12bef6-1d73-4f6e-b3c8-e735b09840bf","block_type":"box","text":"performance of the Fund.","page_number":73,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"2d1ed1cb-cc4b-43c0-95cf-1e88e4df5084","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":73,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"6485d5f4-0085-4eb4-8e17-4d783a0ee57d","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":73,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"4df9bbfa-8d71-4894-80c6-e5a06849d454","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":73,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"7f67c348-5a79-4252-abbd-70f86d9775ff","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":73,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"42079667-50f8-4667-893d-86390a412dac","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":73,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"9c5358e2-cfb8-4aa5-842d-4934fba5df89","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":73,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"265c5f6b-0269-4433-8dd9-7541536842e3","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":73,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"d48eb59a-93d7-4841-9ab8-7a783219b0bd","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":73,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"ee6bbde9-5d49-4aea-a177-568334a22733","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":73,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"17732dd3-0c09-41be-a8ee-766efa6e1793","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":73,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"d9d340ba-5acf-4277-961d-52250a658f66","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":73,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"082344d0-aa14-41e2-8577-cb7559d7e2a5","block_type":"box","text":"affected by a variety of factors.","page_number":73,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"da64a6c1-4473-4e81-a2d4-e1b6ecf9d0f6","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":73,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"c9fa9ed5-ed10-4de4-a5e4-3fcbc21d93da","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":73,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"a2046558-2d1c-4d9a-a427-f8d6f1aaa11a","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":73,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"fe7eb1cc-6c2f-4123-a57b-53696c55a125","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":73,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"4b0573fb-77a1-400a-a117-0195ae548969","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":73,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"a6e8568e-8fd3-4dde-9269-6d32d2c6fab8","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":73,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"1d56c7cf-8933-42d7-b423-dc54607b5115","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":73,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"4a4eb495-1cfc-490d-99bc-0ac1d2025bf2","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":73,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"cce71cfd-c082-44c5-8bcc-3c35759eaae2","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"8ba31aa4-937c-4819-855a-aa2320634a52","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":73,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"0bee4cca-6d1b-418f-ad2f-6c3f7058ecec","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":73,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"18edd043-6f5f-40d5-8ab8-6943bf109e36","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":73,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"f1f726f7-f0e9-426f-b75e-9e78f2372948","block_type":"box","text":"nations.","page_number":73,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"1e17e097-e9ae-41bf-9ae1-0a58c75fe43d","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":73,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"53a6d9a0-5e55-43c9-8afe-35646aa27e78","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":73,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"f3c09170-e295-4a83-b17e-443b49dcdbd8","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":73,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"066e1275-6d09-455e-ba33-0e8f88498496","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":73,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"53c08313-dac1-42dc-ade3-0a5fa95e794c","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":73,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"e2b9dc38-aa0f-44c9-99e5-82416ec50969","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":73,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"e906820a-15fd-43e0-897f-d7ebf4308a49","block_type":"box","text":"market Asia-Pacific companies.","page_number":73,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"dd1c5497-46d4-4968-8bfb-a2f21a17d7d3","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":73,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"c5cc2585-f46a-4f83-b4a4-b42e289e140b","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":73,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"64895514-e6a9-4f39-b411-991bd9b21ca7","block_type":"box","text":"services for such securities outside such countries.","page_number":73,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"d5d09321-f490-4fe8-8d45-93cfcb6f4a32","block_type":"box","text":"II-36","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d57abda1-5d52-4c6f-8256-61773b7e4969","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11c17650-beca-4704-91e7-da0969855f5e","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":74,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"cfcd5d9a-f80b-4ab4-9cb1-075ba8796015","block_type":"box","text":"to commercial banks and foreign governments.","page_number":74,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"51c134a6-89c1-4cbc-9d0f-ef96c3046ac1","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":74,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"ea5be5b0-2ff2-43fa-bc4f-34da5ca2d0ab","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":74,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"d7841874-9c75-49da-8a76-cff8a8d36ae5","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":74,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"d99549b7-8257-4fc0-af51-aef06cca0890","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":74,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"001f0eaf-97a4-4457-9acc-43841f89e638","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":74,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"fcdb8996-4f25-4b94-af1d-04d0cce8fab6","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":74,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"e6fa02fc-ff4c-4930-9c8e-a308d09b069f","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"79c371a0-865d-462f-80e4-047c5aa23dc6","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":74,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"55d6534a-f928-4341-88f2-e963c0da17e4","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":74,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"f02c65a4-ae63-4db4-bf1a-5fc1d43a0d3c","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":74,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"14af9a46-5c85-4665-ba42-29b2fffe0899","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":74,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"8d9d6c8f-50a1-4a42-9b3f-fe1ce42589d3","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":74,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"20516818-3421-42fd-9a2e-eb7573841979","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":74,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"7c2dbb20-fc39-41f4-b07a-1f9bf266e6cc","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":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"37005d5b-6267-422d-be54-50249d57c936","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":74,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"b83d785f-10e7-4207-9e9f-60665dd95057","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":74,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"91b7b3e7-5c4d-46cf-a37d-95b605500677","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":74,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"6245f7bf-a47a-4c78-9f3e-ff59704f0a7e","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":74,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"f714af41-ffe6-46e7-97c0-cd65bc33a996","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":74,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"cc80694b-f05d-418b-950d-c74a0bff4066","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":74,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"86cb1701-f67a-445f-9e66-58aecf556948","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":74,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"606da187-9c9c-4c23-ac09-980d242f32dd","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":74,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"09e40aba-9019-4b0c-a32f-64a0cb633467","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":74,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"4bf067a7-c71f-4d10-81bc-611fa7d95b96","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":74,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"322db951-4ca1-4e1a-b2ef-1b9fc9ca43e5","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":74,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"703b1eb6-d819-4fbc-af15-d608b31c6e40","block_type":"box","text":"investment at that time.","page_number":74,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"191aeb05-9ff0-4406-8b4a-c4231d17abca","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":74,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"2265e53d-2d98-4a81-944e-ed9f8c5c2543","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":74,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"a1d1290f-eb03-4853-8815-e9af28f265f9","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":74,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"453438f6-45dc-4058-a5b0-ce880a6deab1","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":74,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"2bc740ab-d240-4a3c-b658-fdae6a575a77","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":74,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"2b97003d-2edd-418b-932e-e7e1014dab78","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":74,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"d9fbfd35-8f0d-4a73-854c-1625133437c3","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":74,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"21d02f4e-d1fd-4826-b478-ecc06d170c23","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":74,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"6f71b5ca-09da-4f53-b82d-f31fcdcf2fd2","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":74,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"3efe6d3a-bb02-402e-8f78-bf86e548127a","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":74,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"73c72e3d-024f-4ee4-a63b-776ca5d120d7","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":74,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"00cf745e-31a5-4b44-ab9d-78ef26ff2a03","block_type":"box","text":"government).","page_number":74,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"2895114b-beee-463a-a1b6-baf61e16cd81","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":74,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"0969bbef-a857-4f23-af28-8c953a6d7781","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":74,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"23dff9f1-d6b6-4de6-aa88-bbf96e192748","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":74,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"06f6d705-6556-4313-a6a1-e9a1a2e5cc93","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":74,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"2c5a4097-c4ec-41dd-9afb-fa1e16d88912","block_type":"box","text":"foreign banks and other financial institutions.","page_number":74,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"0b154de8-bddf-430c-bbe1-7c36698e8671","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":74,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"570c847e-36ff-4cb0-8675-cfa704b5e9db","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":74,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"d36b4a25-f635-45f0-807f-a6094ffa8a69","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":74,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"5ee70ff0-52a2-4a60-a6e1-3d1f23ebd28b","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":74,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"901f0f8a-6e71-4ba7-8143-986797d72945","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":74,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"1687427d-5f97-4e4a-b171-6317665f4e41","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":74,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"afd3460d-339c-4bf3-a70b-0d21694711c4","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":74,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"9fd8619b-b6e8-44f4-87b9-0e03746f865a","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":74,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"e1c5dd6a-6afd-45fe-be19-60d2b2f38713","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":74,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"6eb3d7c2-c09b-4c59-9e0f-3aa2203708d9","block_type":"box","text":"II-37","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31f3c826-b237-44ef-8eb5-f6647ff39482","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27a98783-8584-40dd-b2a8-8dbed4225ce9","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":75,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"719a2bcf-6375-496c-a558-60006c00865c","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":75,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"d1fb2fba-1567-4a60-aeb6-a07241fe96ab","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":75,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"2f63d021-4539-4b97-a2e0-f6825a14ad73","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":75,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"e61b5431-0622-4d4a-8704-21e44d0c1940","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":75,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"e04c85e5-9eec-47e3-a1cb-800df7f7d18a","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":75,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"a5c03e59-7245-40a9-9322-c07c9e839094","block_type":"box","text":"foreign securities.","page_number":75,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"342a9289-595e-42cc-a7c0-265d8dc6770c","block_type":"box","text":"Risks of Investments in Russia.","page_number":75,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"5e7bcc43-7a26-4437-97a5-910dd5796733","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":75,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"96017377-2976-408d-b6e0-483897eb6114","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":75,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"6d1e499d-e6fd-4b03-8b8f-cfd251502df4","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":75,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"01e1205b-3111-4239-8ee6-5d203f8284b2","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":75,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"87f3aada-7344-4452-85c4-eb1871758669","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":75,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"3d7cab44-257c-4e82-ae36-93b212bacf9a","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":75,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"f271daaf-add6-4157-9d1a-640023d09977","block_type":"box","text":"developed markets.","page_number":75,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"4ba9e2fb-1b75-4bec-b879-8ef1984da8aa","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":75,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"f44d5dd6-75d3-4b02-9dd0-6be01e780727","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":75,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"16fc51c1-aee4-40b4-90fd-9b4115399225","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":75,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"f0617c45-6a96-40da-aefd-53da700556c7","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":75,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"da7813e4-26b2-435b-bb6c-ada2f8903881","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":75,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"a62e4a35-e7c0-4f94-b0bc-d3412e6cd1c6","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":75,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"23a00422-789a-4c75-ac97-add0c018df17","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":75,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"89457552-e092-447c-b49c-2e38f0d78f03","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":75,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"498129c5-e5fc-40e2-98e6-9effaf406ad9","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":75,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"5fdb25c6-6162-4a92-b2f7-8efe83b4b33b","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":75,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"218f9a43-64c8-4a08-b2ea-bde845b374d2","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":75,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"87c638bf-a3fb-4a54-a7bc-3a7bfcf84684","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":75,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"fda19fab-c704-4348-8093-3932be0f8472","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":75,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"607ab125-c8ef-4462-8851-9876396637b6","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":75,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"2428edff-cfa0-4504-8ec5-cadee9f7b1cb","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":75,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"54bcb314-16fc-4129-89b7-15908ff824a4","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":75,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"b4b6c232-aa6d-4078-b8a5-020b2da6d3ab","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":75,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"decd7bcf-2480-444a-a30e-85f311efc615","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":75,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"dcfc24ae-ddab-44d9-84d1-eb05fcffbc76","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":75,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"2b247052-b20d-4679-af18-6ade253398db","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":75,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"27d15f93-7416-4b59-a614-130372d857b9","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":75,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"7b1a5dfb-3d92-4b4d-b0e2-f8ecfd7a71ea","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":75,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"2ad1e3c4-10ff-4d16-940b-a03045a74f3d","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":75,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"7b20cddc-18a2-4717-a14a-ee10e0755672","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":75,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"a937f524-2e12-4f07-b59b-d974994af5c5","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":75,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"0f20df95-7a69-4178-8a99-e40c28d979c9","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":75,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"f0fede82-91ac-44a3-9c48-b12f62d05192","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":75,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"26e6284d-984a-4dcc-8b84-d0f73e75d1a3","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":75,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"b2fd319d-01ef-42ef-881d-2470932539de","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":75,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"56048953-0ea8-4e54-b56e-3f441e014096","block_type":"box","text":"sectors globally.","page_number":75,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"25f2a3ef-717d-4c07-aca8-0145752cd044","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":75,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"ecfd103f-6950-433e-a3ef-c071bdcec01a","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":75,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"f7302c5f-4c40-48e2-bfe9-071d85f65326","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":75,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"3dcd8fd8-9535-4d4d-bd87-f42abc25f39d","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":75,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"9523355a-7620-4c1c-925c-1591096319ad","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":75,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c23419c1-5c86-46bf-9b36-19bb37cb618e","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":75,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"a5ed8d2e-df4c-434f-b50f-6cad71e07330","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":75,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"d6058e12-129f-4381-83a1-78a5146e9e50","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":75,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"d8c81fce-8875-45a3-abf4-51d2254625b6","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":75,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"1a007ca6-792e-4d8d-854b-7aafb47ead7b","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":75,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"b217b151-2e0f-4571-900a-ba1b6c5d4e9e","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":75,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"5691d738-c199-4221-a346-25381b8d94c8","block_type":"box","text":"II-38","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6189372d-9455-4ec9-a545-4a8cbf7a3190","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"780a8b4c-7750-4faa-839c-4e6e402c2909","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":76,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"08dc3d80-a232-4f53-814e-19423154a07d","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":76,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"3654b0bc-069a-4d83-a705-e53a3531207d","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":76,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"8b9a5547-f6a8-4d5a-b0e0-8aa2e0377847","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":76,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"e0aeb8f6-722e-4038-ab3d-1833f3efef56","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":76,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"3163d0a7-13d8-4009-81fa-d9b322cbb6c5","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":76,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"f6f747e6-f661-47f3-8911-2dd7595488f3","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":76,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"512c3f0d-89a2-4056-bc35-907e20a47053","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":76,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"da4a5ebf-7e7c-4b60-a0d2-dc1227694e33","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":76,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"ceb8311f-b0a7-40e3-921d-87f10ed297c8","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":76,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"63ffc3c8-dd31-4e71-8eff-30a8a3c903df","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":76,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"2dd7e1e4-ca93-43a9-923c-9a64ff23c60e","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":76,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"0504e19a-5a8f-4ccb-a07a-661421f38ce9","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":76,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"fc157ed2-6326-45e3-a055-1bfdfe2ddb93","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":76,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"1eacd0ca-5eb4-4dbf-947e-fe5a718501ed","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":76,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"7e5cee66-2a2c-4972-8d52-e20225a39666","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":76,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"c882b556-cb27-4c43-bfe7-a643ba921083","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":76,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"3c07e3a7-e998-41f4-908a-1313955fa74e","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":76,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"9d544a32-dc0e-461a-a997-72dbb677d2bf","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":76,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"3e1fb255-2314-4e7f-bb0c-1bc6dd377f19","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":76,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"c3c56c23-9266-4b73-bec6-8fb13f0f58e6","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":76,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ede78dfd-94d4-4d83-8fd5-b0d8e9fa3420","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":76,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"56f19f45-e49d-4d6e-8d61-4d34ac5f3124","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":76,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"12b82fc0-030e-41b9-a286-638b17ddf210","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":76,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"91ebd74c-23bb-4758-be0f-4ac7593c47cc","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":76,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"cb019292-2061-4072-9ad1-265a62bf194e","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":76,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"dd528141-a36f-44c5-ba7f-275b5ef194fe","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":76,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"7ea93d9d-8a51-48d2-9772-fbb316e4578a","block_type":"box","text":"impacted.","page_number":76,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"8e651de8-8ca4-4dfb-a145-d1794dc56c71","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":76,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"ab58da62-909b-4179-a5c1-14939a730326","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":76,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"0edef0a6-01d5-4f2e-a0c0-450a389169fb","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":76,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"45b73b77-ad8d-489c-8902-91835cf44f63","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":76,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a2f126ad-82ce-4889-a7b9-d24e74ae0c67","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":76,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"edd89215-bea8-45d2-ac6d-8bf2219c336b","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":76,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"d1d27706-d934-44cd-8a2e-e3b8e22951d6","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":76,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"faa5655e-63c4-4ad4-b7f7-05064f9c2348","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":76,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"3e81ee9e-46b2-48e4-8928-7e28e3321a81","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":76,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"f616ccfb-7432-4eed-8fef-b7dd95e8da6b","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":76,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"157d77ac-cdee-4b2e-ae3c-27b5b2fcabd4","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":76,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"939ba7a3-4a86-40f4-a99f-90262c740dc5","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":76,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"84a7a871-aafc-4d93-824f-1970942c6182","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":76,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"852ea1f8-6579-40de-9beb-5077320fa40b","block_type":"box","text":"economy.","page_number":76,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"41a0fa13-6ba6-4b74-ae93-9469f16f4926","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":76,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"00b0d11b-0a2f-4623-bc6d-64e15ec6b0b0","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":76,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"f1427b28-e1a2-419f-9e60-0e1aa7b29585","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":76,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"8efbb9ea-3c22-4538-995c-f72f3284ed71","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":76,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"fae8d0b8-9141-477d-a9e6-ca2f2946729f","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":76,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"66eb8ec9-68ed-4baf-8d1a-233b858bf866","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":76,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"8a9c5334-10eb-4d33-aee3-aecd81cd32f5","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":76,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"cb74a412-7edb-4dec-ac48-7c26305d1555","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":76,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"b8918d36-922e-4d15-b558-eb5f723f99be","block_type":"box","text":"typically the case for investment managers.","page_number":76,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"7bf93717-1f0b-4cbb-907f-b2b156fea312","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":76,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"fb2de793-54cd-429e-845e-147e395dfd8c","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":76,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"2efd51a5-9789-47f6-9d22-be1245ac32cd","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":76,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"923f5961-94c5-40e5-94cd-affc62757408","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":76,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"3c67cd94-286f-4033-a6ca-e2d7fa61f6da","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":76,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"147aa7f5-6ace-4267-ba36-6d5560d00b3a","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":76,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"8336dc80-e126-47ce-a808-041b5b2f2d0b","block_type":"box","text":"II-39","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"79188156-ddd5-4dbb-901a-ba37dadfa3e3","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2235b901-905c-48c2-8767-742b55b54765","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":77,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"e0a82991-a879-454e-b1fd-a604210afb64","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":77,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"134ca04a-8ecd-4a24-b7c0-2b2076cf3c43","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":77,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"8cf52261-9920-4eed-a6f4-97727dc38fd0","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":77,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"b27e895c-55f7-4816-a212-e617ee2ed231","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":77,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"395bc9c9-2b5f-4257-946a-e85a6d7d27d1","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":77,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"b7fd541c-7244-43d5-a5b7-b07f951596cf","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":77,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"4e747df9-430a-4f47-bba6-73a8a63ba40d","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":77,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"def9c135-c8b2-4a8d-a7b7-ec824ee88434","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":77,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"41ac2256-50f2-486b-9730-9a870ac303cb","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":77,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"c57100a0-5183-4d08-8aa2-5773cf6bab21","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":77,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"4a3e59ba-e78a-4e8d-9524-1019210797d4","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":77,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"86956072-7480-4ca3-9c00-4af8381c5009","block_type":"box","text":"will be indirectly subject to those risks.","page_number":77,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"dc16644a-ee2c-4581-aaf4-a5eea273f6b6","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":77,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"c9c86e94-9c57-4687-b392-d94c02bcd487","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":77,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"848123ab-344c-4bcc-aadd-02e1ad54ad1f","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":77,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"9a942608-327d-4487-9c48-5056e30dfc62","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":77,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"d59d5640-bfac-4618-bd2c-c52baa0e80a5","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":77,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a7ff66bd-413d-4989-9075-5202488919b6","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":77,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"227097d5-c007-4498-8220-c5436971d03f","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":77,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"b88a88ec-8757-465e-b868-9d2cb5627ab2","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":77,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"8993637b-d4b1-476b-bc00-bb0f68b9bfb4","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":77,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"7e53263c-3339-446c-9e6b-fe95acdfdfde","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":77,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"1f55fd20-2b1a-45d6-8300-ce0e2c91f444","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":77,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"7f2baebf-0bf0-44b1-8481-e1a53a8d23e4","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":77,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"82d521eb-3120-4912-ae5c-a757e1a49ec1","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":77,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"a762bfae-cdbb-453d-a24f-5a7c6e52ffe9","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":77,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"e63446ee-18f3-442b-b437-cf23c1fd049b","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":77,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"1ba7d3d6-110f-4d05-8260-41b93ff717fa","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":77,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"85bf6592-6fde-47a6-ac4e-09d4a08e5edf","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":77,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"d79a5261-6aec-46f3-87c9-70004fa972d6","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":77,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"243cbd37-9a43-4757-91eb-4875cde02943","block_type":"box","text":"impact on a Fund’s investments.","page_number":77,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"57f7f0bd-cb32-4be8-9590-d2fbb2509038","block_type":"box","text":"Brady Bonds.","page_number":77,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"b2cd3f76-301a-436b-b110-7dbdc5354fa8","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":77,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"17f9b6af-3bb7-4003-a19c-f7ef9cf7e157","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":77,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"3c956aea-186b-4ddd-94e9-442b01bdbfa5","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":77,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"869f2bde-cc1e-4261-8ad3-8267f588d353","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":77,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"df81bac5-5073-4da8-9251-390314284f97","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":77,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"37fc2c00-ab4c-4512-a7c7-8d8176fb8bb1","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":77,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"c851eefe-12c4-4eb1-961f-4a0a509bd8e9","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":77,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"3c8de3ce-0910-4e0e-a084-d63ee1b16e48","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":77,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"8b965b54-1928-4d05-90db-c6e58fb0af7a","block_type":"box","text":"Venezuela.","page_number":77,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"a1fbc456-1340-47fb-8863-e9931b6f7237","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":77,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"65298267-ffb4-418a-ac3e-505e7ecea12c","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":77,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"e8d6e1fc-7799-4431-a713-1022095feb79","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":77,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"8b2ef36c-9551-4d15-8d4f-50c475722c85","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":77,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"0b54f9f8-9062-474f-81fb-4d4c87324a54","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":77,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"56cb8212-f5a0-47b0-b7d8-9ac73fdc42b7","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":77,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"c1f3f12b-3df7-412c-b336-53edd95d095b","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":77,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"972fad38-21e7-4698-ab45-5563b1b0f4fb","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":77,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"bfacf7a0-618b-41f9-a5e1-c49ea2940032","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":77,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"86897593-b345-4300-8d25-fc251dae63fa","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":77,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"7255cc56-2c4d-439b-8c68-b9f3aa0a55a1","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":77,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"89099fb1-acd8-46ce-8a93-a41e448b41eb","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":77,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"46e5fb5c-5474-41b8-9bb8-2e5ccfd1badd","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":77,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"f7a81b5b-7dda-44c3-9d92-60e4dd771238","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":77,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"b214a695-3e42-45b0-b3ba-2ee81a27dd5f","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":77,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"773dd778-be80-483c-be40-167942352e87","block_type":"box","text":"II-40","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b17a6f3-f65c-433b-b15f-13bf2b51551b","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0082b015-7ef8-4b4d-aac2-365229fe7b58","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":78,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"6d09bb17-6479-4d4a-ad03-933359bdb3e8","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":78,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"12122de0-9adb-4a53-8fa6-b1b0fb540323","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":78,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"ed9ca5ed-79c0-4eca-88b9-c68c3fc5b50f","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":78,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"c29ff6a6-e672-4f49-bbda-42588b40a13f","block_type":"box","text":"China Investments Risk.","page_number":78,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"ad673d77-5cd0-45a5-8379-1d0b3fda7743","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":78,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"747c147c-186a-4d02-8362-b1d773293e86","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":78,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d9677dbf-e89e-4494-810d-9577917af501","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":78,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"80f2867b-7510-4b96-9480-8b49ddc8f522","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":78,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"ecfc8c13-7469-43b7-b618-271e2b1782c8","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":78,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"c0c78c6e-5f8c-4bbf-a4df-c01453a7106a","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":78,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"debcaccf-8d33-4948-92b1-a58cbbab6410","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":78,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"0cfb40af-b654-419f-bf46-b54e31e5585f","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":78,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"7e687615-9164-4a91-96d3-081cdc57c9b0","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":78,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"134065cb-e8ec-4052-b43f-1707175154b4","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":78,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"577dac84-f03a-4408-babf-548dfb4b0aa5","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":78,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"2a5066b0-9f5a-481a-994a-447918116ec4","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":78,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"76cbd4e0-4aa7-42da-840f-6258e40b8037","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":78,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"24e55f7c-30ea-47a3-8fc1-b038f1c893da","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":78,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"0c056ca4-12c7-4773-ab62-522acb6bf699","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":78,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"4d866824-2205-4a43-be4e-487138f86f87","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":78,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"8a39b9d8-c89d-4cbd-be59-df8efa0ec8f6","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":78,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"45ff6982-0a19-4630-bbdd-285e6e85aecc","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":78,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"d9c9ef8b-9468-4ac4-b79f-34a7db1f0e3a","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":78,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"58df0ff6-8f79-411c-9d8d-b32fc90ae092","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":78,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"b453bca0-4a68-40d9-8343-5bfed1732648","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":78,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"1e685063-5696-42e7-ad9b-c6c857e90051","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":78,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"56b76db3-096d-4e48-bed8-9e634ac3f902","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":78,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"9ce90995-5a3d-467e-b503-0ce83a932d75","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":78,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"f97b29b5-78dd-4021-b740-e2df9ab1c7ad","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":78,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"76ec18ee-87cd-413f-89d8-158b171821ef","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":78,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"900b9e38-6582-4635-8557-e4bb35a2ab25","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":78,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"82a5c24b-1263-418e-beab-0febe05979d4","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":78,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"ec017f42-0f7d-44ab-a8ad-a4d744feac9a","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":78,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"91dff81c-6c7f-4285-b889-28d669def3f5","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":78,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"e14840ad-fbc3-4c56-ac47-6be689171ae9","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":78,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"51ab467f-0759-40aa-9eae-419892fcb140","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":78,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"48b2004a-7ef8-4c59-bde7-c64c22c5c0e6","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":78,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"9089e72c-a83a-4876-8446-f87f0d711c71","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":78,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"555d1aba-ffcd-4cc1-aa9a-fd7a5021759f","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":78,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"1b3f0036-40ef-4993-9902-c0b7999a5497","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":78,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"7e8dec84-797d-4e5e-aeb4-a8a71a370c6e","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":78,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"6417b60a-609b-46f2-bb53-3b6f881447a5","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":78,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"b74e2657-2a27-4342-845d-a71867babdde","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":78,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"22fb3531-d051-468f-8965-0bcee1e4b1a0","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":78,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"af2991a3-2e2f-40f5-a078-5a668f65744e","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":78,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"e6e8624d-1a49-456a-9fa5-ca3224af3b02","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":78,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"de77e362-1463-42ae-a8a0-0fda50ebc34e","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":78,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"ffda7b3d-39e5-4d76-b7ca-f1abad11e3c3","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":78,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"f7abd123-d7ea-4fa2-95ae-1c670af6cc3e","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":78,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"e7b71c4a-6f40-44d7-9e2c-a868008564eb","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":78,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"da773fcd-8744-4cbd-bc17-3519e86232ed","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":78,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"88d1fcfc-e43c-419f-9f47-0e67d263c0e7","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":78,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"6013c334-c985-41d4-919f-369ea04a7cfb","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":78,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"e31c143f-55c6-4262-821b-d1afc3a2d7de","block_type":"box","text":"sub-custodian.","page_number":78,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"305a9bf2-7e3c-44e5-85f4-decf3d450d01","block_type":"box","text":"II-41","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f4c88cfc-d61f-48c9-94e8-b3c240f59e9c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac5fcfe3-cabe-4850-9d44-495d877f7436","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":79,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"76d4d514-36d9-4c83-8809-b5d747bf9edf","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":79,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"60eb7028-0424-4a5b-8768-65514bb4907b","block_type":"box","text":"on investor protection considerations.","page_number":79,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"424eb558-2a64-4c95-9e66-dd04f86a2db5","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":79,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"eed22f88-4a19-4e81-8576-a9be1bfe81f4","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":79,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"310e9730-0403-4496-a6b1-fa3f6a7b54d7","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":79,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"64d1af6f-493f-4fa5-aa16-6bdc95f94775","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":79,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"d6c621f4-fa16-49d8-b4c5-675939d2ac72","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":79,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"6acdab5b-8cf0-4ed3-923b-268e1e0ba9a7","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":79,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"98d05c62-0190-48b2-8b9e-350400831e72","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":79,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"ceb48453-8b37-45a3-8c30-537c1bcc6150","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":79,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"95a9d982-6f32-4834-be33-b64456c90e63","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":79,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"5f2f0283-5951-46a5-a93e-b2c88ea86b34","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":79,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"81174667-5188-4b7a-b4d2-ae8479a76dae","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":79,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"45252808-6e86-43a8-9bdd-11832f134e3e","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":79,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"72a10b0c-a0e0-487e-8bf9-78673285a778","block_type":"box","text":"accounting firm.","page_number":79,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"343a7dd0-bc4e-4033-8f7d-4efac9606458","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":79,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"0da3b8e9-40ef-485d-ad7a-d2950039c500","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":79,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"8ab7e6ce-2295-4568-938b-63c623c7d9b0","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":79,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"4fb59662-3d25-42a8-8893-0d1e76554d46","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":79,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"4eb4341c-64b4-46b5-af95-4213e6c93762","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":79,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"2986a0e8-d45c-4ae0-9b87-d02d9aca33db","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":79,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"8fae864e-89ea-44cb-9693-0ffd205663c3","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":79,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"ba0c8630-3992-454d-a809-d16db281043f","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":79,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"bf6bc9d1-02de-4924-92f4-925e310e4690","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":79,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"1a2b3c74-9985-40dd-95c1-97f95a8a2704","block_type":"box","text":"RMB (“CNH”).","page_number":79,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"3ba281a4-ad66-48e9-b2d1-40c9cb1afaae","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":79,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"73c4bd90-cea2-43c4-a5b4-ccdc4fbee173","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":79,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"c8227d1e-956e-4dd7-8455-c9f26ea85013","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":79,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"64120901-775d-4f71-b74a-1df03f44805e","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":79,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"2248be12-2444-4067-9659-c232c41f1f5b","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":79,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"b08b84dd-6cc5-4c0a-8428-183ea8cd6009","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":79,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"726eea0f-1c5d-492c-ba60-215ab7eefbab","block_type":"box","text":"represent equity ownership in the operating company.","page_number":79,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"0e779710-ab25-4344-a6d3-bbc505ef2e44","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":79,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"4959ccfa-9188-4b99-9715-dd10072fff21","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":79,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"d0ec2146-328b-4018-a05b-6fb4c4615e02","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":79,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"ba9b8f2b-238c-452c-9c19-849aa59407a8","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":79,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"2e33a109-b01f-4462-a437-8943d031601d","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":79,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"85f05039-43dd-4dc5-9120-ac9b6c3e0b1b","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":79,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"00da07ae-40a1-4167-9f76-0ebc38e5f97e","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":79,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"295ca32b-e6aa-4d7a-9b34-7fdc4209901c","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":79,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"85408b4c-fec6-4fb2-bbdf-f235240bc050","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":79,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"138d9edd-ac2a-4c18-98db-fd2cfa3fcfbd","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":79,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"142bafe9-901c-41e1-82be-d0a3e80db846","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":79,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"61a50a9f-6ddc-4ca8-924b-2f1f937c74b8","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":79,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"b00e185b-2078-48fb-97de-2530195a560a","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":79,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"9d30b4ee-af84-44b6-8a86-e5fa0e3f4337","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":79,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"e00f4312-59b1-46b8-9b41-1860b7241510","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":79,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"c59c7076-8f5d-4990-a69a-f146ad97035b","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":79,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"5aeeff21-4383-4799-a5d1-7e28410ba523","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":79,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"8bb73f9c-7c73-4fc4-907a-43f0d8beb046","block_type":"box","text":"losses to a Fund.","page_number":79,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"b64b9455-29cf-4ef2-adf3-953d58379299","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":79,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"97ae59e8-b618-43d4-88ce-0d557d972213","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":79,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"a47aef11-b0c3-4f4a-b725-530a35854f88","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"fe67a687-08a6-4258-8e94-d461cb543379","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":79,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"f5cf8829-b7f4-4366-bd1f-b3329d820570","block_type":"box","text":"II-42","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b23a7deb-afb4-4861-b3d9-fb251e542322","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6366b711-b1cc-4a9d-abfc-ca5b2309477a","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":80,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"a2c9e91f-8aa0-4f93-bb32-3bac35cf9d2b","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":80,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"038d254d-d048-4aa2-b052-2eb0dadb3eb6","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":80,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"c882f55f-677c-4865-a4ef-5b8ebf9db812","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":80,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"32ea9ecb-4004-40af-860e-5d57e962008a","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":80,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"6f6b0add-1051-45a9-a4c8-335fbc903f64","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":80,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"b0d5a0cb-541c-4658-9071-5a38c56ca133","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":80,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"4cf1fc79-4cad-4eff-a65b-b1073577a089","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":80,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"c6da60f7-4822-45a0-8b3f-e8d33d7c88da","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":80,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"506d6342-24ae-491f-b5c7-147efb16c13c","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":80,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"47d1cd0f-d189-485e-973b-cbd20c437e26","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":80,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"bf6c336e-abb5-4c5b-bfb1-b6e857a3590e","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":80,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"3a0a0d44-337e-4cd1-96a4-d66c6d329b2c","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":80,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"85b8d2cc-25ad-4f7e-8e68-414bcc7603b0","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":80,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"6097182d-a8e1-4d72-b884-5e14eb28e229","block_type":"box","text":"such companies.","page_number":80,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"2fd99b59-8652-483e-baad-8bbe6090b35c","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":80,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"648f4c2b-7dab-4d6f-8849-ff057995fd70","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":80,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"66846b32-7a16-4c67-86c4-e5b958a00b20","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":80,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"69598676-563f-4ff5-a3da-5d7b0bf0c70b","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":80,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"6219f8c5-2f24-487c-93ca-9ac3b0d4739b","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":80,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"8f19f7f3-f8d0-4683-87c3-8c8403b9c052","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":80,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"f4ad0bfd-47d6-4ac9-80f6-0f86b1636620","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":80,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"69c28856-bd17-484c-a4f1-f34e06c6b910","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":80,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"d3f0c950-5ac2-4d10-907a-b077c8f08051","block_type":"box","text":"standards.","page_number":80,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"3811391a-851d-405b-8ce3-faa0ce22c5f8","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":80,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"14c109a4-235e-4080-a70e-f13881b9d70a","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":80,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"88ac3b75-6e15-4b36-a8b4-010e6d307321","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":80,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"3f9a1975-ab77-4474-8761-389c065c4515","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":80,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"3521a496-92c5-45cf-94af-431796ed0d07","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":80,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"8a760a04-2fe3-46d5-be51-0bb430a68402","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":80,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"d9872988-9602-491c-bdd4-ec64cfcb46b5","block_type":"box","text":"General","page_number":80,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"855ee924-d9f4-45b0-903c-3bbe59b8529a","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":80,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"5f5a2946-e1b7-413e-b925-f312ee4a790e","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":80,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"76374f01-bb9e-4f9e-b975-18fc87c4ef46","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":80,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"59ededc2-5b28-4184-adaf-5658f4972514","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":80,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"6d84c47a-49dc-40ce-a48a-72a3018c6974","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":80,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"2dbba95e-6a55-4eaf-b40f-bbbf719b3aea","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":80,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"92fa424f-5412-4b64-ab96-2a892c09b896","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":80,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"7bb47902-3b7c-4481-bb80-98dab0c4057e","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":80,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"1e7ca953-1f32-47c7-8c2b-a51f41d25da1","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":80,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"a46e25ff-98bd-4040-9d96-f3b793ed6763","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":80,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"af70c1cf-e876-4f1f-aa28-384bea1918dd","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":80,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"bbf52eb8-9ea7-4b72-b28a-507f2fe164d7","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":80,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"86ed742f-6e38-4b81-8b51-58da65f822d0","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":80,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"c003ec79-079f-464e-93c9-92b0074b72d1","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":80,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"dcef9d55-1f66-4eb7-90d1-f30cf449e34d","block_type":"box","text":"company established by SEHK.","page_number":80,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"1ecf4775-5597-4daf-84c7-c0e5614736d7","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":80,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"75ade46a-9851-45d6-8510-65741afb0cb6","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":80,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"966ce462-bee4-43e6-9034-095b08928a91","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":80,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"bb6a146d-6627-41d2-9e49-8205a88ed110","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":80,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"a2d6c358-26f3-471c-a77c-535e533e325e","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":80,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"fb716677-f7cc-4e71-abb0-33ed2ec8104b","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":80,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d0257d6f-3047-42ff-8961-bbdc59b15db8","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":80,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"24bbdbf6-d2bd-4548-abb9-9c8e94db1962","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":80,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"2a0e2601-0fe2-4914-9ef5-0e23612805e5","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":80,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"84b1432f-c218-4a97-bbbd-f09795940d54","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":80,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"bcf7a548-ae50-4886-bd8d-8ee69850c788","block_type":"box","text":"II-43","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76c9f638-4d16-4847-b58f-7292406075a4","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e31c977-54fb-4ce6-a039-a259622477cc","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":81,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"46ef1c3a-008e-450c-8929-4b4937f91baa","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":81,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"24d37db9-1ba7-4398-b0d5-d98d0265bbef","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":81,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"4c591a75-cf63-48bb-ab4e-91775f5db973","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":81,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"89691699-f5cb-46c3-9fc6-dc7669f378f4","block_type":"box","text":"i.e.","page_number":81,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"b1ecdd23-1a0d-45ff-be1d-3d07cfb31668","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":81,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"440e17e0-7768-4309-97ad-733230d47a70","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":81,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"6e0a3a6a-0756-4f01-bdda-2de5cbdc3fda","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":81,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"662dc08b-bdec-445c-ad43-55f451fe3e42","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":81,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"3fbf5a21-b664-4582-abb0-03e711fcfaa8","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":81,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"02d6ebf7-1ff6-41c8-b1e0-d4016f40aca3","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":81,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"454ffbdc-7995-4579-8bd4-60dfcf828a8a","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":81,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"13d9c844-55ad-4414-8742-5b054a59edba","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":81,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"8c055060-1681-43e6-b6e8-3313d3e10147","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":81,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"ff313081-1e32-476f-a707-34d759896314","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":81,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"bfef93cc-4b53-4f8c-8abf-befd314fbea8","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":81,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"0c889bce-afcc-4046-ade8-9079078baad4","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":81,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"3a4ff979-6279-42b8-a855-ec1f45764dc5","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":81,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"12fb9f47-49e6-4696-af0f-8dc1d5f19ff4","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":81,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"ef30906d-16c6-4bb1-b13e-96d989b8a04b","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":81,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"68cf0092-a1b1-490c-bda5-1f41de134fec","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":81,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"ba0aa9e0-3b4a-43df-85cd-47c8e82ed290","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":81,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"7e3373dd-4568-480b-bb49-770f6b5e58e3","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":81,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"c8dad8ca-a42b-4da2-b1bb-f2dda4a237f9","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":81,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"01cc7a6e-9038-4ae5-ae3d-294b7d3fcf68","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":81,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"6aa1b517-534b-4a4e-8f1d-50c1a30f618b","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":81,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"f48c3fc8-9930-409e-bd59-b1e9a2e51362","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":81,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"8ec1582e-8e4a-43b6-bd80-b53e7b022ab9","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":81,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"c73eaddd-e841-4997-9901-8ade54245f59","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":81,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"b72b066b-ead8-4ab5-a4d6-24217c715405","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":81,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"b043168a-450f-48ce-89c9-6a121f37b78a","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":81,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"ab1dd831-bc40-4218-83a9-1a1b6cf79d90","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":81,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"60fb3b91-4fb9-43ea-9f5f-810974ea1ff6","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":81,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"3c0bda73-a6db-467a-a8b9-cde0df1d35c9","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":81,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"751d8720-79dd-4a4d-ba05-cf6d8e511ef1","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":81,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"7160a791-a919-4208-9cbf-3585ef6a44cc","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":81,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"d517b0cb-0560-4966-9c30-be91711ea6cf","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":81,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"e903370c-1434-42e3-a9e3-e95116d1cbdf","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":81,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"60ff2aaf-5c78-4b76-bab3-642892cf2d50","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":81,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"05a68232-a241-4e77-a757-908a82090fbb","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":81,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"3fb14ef5-53b5-4533-8b55-85533fabbb80","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":81,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"dc926ab0-0245-4cd9-99e7-fefb08735c3c","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"33f60e8a-6de4-4b0b-85d1-ad83e2f311e5","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":81,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"28cc6d79-45c2-4043-b254-9430dbccdb48","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":81,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"1d3be4ee-44f8-41c0-8f79-9d3337ecb153","block_type":"box","text":"PRC.","page_number":81,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"fb8edaa4-c1b9-450c-9d38-b54d71dcd342","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":81,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"8eb60cde-b128-4440-84d9-a7c50d99594a","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":81,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"1b1d1519-c7ae-446b-8e2d-6eb364c47d7e","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":81,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"0b6bcc76-724d-4dcf-ac71-45b7705a1ce9","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":81,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"21b69d5f-07b7-46fc-85f0-7496b55cdbc9","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":81,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"a6162ecf-4ec3-48bd-af11-911d5f5404b5","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":81,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"419e696d-eb42-4714-9940-d51d9dea5410","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":81,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"36b4c203-583d-4781-8f00-7b808fef8aa6","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":81,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"2c7c8266-e195-4731-a946-ec9078a12537","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":81,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"902eaed2-f2a0-4bb6-90bc-cfb5d895321f","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":81,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"5f82dcfe-6784-4c14-a9d2-4046df134adc","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":81,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"c7de87ea-9d78-42fd-b870-14d8cd3c9dbf","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":81,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"736fdcde-7ccd-426c-9e52-a64f67d8dbc2","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":81,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"25173b04-53bd-4fee-b93e-5934b3fe8e78","block_type":"box","text":"II-44","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b5c6746-9060-4915-96d2-f2bd40273c93","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5a06a30-ffd0-49b4-82b8-4b5c839593fb","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":82,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"034af384-de73-40cb-baae-fa339474307b","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":82,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"8d0855d2-3060-40ad-8284-3c10b1ae2e22","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":82,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"85bef139-8029-41d5-a948-f5521b7886be","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":82,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"f5470b43-2614-4149-9965-cdbea46a8ce8","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":82,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"e7e963c4-cb42-4ffd-b957-f509069eb8fd","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":82,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"2ee59c2a-0f16-425b-b1c9-fce338a77d3b","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":82,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"63983198-3e24-4a6f-bf45-e5be24274896","block_type":"box","text":"Suspension Risk.","page_number":82,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"e6a41b0f-32f8-4030-9135-a8d4ab480b39","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":82,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"b900716a-5c82-457a-90b6-95b37a78e2bf","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":82,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"d2b14e17-140f-4fb7-8238-408444b5ff8b","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":82,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"5a339a03-2907-4072-b5fd-0101bb9bffa2","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":82,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"ff7b3e28-6ad0-4068-99d8-733ab900eb79","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":82,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"92061931-9c6f-463b-9247-3bad780275cd","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":82,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"22eb37a0-2073-4570-8a27-86cd50b65e2c","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":82,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"ee1e10b6-59b3-4461-995a-69ce5a0a1234","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":82,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"7ffe609c-3a4b-434d-803a-ae8d4864713c","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":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"9925d804-be49-451a-98e0-632cde520dfa","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":82,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"240b7b96-e4b6-4b9f-9dc4-0939fd6b54af","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":82,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"7f765036-1bf6-4d9c-b496-8913c1c0abf9","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":82,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"bf804c17-e93a-49ec-91f0-ba049a7a59ce","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":82,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"36a75ea4-926d-4dca-9477-9464524d587a","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":82,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"2af4a164-809c-40ba-9959-d0427691bee7","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":82,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"6c36c0ab-7b3f-41fd-9442-59c5eb0ea494","block_type":"box","text":"A Fund may invest directly in the","page_number":82,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"0e8d8497-e9e0-4317-b5c8-01b8f82b6397","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":82,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"096efb16-eb5b-4be6-bf33-7fd62b37f42f","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":82,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"15e603e2-a0ab-45f9-8ba9-b3bb47281c21","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":82,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"13601cf2-5b45-40c4-aa9b-b71f5da98850","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":82,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"019a5449-1509-4798-8833-43046440da6c","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":82,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"8a6a6b28-81b3-4aeb-903b-593bdc5f68cb","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":82,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"b7e49616-cc92-42e5-ab5c-b75741437f89","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":82,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"c72d616b-cdd3-46f7-9a2f-8a90ffd24af9","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":82,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"1ed7f2bb-4919-40ce-bfb5-5ffa3ab46854","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":82,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"baefa90c-84ae-4498-9315-8fa26649ce27","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":82,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"374c8fe3-618f-4231-ad8d-289ae6c32459","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":82,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"437b1276-3842-4d67-b46d-be0542557562","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":82,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"f7318fc7-0c19-414d-86e4-316c474c05d3","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":82,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"4518a398-5027-406a-a269-b5620c396a61","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":82,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"556ffd41-ac4c-43a4-8254-d29a3e03ebd1","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":82,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"dcf3d623-5ad1-4840-81b4-a4932d172261","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":82,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"716c0979-fdc4-461b-a3ca-ba9659311104","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":82,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"ab182c54-817b-4a6b-b4e8-eb76dc6bea00","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":82,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"144b647a-2ea7-4a80-b210-31667164cf20","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":82,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"3d4bd33b-ec22-4347-b021-844ab4f97b3c","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":82,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"0cf85d21-a4c4-4fdb-8c09-857fd301238a","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":82,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"1eecd741-539c-4914-a276-d577bc571118","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":82,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"6ca13ff8-7d04-4fcb-87f9-ed192cdc874f","block_type":"box","text":"i.e.","page_number":82,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"e743f7ec-ec4d-4e89-8ac8-a09891677492","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":82,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"0b1352a2-3e45-49cc-95fd-78d9fabffafa","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":82,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"b69cbcb9-0564-4646-b1ac-b0efe18bf1cb","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":82,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"7f015300-cdd0-4c03-be18-1f524b2061af","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":82,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"012c5ac8-03d2-44f2-bc79-3fbc260d1f55","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":82,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"da0fbafb-0578-4f1a-9654-05b478c2610d","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":82,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"cbcfe181-4715-42cb-a8b2-d4345f976a01","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":82,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"e7f164cd-1b2d-4534-a0e0-7b3c6312e588","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":82,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"6c1704c9-fdfe-478b-9452-05fae7fb3335","block_type":"box","text":"parties.","page_number":82,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"b870f499-df18-44c4-89ad-165bfd1171c0","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":82,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"359f2e1e-8135-4859-a51e-3fd440b93f38","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":82,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"5121d753-29d5-4092-9edd-8524c6554f53","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":82,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"c9040c37-4305-44c8-beeb-56f866de60e5","block_type":"box","text":"II-45","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ac655cca-33f0-47d4-b061-3f7fca025c2f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af423760-3a0e-44ce-a73a-0fc6db25090c","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":83,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"e65b1346-eb5f-437a-9a58-6616bc69a4ed","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":83,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"9a682f69-c2db-46f0-82dc-73875a438315","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":83,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"0f919b0d-935f-451d-9719-98cce17d292a","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":83,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"91e09541-0271-4373-bd00-98c9693d0c31","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":83,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"53f8425c-9e40-4c2d-8859-69abade333f6","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":83,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"3888c45d-95aa-4f92-9ca6-1705bdec004e","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":83,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"a4c023e9-2222-408f-8aa4-2cafc6118dfe","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":83,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"27b0b39f-78da-4855-b42c-6b0a7a6c8c71","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":83,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"c553b752-a160-4c90-94f8-6681cf01aff6","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":83,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"f2829ae8-b756-4a34-9c26-6f9ab1cdf163","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":83,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"c28e7472-4b76-4cb0-86c0-307de0efd643","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":83,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"1e102668-6fbd-40e9-8b62-c53ec9296828","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":83,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"ebe84e7f-0309-4771-a3e1-9140d57bcc31","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":83,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"e651a0b9-ca40-4fab-8475-58c800ab1401","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":83,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"d2d15c58-23f4-4541-b476-9941ba026c04","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":83,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"197bf97f-bc20-4f78-abf6-151ee23bf43a","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":83,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"8f35a085-4393-4b2f-bef9-78c9543a2127","block_type":"box","text":"performance.","page_number":83,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"5ca35e75-add6-4672-bc99-7832c413aed7","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":83,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"d813354c-f86b-46a8-945a-8d61c7b0a02c","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":83,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"a03acb5b-9884-477a-af62-73e92e10f26d","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":83,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b0838dbe-0413-446e-9582-454a4eaa55ac","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":83,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"04e332cc-4f84-49d8-ba02-54f2e9b4fed3","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":83,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"2316000d-fd91-45d8-bc23-7b96c13db297","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":83,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"3ad459b9-8572-432e-8607-f7a11f90f47c","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":83,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"c313a9c0-fc77-4662-810d-f1e3c3789f14","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":83,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"ab6fdf40-9087-4057-ba32-01632b8ad18d","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":83,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"6f37a4b7-2f4c-47bf-a800-4cd65a516304","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":83,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"f78d28ee-54e2-4f31-a9f2-202fd30c58a5","block_type":"box","text":".","page_number":83,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"443a7516-61f2-4dd8-b083-68858bce49af","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":83,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"a3b1d661-8ca7-400d-85fc-a0d78aead11e","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":83,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"c5832e48-9f0b-4ab9-95bd-4307f786e793","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":83,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"880dcf54-f4a6-48e1-929f-db2e91db3ea4","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":83,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"70611450-820e-4eee-9deb-0bc33add64a4","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"65cc8bf9-7d96-4cf2-a992-80900a14cc52","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":83,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"3a4e8457-5ffc-4c75-a9d0-95e87c143c36","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":83,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"521cb917-9295-4702-83d2-a8cd028c3dad","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":83,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"e16c8679-8266-46a2-a1a6-830c070a3233","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":83,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"d5a7ad34-6fe8-405d-9f39-b2d452651fda","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":83,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"c6b3f0a7-72ef-4a98-9652-8230f08c39b8","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":83,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"5495cffb-6739-4d26-962b-e17f1fbd7c7a","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":83,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"8f24e224-1332-4882-baa0-04cd4f3da01e","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":83,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"71de7d07-370a-485b-97ab-b4071f5b6652","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":83,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"cb0d3108-0415-492a-9738-e59e0fcf023b","block_type":"box","text":"without notice.","page_number":83,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"119e958c-2516-4e1d-8350-f4cd6d2a29a1","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"2a7b4635-ac66-4f75-a37d-a043e38be151","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":83,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"8fb1e11f-06c5-44c8-bca2-2b69f6aa0908","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":83,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"b49402a5-22a4-452f-bc52-81470592918a","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":83,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"24e2b9f7-5df6-4779-b54a-f15ac86b6c6e","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":83,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"b9e0238f-e562-4f47-bbbb-71428bad05ab","block_type":"box","text":"December 31, 2027.","page_number":83,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"fde048f5-6b57-43a6-bde9-19ea8348d4c8","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":83,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"e8ef0dd5-0c74-4d99-a8cc-819df03d5bd5","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":83,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"850d9e62-6766-4dae-90bf-85c5cbb38186","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":83,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"f06de000-1da9-41d4-99cc-bd7c7bb0e016","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"482dcd26-7b2f-4ac6-9819-47114c94bb87","block_type":"box","text":"II-46","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"316ffaa0-f423-4b16-baa5-ee1f37c7769a","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15db00f9-13f7-422f-8d8e-e598d2ea3840","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":84,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"7129ccb1-ef7a-4149-a868-fe4abae8fe38","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":84,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"e5cdebf5-223c-4104-9ec7-1f10f6bb11c3","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"5455d38e-2182-488f-82c5-ead770e333bb","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":84,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"c8099791-f54f-409f-a7b6-760517d68bde","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":84,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"8e312127-4f91-43b4-9501-7eca3e78edbc","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":84,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"de65ea15-afbe-45d7-a434-e69f03298ffc","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":84,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"a405410e-2994-49ee-b5d7-9fe0555499a9","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":84,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"ea762ab9-f760-4bd5-9abe-6ae8a9b3c71a","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":84,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"de756c22-4edd-4b9f-b4fd-2f8c0eb6d54d","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":84,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"2521f5ac-9c1a-412d-a8d0-a729966a8b5f","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":84,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"1f7a4d5a-a194-4aff-9912-145dd8993f82","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":84,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"c2782ff3-fd4c-4a11-9c19-e32d02885968","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":84,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"f9bbb495-603d-405c-9a4e-d9dda35693db","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":84,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"0eb2d1cd-c1a8-4d89-9707-d427f90424c2","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":84,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"284bd8af-01e1-499f-a3d2-464e560ae5e7","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":84,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"225bd82b-118f-4389-bb65-7b6ac7f4c8ed","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":84,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"756ab989-f3b7-48ae-943d-d132f76d9aab","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":84,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"c9e75478-ad0f-4d13-a33d-2253a1387b68","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":84,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"4901bd6d-7077-4b6d-a1a7-1467779c0287","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":84,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"fbf10672-f67f-47b1-a78f-83843219dbc9","block_type":"box","text":"the PRC in notifications.","page_number":84,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"5e814135-11d9-4d2a-b594-c9fe6d809a15","block_type":"box","text":"Investment in Other Investment Companies.","page_number":84,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"ba821021-5f29-4e13-a2b4-336aaf905dc2","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":84,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"a61fa1f3-e7f3-4099-89af-83b16941a134","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":84,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"ae2cce2b-e8f5-4a1e-9599-b49cdf185ec6","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":84,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"08306cf8-e66c-41d2-b02a-167c30e8a4aa","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":84,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"3c961701-b3bc-48db-8700-14ef317b8ce2","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":84,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"d206ce0b-808c-49a4-8d01-f5e5c02d2c18","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":84,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"73b2d289-1eed-4568-83ea-42552fcfdbea","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":84,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"a76f6d59-52f0-4700-9dbf-bb0c71543452","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":84,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"28a858ef-b359-4ed8-86d9-cfcf345473d1","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":84,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"b735edd9-8442-45eb-a03c-8c4eb0973217","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":84,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"75847a1c-3ded-486f-a611-44395fb09480","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":84,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"dc319e3b-47d4-4f97-843b-50c625efdc3c","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":84,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"666239fd-f268-44d9-9660-7dcddc1111e4","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":84,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"1d2378c4-23cd-42a8-848a-312a376e98a3","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":84,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"67c7dd65-5f8f-477b-9ed8-1fe0caf59fe5","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":84,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"b425517b-c23e-42f9-a20a-fefeed085016","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":84,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"3de00bb3-2335-41c9-9092-dbe70efbb99a","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":84,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"9631052c-321c-411f-91fb-9c59312df35e","block_type":"box","text":"subject to certain conditions.","page_number":84,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"bab3bba8-83c5-47ed-a40d-ae2ab97657eb","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":84,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"21240bb9-8fa1-463e-b9b1-36caa4dd7b83","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":84,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"b9ab56cc-f170-4979-b591-ae2dfee5b0f6","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":84,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"ed15dda6-8458-4f81-aa13-58cc37657046","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":84,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"dd80f662-7860-444c-98b5-63053ee8fcc1","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":84,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"9306c88d-c164-49e9-aaca-321973f611ba","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":84,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"2b5d5c4e-4a49-4914-855b-3a75b210a953","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":84,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"e5133db9-24ed-4a6e-b0ac-a8ccc70f56d2","block_type":"box","text":"loss.","page_number":84,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"80c87789-0238-459b-ac47-0a7009038193","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":84,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"a19f32a0-da7a-4995-ac55-46f63b8d2ab3","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":84,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"a1cf7159-9e1d-497a-864f-764faa777a3a","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":84,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"bc50ae04-32e2-4851-b507-43188c18164b","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":84,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"1a0c87e0-c8ce-4048-ade7-2251deeccd33","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":84,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"39ad280a-107a-4e05-99ce-1556cb288cd5","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":84,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"d3eaed11-d382-42ea-8ed1-c6325c739abb","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"e250174f-3805-4a3c-9959-3141d266fa94","block_type":"box","text":"II-47","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84a4b4d8-0810-491f-aba8-4f9f2246ae67","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4721168a-a6dd-4c8c-9a3b-d73342d95709","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":85,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"c140f28d-d5fa-4c32-8c15-82b1d9deed7b","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":85,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"7a04e16c-e22b-4261-beb3-97b0e6c4d7be","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":85,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"911bfc5f-ee89-43fe-a6ca-628beb629417","block_type":"box","text":"assets.","page_number":85,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"7a6295cd-741b-4596-a0d7-00026ce330d8","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":85,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"a9bcef53-08d7-44d7-86f6-aa3806a5ce1a","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":85,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"50f61b58-8a97-4e00-8c8c-8c40334b2c43","block_type":"box","text":"e.g.","page_number":85,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"cbc3f466-6a93-406d-89c1-bafd9c78b4e8","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":85,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"ccbfc642-e32c-4293-b263-f3aa6857f2a0","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":85,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"1d0bbb0d-9b0e-49fc-8474-cd7b3d563878","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":85,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"fc07b68c-746f-4afd-b89e-426d3a5e42c9","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":85,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"241e7bab-c223-40e0-827b-7f30a06e7e72","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":85,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"333bc141-9cc2-4754-923d-935d318fc77b","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":85,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"88df83af-edf8-47eb-a172-d305304f8f31","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":85,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"f92f0189-74bc-4360-92a2-233839a23e28","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":85,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"38ef0192-5f0a-437a-87f4-4c9f43efcf42","block_type":"box","text":"countries.","page_number":85,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"9d9da164-0fdf-4547-9a34-214fecd0992a","block_type":"box","text":"Issuer Insolvency Risk.","page_number":85,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"487cc387-49d8-425e-953b-da9fc732dc90","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":85,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"b291580b-3b7c-4d86-8bea-b1d2d313451e","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":85,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"8854c442-37b3-4687-b08b-fc79d1795460","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":85,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"93b1bba5-fcd0-4189-a841-3c3c534a033e","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":85,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"30b346a3-7eaf-45a8-9d70-fd7684f5a47b","block_type":"box","text":"issuer uncertain.","page_number":85,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"681deda0-d0e6-469e-b13a-5082a91686ce","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":85,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"d9620936-fcee-4e49-bd1d-0d39d60891e8","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":85,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"52150079-040c-4e9b-a81a-37ff790a0d73","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":85,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"178901bb-5405-4d0b-91d0-b4ed49f524f0","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":85,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"6716f3f3-b191-4538-a321-b3f5289bcc01","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":85,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"e6a5615d-f6e4-49fe-a01b-a3715d145db3","block_type":"box","text":"eventually be satisfied.","page_number":85,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"cb7ee754-2bc3-4ec7-9d34-543ddf2d07ee","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":85,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"c6d1c6ec-098a-413b-8043-df8f280ae239","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":85,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"65d8f19f-f9a3-4856-bb24-2f384d4256f2","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":85,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"8307222a-2863-4f81-9c66-b5938dc7b7c2","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":85,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"dd6fd127-c084-4a7f-8a2d-7a0302ef51ae","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":85,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"9febf74f-7ab3-4ff4-bbff-8c7785d894dc","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":85,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"3d3d2952-702b-4865-83de-84ed7ef501f4","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":85,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"879d8b74-fc30-4fed-bdab-72a16f87a8cf","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":85,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"89285336-5f67-47ad-a4b7-a4feb78cfb7c","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":85,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"fc6113e7-98ca-42b5-af98-a15611189aa0","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":85,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"685b17be-779d-4ab0-89b9-8e24cb29bd69","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":85,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"6a163004-f470-498c-be44-65a42af938b0","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":85,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"4867a7d0-a580-4927-b38d-450975cb5c57","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":85,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"bc2c6af1-44d5-4412-b316-1e97fa399a49","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":85,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"97956c89-f864-44ff-9cb0-94a9d63563ce","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":85,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"7cc1b91f-f4c6-4c0a-97c9-dc05e8e9ec4f","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":85,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"0f2eec92-5045-4cc2-9bfd-ebcad2eac593","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":85,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"8e84f7c8-ae28-4233-8be1-1468c529a845","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":85,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"78fd0b32-db8a-4d1e-8782-b5efd70aadbb","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":85,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"6edceca2-3d61-4ed1-9b83-e4c97d1ff981","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":85,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"b986ca5b-42ea-4fea-b072-5a4139f4cb6a","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":85,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"51e26432-75ef-407e-b475-6156cd58f0b4","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":85,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"c1d4ca66-feb2-47da-9415-adb19eff81c0","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":85,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"eec37180-101f-48c6-aae7-1d08d0fb3424","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":85,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"d4e6b2dc-2f7f-4e68-92ca-30580008a31c","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":85,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"b6ba76cd-1aa2-42ac-b44d-110cc09fa8b5","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":85,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"558391c4-54d8-4e3d-869b-b85afda2a30f","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":85,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"6f534a5a-f84e-45e8-b97c-9e557b059050","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":85,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"e8acb507-4895-4fbd-8226-e19c32c66dc1","block_type":"box","text":"that assumed generally by an investor.","page_number":85,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"40cac4b7-a37e-43de-8665-d83e0ce0788e","block_type":"box","text":"II-48","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b48bd78d-45bc-400f-ab4a-bb4ae9290105","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fca2b45-1493-4ebf-8fb9-60cf2160e229","block_type":"box","text":"Lease Obligations.","page_number":86,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"5e684d98-ba56-4ce1-ba07-1c268a8ddbcc","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":86,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"fede4ffe-bc7a-4d34-87c5-80e434cfb565","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":86,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"bef0ff28-d11d-418f-b84d-bb322052080c","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":86,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"64de165d-73cd-4753-bc46-5075e9282790","block_type":"box","text":"Life Settlement Investments.","page_number":86,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"d821a9b5-cc15-44d9-a3b5-6a59d515cc7c","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":86,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"a77e96a6-b586-4d39-9308-d17bfe2337f0","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":86,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"cf7ab1a2-08cd-47e4-901e-0bc8d4ea0b70","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":86,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"c5dd2f0c-6b31-4e7a-964b-6e68b45760f0","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":86,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"c73c92f7-7e75-4ed9-a71f-c99cfd708564","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":86,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"dbbb03b8-09f2-4390-a5cd-236f4a16b9c9","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":86,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"6dc35875-46f4-4e05-ba29-159b2c6debdd","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":86,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"1d8d9456-c6ae-410f-a353-f6ca36978952","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":86,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"97434fdf-63ed-4702-9e66-41100b23afec","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":86,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"c856d248-4c21-4a12-901d-ff7ff86f7572","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":86,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"e2f3bce7-070d-4614-ae60-dcfee14411d9","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":86,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"73cd6260-d4a5-4cc1-aee5-aaceff80072c","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":86,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"e6166d42-dc6c-4c62-aabd-6f1ccea10be5","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":86,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"1cd30c9a-4429-45d9-90f8-96c4fe63ba8c","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":86,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"9727ba09-23cf-4ef0-afd0-fafe36af8538","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":86,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"e68ccd11-e2eb-48ff-a64f-4b4a0ad9117f","block_type":"box","text":"Liquidity Risk Management.","page_number":86,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"012a32a5-1362-4a48-b5a3-8768c26e314d","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":86,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"13afd067-9c80-48bf-8ed5-6dccaf55c0a3","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":86,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"a3e0e0d8-11bb-4030-82b7-62d1c164eaa7","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"e9a112b3-0e80-4d71-9e2d-56366774dc55","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":86,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"9dce103a-5797-4bda-b46d-4afd31e7fec6","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":86,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"2f6467c5-1a04-4cf0-a697-df3df05ef23d","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":86,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"f547d226-699d-44cb-8400-78a48f30b8a3","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":86,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"531e6e09-e187-4d8e-85c8-61111b8bc620","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":86,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"999f583c-0a9a-4abe-a679-76f7ed1568da","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":86,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"ecfbc5f9-ebe5-41ba-af72-34e74cca83c1","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":86,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"2b261e1a-0575-4449-8d66-33a9543d41eb","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":86,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"3572396e-daa9-4963-8644-de9d2bae43c1","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":86,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"8cdaae7d-f977-4f29-b9eb-be984597b7ae","block_type":"box","text":"Master Limited Partnerships.","page_number":86,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"4e06661e-0cce-4a2a-91a9-f00fbd5639c2","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":86,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"e13715a1-a7ff-4943-8c8d-8419900bd85e","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":86,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"03ffd626-4a8a-40f7-a664-e669df36a381","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":86,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"b52b1c60-93f2-4b98-a40d-e12e6493af58","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":86,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"8d7f9030-49ba-49f3-b680-c0a1d9a4d87f","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":86,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"aed8077c-c38d-47d5-818c-f7d2f51e8112","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":86,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"b371b0df-7997-4bad-ad60-03dd6afdbda8","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":86,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"3348394c-8f44-4607-8e56-8f8a51eae837","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":86,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"cfda8760-ad22-410d-be47-b958e06f2a5d","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":86,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"a658a328-63ed-4044-99d4-7a4753b3f71b","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":86,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"d3e2c1a8-5ddd-45f1-873c-880458b680fe","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":86,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"9cf8dab4-33d7-4935-a9d3-38351a45831c","block_type":"box","text":"in the partnership’s operations and management.","page_number":86,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"98bdd293-349c-4cf3-b746-5442fafe7be9","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":86,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"d4167752-2061-48d3-870c-8f380bed9d6a","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":86,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"209acf3d-7730-4f3c-a559-06f461341322","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":86,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"867b06d3-d819-44ac-9d14-96913b06dedb","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":86,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"d8003122-7b9c-440d-89ca-e193d4484713","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":86,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"d240e2e7-3218-4e3b-ae87-aad74b920f91","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":86,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"dfc9b012-0386-4f12-8ffb-48a4b2b8f0d5","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":86,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"f1a495f2-ba29-445b-aa75-b6649a51c90e","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":86,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"38d6edba-0818-4e4d-b17b-3424b0631a5e","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":86,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"9ab69310-a43b-408b-aeae-45f5a6c0b599","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":86,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"cb461dcf-646b-4f99-9f14-067b5a5bf4c5","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":86,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"dc26cad4-3afd-4c3d-a890-6347e8545040","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":86,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"d8209f90-e2a1-4f03-80e9-5d349b5ea426","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":86,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"bb3beedb-3ac2-4712-b88f-7052b875fbdb","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":86,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"67c9c434-9852-4d7d-873a-341c4a252cb2","block_type":"box","text":"II-49","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d0c3aa3-897a-4b94-9b30-c71d21a7995f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"21219b06-9ceb-4bce-956d-b96edb1678a6","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":87,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"d7006fd0-92b5-4b04-ace3-58a3e31122d3","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":87,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"4b7ac1c0-22cb-4ea5-9d5e-0e6fb65b4edc","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":87,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"ed4a796c-de07-4bda-b5ca-50d66d02b940","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":87,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"fe5f46a4-476e-4263-a0a1-7c12d784aa37","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"88631b0c-8f30-422d-8585-7023944fa3a6","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":87,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"d239217c-ba21-41b9-9724-fa42acbd34c7","block_type":"box","text":"Merger Transaction Risk.","page_number":87,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"ca421068-3650-40ac-ade6-74235a482051","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":87,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"0cb993b8-0386-428e-ac5e-2b9b694e660d","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":87,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"5af850b2-7842-4371-8a85-7854b993f2dc","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":87,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"769b234e-d3cc-41c8-b1c0-acc7dbda561e","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":87,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"6e56d4f2-f38e-4759-9c0e-fb3958f0957c","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":87,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"aedc6b80-bd1b-4928-9e1d-9bf3894494c5","block_type":"box","text":"the Fund and may lose significant value.","page_number":87,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"70469577-7822-4f97-93d9-d75cd0d0ca4e","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":87,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"3ce8482b-59bb-4a88-89cd-5f63b8d025e7","block_type":"box","text":"Certain","page_number":87,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"d8bd9886-d128-4893-a60e-f7a3ac15177e","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":87,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"af9265f0-099a-4a4c-8ee9-a722ecd8c5a5","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":87,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"6cad6a25-3038-4a6f-81e5-9baab528ddbd","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":87,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"c864a021-b774-442c-be78-197480f0e4bb","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":87,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"97f01f6f-47fd-4536-93d2-46041ceb96df","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":87,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"22618850-beab-4520-935c-4cb8dd42ec83","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":87,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"fe64f18c-4a7f-4089-8df1-132e6191b0d8","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":87,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"bcb83a86-d8c5-4822-ba55-a8fc07e9d686","block_type":"box","text":"branches of domestic banks.","page_number":87,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"65ea8e31-5dfb-4a55-8051-92463d6b417f","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":87,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"18f8808c-12da-4063-bae8-ec85bd1f5121","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":87,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"51431b46-55cd-4359-860e-ed18abecefe9","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":87,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"dfa10b08-d6bd-4232-8fa4-602a822a274a","block_type":"box","text":"paper of a foreign issuer.","page_number":87,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"8ddde732-d2fc-4c65-9736-cf8c360c6b4c","block_type":"box","text":"Money Market Securities.","page_number":87,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"cd44f300-fffd-46a4-a53a-711bec415168","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":87,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"7c620c13-e08c-40d9-a3b4-b1de25c56d82","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":87,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"b9a3a3d3-7b36-4327-8875-8290f8b5799b","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":87,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"6940592d-9035-4538-8647-327353a07fc3","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":87,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"a3771594-de27-4df4-b0ae-a0ddeff69fbc","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":87,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"d6b81a32-a71e-48f3-9159-cf7ad9fb9d48","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":87,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"f332b4ef-c449-42a2-a74a-7f6a4036b51d","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":87,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"187583da-e9ae-4367-9bc2-3fe1568ec461","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":87,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"31a98c48-1e8b-4a4b-9e19-d5e41ec7e0f8","block_type":"box","text":"agencies;","page_number":87,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"2004af3e-548f-41c8-863f-ac09a2938513","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":87,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"2da3fd41-48a9-4e56-8eeb-c7fe912bfdcc","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":87,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"bb250493-54c8-4124-bcc7-10face8ab79a","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":87,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"c60a0b8a-ddcc-4db3-915d-5b5e001a1705","block_type":"box","text":"obligations and credit card receivables);","page_number":87,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"532434ba-7d74-46ae-85ec-497a17c4fadd","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":87,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"c3383b0e-7fa9-40bb-ba78-dbb128e4eed1","block_type":"box","text":"authorities and related custodial receipts;","page_number":87,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"ddc7faa4-bb7c-43bc-8468-eca3cbf9468e","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":87,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"651a7696-416c-43fb-9d58-833de211f5f9","block_type":"box","text":"agencies or authorities;","page_number":87,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"7828824d-f08c-4f23-9f52-0ddc4deca9f2","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":87,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"cea4bd26-2176-46fa-a26c-23893a3a4728","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":87,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"18660ac5-43ce-49d2-8de6-c010421522d7","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":87,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"7764f468-d5db-44e1-ab35-04f6b5ec7135","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":87,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"71c9a88f-64f3-44cf-8d44-b5b79b0eb4ea","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":87,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"51c10949-4ed7-436c-954f-6e0099a71d34","block_type":"box","text":"States;","page_number":87,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"d3928347-8371-4025-902a-99ca10d5ec6c","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":87,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"a763304d-23f5-446f-bd36-d4b5922a25a4","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"13f8ebc2-de7d-4692-a4b5-effa7e2fce82","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":87,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"fceffc10-6d45-4876-8b46-b59f9194409a","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"0822ab20-36bf-470a-9cac-cf8e7054e208","block_type":"box","text":"II-50","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b7c98c0-df97-426a-86fc-f188fba0cf70","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b63c4c0-7991-44bf-87a7-a15a8849bba1","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":88,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"0049aef8-188a-4caf-ada8-1d147f5b5ee2","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":88,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"0fedd0de-61c2-4b67-be78-fa506c2177ee","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":88,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"87a806df-3e84-42f9-a05e-c5180f08e850","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":88,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"1597f468-1bdf-4bc0-9cce-a232d2f2793a","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"791a4d04-c735-4201-921a-a4327cc341f7","block_type":"box","text":"States.","page_number":88,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"632c8fba-443b-40b9-9120-c7b80f2c3b1b","block_type":"box","text":"Mortgage-Related Securities.","page_number":88,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"0fc0c0dc-5486-4fa3-9235-9ec1e479b3bd","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":88,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"d871e724-2d54-47a4-8ad9-67e4322aa4bb","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":88,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"b11c4c59-dcb6-497c-b398-215c656239ae","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":88,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"fd465bd9-ca48-42b1-a078-8ccedaa0621b","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":88,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"dd55eeaf-6187-4fa8-a1fb-def879608ec4","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":88,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"2ce1323d-aaf8-4600-810b-2249f9c493aa","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":88,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"fa029ca1-7083-4af9-927b-f42308fbed49","block_type":"box","text":"maturity or specified call dates.","page_number":88,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"4d41cc92-5ffe-4a9a-a461-6994faa4b40e","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":88,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"039adf24-f924-43ee-b0b2-0bd97e4f7db8","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":88,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"7322ef7e-c61a-4c05-854c-cbab6e3badfa","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":88,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"f6387011-d2ae-4210-ab83-e6787c4324af","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":88,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"6992dd49-474b-4f1f-b1d8-f395d6470b50","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":88,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"ecac3ca9-fbfe-4410-850a-9a9707a5c00e","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":88,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"21439fad-cf1e-4ea5-80b9-17255de0bfbb","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":88,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"9480dd7f-2040-42e4-aeb9-58feb11379b5","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":88,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"a717d90f-85b5-481a-9d88-d3d272f83766","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":88,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"d0db3093-e799-43d5-95cd-9ba447031aca","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":88,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"adbe9af9-54ae-4ef7-8302-92fee5a43fb1","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":88,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"2a8cfed0-e718-4e11-a8b3-d83d4c9fd65a","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":88,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"4317735a-b26f-4cf5-b34b-e11668c3cf5e","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":88,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"0194b0d4-a88e-415a-bbdd-0065dec8b4c0","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":88,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"c8564b33-d5f2-4398-bbab-08e48ddc5f54","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":88,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"a0d688da-591d-4516-9629-30936cfb4746","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":88,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"2998273a-203e-49f4-841d-1e5e1eb0b4b0","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":88,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"1ce49cb6-8961-4f7c-8d02-9ef35d0583ad","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":88,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"eea41079-e5ee-408d-901e-ac742b36028b","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":88,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"7c155861-705a-4be2-9111-bf1a028b25c0","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":88,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"f389b650-bbd2-4417-b95c-adf99ed0486c","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":88,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"8306e43e-f4a0-4a8f-8d37-ea91c543b605","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":88,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"e3f96e3a-2f81-4ee6-9d43-f36afe63b567","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":88,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"232c5856-6475-4b26-8112-d810b571e248","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":88,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"d1e0786f-f14c-4258-80b2-1f16cd67e77a","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":88,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"8b8756f1-47af-4108-82f7-1f7062172290","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":88,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"d60f83b9-93b4-46bc-a253-70aae64ccd22","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":88,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"48411c5c-8d7d-4e81-bca1-8e4c266326c0","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":88,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"8fc56974-1b0e-4330-b971-eef5fed3c16e","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":88,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"0780d6be-0d95-4298-8d00-3593fb65ceff","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":88,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"e3adb786-a15b-4c57-8ef9-dc6922dbc4a3","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":88,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"86edbad3-5968-499d-a393-d47b6e254da9","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":88,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"2d4efc25-8003-44e5-b0b1-a07dbda78199","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":88,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"d47c37cd-4820-4f3d-874a-41b6aff2bb3e","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":88,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"6a2f2a91-801a-4591-8600-5a510f2cdbfb","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":88,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"735b6fd3-7886-40d5-b359-7d891480d1d8","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":88,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"2ba63f54-5eb1-4aec-b650-09813c8dcb73","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":88,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"ba41d09e-17a1-420b-812b-a0a8fdc3c819","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":88,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"427eaf57-c490-448e-bcb3-ee459e9e8ffe","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":88,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"b0750973-d753-41b3-80da-972a2bf1c5fe","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":88,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"49d75366-bb69-4ac8-945f-d65f349bdb6f","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":88,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"c83ce464-0e33-4668-a7ec-60839e2057c9","block_type":"box","text":"II-51","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"845a89e9-4693-40f9-9826-6c081b4282a1","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91afe593-316a-4054-b0c9-b78f3a9bb194","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":89,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"636d8e57-2ac8-4bcc-a3f7-e2564dfe5110","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":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"8268e947-d6aa-4323-99c9-c919844b74d4","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":89,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"ace352a8-1f32-4b82-9943-0d0d1441d69d","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":89,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"b5d0c038-537d-4ce9-8812-5aaae72a898d","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":89,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3776f2e2-343f-46c2-9311-a00efaddf3a3","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":89,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"85e6880f-1c50-4450-8a32-c44e1053add4","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":89,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"167db563-531b-424d-88ef-03bfc69bb87f","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":89,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"329f67bd-86e9-4c1a-a385-241bc3000945","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":89,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"fbc2e9cb-bfc1-4748-8038-1ca253f22fb2","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":89,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"958410e6-ed1b-4992-8679-4c42db6843ce","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":89,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"d318ea7f-eb27-4832-8099-cce25dcd1524","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":89,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"80185446-79dc-4b94-91e6-38fe7629d69b","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":89,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"94c4eddb-c76d-41c5-989e-01a8f26e21a5","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":89,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"f598cdf0-713d-4b81-a4b7-0c23f5be7541","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":89,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"be1a908b-b6d4-44f7-800b-f7a440be64cd","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":89,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"f47b1635-6a0d-49da-b72b-6a46c6bf5625","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":89,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"dd32b812-c084-41ae-b59b-fa1738698f5f","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":89,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"abef4adb-0a45-481d-93a5-8aabe65289b2","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":89,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"6f795446-095b-4dc2-9be1-bd333896922e","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":89,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"4e421b7f-9ac9-4fa8-bcdd-01a8b3691301","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":89,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"739b7919-449c-4bca-a4de-1dc3bb4e8dfb","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":89,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"27fc0529-fba0-4a5b-b7a2-4f454238b847","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":89,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"8e680093-7b54-4c76-b7ff-146a971845c7","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":89,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"1683c8eb-49f7-473c-886a-552c926a45ca","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":89,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"a37cfc15-3298-44c4-97d1-0e873e30bf5d","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":89,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"2a40d584-7438-457a-9739-179440f06a13","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":89,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"8785861a-7a88-4341-a9d4-54658ee3956c","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"e064e852-b4c7-4f16-bfc5-38c43ae1588c","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":89,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"9d3947b3-3936-4f6a-a589-31c1c3370d9a","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":89,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"f2a70ad4-4d99-4c86-a5e9-3d0e20cd1256","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":89,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"0696d7f2-f6a6-4bae-b06d-cf05de8be27c","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":89,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"a753111e-f7bc-4b38-b9b4-8f52a5b227fe","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":89,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"f6010e7c-fb31-4580-a1df-37f20d0690c3","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":89,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"56d8ced3-bee4-4464-b110-222b7dc42c98","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":89,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"fa44ead3-9afd-431b-9efb-271e12633e43","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":89,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"6b551c3e-9477-4835-a6f7-2ed02983c3c6","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":89,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"75360730-9b48-4e4c-99d5-f10c48b217f0","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":89,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"859d73a1-8766-4998-b949-5e7096407f38","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":89,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"4b19e63d-cc6e-4ef4-befb-ecf0c4920f82","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":89,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"a326721c-5211-43a8-bc1e-d07b5b9a00a9","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":89,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"091b451d-7241-41c3-9a1d-85cd36451a64","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":89,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"043f74e5-8028-4425-b937-6a886c7a6dac","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":89,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"1088c1b4-3ed6-408a-a1fd-679036cba226","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":89,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"c437f542-f41a-4632-b92a-b1d28da92101","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":89,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"ca5acacd-7f9a-42d5-a90f-ff0e5a69e44a","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":89,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"8e6c8eb6-fee3-4fd9-a281-3782f7566bc5","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":89,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"c7b7ed94-9a07-4782-9754-9a847e7f3195","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":89,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"28dbe9fd-8512-498e-86a0-ca24fd38be57","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":89,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"8a0e8384-cc8f-42f6-8e61-2d4eda43f13d","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":89,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"7c1f2891-a991-4984-934d-467a6a6f31c4","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":89,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"a9a44448-dddd-47ea-b98e-f3695ae748e4","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":89,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d07268f1-6089-4ee6-81e1-20b1fea32c9a","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":89,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"7c62d781-1986-48ff-ac2e-20331f5b5df1","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":89,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"1ca93a66-554b-4537-a92c-8eb80d86e879","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":89,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"514fe8ef-5de0-48e7-9292-b34334a5c367","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":89,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"33f7e242-e6d8-4632-b654-a95ae2e9e99b","block_type":"box","text":"II-52","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dfb0c1cf-064d-4ff3-a19b-b358796a414e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d01d6857-4c07-42a3-a8b0-43ece71a802d","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"cfe44ab4-10ed-4745-b3d5-6de9ca1157bc","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":90,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"33287956-2e76-47a3-be34-a5f378042e3e","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":90,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"4a5da8a5-035e-49d0-823b-86c85be96785","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":90,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"45767e69-d122-4629-a44e-d94516773ede","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":90,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"f24fdec5-ff8b-445a-8a16-4e2caf672333","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":90,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"687476dc-9756-4942-b067-cea43af9f39b","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":90,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"4b71d5de-2bdf-459d-8271-65d83a481483","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":90,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"cb7e7ae3-d8b9-4bd5-8d12-2c36eff61353","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":90,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"56f53cc1-3d39-4af3-8b7c-a3480de23241","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":90,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"8dc21a61-cb7a-421c-9934-7786ef29cdb8","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":90,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"a2a78f61-a69d-4c47-afa0-6834d34cd710","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":90,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"65e056ad-02d0-4a18-bee3-34011d0badab","block_type":"box","text":"of principal because of the sequential payments.","page_number":90,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"b32b5c0a-04ae-4f22-bda5-a757df38f26b","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":90,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"47aa9475-f9d1-4a32-8fa6-5ee4692c197f","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":90,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"031c2269-2f3a-416f-a068-f59f7a9e9006","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":90,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"cd3c6232-c2ec-4c3f-a220-0f4932f41b3d","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":90,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"ba4fc8a3-e275-468e-9672-18544aab1f7b","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":90,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"6988428a-84bf-41a0-a2d4-1a625c9b54f0","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":90,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"9a1ea1dc-230c-4ed1-9762-b7240e722a8c","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":90,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"20069114-0c06-4799-9283-b3e3c4fdb395","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":90,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"56893904-0d31-40a0-8fd9-e01869b1a60a","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":90,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"370a31b4-0fb9-43e4-a7d3-1ca95a4b0c0a","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":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"59e414fb-bc0c-483a-b6dc-e0b117f3bf45","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":90,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"e4003fb6-62e8-4ecc-bc4a-239e0cd22b3c","block_type":"box","text":"securities of any single such entity.","page_number":90,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"48a0abf5-1c5d-4db7-b025-92d3251b79c8","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":90,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"6f5e606a-a690-4360-9341-fd684f661865","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":90,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"d0ec2ba8-eb25-4455-bd86-68a2179d698d","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":90,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"a1623e4a-1b0e-4967-af5c-45cda8f545f4","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":90,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"97c8e8d4-274f-481f-92ce-4458b613462f","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":90,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"6c18ebf7-4d97-4f61-a18b-9cdab20c3dee","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":90,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"4ab515ac-ba71-45e4-97df-d61b21882a82","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":90,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"7c4b03c6-9d17-4413-9412-03f63c6bc805","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":90,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"2d68891a-3d0a-4182-82dd-044422aad975","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":90,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"1532bc2e-6489-464c-8985-22ae3351597f","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":90,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"21b63ecb-1867-429d-9a30-e2861aab77c1","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":90,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"5f26002f-ce1d-4c31-97ae-252fef834c62","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":90,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"3255acb4-4ced-4095-bbde-742fbc30b2e5","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":90,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"43a66b70-c8cf-41dc-ad2e-90919637e1d6","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":90,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"9b5fcb4b-8f98-42aa-be7a-2124934c1cea","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":90,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"acc25fb7-d2a0-4d44-adce-8ef68e4a9d8b","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":90,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"edaf0048-db7a-4b46-8d0f-cdf086c85a91","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":90,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"aed6ce3a-6d5b-43f1-abb2-fcbc1d774d54","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":90,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"5cab2306-e645-4c74-babc-471b62a3c042","block_type":"box","text":"classes.","page_number":90,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"e1eec6c1-b22b-4061-8dad-e2ce36cf5e5a","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":90,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"4a3dfe4a-841d-4c45-b586-92e97976dce8","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":90,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"b3b13f2f-24f7-4d87-9686-0fa9c9f6db5f","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":90,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"1bd41035-ea4a-40b9-8fe4-39154fdc5beb","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":90,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"fa4b838a-c222-4e49-a5f6-65f8f667933a","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":90,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"73a9f040-c414-47ce-a479-f51ea4cb5b3f","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":90,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"3ab11f05-8f71-4e85-a3a3-f650af285c3b","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":90,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"e9b485cd-ef0a-43a2-9533-ced9287d5cba","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":90,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"1dbc00a9-ea06-4a4b-b95a-51bd5087ba5a","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":90,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"2caa64e6-b311-4652-ac66-e262841a12a5","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":90,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"8cf2f9f3-c7f3-4568-92d3-ec45168ceafb","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":90,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"96b8a888-4a90-44f6-8d9a-c68fb819efac","block_type":"box","text":"to a designated benchmark index.","page_number":90,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"724d4ab6-c985-4c16-8cf6-417f42690fb6","block_type":"box","text":"II-53","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d11e2bdd-b86f-46ca-a900-be2526cae58e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02ec96b9-872e-4673-82f6-e95792e209ac","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":91,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"ad56ab70-0a00-4a89-b8f7-5db42476f24f","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":91,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"a78168bb-889b-4dd0-a2e3-3d8e7eee7f7d","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":91,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"15330bd9-b71f-4873-8dd9-aace78d6ad6f","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":91,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"d9698936-9680-484c-b3ea-b2c2ec90c8af","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":91,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"e5d39d19-aab9-48ac-84c3-920df53bdc90","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":91,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"feae392e-1994-4d09-b454-f298da5effb3","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":91,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"34a5568c-c416-43fc-ba76-afd905c8ce9d","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":91,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"c6a3fa10-ee62-4fcd-9df8-56ffcc5aa4b9","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":91,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"5784c9a9-c5a2-4509-a054-00ecc3698db2","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":91,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"6f87cdf1-e97c-4858-85fb-3c28a78c93ac","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":91,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"e4d87849-5dfe-4ce8-97a3-931306f117a5","block_type":"box","text":"CMO Residuals.","page_number":91,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"0e5bf6e6-46f5-450d-9602-c18fa402d59a","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":91,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"97734073-8ac3-4e15-87d3-5c2264a30b0b","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":91,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"e389dace-f991-46bb-af01-a25df46a15da","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":91,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"858892ea-28aa-42ec-80a6-73ed480f276f","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":91,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"2d5f495b-738a-414c-b419-b76541cc15fb","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":91,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"209fd836-40e5-4f13-903f-ba4e927392da","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":91,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"3327983a-13b2-499e-bb36-da33e1a983bb","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":91,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"5bb41bfd-fb5b-4641-905c-eecbd48bc9b7","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":91,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"706820a9-b084-4a31-99c5-046ddd5a7b67","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":91,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"13815d49-c509-4dfd-823d-d51236bd3aed","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":91,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"68a9e219-c232-4af7-ba6e-3a8359b5e8c4","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":91,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"acaa0289-c48e-482f-8387-50d3ef821966","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":91,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"c60899c7-6d8f-47b6-bef2-a3f1379fb50b","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":91,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"7aff52a5-7900-47d4-a60b-661347e1b8f8","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":91,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"ee354b9a-49e1-4527-b056-854de3b9228e","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":91,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"3173f50e-80b5-4327-8e8e-f024ed8c55a7","block_type":"box","text":"a CMO residual.","page_number":91,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"ab480931-6eba-4fd0-819c-2ee6c03731c1","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":91,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"e83aaee9-3112-42ba-8d67-bdd4346b4f1e","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":91,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"85c03096-99b7-4d6b-bb60-afc3d0822ba7","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":91,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"4dfe3ce4-89d3-43c6-af31-36eed30b7bf3","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":91,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"47557d70-df1a-461a-819c-bbd2ba24ef32","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":91,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"532e8132-a28b-4170-a98d-601eef446d62","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":91,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"518f293c-0507-4dd8-a99d-43f28075cc67","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":91,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"ae816e38-912a-4584-99c6-214abaf4689c","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":91,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"08bc34bd-9d7a-4b1b-9e04-26d280f65343","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":91,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"1a807e09-0a3a-4337-a5e8-6f551629cb6e","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":91,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"10a60473-073f-418e-8b2e-59bfb4aaef08","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":91,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"3af2172e-9d71-4b5e-82ec-5e9301d98c00","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":91,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"c335b130-c03c-4d81-a5d1-bbdb0e9ce6b2","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":91,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"eda6716b-dad3-4a68-81d4-393af8a8b417","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":91,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"5a6eab3d-0f97-473a-a39f-7da06856d9da","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":91,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"4554ff2f-0471-4ab4-a3e1-cb553506811d","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":91,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"8285808f-85b2-4e66-afa1-f46eabaab75d","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":91,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"e435cd2d-6455-40ae-9e38-7783a26a98e2","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":91,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"dba3ec84-0e38-41fb-a643-9d5398c99d7e","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":91,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"2fcf3576-ddfe-4937-8b62-778f690123d8","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":91,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"f5c717dd-674c-4072-b42a-61368e054cdf","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":91,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"3fe18770-b1c7-435c-b6ed-d92186f96299","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":91,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"17eb2d30-21e6-472d-9467-2e1607157751","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":91,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"c0fabfb9-f3e0-46cf-829c-557c8f362b8f","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":91,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"8f259cb6-eb38-4618-96a0-53d70cfdb4af","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":91,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"74cd3e05-1d56-43e5-adea-40e3aa9ee9d6","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":91,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"26c68ea5-4e82-422b-b373-b4dddb9419df","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":91,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"796a97f7-c3ea-45e4-89e1-c61edfeb5ac5","block_type":"box","text":"Tiered Index Bonds.","page_number":91,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"38d5cb2c-d00f-4e15-9902-04e76240128c","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":91,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"6d0a811e-0786-4ede-af4e-21e0a58d5056","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":91,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"6f9ce4d2-687c-4eee-968f-5e2c9394b440","block_type":"box","text":"II-54","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"604bba24-915e-4933-8c1e-caa202e2235e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"16416629-734c-401a-af1f-68de121a9eca","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":92,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d9a8aed5-9ff8-4349-add1-159b0c8fc60c","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":92,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"7f20078d-3ceb-4666-a458-2f1fc5b884e4","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":92,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"094ffbe5-9509-44e7-9fc9-0864ba68a122","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":92,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"ed80d951-abe0-4940-9420-467a609ee8ac","block_type":"box","text":"that of a fixed-rate bond.","page_number":92,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"cfe1a313-d5c7-4672-ad91-dd81871f6bd5","block_type":"box","text":"TBA Commitments.","page_number":92,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"e28aa3a2-66bd-4083-8b1f-b3604929e432","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":92,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"bf251a36-33ed-46e3-8f73-9ca5c7ce9c5a","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":92,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"224af4d1-9bc9-41ab-b5e1-810f9e8383b9","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":92,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"5d751bc0-4661-44c0-b4a0-2ec7b6bfb415","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":92,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"3aff1e88-2b97-4272-b229-bfaad01c8dc4","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":92,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"041f0b85-49c9-4ed5-9660-9847360521b5","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":92,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"8cac2c83-7bff-4e72-89b9-20395c74a86e","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":92,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"e1dd770e-7b7f-4d6f-b895-df73c870aa52","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":92,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"aa4f9092-d985-4b53-89ce-fa34abc3807d","block_type":"box","text":"below.","page_number":92,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"e32fb704-e2df-4534-8b09-9c90dfc5b9cb","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":92,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"93e2de7a-2b3d-4c8a-a5e4-c636530cc287","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":92,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"b830cddf-df53-4b3e-b8fa-e8a9b9f36cfc","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":92,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"72197fae-dea5-41f8-9b14-88c51a49c0e3","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"b3fbfcc4-dcd3-4cb4-a90b-9cb92a0317ae","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":92,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"72c0a66b-6c87-4089-ac9a-720f75a833bd","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":92,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"5269cb97-a5a5-44ed-8b68-aa95a1335108","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":92,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"94318f88-4099-4c9b-b6a0-49a872b2b1b0","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":92,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"7574acf8-64b9-4f1e-98b4-18210d568a94","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":92,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"52ab40cb-0ecb-49c0-99bf-c5622dd6383a","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":92,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"542601b4-f8ea-4810-a264-94b616665b20","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":92,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"e6ab3c77-277e-41ad-9b22-904446bdce15","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":92,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"be42e9f5-c762-47cb-b2a0-6a4fb820b392","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":92,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"b76fef62-24f0-4d07-9871-eea0834cd2f8","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":92,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"c0b7471b-2917-4784-a20e-d7ebdc317777","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":92,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"37d7d72d-7e1b-4486-95dc-1882513e650f","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":92,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"1f6e5e32-434a-40b9-8ec8-0e8b14101514","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":92,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"a2ae80b2-6cd9-4b0b-9629-87be6dd25b12","block_type":"box","text":"securities in the forward transaction.","page_number":92,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"f181f09c-540e-49d3-b4b2-303432e476b2","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":92,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"3ee5b26c-34d2-4bc0-9182-f3b5c6255cd5","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":92,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"77dcdafb-a20c-4a92-b6a6-fd6b7ccc2f3c","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":92,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"ce27e01c-7035-473b-bf09-17cfc74449f5","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":92,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"0f409673-3753-40cf-b3ad-1c9e68b8ea34","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":92,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"55b036cc-eea1-4393-abff-da9c82b683a0","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":92,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"41823a89-b809-4f74-892c-0caa1c139328","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":92,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"89826d00-2ba3-4309-be70-79590933daf6","block_type":"box","text":"securities (","page_number":92,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"c7366bb9-ed40-4590-afaa-96aa3224a304","block_type":"box","text":"e.g.","page_number":92,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"31600f0d-5bc0-4caf-a249-f5bda13962b1","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":92,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"20aa48ac-6162-4557-aa64-43089b0c0000","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":92,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"4e95ce3a-7577-40ec-8351-d882cbfc2d21","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":92,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"fdbdd2ac-2be7-4779-a549-27daa276289e","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":92,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"90b7652d-91cf-4363-80ab-54a212191b56","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":92,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"4cffe491-ed32-4e73-a7dd-f72e30d95f26","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":92,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"da39718c-37f0-404b-8d18-56eb4bbd4086","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":92,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"6699026d-5cf0-4bdc-a439-b307d6aaf1a9","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":92,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"92ee0955-6c4b-47f1-b6a7-23691e89e8a4","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":92,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"ef087f98-02cd-4dd0-801d-2ea9a7f47ece","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":92,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"14087efb-f674-48c9-baa6-4176f26ee2d6","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":92,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"3d9b0578-a7f5-4c51-bddd-909bff1b4023","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":92,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"931b86ce-d384-4ea9-83fa-45db7d6f653f","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":92,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"aa6e7813-6ad7-43d0-a382-9187477c66ef","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":92,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"9abb97f2-51cc-466a-8489-0424a5288dc6","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":92,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"159237a3-3914-4d16-a248-c1b002e6f1e6","block_type":"box","text":"Municipal Investments.","page_number":92,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"49cf72da-71f7-43d3-aff6-7b857318cb4d","block_type":"box","text":"II-55","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14cf0b37-f79f-4f73-839a-7e960100fc70","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24b493c2-0e2b-4524-93ab-49951f4a2fd5","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":93,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"4387e99d-199b-4ef1-b210-feefecbf7d4d","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":93,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"8bbb1904-0de6-4365-b5c3-1f6f2292b657","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":93,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"9a6c9770-9d71-4c75-a0e9-f5bceb46f7e4","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":93,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"a7978229-5bfc-407f-a598-67b23d36d3db","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":93,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"6d4d2d54-e2d8-40e7-bc4f-871e9f1b4377","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":93,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"61f4b3c4-44f3-4b84-816c-ef98de924689","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":93,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"1890fbc4-3809-4660-9126-92422267776a","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":93,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"c0ca7097-263c-4445-a0e5-91832115b969","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":93,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"4d295618-276b-4052-9f43-9164e8222fb1","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":93,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"cb18258a-a17f-41bf-8f5e-315dae051451","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":93,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"145d36d8-7526-47fa-8b66-7bc9d9a403e6","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":93,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"d5256ff6-d273-4f9a-a0dc-54a48672078e","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":93,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"ded7fdfa-19a3-4bc8-afcb-bdb82bbafe8a","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":93,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"0cd5f2d1-6453-46af-af89-186bb921039d","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":93,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"058217f4-7480-4eb3-bf45-146b2c29670f","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":93,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"2e7ad7e6-0e56-49ac-a60e-d98c43a033c7","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":93,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"1ddec42b-12aa-40d9-b1c5-189f4f3ab267","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"60076f08-8f06-4113-9321-ff17c0637e52","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":93,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"ae6c7692-0438-475d-ac24-c406eb897b73","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":93,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"e864e06a-7503-4c84-a324-fd0a0c236d71","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":93,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"7db1ff85-44b3-41a9-a69c-dae1b3a6122a","block_type":"box","text":"The risks and special considerations","page_number":93,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"a95cf6e4-3886-46e7-8e6c-5daffa712c94","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":93,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"6fc47d5d-cf1d-4ca7-b15c-d76fbdb5b818","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":93,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"10fdfc6a-59ac-4efd-a235-cebc9cf60344","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":93,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"483bfe63-fdd3-4fe6-887e-d3c57d8c2df3","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":93,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"e3b89d39-cb5f-4c2e-8cfc-24e56b3484e1","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":93,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"9c1cdde6-be3b-4b63-b057-5a2ff70ff7d2","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"23a30db9-5ad0-425c-b62e-f83bbb71c6be","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":93,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"2ee6de12-9618-435d-b463-66b0887ea3f2","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":93,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"a9039364-85ce-4fbd-8ee5-ed38d7ab853b","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":93,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"01f6ac78-12d2-4082-a557-ce94c72ac068","block_type":"box","text":"II-56","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b1d33f6-f7c1-439c-8ede-8009e3f926f2","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d41a2fb-0755-4e9e-9932-11c164362442","block_type":"box","text":"Description of Municipal Bonds.","page_number":94,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"f141d5cf-0cea-442e-8027-a8549ad5705d","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":94,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"fe3ebc12-62dc-4ecc-a2b9-94fa96fef191","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":94,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"103f2879-9729-42dd-b4d3-964b691b49c4","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":94,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"124c2f7f-9015-4083-831b-2b0609d38871","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":94,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"2cc219bb-5933-48dc-aafc-b6560d307ed8","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":94,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"025aae3a-17e1-49bb-be91-6b30aafee948","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":94,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"d5cf09dc-9e42-4b3d-8199-e55826b95c55","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":94,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"e35017b5-0b17-440c-a84c-40f5a824955b","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":94,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"aeba5bcf-7bb3-453f-b584-9de6b4e93275","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":94,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"2f955ae1-f9ea-4bd3-aa42-416db6c73d58","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":94,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"54d3d9f2-833b-4925-a2c1-b682bb868b0e","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":94,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"575dc26d-ee7a-41cf-9b6b-5f1ab2185b45","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":94,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"b3457b43-7fc2-46a9-b9fa-9893d64de4ec","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":94,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"1bb2423e-3a92-4c19-926e-3f3a9ff0beaf","block_type":"box","text":"General Obligation Bonds.","page_number":94,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"a3aeea15-d868-4c0f-b34a-e886a134a54f","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":94,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"9cfb7251-b749-46fa-95a8-a5e98a3487bc","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":94,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"d8281386-2234-4330-b30a-c341fb12ae8a","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":94,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"666d78cf-40e7-4b6b-a4af-6ef2bb34493a","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":94,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"42b70525-36cf-43f9-90da-4dad2be49b05","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":94,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"c260aebb-a249-43a9-a4f9-504a4615b946","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":94,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"d3d24ac5-f403-4ee9-ac26-e6423303b70c","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":94,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"9d3cbbfc-584a-42db-9cbc-420d27036332","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":94,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"3d5e8e83-c05c-4fe3-ba01-45a768cc7dc7","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":94,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"abce2e6a-3033-4e9f-bd92-f354e397c6b4","block_type":"box","text":"Revenue Bonds.","page_number":94,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"b5308be7-5ab4-4f39-9b7d-b06ae739776a","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":94,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"64def119-b147-4385-a088-e9e564f4f9c7","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":94,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"6655c9fe-88b6-4ffc-9278-7627ebec3f9c","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":94,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"c27ec475-cadc-47c3-8d48-8ea7ae0eeb8b","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":94,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"491ad299-6830-4763-b719-bc8838abad8b","block_type":"box","text":"viability of such facility or such revenue source.","page_number":94,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"dbb15660-6471-4ee7-869f-379d260cc14f","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":94,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"8f85294c-059c-40cd-bdef-8d9b89cd81e8","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":94,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"8869b360-baac-4759-8d90-47b376941f84","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":94,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"31927acf-23e1-4de5-817b-ff56759b5bed","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":94,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"3809cf8e-152b-4b54-9635-ed164c09ca08","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":94,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"e4220ab7-7075-49bb-bec9-7926c8e1addb","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":94,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"8b785457-0574-43d0-9321-9f48d6486494","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":94,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"21ec4216-99a0-4dc9-898d-1adcb8a82477","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":94,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"6324e261-d105-4b29-8f64-b7a1c0720124","block_type":"box","text":"PABs.","page_number":94,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"728fc6a5-68a1-44b0-80bb-af3c27ecc354","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":94,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"0bd05d2f-8591-4432-84d8-6a87862f8a65","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":94,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"892cf02f-7a45-4a0f-be1c-ff193675744f","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":94,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"99f2a37c-9dd4-4b04-8499-854a9998ee36","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":94,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"bbd2d685-01c4-45e4-9091-001507d5dceb","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":94,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"e3b65b74-bcfc-4980-b91b-42349c37bf7b","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":94,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"3b6024cf-963d-44a4-89cb-7202ed3ee84f","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":94,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"95c9514f-80c4-4038-a4e2-5f2723b5fd6a","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":94,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"15bfc4aa-caa7-4e74-9158-86978000c926","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":94,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"fbdd298c-c120-4ea5-a8db-a52af010da9c","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":94,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"f9454c06-758f-4511-9306-84c720f60a1b","block_type":"box","text":"the particular facility being financed.","page_number":94,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"5e76c4cd-a1b7-45a0-95bd-ca8ae08351d0","block_type":"box","text":"Moral Obligation Bonds.","page_number":94,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"724b1a2f-319a-4e88-bbfe-722f031320d5","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":94,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"839050f3-c567-49fd-85ff-2046fe3635d0","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":94,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"a827ed5a-5c4b-4307-be48-f848dc6e8d6b","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":94,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"f0491c3e-870b-499d-a56e-2139492ae241","block_type":"box","text":"that issued the bonds.","page_number":94,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"10d6eaa7-8d7a-49ce-a71c-db2780768eb2","block_type":"box","text":"Municipal Notes.","page_number":94,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"04c797a9-3f0b-4a21-9283-efba61650634","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":94,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"97d3492c-1dd8-4da3-a561-5e327565d6c3","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":94,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"97590235-a0e2-4ea1-95d7-fb85a3f0c018","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":94,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"e795e191-5550-4446-b956-b1e511c497da","block_type":"box","text":"II-57","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd80cef0-c514-4d44-a919-1a7563e95889","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a194d381-7cd9-40a0-8b21-6380eae84433","block_type":"box","text":"Municipal Commercial Paper.","page_number":95,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"5097f364-7629-4007-9a42-749ca8b42adb","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":95,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"797d04af-da4b-4bf2-a3d4-d1f9ab0240ce","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":95,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"f1086395-fbf5-49bb-8ae8-c439da7b9683","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":95,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"4f13e6ab-b4cf-47e4-8e8b-dcaf5eab1d15","block_type":"box","text":"Municipal Lease Obligations.","page_number":95,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"062ec069-11fb-4e2a-a016-74d593ac8663","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":95,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"44b26974-70d5-4204-96b4-f4c199497c73","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":95,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"af1e775b-8af1-420f-b6c1-f726b5ab88e7","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":95,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"a679afb3-9477-4b59-8254-ba8d26321401","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":95,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"1566b8c7-fe75-4075-b366-e7d2dc4db47e","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":95,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"8836c6c9-7031-498e-9c0f-960b133c42a4","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":95,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"441fe048-b538-48c0-bfce-8c0fd4918321","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":95,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"ec6c10f5-7e40-4fe8-9964-c89d58431434","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":95,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"5a1d49b5-9903-4f9d-ad60-1a1f408f73d4","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":95,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"05af2228-e9d2-4377-bc19-eced4640e631","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":95,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"f673dc47-a73f-443c-8e74-0d0d1d4b4ecf","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":95,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"202d12e5-9009-4909-8336-3e49b4aa78ab","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":95,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"2c782a39-467a-439b-9109-cc2dc1eed3cd","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":95,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"c9badc15-efe8-4ee2-8347-39ad66d0e3de","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":95,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"c87db9a7-c149-42b3-bc3d-7ff6f4889616","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":95,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"ad53c738-c422-4f52-b47c-7a15727a7d08","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":95,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"0066853b-2d53-4d29-9f75-aa5f3d14166f","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":95,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"864a3d5c-00f5-4e62-86ce-8ae2db00f0b3","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":95,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"aa90219c-ed3b-499a-9966-f1010d1ac6e5","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":95,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"ae5fc2c8-0ab7-4dda-854a-fa7f407a88db","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":95,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"bf4a3bb8-0c3e-42b9-ab1c-9d82b8e7fc61","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":95,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"80e02b52-f7ef-4986-8115-f58e5336f1fc","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":95,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"1e533689-c4b6-49b3-a1dd-eb551fe69ac3","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":95,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"21c99de7-24e0-4df5-853d-9599dadd56b2","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":95,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"fb46f38d-e2e8-4cb8-8d61-3b2961c09361","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":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"f444a1b2-aefe-45ff-94b1-4eab2df3176e","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":95,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"e6a870e2-d45e-439b-8857-0e9ed2386b07","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":95,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"4b07b56a-36b6-4748-b18b-e60105b540a4","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":95,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"89a08990-7db8-411b-b48a-f2c642c30536","block_type":"box","text":"Tender Option Bonds.","page_number":95,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"ff9067e6-45c3-41f7-8090-c1972bd9ef03","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":95,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"b30062cd-d39a-4458-9821-531d00f46ab3","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":95,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"2b8aa240-c0a8-4025-ba75-7cc26e81b81c","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":95,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"337bd35c-2268-407c-8890-fa8404e899c1","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":95,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"710f3bdd-fb7b-4b89-9c42-72462cf3032e","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":95,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"5b5095b8-4efe-4d76-9db9-91daa7730bf6","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":95,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"cc07891a-c651-4484-b555-430276985a3e","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":95,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"f372b4bc-a1fb-4735-b048-5b037c8cc115","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":95,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"cff022cf-eb55-44d2-9d66-475b0aea8b2a","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":95,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"ceb280dd-ab49-4d92-b569-ac6d5e874d51","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":95,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"f4625c29-2198-4c4b-aea6-0f7c70cb0b88","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":95,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"e434adfd-bacf-48ab-acab-221e0993c5a7","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":95,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"ea675952-9574-4086-828f-7839e24c397f","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":95,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"f8f99256-4e87-475d-868b-081c4d1240a4","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":95,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"8c27ffae-f306-42fe-86c7-007c6d8bcd66","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":95,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"9d6e62bc-ea4f-4f56-9aff-4adc6eac8a54","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":95,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"a16c5228-2845-4ec3-a36e-07570f95f320","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":95,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"37c42ebf-3b3f-4cec-aa8a-6b550724dd0f","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":95,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"3b2c6060-2d24-4708-80a5-c4b124bc2914","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":95,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"7dcc1a28-597f-4a3b-8018-577ee62de805","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"358881ff-d20e-4e25-98ea-ba8d758253af","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":95,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"f39779da-12f7-4c9a-a3e6-a5d5a26d2ae4","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":95,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"94b56932-a5bd-4d23-9de0-f125cc65c668","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":95,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"cd58a561-66ec-4ba0-87ab-79d15363db53","block_type":"box","text":"participation in the TOB Trust.","page_number":95,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"a93f7bce-4456-4bef-a761-f8d5336012bb","block_type":"box","text":"II-58","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"89b13f6a-1cb3-449b-bcbe-eb8cefc22a99","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77e08e90-420b-4acd-9421-be6b701633c8","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":96,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"23b8d255-9a11-4666-9e53-6b9d937aec31","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":96,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"7afc276c-1867-4d50-82d9-6cb60490ec4d","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":96,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"7cc5d9ce-545d-474c-bc7c-990a1577fe38","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":96,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"141428d2-335b-480c-b1e8-2b9e87b98706","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":96,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"0031f5a6-12a5-4235-ad62-d0b7b8a3a7b6","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":96,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"5176e520-20f8-465a-81bd-660c1c36758e","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":96,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"014a3659-9551-4384-919f-118c20283fc1","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":96,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"910e00d5-086a-4729-867c-cee1632ed81b","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":96,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"fa685972-1e1c-4412-9d88-8033041a1bd7","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":96,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"faacf6bd-4b25-4566-9d2d-c1598fa21d00","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":96,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"4682372e-2506-4be2-b90a-24a77b08b3b0","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":96,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"5817443e-ed35-4c9b-a729-7dcd2317e7b8","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":96,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"34cb3d88-8498-4f4c-b2e3-f2a9503dc1e7","block_type":"box","text":"issues.","page_number":96,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"89fd308b-1362-44d3-94de-96d965755ce9","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":96,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"f9c7c0a4-0ee1-4de7-bfe9-50e14b47630e","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":96,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"5c7db550-1118-4c91-a938-6aebf6c5571a","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"b2341e8f-514f-4a30-aefa-bfeaf940b07a","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":96,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"ef2595a4-2752-445e-a741-380255862c6e","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":96,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"0f96de65-8184-477b-9992-b9d260dfa1e5","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":96,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"9653c26a-f11e-493d-b3cf-ccf39c36df31","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":96,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"7e87928b-f935-447f-82e7-669ea62b6ff3","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":96,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"7106fec7-8c14-4a25-a2f5-d1cfd5d82d54","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":96,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"77a41e84-0592-48bc-91c4-3d83b05a18d6","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":96,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"e52586b6-9e62-40c3-ab2a-6fd4d52d16b5","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":96,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"204535d2-38a6-44ff-b590-cf5bbccc6c6a","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":96,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"3b7a0ede-5bba-46dc-a7ab-8508df8dace3","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":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"aa631050-7f7b-4b11-8415-9891ff378044","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":96,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"0e6eae6a-82a5-4147-adb7-6a5db4628d2b","block_type":"box","text":"i.e.","page_number":96,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"80b77147-5049-4412-bb0b-9a1ad791cd5d","block_type":"box","text":", the Fund). In contrast, in the","page_number":96,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"f45fddaf-713e-4671-93c7-26b73504d382","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":96,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"350273cd-6bfb-4f4b-a431-3194ee721790","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":96,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"4081c280-abb2-4b6f-8311-53189be5a531","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":96,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"a72d2eca-003c-410b-ae1f-e8d58e6c3ab1","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":96,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"07e9e7a3-6155-4d52-8c87-6fe3d5f86ac4","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":96,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"7996781f-a816-4af6-ac15-27e1a2d47715","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":96,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"3c167091-c8dc-4eef-94b0-88c62a35e076","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":96,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"07cba28e-ecef-453d-91a7-cbb1cba9103c","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":96,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"cd39e49a-d896-46ab-8f08-025340752439","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":96,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"b2df4404-d3bc-4697-8047-594543db5e79","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":96,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"5ba577d9-b661-4e98-b80e-a8c9338012e4","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":96,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"4125a097-8f93-49da-aebd-0e55f6bb6a6a","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":96,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"1a62e525-d095-4859-9dfe-58d109bd75fb","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":96,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"3ac8aa11-78af-41e6-9a5d-a00bf51d40f2","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":96,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"f560b319-4fd0-4885-88bb-0ddbf0a4d2a5","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":96,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"9bc00017-c56d-40b0-a7ba-8b02e38f4bae","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":96,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"753cc458-1692-44e2-9938-a673020cd16e","block_type":"box","text":"Trust.","page_number":96,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"2016a696-89fd-4d12-a743-45c57a991d30","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":96,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"6076916a-8ff9-4614-928c-db87c1d8801b","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":96,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"5ffb0836-232c-4663-b272-718ed751fe5f","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":96,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"3c6059ad-1382-46c8-a428-9744e26d0dd9","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":96,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"8b013ef1-5f43-447f-b4dd-847148ce3936","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":96,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"4c1054d8-9756-4662-b21f-c59139ae0094","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":96,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"abd1af67-351e-4c45-ad02-8f59c7f4a143","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":96,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"6f72a12b-581e-4cf2-9bae-87fc69b6a1e5","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":96,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"cc54bca6-0b48-4961-8f26-b80c61beed20","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":96,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"1ebfd203-6d12-4733-b813-9fb41860ba41","block_type":"box","text":"II-59","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e0ae78c-07fd-41df-94f2-c5911ba89e59","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f58e56c7-55e6-4c09-a77f-cedb7e1949fb","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":97,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"c41b7db0-013e-42a5-b2e9-5f97ee7ed154","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":97,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"4596b136-4569-4796-890e-f4339c7ca44f","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":97,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"fbd97bf2-c912-43f1-b3ae-70e9e96f7595","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":97,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"2262cbca-4089-410a-ab8c-048c735748e2","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":97,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"f62f0532-8a14-45a1-ae54-121ccccee7df","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":97,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"dc7f91b1-e399-4bf3-a3eb-021df280eb67","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":97,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"764b55d3-d29a-4811-9ab3-554820a4f678","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":97,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"a3ddc4bf-7955-4d7d-8421-05503464eb92","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":97,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"19acbd05-c6a6-4fc7-9a7f-4be25eac9cbf","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":97,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"b99aa0e2-675a-473d-be8b-6237148fbe7f","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":97,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"7a83d7ff-a353-45a9-b1ac-9b1189def93d","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":97,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"80345d0d-5cb7-4718-b4c6-2b21c7eb0737","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"4a690b78-84ad-4146-ab2f-922fb542fa3e","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":97,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"52b41872-bf5d-4f7f-aecc-779eb8404777","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":97,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"3fd38332-d8d6-4041-a790-e0447fcd9625","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":97,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"a15571cc-af30-422f-a770-52183a62614b","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":97,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"183e6fc7-4f43-4a7b-acbd-f137a87459aa","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":97,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"e5f87e7e-5e62-452b-b887-eb4b9cb489d6","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":97,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"ef10e40f-96a5-48af-a3eb-e39f2fe0987e","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":97,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"e2ff1d8f-2a64-4d43-acd8-9f96bdd4eae0","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":97,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"92122ef5-2c66-4e24-908e-56d211094df5","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":97,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"0242066d-970e-4068-9972-2332a66ef15b","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":97,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"3df9fc21-b587-4b73-a3d9-67f1d2de3a8e","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":97,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"c8dd1690-e927-4963-be13-2eed42ee2a05","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":97,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"b545ce87-4d65-4bbc-bf56-112f4d196d1c","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":97,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"5cf39206-07b4-4983-b86d-4c999826793e","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":97,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"6121b6fa-2dda-4fe9-8380-11a5e94d7079","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":97,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"a585b670-574c-4b34-a817-3cc2bd64b83c","block_type":"box","text":"i.e.","page_number":97,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"49aaa187-6636-4be0-9030-b878ce74a51d","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":97,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"6d5308d9-a087-423c-bfd7-fdca16071373","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":97,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"92a0ad2b-ad55-4ecd-a2e1-4da61f2fa303","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":97,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"6687dd49-1d9d-4c8a-ad5c-9e341dd99094","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":97,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"58166ffb-b3ac-47ea-82ca-0f2f14c80c41","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":97,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"092cbae4-bc3d-48b0-bc82-c9eab26d637a","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":97,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"42178d8b-1cc5-4685-b90d-18f909175f13","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":97,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"114c1609-9b4d-4973-a6b4-51d9e1522072","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":97,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"35d30caa-b88f-46d1-9e3a-71b32cdc793e","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":97,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"fd3324da-775b-4aae-ae90-a43552be1a11","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":97,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"920cffd9-8d7a-4bfd-b824-8a0a8d0ed8ec","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":97,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"a18f5da9-5530-4101-8b14-cda77d223148","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":97,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"37d9a505-9144-4031-b12c-5059d16db3e9","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":97,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"3bea20f3-ad22-4dfe-b179-10780817a186","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":97,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"2eca1821-cdf4-4e57-a48c-a693489e34d6","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":97,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"061fa88f-b203-4300-a3f3-f9fb57d1bf10","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":97,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"63b37531-f527-47cf-b624-180600ef4477","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":97,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"332a38ad-805d-46c6-be70-9f9643393ba3","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":97,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"6bd4ea6f-dc05-47a7-937d-e4848efa85a0","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":97,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"930330cf-73a1-4c55-b3a6-ed83311d30ce","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":97,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"6639ab2e-121d-4435-b9a1-3958dc826364","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":97,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"5d16ec31-29c4-4568-8592-6c1d00acdc18","block_type":"box","text":"market is not yet certain.","page_number":97,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"50bfbb6d-5ac0-4e68-9075-356a6f4820e9","block_type":"box","text":"Yields.","page_number":97,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"b449fcf6-2eec-4352-b46e-27547447bf3c","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":97,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"6bda9571-64c1-42b8-b11d-b9936c00b9d1","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":97,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"470f881c-32d7-4d7a-83f0-deb76935d45b","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":97,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"1e15b767-2299-4b13-8895-c7737f35aaa4","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":97,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"4c441557-e32f-4cab-a139-af31255e4c6f","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":97,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"739f72da-5b33-4b74-9501-e83671e372c2","block_type":"box","text":"II-60","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e870432-ca18-45fb-b22c-88913f65f05c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76ebb954-64a9-4fe4-a1c1-a7ba76878c26","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":98,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"6135685e-1195-49b9-bea4-8df5636ef0d2","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":98,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"f57cf9fa-a240-4db9-9fbe-388214522e2e","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":98,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"9a71ad3c-bd37-44a9-9194-ce528dc306fe","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":98,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"dc6c222f-bec6-4a34-aa34-b0dce1427e24","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":98,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"b4adfb64-a6db-4e97-a646-570aa2edd580","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":98,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"4955731a-5c6d-4859-aefc-bd16221316bd","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":98,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"f7724cdb-08f4-446a-ab19-c3f8d06f4077","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":98,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"367524ac-25ce-4f3d-bbd9-22671d4c08bd","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":98,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"7aa64e95-99ee-4fe9-930c-9f47aa87c9ef","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":98,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"1558f242-ea73-4cef-a656-803c545a1d93","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":98,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"28c9c804-d2af-4a00-9521-8b06855e3397","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":98,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"85d045c0-57ce-43ac-8df6-7a64cb0e8981","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":98,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"a579b35e-653c-4530-93d4-4bf3fe18ae75","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":98,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"fbf93a38-2fe2-4051-865e-30cf0cfd3177","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":98,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"d80967ca-0c14-4cf0-a598-7b46a42b4d13","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":98,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"713b72d4-328a-4520-9ba7-271d2e5a17be","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":98,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"aca9ebb6-a601-45bf-b589-37d095f2aaf8","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":98,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"89412407-81ec-4316-94c8-cce009fc71ca","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":98,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"b1ad42f0-cc6d-4362-bdea-7bac03775c37","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":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"b11c488e-4fb9-424a-bf31-cd730d610e06","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":98,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"e3470214-9a12-4eef-ac4b-4e0e00a9c41b","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":98,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"b6b9fc39-085e-4c5c-953e-c9a83f3e03ad","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":98,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"ac0b79f4-0631-4a97-a7e6-b7a22281708e","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":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"915b1dd1-5ce9-420a-a95e-e2d1536964ad","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":98,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"9dae8bc1-196d-4aef-a4e3-a8f4cdd2c591","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":98,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"7a377d99-ea75-426c-a9a6-7df6c545ad45","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":98,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"0afa0ed2-f74a-45d7-81cf-b11ce782dab6","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":98,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"e6e5e5ef-b14f-4d68-ac34-d6075ccfd58f","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":98,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"6a26367e-047a-408c-a862-80ae64925d45","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":98,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"e158edb6-29ae-425f-9e46-1bb9fe96dd42","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":98,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"31abe922-ef06-48ee-bc8a-d1c539521f48","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":98,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"ca832d09-e447-4111-b311-1dc3c896e627","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":98,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"a018185e-00c9-4fe1-8e20-cd31ef100f8f","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":98,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"d9e1b863-7a13-4cc2-8eab-5c2154d45dea","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":98,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"0afd52a2-86df-4b7a-a96b-4d4e2c632503","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":98,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"7986e806-69a8-4ee0-962e-66512118aaac","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":98,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"18657a72-2923-4eb8-b57f-0fbd26d5d24f","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":98,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"195beb8b-f790-44ce-b12e-9b9b378ca300","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":98,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"af68ecf1-6389-43fc-86b1-9507a2e25908","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":98,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"82e62f84-4c71-4a23-aef9-5f586951cde7","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":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"899419bf-95ed-4294-ae72-299c0cf754ea","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":98,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"511591bd-09fc-4683-9eb2-9f64b28558da","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":98,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"169f5fcb-6586-47d2-8980-f1a3acfa1ce9","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":98,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"21def24a-2e82-45f0-ac5f-9150f8ad4eb8","block_type":"box","text":"Call Rights.","page_number":98,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"9da255ca-ae5a-4a12-8920-c73dcd99e8d9","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":98,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"3b8e8083-1e3b-4c49-b8b4-97695cf792b5","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":98,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"dc0b445b-4ba2-40a1-93a6-00d45be97da5","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":98,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"6f347ae8-0322-4355-8164-b86d91990a5a","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":98,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"530e9cce-ecc0-4063-9099-1701a0109e27","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":98,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"6fde6e26-d367-41f5-b588-4cb90c9ec0ed","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":98,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"b84b3770-17ec-44f1-8872-ebdfaeb17a09","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":98,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"8eae3b01-908a-498c-923e-889654f297f9","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":98,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"72aea46b-970f-4774-9f77-bd63ac9dfd8b","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":98,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"2a0e82ca-a523-48f9-a501-2cc3fe221544","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":98,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"b806941d-5b16-49df-9d2f-5aabf46df31e","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":98,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"bf8a5a98-8ec5-4e3c-ab7e-e2ab6bbda6c8","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":98,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"3dac470f-8bb4-4197-8321-279b78733ccc","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":98,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"d0a6bde6-96ad-4c84-9d3a-bd170813c24b","block_type":"box","text":"II-61","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47f07dde-08eb-45a1-96ba-23143ae61ca6","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"23360212-d68d-4978-8ffe-9ce52dfa1755","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":99,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"2bea6289-93b4-4cfe-92ae-58a03ee400dc","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":99,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"c6eeb11c-87bd-4d4a-98b5-489468a68b00","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":99,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"e8a04309-d1c6-4316-8ad3-eeac7ebb1c38","block_type":"box","text":"i.e.","page_number":99,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"b9da9e19-3a96-4690-af83-145d0170107e","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":99,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"8f67b55b-df6b-445a-8210-1f5a4e4997de","block_type":"box","text":"rates).","page_number":99,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"96f49d73-1f70-4cb9-879b-255313399852","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":99,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"db9104db-fce5-4878-ba10-5a4193c388ed","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":99,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"9f825811-b539-4b5b-8467-d4d19d1aef67","block_type":"box","text":"e.g.","page_number":99,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"9d9c8002-d2a0-433f-b572-3f6445317129","block_type":"box","text":", an exchange of fixed rate payments for","page_number":99,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"de282b8f-a015-41ee-bc3b-4786fd0ddbf0","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":99,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"02c33ee0-faf8-4eb3-9269-47eef8556484","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":99,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"132be88a-d459-4cc7-b963-0ad1f7bdbd4e","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":99,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"3dca4986-5bc0-42c6-8b90-47e778795255","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":99,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"89f6a3f3-dcb4-4030-bcda-0f15e6d765d6","block_type":"box","text":"with the same attributes as the swap (","page_number":99,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"9f87c48d-94ac-44e2-a4a9-0aab4bff131c","block_type":"box","text":"e.g.","page_number":99,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"fb1c2c55-2b23-4d42-b6c5-bc1c146842e5","block_type":"box","text":", coupon, maturity, call feature).","page_number":99,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"fc2a6e1f-c7dd-4777-a401-5c03967b14b7","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":99,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"45960469-03e4-4bdb-8e6d-df3a1e87a0a0","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":99,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"12d00b07-6402-4a17-b14a-0835949f8bfe","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":99,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a1906fa9-5881-45df-a8de-a483fb22358f","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":99,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"c9872277-613a-4764-872b-2644a70f4281","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":99,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"6ec40aa3-1f1c-4550-8d99-b1af8852bb83","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":99,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"fed756c8-21db-4efa-972f-ecd40e3845d3","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":99,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"e522f1a1-0ea0-4725-91a3-db54013f745a","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":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"5184267a-bd9a-443c-b01c-997eacec45a6","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":99,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"48af0b11-79f8-46bf-b32e-3a8695ea68f5","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":99,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"5d64df0a-6db4-4454-93d5-732365033a77","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":99,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"2707da86-187b-465c-902b-16196de4aa3c","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":99,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"42cdb664-64fc-4d9f-8090-67cac1637540","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":99,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"d58aba3c-63e9-4da6-9cd9-60e84187b9e3","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":99,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"309c63a7-baf9-49bc-8c15-3c668b7e04cf","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":99,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"db2f6f3d-da4f-478c-ac38-09b9113e7937","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":99,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"00a922c8-4603-4707-802f-32ec3750b935","block_type":"box","text":"Insured Municipal Bonds.","page_number":99,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"cb05cc1d-e3f7-49aa-a12c-d46c9c69a2e0","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":99,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"ac20c5ac-1d10-4858-9425-4434bbb73087","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":99,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"d450e4b6-8d57-4d46-a405-0694269cc0a1","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":99,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"f8703929-529f-4d55-8cc6-39d1c8908cd2","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":99,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"7681b593-4e1d-4715-9a27-482de5fe8e77","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":99,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"1e3b5ad1-f579-4dae-8ba0-3e9ca3a64a22","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":99,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"daea38b5-545a-4ef3-b4b8-04e5f8a4d517","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":99,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"a313993c-48c9-4b61-8866-d4fc9d037590","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":99,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"6b67d6bd-27bf-4df1-b6b3-b9343530c9af","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":99,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"42f67327-13e0-40d9-9951-ae5ff26a957b","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":99,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"c3bb9ac6-e4c7-421d-b579-efb51f458aa3","block_type":"box","text":"bond could drop.","page_number":99,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"10107a64-17da-4adc-9cf5-986c926f1b5b","block_type":"box","text":"Build America Bonds.","page_number":99,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"09fa5c58-de67-42d2-a097-866b1de5741e","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":99,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"094f2a97-fbdb-43b9-a6af-942bf2e594b2","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":99,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a8ee87d4-aab7-4e14-aaa2-cb062e213d1d","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":99,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"06074db9-f19a-465e-acee-065d7a246f51","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":99,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"4d36737a-2fdf-4f18-b3a6-78a48a5e71f9","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":99,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"0d07dde0-0942-4050-b3f5-bd60e3fdcc76","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":99,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"9d0a2729-54ff-4333-bbea-c8b6afef41a9","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":99,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"4b800ed3-b637-4c8d-a324-ecbffcdb2d2b","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":99,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"4e63420a-c918-405a-9b98-6dbf2a675866","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":99,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"6255011b-55cc-4f83-8887-92e1dd83f395","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":99,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"e43ab894-d322-4b95-849d-6709af7792fe","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":99,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"ad04d085-b0af-40e5-83df-056930718704","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":99,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"a699f722-17d5-454a-ba69-3c3dcdb3452d","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":99,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"67c97294-fc8d-4e84-a17d-48eca12208b7","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":99,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"8c86797a-4ba7-40e8-b874-f4b314d8e5a5","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":99,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"4eb5b037-6b40-4acc-8a53-e0ee03ced6e2","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":99,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"3761ac7c-a138-474a-b396-7d3d2bc95e11","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":99,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"91ea08d8-4319-43b1-a2e1-ae39a686f688","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":99,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"e9827605-6a51-4f3d-844f-a3141956c938","block_type":"box","text":"II-62","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4b0b159d-927b-4a28-a72c-7b43fe893142","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"647a1eb7-2c03-448a-8e92-30962d236307","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":100,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"bfed6d02-0600-4c69-81fe-0f533839b31c","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":100,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"0061118b-1ce1-435d-ab12-8495afb29112","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":100,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"e6501fbb-fe7f-423f-95f8-ca2579d30c8d","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":100,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"1f944813-ffa3-44bf-97d3-a7a086634603","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":100,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"f3292576-1b5d-4d0c-981b-69e7ae712aff","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":100,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"1913a01d-9b08-496a-9409-9a83260d6589","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":100,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"822731bf-a0aa-4d17-ae88-99f418bbff3a","block_type":"box","text":"their face value to the sponsor (","page_number":100,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"59c71e66-ca23-41fb-b7a3-5e72f565ff72","block_type":"box","text":"e.g.","page_number":100,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"5b2a7588-961c-4c07-a29b-856d22c174f5","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":100,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"e20e991a-56b3-4d49-a053-a0e1fa8c15f6","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":100,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"ff974bda-c29b-4597-b8b8-e71573daf97a","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":100,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"971a38e8-497b-4504-8e19-1359baeaf013","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":100,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"4e658015-4699-4e44-ba74-813f4610e24a","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":100,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"48bf4cba-fa8b-4a1c-8860-94615f99ca4b","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":100,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"2f7d7e97-0368-45c5-98f0-41adde1dfd45","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":100,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"d905bea3-f5b2-4e4a-89df-b8af19ea60da","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":100,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"e792f5a1-2dc1-4601-81f5-3ac874ab9b96","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":100,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"bb47cc7e-503e-4191-8a56-e677aff6e21d","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":100,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"994712ce-8dfc-4111-8980-969a499ccd6d","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":100,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"26ac1c3d-fc22-4aba-b440-243390c50c3d","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":100,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"15d49f96-69a8-4939-b972-a25f2afe514b","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":100,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"dfebffc6-4d77-43cd-a2fd-3c51b1427cee","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":100,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"a0d822e6-5059-470d-a4a0-7f4e089fbf49","block_type":"box","text":"such opinions.","page_number":100,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"a35f0fa2-ae6b-4692-9408-c623f6bb072a","block_type":"box","text":"Operational and Technology Risks.","page_number":100,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"bfa57812-9da5-4e95-9509-1f8194ed424b","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":100,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"fbf4a70c-61ca-4b41-993d-6d8636d4f919","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":100,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"fc197c2f-b236-43c6-823b-5b15420bd7a3","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":100,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"45088c37-cabe-4f3c-af21-1fb3c405599b","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":100,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"799a0187-afe0-454e-af57-eb4fa922a86e","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":100,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"2198b758-4ea0-40f8-84de-3ad2a65cb48a","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":100,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"e4b9da9e-675a-4f0b-bbdb-4e68fd88d32e","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":100,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"8086a41b-89d1-4c72-97ea-81f91f9aeab3","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":100,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"74f47273-d80a-45d0-95c0-1117f7041a5c","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":100,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"d117fa6b-af39-40bc-bc9d-c704bcfb57ae","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":100,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"84422792-8d25-4907-9f2b-f257f6a961bc","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":100,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"67b439ca-b1db-45e7-8cdb-22390bae1045","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":100,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"24698c2f-7963-42d7-93fc-9cabe9e5f9d2","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":100,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"19950744-0d96-477e-a059-900374879b46","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":100,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"299d99ff-7fd1-4d75-9c3e-5f7373b7578d","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":100,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"921b0786-ef01-41fb-821b-22934ef55cca","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":100,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"e94303d0-d560-4164-9682-f7bac65934a9","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":100,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"b5ab7c01-3d5d-4fd3-bf32-75d5ce37b283","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":100,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"16d8026a-e8db-4e91-8394-159b9cc5a864","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":100,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"b9998d33-350a-4510-bab2-f2fee138ae7d","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":100,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"cea8b6b7-01e2-465c-a93e-275296d628a8","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":100,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"124e51cf-fe6b-402e-b89c-a91b4337b95c","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":100,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"ee9a865e-c452-4ab8-a191-aa478f166abb","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":100,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"ab94eb59-aacb-44fa-be44-188556b2b429","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":100,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"eb3a0d23-da93-4dd3-9f95-991c25b59700","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":100,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"34ede569-467d-4832-bb11-1d9e2360688e","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":100,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"5c170e4e-4f9a-45cf-8ef7-3834ee74c451","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":100,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"c18e3ad5-24db-4353-bacd-ef5036db2d5f","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":100,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"652b9071-9a93-40bb-b109-fa935712b848","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":100,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"0e1a079b-0f70-451f-ac5b-13f805029c40","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":100,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"4f5021b2-4c6a-42a5-b454-8b88a2436d64","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":100,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"df11edb4-a76b-42d5-a612-ec361b25fb65","block_type":"box","text":"infrastructure assets.","page_number":100,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"8bfa6f15-75dc-45c2-9346-906422e27651","block_type":"box","text":"II-63","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb578a85-6f69-4812-903f-9353623f8cdc","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6877820c-280e-490e-9b32-51f2910a5127","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":101,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"9ae342e3-81dd-4051-bf73-a155edc1838c","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":101,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"fe8d81e3-4833-4e08-ab3a-e2cafddd7748","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":101,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"d435a970-9567-4f86-a3f2-8be3789898b8","block_type":"box","text":"or services.","page_number":101,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"c75c4941-e2d4-4eae-8b5c-ee0ad4b418f5","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":101,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"7382e75e-64f1-4531-8c0b-0467f52c6ba0","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":101,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"b349257c-4a31-4ae4-bfec-71933bef4b84","block_type":"box","text":"other third-party AI technology applications and users.","page_number":101,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"86b76d9d-b021-413f-93b8-33410bc07316","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":101,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"b1b499d8-cfe8-4658-bce8-0f8f40ce7cfe","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":101,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"0fab16c8-3461-44c7-9c7d-14d9393cf3ca","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":101,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"c23f83c2-a37d-4f3e-89fa-22e79a69a958","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":101,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"8ccca847-1be5-4d7a-a816-2282f09890fa","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":101,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"ada3df79-4ea2-4cd3-9cbd-853a3f32542a","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":101,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"5ce881bd-3bc5-43fd-9b5a-571f0c850cf7","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":101,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"6ce99ce4-a279-45f4-9bd7-2e3735e055f1","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":101,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"f618be03-9163-4674-adc1-0aec649a39c3","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":101,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"9f12056f-fde0-4072-9dc8-94dfafdef8a9","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":101,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"51d2a92b-4385-4220-a8d9-e7e857afcceb","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":101,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"dc2ba743-fb4a-4fc0-a02c-910251aa635e","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":101,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"3854c5f1-1214-45ca-8208-8594516438ce","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":101,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"0dc9b3e7-c175-4516-a42a-cb131005e5c7","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":101,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"d251e6aa-fca0-46f2-ad5e-b1b9c928c5df","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":101,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"e22c9a86-d6ec-4b67-b4d1-9026151e81e2","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":101,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"ffa2eba9-e429-4ceb-b3fb-852660909d91","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":101,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"6c2cf19d-f324-4b73-926e-07aa04d3a321","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":101,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"0e64d69e-10e9-4d76-81cd-0b9127a0c4c0","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":101,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"070a303a-a658-4d6f-ace6-357d6cf48069","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":101,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"26b8bab4-9f23-460f-b905-1b56a33091b1","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":101,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"37475a07-004b-433e-8a43-b7b9915f7351","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":101,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"393ee1e1-adcc-4f02-81f0-b5139fa51608","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":101,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"9164a456-ff4a-44ec-98f9-19a8d3fd6a73","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":101,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"81558f7b-f5f7-4e23-8bf4-788b7b0c460c","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":101,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"de82f4e3-95ee-452b-a2e6-22fbebb9650a","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":101,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"11313512-4f6a-47d4-8ec9-b7cb8f8e12d5","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":101,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"95406ff2-4047-4a11-a81a-e27ca7241adf","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":101,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"b326b449-594c-43fa-926f-a4e13ab939ef","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":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"8855c4f1-0ecc-4dc5-81cf-3b031d3403fc","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":101,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"3fb19add-0816-496e-9d8a-9bb9fe0c77e0","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":101,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"db9f2a5e-827c-4d26-af4a-c648eceb7b62","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":101,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"bf326bf4-560f-431b-9888-c73110dc3ac4","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":101,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"32c9390d-b143-4c96-914f-25d94fda0517","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":101,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"f3643b3c-6da7-4127-839c-b6b59a29588f","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":101,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"f7110d6f-f32b-4b5c-abd9-b3f0b8c853e9","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":101,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"41497761-022a-4f41-9e47-d37045c3b14c","block_type":"box","text":"resources to monitor and implement required changes.","page_number":101,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"984b634f-7090-4567-b9e9-75f228db1cb0","block_type":"box","text":"Participation Notes.","page_number":101,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"2afa1455-c1d2-4f66-8047-a8acab2537d7","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":101,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"affe44e1-6bd2-44fa-b769-964108ff8673","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":101,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"76d205ca-a2cb-4f1e-81f7-9e6f9733f8be","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":101,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"b99984f7-87c4-4081-936c-bb86faf1edd7","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":101,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"8e2dc2f4-f04c-4fc2-8cbe-aa84028e3707","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":101,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"020c5e4e-6e23-43db-81fc-bd32091ab7f4","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":101,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"e88180c4-8220-45c7-81c5-6406fcd6e179","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":101,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"5a1fc868-ffa9-4a9f-9791-e935d1693470","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":101,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"9c5830ac-0318-4513-9d29-640bc56c33ec","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":101,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"fb2782e8-0662-4ec6-8484-4f63700e94c8","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":101,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"7f513f3d-3355-43f7-afd0-9193c371a073","block_type":"box","text":"II-64","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f14aa4e3-0fa4-47fb-b067-be56d648ccf0","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"515689d2-3e8c-4c62-969c-86ae0f6181ef","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"6ce3e443-97c3-4d10-9cd9-7bb7a622dd66","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":102,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"0126a4f7-bc82-4e80-8ae4-25c3785a0caf","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":102,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"e1376af7-0ad2-49b8-b15a-68ca26fe74e1","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":102,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"193a0ef2-9cc9-4a5b-b607-a4bfacd46009","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":102,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"9dce38f4-474a-4b5c-87fa-cfcf623b2efb","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":102,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"11a68f29-e83e-43f3-8883-2e0086d5b28e","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":102,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"5d39c4af-7d3b-406c-98c4-2dbcfae17930","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":102,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"301c8449-0287-43b9-b989-42c95610c92a","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":102,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"d46882db-d139-45c2-a8d5-8aecff48682c","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":102,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"67c93d9d-b28c-438d-98ee-e2fbdaefd6d1","block_type":"box","text":"Portfolio Turnover Rates.","page_number":102,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"6527738e-ac42-47bf-a46d-623bf4eae4de","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":102,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"9c490ca6-0256-4148-a182-22a1b11a1042","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":102,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"82509377-d929-430c-9df8-babb271b00e5","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":102,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"56473c8f-dfef-4c41-a262-b6b5cc6ddce0","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":102,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"aecd6400-2c1d-428e-9767-9a561994f942","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":102,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"74cab643-be06-4653-985a-326361155109","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":102,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"0a3bfbda-1396-4954-b38e-aa26d06f5c44","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":102,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"2885f0e1-7346-4296-afa9-89ad7d73a705","block_type":"box","text":"i.e.","page_number":102,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"d3a2a1d2-eab1-4464-8aa1-31879cc3c2ba","block_type":"box","text":", 100% or more) may result in","page_number":102,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"40556080-5cc7-4706-b905-d2291007f9f9","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":102,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"81b56b1d-0050-4c58-8e1e-7f6c568c22e7","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":102,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"f3944efc-ca65-4b57-a280-4480b1525322","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":102,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"0f4baa9e-6f0b-491c-be74-8b4f5511edb8","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":102,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"ca732970-0c80-4611-9014-6175dcc05969","block_type":"box","text":"Preferred Stock.","page_number":102,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"b18b4565-ad68-44b7-a7b6-a2671cd710b2","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":102,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"a2e08670-9266-4a3c-85ab-05dc67be2521","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":102,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"1493d48b-337a-4a4b-87c2-7cf9dae6d97f","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":102,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"44b21a4c-c4d7-4345-8771-0a5ca10c85f2","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":102,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"6638758e-d045-4e94-ae42-2d75acf2793a","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":102,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"3c1327d0-416c-409d-b48f-ebede87df3c2","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":102,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"6880c54c-ab79-44e1-9c4a-7ae515da26da","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":102,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"2ea3b118-7430-4574-91b3-124d7a484ffa","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":102,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"3b990332-c132-4375-8f6d-76c8719e9571","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":102,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"fc81baeb-3007-4d36-bba9-524ee9179a90","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":102,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"e0970d8c-e3db-478b-a1bd-5c084dfde071","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":102,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"6407110e-faec-464f-9973-f38d62700019","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":102,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"240b8c9e-256f-4f53-a82d-386adbe9618f","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":102,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"f21b7dba-0bba-4d87-bd2f-ef85b88df254","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":102,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"ee50e8c9-f82d-4465-9022-1d6c4c978334","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":102,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"a43a6ca7-9042-4382-8c7b-43d57a8587e6","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":102,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"b8b67506-c7c6-4cb0-b9ed-dd43342682b8","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":102,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"15137f1d-260f-43ac-bffe-4db9f472e6bd","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":102,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"46f69e57-3f9a-406d-a5c5-47f464b5ea0b","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":102,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"e42c318f-8e56-4a01-b15f-f12c51b720a9","block_type":"box","text":"Trust Preferred Securities.","page_number":102,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"47f3244c-c46f-476d-a1ab-30e0a97431f0","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":102,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"2e77c0a4-c75f-4b64-bab7-a6dc856735d4","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":102,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"a9a521bf-e3f5-402f-828a-e2384c368b0e","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":102,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"4cbeae68-ef08-4443-bb04-68ef82f79e8c","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":102,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"b93f9203-595a-487c-9ae4-452a8248fe87","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":102,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"26e2729b-e56a-43e1-b864-23c993386133","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":102,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"11b381c2-fce7-4384-b6fe-49e67f7fbe89","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":102,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"712aae11-d100-4849-864c-413256938353","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":102,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"3feed351-48cc-4a74-99fc-2763449f39a2","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":102,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"4a6f4e79-591a-4009-8a84-f6a3b55937f0","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":102,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"cf9963bb-e629-427f-bf35-4ae18849ad5f","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":102,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"17d6032e-f7c5-4866-8e9a-b08cf3033745","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":102,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"143741e5-5d82-47a9-ad65-5eb2d1742af0","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":102,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"ed37f639-f6c7-4190-ab51-33bdf441589f","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":102,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"9b765454-dd03-424d-ba5d-401b670340c6","block_type":"box","text":"®","page_number":102,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"9257bab0-e460-44c9-8d37-d205194b88f6","block_type":"box","text":"”); monthly","page_number":102,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"45af369f-9e95-42c6-b4a9-0a2a1c6c8561","block_type":"box","text":"income preferred securities (“MIPS","page_number":102,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"bad097ed-1023-44ed-8451-e1eb5b55fed5","block_type":"box","text":"®","page_number":102,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"51999e38-23f8-4735-b6c6-e58bfa8e8a46","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":102,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"8318a1e0-00b5-416c-bfcc-fb2e30680845","block_type":"box","text":"®","page_number":102,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"4d98edae-777a-4632-9807-d88015816fea","block_type":"box","text":"” ); quarterly income debt securities","page_number":102,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"49eb949d-7e2f-4fb0-a816-75d0aa993feb","block_type":"box","text":"II-65","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"deab6e09-6582-4e64-9619-38eaa328ecbd","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d582757-474d-4334-8b42-11838044ccf9","block_type":"box","text":"(“QUIDS","page_number":103,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"02562b7c-b788-41df-8c86-b702edb13163","block_type":"box","text":"®","page_number":103,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"403b3f38-4f59-488b-972c-08b3bb59f996","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":103,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"b65e1a09-45ff-4cd3-b3ec-5f2cc8f311b2","block_type":"box","text":"SM","page_number":103,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"c4817475-f123-4567-bafd-c17b7aff5be6","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":103,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"db09237a-35e9-4dc6-b0a5-b573a0e85f40","block_type":"box","text":"®","page_number":103,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"0e7949cb-5d54-4d7f-8a90-f08aaad08f0a","block_type":"box","text":"”); public income","page_number":103,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"e8a096c6-711a-4edb-90a2-2919564bedd2","block_type":"box","text":"notes (“PINES","page_number":103,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"387b5693-e4fc-41f6-93a6-4597012e9dd1","block_type":"box","text":"®","page_number":103,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"50ee9a65-2317-41a8-8693-c6a91f784c81","block_type":"box","text":"”); and other trust preferred securities.","page_number":103,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"50c18c17-2df9-4be3-ac0d-6d0021d516cd","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":103,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"05f24303-42a9-4724-9421-8e8b90e5e417","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":103,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"465e97ab-d524-4ebb-ae85-0caa2b5aa16e","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":103,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"7bb267dd-b9fc-4f88-9c0c-79ba53238b57","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":103,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"a19930e8-d424-4957-9c33-b13861efc1ae","block_type":"box","text":"regard to whether all payments have been paid.","page_number":103,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"3d5bb1c1-e632-4da2-a31d-4de974eaa214","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":103,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"cd910be6-78e8-4fc8-afa5-8023a0eeb56f","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":103,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"4634593d-ee32-45cf-96fb-e2be750c6424","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":103,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"c0804dc0-143b-4db6-82d8-9ddf24666a26","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":103,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"4d4b069f-25ae-44b6-baee-6600da4aa41b","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":103,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"7ba3b04f-299e-4309-883a-bd4f7c7c3168","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":103,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"937d82a9-cab1-4cd9-bcd2-f6d17fd30ac3","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":103,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"380e7c27-f6b1-4d4d-8ad8-37b306b31493","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":103,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"6cbe551f-386b-4304-b86a-52d936673481","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":103,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"d3e84feb-c075-4f71-ad2c-2cd97c8b8e3d","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":103,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"cba7aeae-f42e-4d39-a0d0-fc1d84e1d0b0","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":103,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"d4b8efa4-1f79-45cc-8306-8eb35166247b","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":103,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"3f6008ca-a308-4602-a16f-a0eb9fb8e018","block_type":"box","text":"debt securities.","page_number":103,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"b8793ad6-a8d7-45e5-a8da-8f6756abf5db","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":103,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"49b62caf-f1b9-43c8-ae3c-7e5b14e1e0a4","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":103,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"73e4f9c3-0cc8-4004-bee6-4a1a318b8ac9","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":103,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"7aec3641-a104-47c1-a4a9-e1c81514307c","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":103,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"bb7768b7-a36d-49ad-b332-8523d864fba2","block_type":"box","text":"geographic areas or in specific property types,","page_number":103,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"6107b340-c50d-4fb0-8664-c3eed3e0af80","block_type":"box","text":"i.e.","page_number":103,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"5e43c351-acc2-45d1-9c78-2c44ea4239d7","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":103,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"4a80136c-5734-4979-a443-87004bad8207","block_type":"box","text":"buildings.","page_number":103,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"d7e1fb4f-5feb-4bfb-a9a2-93a1a9f55f1d","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":103,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"90a7ef7a-d857-43fa-9835-deefaef59acf","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":103,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"bb897269-3471-4982-9052-f725b330ccc5","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":103,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"9ad3b5cd-67e8-4bf3-a99c-600a9aabb20d","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":103,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"30938998-3c5f-41a8-a75a-0e15e687e019","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":103,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"d4d8b895-f8c8-47b5-813a-24909eb150f3","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":103,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"af96fbc2-293d-4783-ba21-adbf3f51dfba","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":103,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"6d944469-2641-45aa-a8e6-838149c3ebc7","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":103,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"1ba0c185-9b18-4d92-a980-0e45d8f5c964","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":103,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"a0afd4f7-1b29-4e1d-b179-18742085fa98","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":103,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"18494639-cb2a-418a-b9ae-f87d53b78b27","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":103,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"7a041862-ba19-4fd5-acda-0299ce9df1ce","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":103,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"9f421148-7973-48da-b716-84631612f3d2","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":103,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"748e856f-4d0a-4ff3-a5ca-b6169734d151","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":103,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"0479c712-fa4f-44e2-b0da-f624a31eadd8","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":103,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"b4e4f6bb-02d8-452c-8f83-f967163895a5","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":103,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"e4445bd9-fe7e-47db-beac-599a9e3dcb9d","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":103,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"28afef71-967d-458c-979f-911763a4485c","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":103,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"a2df43f0-3e10-44dd-8102-c83623428ad5","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":103,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"9bf07eb1-519e-4eb8-838d-c746c85c90e8","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":103,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"86ad39c1-e068-4a0e-b35b-584f1f4ba0fa","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":103,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"38e4a918-4dd3-4157-9bf8-f549da7303fb","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":103,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"efb36d4f-4507-4046-bf2b-2ba640b71f10","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":103,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"ab7c27d1-0d2e-481e-a3cc-f2dc9d32a19a","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":103,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"beb5fc00-b3ac-4012-b2d0-9c1b01f23a72","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":103,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"08c784b8-70e2-499f-9ffb-02a3e7a6a51f","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":103,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"5867c9ac-86de-4649-9de4-604fd50c7314","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":103,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"0da30be2-e618-4504-b1ea-ff41ef476be6","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":103,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"94c6362d-f12e-410d-8809-ff71cd3fd6fd","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":103,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"0f7ced58-b163-4a59-94d8-e90dc8e09855","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":103,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"3414ca64-5dea-4e58-ae7a-80f007223ced","block_type":"box","text":"II-66","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1979d4ce-16ea-465e-af80-16da066770fd","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"364925e1-934d-4f79-8bed-a78ecc6b4e83","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":104,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"fed32d31-81fa-4525-bac5-18418b1f97bb","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":104,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"852d8529-04b8-45ba-962b-2df91f087118","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":104,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"27f8bffd-461b-4a0d-a96a-d101fada2593","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":104,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"c643edd4-ea4e-4c6a-9345-3adf0363c3cd","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":104,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"cbda85e6-a15a-43c9-9770-f13868975ed3","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":104,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"c919490f-ef38-4088-beb9-a39958e4bb4a","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":104,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"31e13b91-7e4f-45d2-859d-df778accc237","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":104,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"294f09ef-a094-4226-b57f-5b2eb78b822b","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":104,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"1495bc41-9efb-46ca-be29-62c27ea88c11","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":104,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"b69a4360-ee03-466f-bf96-a40606b559de","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":104,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"3a7fa90d-8971-45ae-a5f9-85cc580788be","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":104,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"358fac11-48e2-4f6d-a737-954a8db1d148","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":104,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"3ecb7caa-8838-4699-a7ac-d9ae531e6b05","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":104,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"82718a81-0f07-47a3-9a2c-5cc5e03e0dfd","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":104,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"71ea2c59-9dc8-4d1e-bd65-402bf8bf3f68","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":104,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"0adc99c4-1e8c-4af5-8367-42be1d840baf","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":104,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"1c8ad312-42c7-4f32-a837-8997db97df29","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":104,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"a5b8ee04-4f54-426d-b92c-8cc4f44d5df9","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":104,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"dab42de8-8e54-4956-9697-1c40980e9275","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":104,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"579d0926-5c51-42f3-a715-cc8ccf78622c","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":104,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"64abe30b-5b27-4e50-8ee9-c544643b5d4c","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":104,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"33404db7-f508-4275-b318-1dbc08bf01f1","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":104,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"e565ccc3-189b-4d4f-87d5-21f61fbb2569","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":104,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"90fd499d-cd60-45a1-82ec-d602e250a714","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":104,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"5f839c1b-a402-4048-baad-985244114e7d","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":104,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"a79e46e8-2700-45a7-8148-b922f17ce761","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":104,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"4745695d-3c3f-4684-a701-d2852f3f8b65","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":104,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"ddd6dffc-f1ce-4e6c-ab1d-94faa73bde8e","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":104,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"3e1b0f10-1781-4886-8b9d-3eb3f39c386f","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":104,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"ffbe775a-6cbb-4260-8f14-bb4c69a83cef","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":104,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"542dd2ac-4e47-47f4-90a2-f20162601bea","block_type":"box","text":"conditions.","page_number":104,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"a251c16a-8cc8-4aba-ae9d-2bd938748e12","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":104,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"b10be672-b497-49d7-80d2-094ac4f1ec9f","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":104,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"3bb3107a-35ed-4692-8d11-187c12667911","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":104,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"61162685-a379-4386-84f6-bfcda9a2f532","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":104,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"109413c4-9e0b-49a3-9e58-ae6bc304d931","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":104,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"ce831b49-7d46-4727-9d81-f245e4c00fd7","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":104,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"bcd4f7a2-46ff-4310-a55d-6ecd067b54f2","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":104,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"64912e16-ed52-48ab-aecf-a47a4e14dacd","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":104,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"f4bd814a-81de-48cc-95c9-9bc7ac8d1024","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":104,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"fa445dfd-4d3c-4fca-9587-191a7977f385","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":104,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"c6114ad8-8d9b-4d4f-b503-b46288661367","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":104,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"8e0158cb-2b3c-4d9f-877c-d7b9fb18fc5e","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":104,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"642f2897-95dc-4e91-a518-155b1026fd85","block_type":"box","text":"affected by such events.","page_number":104,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"61aff12f-f857-493d-8c2e-a979c9f1f926","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":104,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"f94f325f-d900-4f53-ae43-5e9696bed849","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":104,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"c4f64dbc-8dae-4ae7-9ac6-1ee90188b6b7","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":104,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"51e7caf9-128e-47e7-bd4d-49c3ab78253d","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":104,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"205eb9a9-d597-4189-a66a-8cc58b617316","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":104,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"e8e48bfe-f600-4c26-afe6-48f04f9e44d7","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":104,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"493925cb-23f6-4038-9211-786b449d169d","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":104,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"846a929b-cdab-413e-97ce-4e8047f5b3a0","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":104,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"e6cc1463-9cc8-429d-9a3f-5d512adff0b5","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":104,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"24d855af-9a11-4ffe-9ad7-b35b21dc98c6","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":104,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"efea8f87-2ba7-4c3e-a2c9-c4c42f7314be","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":104,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"8243f687-c785-46ef-a946-76393a22b1fc","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":104,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"ee4b6988-6d21-4d02-9e02-b856bc6fd857","block_type":"box","text":"II-67","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"83bf6f48-18bc-4e0f-b6f0-3e197c89f255","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b5f09c3-b36f-4494-8fa1-abbbb3f2f1a0","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":105,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"4f089a6e-99d1-4b84-87ea-263b86789a8f","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":105,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"da538074-a7c5-4260-b259-2997ab5b84c0","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":105,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"45a2114a-8818-4f9b-8890-682ef7f1278b","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":105,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"767b8157-a511-462c-b7df-63300711dda3","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":105,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"9baf0956-13c1-4cef-b0a6-26be457bde59","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":105,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"e6956b52-e060-4b64-a509-970fabe71b01","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":105,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"641fe0fc-5330-4279-a40d-74ab97ccfd2d","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":105,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"e5b260a6-5792-40bc-a116-3b8125e41917","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":105,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"6e2fa57b-9585-49c7-afa5-5ecceaa45c6f","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":105,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"97262307-9dde-44ec-a3fe-d2d63a22231b","block_type":"box","text":"investments.","page_number":105,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"8c8bb022-55fc-4b70-8e60-5d754b4502a5","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":105,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"62faa9fe-a2b8-49f8-9d78-05ea8aefc4ec","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":105,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"c3c2967f-ca18-4336-ba86-97a2589c3fb3","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":105,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"100be16d-b7dc-47b9-91cd-3c084017d31e","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":105,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"cbb45d19-5fa4-4647-9676-620b76a9cc75","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":105,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"efdd02f5-d717-4cfc-be7a-4eb58d845b88","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":105,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"dbb275e3-21d1-4953-9d19-2001fe7b646a","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":105,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"4525809b-d5b7-45d3-97ae-eb1bc42cf49c","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":105,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"f91d1625-c090-48c4-8d7c-d006c29bb97b","block_type":"box","text":"Legal and Regulatory Risks.","page_number":105,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"d1efba71-666e-410a-8203-7df9591c8592","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":105,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"18335b2c-1cf3-4fc9-bb81-9f4b158aa382","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":105,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"bc140b1d-4cca-403a-a328-3c747da15bc7","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":105,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"bad14d19-f7ea-4e0f-8a70-f940012bc74a","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":105,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"5dd67861-78d4-4552-858e-40339a9c23f6","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":105,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"4df661e4-1ab4-4e55-afa4-d3ff1f08ec4e","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":105,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"d6ca8941-9792-44c5-8870-3fc799b3bc5e","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":105,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"795d80e1-33e1-4c2d-9a04-2ac0293e9310","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":105,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"64da3f4b-25a8-474f-9f1d-8102a8d99a91","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"958884a6-9ed3-48f2-b720-3c8528a0060f","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":105,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"aa6fe408-29a1-4773-a19a-72c7c28e8916","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":105,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"98808ee8-06de-4c62-bb6b-93d3fbbc11b9","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":105,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"5b42b74e-81c9-45ca-8104-7e7da5b866c2","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":105,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"507fa1cc-8e8d-494f-a479-85b379b946d8","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":105,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"8f92f2e8-4b10-4cf9-acf0-714ddccdb777","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":105,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"d86d54db-eb41-4d43-b012-dba870d6f2dd","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":105,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"a2a4a094-1722-4700-8565-c6f65756b0b4","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":105,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"af98d8b9-447c-4e83-837c-c31b74cee326","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":105,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"a7782d7d-eba2-45c6-89ee-766221f4426c","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":105,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"5ad0f2a8-520b-4437-9dca-4f0f2424a6ad","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":105,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"0aa1e32f-916b-49b2-8662-4b61098ac4a3","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":105,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"c7d9ce9d-3ecf-4839-9f49-418b89a9ac8b","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":105,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"24dca4ea-cdd7-4ed6-a340-9b33558b9d7f","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":105,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"3a661e70-d7fa-4198-8523-b61a98672d10","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":105,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"b29c0789-d9c7-4b28-b30a-ea7ec9cb9fca","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":105,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"206ab8c8-a4a4-4584-b56a-8d59583f4d2d","block_type":"box","text":"Geographic Risks","page_number":105,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"44685398-a744-4241-be19-ae925b4e392a","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":105,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"b3f30c1c-7d64-4c0f-8f39-56c8b2351a46","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":105,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"03899a92-e9b7-483b-b287-7a40f0b9b85f","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":105,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"7b3287db-ff7f-47de-b6f7-d1e4263b6424","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":105,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"62e97c14-ddd8-4b17-b38c-e8168c4c3bbf","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":105,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"201364ce-4a76-4526-8ff5-56af7efe85bf","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":105,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"b4554d2e-6fe4-4b15-8ca1-e7af91e74466","block_type":"box","text":"Fund.","page_number":105,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"ddf6b772-f849-45d8-a125-677a9c5fadb6","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":105,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"d8485fed-55d0-4b83-84f7-480945586687","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":105,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"f9fc63e4-bbda-4fd5-9f45-13664d2bfcb7","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":105,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"11d662fc-aefc-4758-89b3-f511a76df792","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":105,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"e95e3a16-3395-4f44-92d8-a749359a6f5d","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":105,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"3be6cca2-4363-48f0-98ab-ecf5dba96e25","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":105,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"3c6b4054-38e5-4396-ad44-4c7b5e10ddfb","block_type":"box","text":"II-68","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24f3f437-f211-46d5-b4c8-a076bd7079ce","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1136ecd9-4bc1-4590-b934-e92f06f2afed","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":106,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"1d6cd68d-3b1b-4393-9ad6-d5f75d070b58","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":106,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"bbbcafc5-a9f8-4c72-95a7-9cc0763648a9","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":106,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"7993d614-f0a9-4c30-a7fd-09a497c21236","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":106,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"5bddae01-4a6f-40db-b0cf-70cc16992e20","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":106,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"1436de95-ed1d-445a-bccd-20b5d84905c6","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":106,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"795428cf-d502-4cd3-9ff0-66e04dafccd9","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":106,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"cfe30af6-bb0e-4112-ab38-4ca00ab6d760","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":106,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"664ca307-c230-4a2b-b69b-8ecdc931633d","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":106,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"4107d526-66b9-485a-b6f8-49c8ec43fe67","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":106,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"533d1b59-ccab-4e56-b8a6-71d56e2e0c98","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":106,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"c81ebd13-7de2-45be-aa65-91efaa5ef4b4","block_type":"box","text":"e.g.","page_number":106,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"6c556947-bfe5-46c1-9b83-51db58410a02","block_type":"box","text":", SOFR for","page_number":106,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"d2df5e8b-19ad-44fc-a315-ca4197d99016","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":106,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"a0e04914-05a7-4ce1-9c1e-47b150baa93f","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":106,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"bdeb4dd3-9043-4340-bacd-7dc9c294c124","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":106,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"77d19c5b-d867-4500-b638-aa4c07451614","block_type":"box","text":"determined.","page_number":106,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"d9501bf7-1fd3-46ad-810b-9ef4be3a7739","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":106,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"440c2399-aeaa-4dd7-bc18-2e497d1a2980","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":106,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"2fd483c0-1cce-4b8a-a536-c8f892aed072","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":106,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"f8b6d556-66f4-453b-90dc-44d18a1c9600","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":106,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"adacb2a0-5af0-4253-8ad4-4fa3ce925909","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":106,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"ae78cf2b-09cf-437f-a310-7cc9cfa72a29","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":106,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"48eb6c4d-5656-4b7c-880d-6b635dbff4f6","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":106,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"c606198b-990f-4a9f-8259-e3e57b5d5204","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":106,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"1b2b3621-b860-4591-9bc6-5a770fd1b0e8","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":106,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"d48ad4bb-3d80-4622-bb10-63cb84f19932","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":106,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"dd760217-1b8f-4a49-82f1-8fd27a4e1cc0","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":106,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"a12fce75-d718-4142-9115-77f9671a5813","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":106,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"d5e7c386-45ad-4f18-a58e-1780bdc80f37","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":106,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"66e32ee0-ca7f-430c-9567-8d21dca69eb2","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":106,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"879c1529-9ec3-46db-a009-8de66ed583a3","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":106,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"7d592383-e2fd-4ce4-89e7-67d964ec0d4a","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":106,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"0bc329d9-be4e-481c-bfa4-da32897ad15e","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":106,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"6329a03c-7cb0-46bc-aef1-4cd04af20191","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":106,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"eee22033-6383-4364-94cb-780374b6143d","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":106,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"bd83a5b9-1741-4074-a7ec-c3f07c1a73ce","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":106,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"76fb7ec2-33f8-4df6-8171-e87e27ba487e","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":106,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"e74c2c3c-08a6-4232-b7d6-a3a14bf519cf","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":106,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"a210923d-ae3c-4516-a72e-071f1a186adc","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":106,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"47307369-fcaf-44c7-938d-24f580748f37","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":106,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"3942ab66-f4f6-4520-98aa-27ec783709fb","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":106,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"d62e9cdc-ea5f-4020-a774-137a7f245d57","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":106,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"0da1db25-560d-41e1-84b3-8ce589a8829f","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":106,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"7692bd93-43c7-41fa-b0df-7f32aec607b2","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":106,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"a1df3c81-da65-42ec-8041-b8b31cfe52b3","block_type":"box","text":"consequences which cannot be predicted.","page_number":106,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"356dd0b6-6328-4fef-8606-b4b4b477ee78","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":106,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"b4312465-fdbe-4c8b-9650-281359b12eda","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":106,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"653b0800-f43a-4aac-a17d-6363348ab111","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":106,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"5d1d3760-624e-4cf1-84ef-25cd81e1b86e","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":106,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"3c53bb17-d791-49ba-be82-21c5e63d85a0","block_type":"box","text":"term of the agreement.","page_number":106,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"e5abaf1c-50bf-486f-9d85-f79ab37af8bf","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":106,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"5232fdf2-04c2-4328-876c-4db7eeed8cc0","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":106,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"c22ed4e7-d300-4776-bf81-1f7f3d631ef1","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":106,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"b0d3916f-91f3-4ba5-b569-6c5694a4c1ad","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":106,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"bf70a883-43d2-44d3-8ac7-4d75edd99726","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":106,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"c5aa0572-ef26-4a09-bd9c-c1a5d2d0f678","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":106,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"35e6a810-6f9a-412a-818d-dce2b9ac999b","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":106,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"3ab8a741-2af6-4785-9f20-1cbc284077da","block_type":"box","text":"II-69","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6c746ee-49ac-45ec-8ecd-7fcbdec78e72","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34e7421b-7d38-47e6-9c03-99433c2712dc","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":107,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"8ef0d53f-1002-4283-8edd-3f1d378dec8f","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":107,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"1a557d56-f20a-4de6-a260-775c46834b46","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":107,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"341a437b-67ea-4d74-8845-43fb019e042f","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":107,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"cd5fba20-a950-43c7-8f69-c0213a5cf9ef","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":107,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"1376101e-fa45-45bc-ad5f-4f3b87ff8e06","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":107,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"b3735236-84a5-4d09-976d-bf400afc2504","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":107,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"96d30e4e-8719-4ea5-b222-fe49942ea3df","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":107,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"abe3382c-aac3-4b4d-9f48-dce111626a35","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":107,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"f759411c-f89d-4c0e-861e-b4e1d36146c2","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":107,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"6b536c48-69cd-46b9-b7f7-14f23b78131d","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":107,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"b2b6342e-45dd-4849-a293-57ee3efa0bdf","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":107,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"cb4848fa-b37b-405d-9ed7-51027e4bbeb0","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":107,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"b671a113-dc0c-458f-b3c5-9f7aaaa0cd4c","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":107,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"92a7827d-987f-4d55-9316-ea770bb990dc","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":107,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"6e16104d-95c6-485b-a567-113f180bfb60","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":107,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"019a3bbc-505f-4ffd-a399-e551976d6e86","block_type":"box","text":"or by another authorized securities depository.","page_number":107,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"65891698-c708-4a32-8feb-4c58183ff7a7","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":107,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"841546fd-bcaa-44a0-9ccd-047436baef40","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":107,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"a0f2467d-57d4-4227-b474-b7b8f5b23885","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":107,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"f55a6a78-86f5-4a2d-972b-1dc623769ac1","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":107,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"cef1c22d-7825-446f-9a95-81fd6b182e02","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":107,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"47f7eb10-e5a8-4d74-999c-1221a2e8f279","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":107,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"16cc096a-0676-427e-8c2a-94173d5be8d3","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":107,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"15d16d4a-7ee3-47ee-9e98-bebed6efab3c","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":107,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"8dfaca80-46af-47eb-8a89-e4533932afc9","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":107,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"e360101f-438f-46ec-a486-653fa942b19c","block_type":"box","text":"the repurchase price.","page_number":107,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"e0383999-3468-4e42-b744-a2d6cfbdca99","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":107,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"a8edfa09-43c9-488a-a2d1-9e92c40d2d42","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":107,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"39f8bdba-9cf0-431a-8389-3342743ebe9e","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":107,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"8c1d6e6a-b165-4dd3-aa8d-5c0fb93892b5","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":107,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"0fd05ae0-75c0-48d4-8d0a-d4287d424a3f","block_type":"box","text":"strategies without the repurchase obligation.","page_number":107,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"4e63baff-e5a6-4e5c-941a-ce6d8e02e0f6","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":107,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"92210c74-dfcd-4ea0-86a8-52fdda801410","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":107,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"096bb8a7-4553-44a0-9aec-71f5cc2719f6","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":107,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"dc310c97-36c1-4a63-baff-f5789931140a","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":107,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"8fe11ac5-21f5-4e28-aa18-0dc626e0c3dc","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":107,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"666e776d-5e51-444c-bbcb-2d10e1bba43e","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":107,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"211a67b6-4551-4a96-b0da-2ad15b096e74","block_type":"box","text":"i.e.","page_number":107,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"ed352d7b-3580-4fee-9332-8ce174e15e25","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":107,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"c580acd5-3e56-4f15-80e0-0e7162227717","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":107,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"d2f55711-e66f-45c8-92b1-0287530f2511","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":107,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"7f09c905-369c-4113-be10-d79636d3357f","block_type":"box","text":"and income involved in the transaction.","page_number":107,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"c50ff7c7-10d8-41e8-9da9-43f2bac7d54a","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":107,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"0de56ecc-f5c4-4b68-b165-b46ee2020d53","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":107,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"e8c495db-5d43-4237-a1e5-28688d10b3dd","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":107,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"a1813e44-650a-46e1-85d4-9645e35f69f1","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"a1c3982d-62b3-4dcd-a416-9abb886b54c5","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":107,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"dd46437d-1aab-4059-ab0d-0256d6002f65","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"0224ce3e-2a0c-4c7b-90d1-09215b7c0d0a","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":107,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"7274a95b-b864-4ba5-bf52-59e9f809232f","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":107,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"b3caa840-dd36-4d2a-8707-a20caf262ed9","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":107,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"a96a5ba2-893f-4d40-afb2-4a8477dcb77c","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":107,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"75a1b9e8-5479-49e6-b65c-10ca73ef8e6f","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":107,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"7e6b4158-99f9-4972-9417-15db8f234fd3","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":107,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"efa745a7-c6fb-4b6e-9b6c-e8cf18e4498f","block_type":"box","text":"Restricted Securities.","page_number":107,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"b784e12f-023b-46d7-9c0d-b586f93954e0","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":107,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"b2193096-d6d6-4828-b3e7-4afed27a0c20","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":107,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"826cd853-377b-4ddb-8f49-265d06c5a330","block_type":"box","text":"II-70","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"720e01e7-ee42-4e05-b843-6f6ccb49126f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9691e158-926d-41a2-bcbb-cdfe000f30fc","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":108,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"9db20826-828a-4402-9fa8-65f7407ce4aa","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":108,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"f88988d3-e1d2-4b99-b133-94e020c7b41f","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":108,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"eb4199fb-eca7-473d-8f03-a8c59d8242f7","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":108,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"ee12ef3c-4739-4b8d-bd89-fc0fdecbad54","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":108,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"9ba7cd0e-584f-49cb-866b-3006f8b7915f","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":108,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"acb33da4-471c-4e87-9695-e48c4ff25573","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":108,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"04653de3-e7db-48cb-b4e8-565e58d6ec31","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":108,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"30a3bca5-6019-4e84-86c3-e79006740075","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":108,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"d6469c8c-6ee9-439f-ac72-142119f8bece","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":108,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"975389b2-2065-4569-96e9-35fc25dba1b4","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":108,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"a012a9d4-8ec3-4ca4-8c75-0d7ff61035e1","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":108,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"9f35e890-77c2-49f5-931b-c090786e87fd","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":108,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"ac37b773-bd3e-4e44-804c-50f39f06b97d","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":108,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"1261e7f9-5792-4ce5-8d91-b41a3739fbfd","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":108,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"857d43ac-f07e-48ee-9fab-512f150249c1","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":108,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"00ef70f8-90fe-4e05-8dd2-ef6878eaa20f","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":108,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"2375eb6a-4f36-42ea-9c78-7088a779d88a","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":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"ce195772-630f-4903-8f1f-862e24040328","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":108,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"3a70ac30-3842-4a10-92ab-7008c8271b0b","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":108,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"ef65c51d-5b0f-4c22-8dae-36d777aa1f76","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":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c56a0156-958e-410f-914b-267fef1acdcf","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":108,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"3d010019-1e68-4c8f-935f-b886e8d53dd8","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":108,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"bd92281d-d75b-4397-b378-01c9b52c5755","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":108,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"e941bfd2-197a-45e1-9c69-62b3aed42057","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":108,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"de3e052f-5f08-40fa-a7da-21d46dfb548e","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":108,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"ebf6039c-b43c-47ae-b99e-65475e583ccb","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":108,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"c5ece939-62ce-44e1-8a2c-70cc46815f9c","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":108,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"0ce10cc4-bbca-433b-9775-2326c8e91104","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":108,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"2682eaa9-7848-443c-b7e0-0efa57281d68","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":108,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"f0567b11-0178-407d-bf72-9860a1090750","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":108,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"b005ef1f-608a-4ef7-85e7-6d12a9e53db2","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":108,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"1e51818c-9978-4334-b14b-22d4f9a859b3","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":108,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"ef774981-21a8-43a3-818f-152fea3caccf","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":108,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"789e9c3e-8a15-4a73-8ac9-fc6b5455f2ae","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":108,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"eeeb956a-bcc5-4520-88c5-70dbf356ff2a","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":108,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"41f2a6a8-4e10-4258-a4ea-71fbf6bc1109","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":108,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"ee9ffc6e-cdcc-403f-af7c-d876b5b8460a","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":108,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"8e3df99e-0a5f-4677-a5ba-99b3bee00d1c","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":108,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"97968f91-2463-4cb7-995e-aee5020b9359","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":108,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"474446e6-95d6-4c47-ae92-a1c196244cad","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":108,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"17259a20-0d2e-4acb-b372-5a26862ebc7e","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":108,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"ea7ee097-1612-42db-bc4e-3e464eef9284","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":108,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"214670d0-f09b-4b79-b2d6-7e47b85107cf","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":108,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"a6bfcf34-c7cc-47a8-821e-b1066c69fdf9","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":108,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"b0e18823-8f50-45b3-ac45-6fe62cd0cc9f","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":108,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"d3ac3b61-7fb6-47c9-b1fa-b9d9aff6e59a","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":108,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"2b0e97d7-0047-48d5-b9b2-795b1042bd9d","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":108,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"139607bc-3a1b-48ee-94ee-e513bb2ff464","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":108,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"1372507f-0f53-4357-8082-835f6744f2f2","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":108,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"c97fa6aa-5bef-4a78-8964-6ae91bf79f39","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":108,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"d376e556-9158-4d51-8f89-c5844da3e483","block_type":"box","text":"especially as that Fund grows in size.","page_number":108,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"7b40c8bd-9911-40ed-a24f-ac22984a7fb5","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":108,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"819ffecb-8de5-4b9b-aca1-8b7223b369eb","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":108,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"d70f2a12-9e38-44f2-8d57-7e416504baa6","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":108,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"3fd16556-1585-4844-8b36-9fcf99077a27","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":108,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"5052d85c-ad7d-450e-b2c3-cf931d463aec","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":108,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"346d51ee-a40e-4648-9760-bc202d87b47f","block_type":"box","text":"II-71","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50a4b644-c8ec-4117-993b-39489887f8c8","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"545db4be-e45d-4eda-8686-eac3dac873d5","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":109,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"d866e87d-6056-431e-a55d-a9b6eb9bc1b4","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":109,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"8048823a-3ea4-4827-a754-0db9bed9e3a4","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":109,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"1ad76f98-b972-44d5-acc0-421f89a73868","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":109,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"a974f02c-c4a8-4534-a585-15778b1c224c","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":109,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"e83f0db4-fd76-476e-b775-a5e7ed82d940","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":109,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"a69c5bc7-25d7-4723-bf24-4fbd81a3545e","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":109,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"98d7b423-7277-4b72-8367-0aa230e35787","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":109,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"4a06fbec-a5d8-4603-98cd-af7320655340","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":109,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"77b29de2-d4b7-4955-b5fe-c6fbc5326b5c","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":109,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"5bd2bc3a-2f9e-491f-bb1a-0cd146469871","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":109,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"7b4e25c8-e4f5-479f-b9d9-460516ad79f5","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":109,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"d20c7684-8092-4f5e-a623-b29c0e45f183","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":109,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"d42db18d-4af3-4aae-8535-d0d84d9a6721","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":109,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"0a29f347-2449-44c6-bc04-d32cbefe7abe","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":109,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"d7c83cef-a9b6-44c6-8f99-59cf60650ee0","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":109,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"2d6f6b68-d6c3-4771-8cea-eaed0d6a9093","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":109,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"85f5267b-7822-4692-9ad2-0a86c25d5ef2","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":109,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"475ac612-84df-467d-ae4a-1d3dfaa29f9e","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":109,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"8b9e73c8-cf81-495c-8ab1-49574785fd6a","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":109,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"4f846cd8-4394-4e9e-a7c5-a35376197701","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":109,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"41dd637f-6206-44ff-814f-0435fa09d05c","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":109,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"46e0762f-df8c-443e-9320-1b35b6c580cb","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":109,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"a8554e00-5959-43e2-bdb4-6c528cc6e480","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":109,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"ff79d84a-530e-4e29-908b-b649e1b04707","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":109,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"8126b55f-88de-4bca-a8df-9ae5dac3ea59","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":109,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"1e0a7daf-c9b1-4778-aeab-6ed9950d42f5","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":109,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"715717ea-eb09-4789-95ee-3b2924ead225","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":109,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"0883b9ed-0320-431d-af32-c834fc9bede1","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":109,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"d7ef586d-2c47-4dbc-a940-df89b2888ecd","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":109,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"551c8d42-101e-407e-93ca-4cc12646dcc6","block_type":"box","text":"similar financing transactions (","page_number":109,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"55bb8d2c-c6cd-45ea-a79e-74b46b9dcc25","block_type":"box","text":"e.g.","page_number":109,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"edecc2a0-40b5-4d99-9017-e8cf9b7b3a6a","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":109,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"8b92696f-979f-4943-a1cd-9ff8814ecd35","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":109,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"9b83fb4a-9d9f-4df2-b221-79f95bc1bec8","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":109,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"8725ee62-ec28-4d41-8e89-936ae12773bf","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":109,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"0541a3aa-5e51-455e-8d2c-fd600bbe6ac9","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":109,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"f0ab6237-a123-4163-9c5f-97cf6d880dee","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":109,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"0e664b9e-9f77-43b9-80a3-021b7035eea5","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":109,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"22c5337b-b08a-464f-afc5-add5e3bf25df","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":109,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"71b6fc74-1626-4a29-91cb-7bb489ac5754","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":109,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"67f24ef7-9798-416c-8dc6-99adb19f6e69","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":109,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"7000af71-f547-4569-9a4e-a3f8476e0432","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":109,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"98a783c7-2123-47cd-89bc-c4ea474cd377","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":109,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"7904892e-29a5-4c2f-baab-596f3d08a1ce","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":109,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"728065e1-0c30-4d26-8660-631468e28809","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":109,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"13e5cd8c-5185-461f-a331-ae58dfdeb14a","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":109,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"1fcabb2d-ff75-464f-b07c-84e59e030ca6","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":109,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"14bd5c7c-fb05-4d11-b7b8-7641750612ec","block_type":"box","text":"amounts to be received under such agreements.","page_number":109,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"75617c64-2c86-44aa-b61b-ce70f2abbbc5","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":109,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"740036e5-b77f-4308-b0db-f4a1b82e6bd1","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":109,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"cb2168ed-f0c0-4311-bfff-90be9ab698a8","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":109,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"ad8db475-a219-48d9-b33d-d801cc0acb1d","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":109,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"f9936d15-65b7-4735-b290-50e5b3216574","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":109,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"e7bc8fcf-3a4e-4b74-ae88-62cf0d26b791","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":109,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"ace75590-c1b4-4489-be74-cfe11463f647","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":109,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"229b7c49-19da-4d94-9ef3-3e4c077816b0","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":109,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"12368ffa-b485-4e7f-970a-bc920ac849d5","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":109,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"e67d4290-0642-4403-8934-611c5246a661","block_type":"box","text":"II-72","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95e4d040-e8be-4743-8e38-5b602e265dab","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2222c79-4645-4933-81b3-7d3c9880a724","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":110,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"ebcc7745-eca2-43d9-8ea9-5c8a2030fb41","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":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"bddc3853-a8db-4f41-beb3-499881697bfc","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":110,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"463540b5-521b-4c7d-b893-2f54479d00ed","block_type":"box","text":"Rule 144A Securities.","page_number":110,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"c0d34529-c38a-499d-86bf-aee9c3c14992","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":110,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"ffddac1f-a5f6-4c74-b9af-278edefa1713","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":110,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"d8019fa4-eeda-47b8-be8f-854463b1874f","block_type":"box","text":"Securities Lending.","page_number":110,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"3aa657cf-28e7-4860-8ef2-ac27c4378c90","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":110,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"fa9daf41-c71f-413f-890b-a553ae4ed7b8","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":110,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"315f01c4-8dd6-46ef-8f5f-d1af178957ac","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":110,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"fb3b94b5-03b3-493c-b550-76d16ab4493b","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":110,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"05061de2-9296-4336-9cdc-8a812ba75a09","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":110,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"7b652e16-4cb1-42c3-bb22-4ccb043b8fe1","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":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"37ec6638-3327-430b-a805-3ac61e4de56c","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":110,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"708bd3db-0cfe-41fb-925b-c9dca45c323e","block_type":"box","text":"the securities were not on loan.","page_number":110,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"7bf25452-b0b6-45df-ac1c-615c4f8f0351","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":110,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"74c88323-0de6-4155-91bb-e8e8ef34de3e","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":110,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"56c05d77-14de-4382-b1b8-228311afb208","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":110,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"be19657f-e19d-47df-9234-cf4285e5e370","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":110,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"dbb619cb-3f17-444b-837c-c758d4eed480","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":110,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"cead8a6c-72fc-4083-9fd9-fa47ec09ad24","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":110,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"6431bfad-3db6-44f4-a4f6-677a75548430","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":110,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"c31ca159-cfb3-4f5c-bd79-c4e6c34e7bb3","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":110,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"3c39169d-ce95-4bb3-9e05-a24eb3aac0e1","block_type":"box","text":"i.e.","page_number":110,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"603f523f-e81d-4e3e-b6e5-c36c44a3507b","block_type":"box","text":", the risk of losses resulting","page_number":110,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"304d6fa1-b342-4139-ade7-8ed3e91ea97a","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":110,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"c1ea5320-034d-42f4-9949-68cf1e5a11d7","block_type":"box","text":"i.e.","page_number":110,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"cb112711-90c7-48bd-bbf7-6d3a9cf016e7","block_type":"box","text":", the risk of a mismatch between the return","page_number":110,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"d43d05e1-dd75-4ecd-87ec-32dd5d83cc68","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":110,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"cc9ea657-eb37-471b-9aa4-02e07ec5a059","block_type":"box","text":"i.e.","page_number":110,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"8774ca0c-480d-4a94-bff4-46ddd2071523","block_type":"box","text":",","page_number":110,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"673b542f-3883-46f2-9029-8d84e4950b2d","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":110,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"c9c5343c-7247-43eb-8097-622609b8e0cd","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":110,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"9ba4aabf-e832-4d94-bdf7-d698f573ba5d","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":110,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"0a95ea4f-9c8c-4c09-97a3-3c215d86da2d","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":110,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"e8e8f814-3447-4223-87cb-50bbbe36b7ae","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":110,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"2fd43899-f237-4901-b44c-7d6504567a67","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":110,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"588e3932-9adf-4d98-af3e-ab0d8b234823","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":110,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"87f52f98-7629-4e78-a06c-83864a408fc3","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":110,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"eba897c6-f5c2-4da9-b4f4-abbd6e2849c1","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":110,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"7ef49419-65b3-4296-b1fc-06961a9e054d","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":110,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"2c34e4f4-2fa6-4a1e-b3ef-1ddac3c127b4","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":110,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"6b1e8c8d-a400-4727-912b-790dc5cf7fad","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":110,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"03e304cf-58a4-49c1-add9-992f9af2b207","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":110,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"2ad68674-091a-45c4-81e8-6ecccfe27c3e","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":110,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"b107ed33-b0a9-4e33-a615-9f488835dd8e","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":110,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"f85a0486-c824-43a0-9550-1f4ffbff3e77","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":110,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"2391cea0-3bbb-4ed4-be6c-584bc5f4e047","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":110,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"0622b95e-b00f-4f79-b5cb-06b6d18886d0","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":110,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"6f533f2a-b3d9-42f7-9fdc-f889cca26194","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":110,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"16b5097b-a298-44ed-8345-25250bd4be81","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":110,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"35dc6517-0fa8-468c-86a0-1a9a8472e0b1","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":110,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"20450371-e096-41fa-b517-534168eee139","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":110,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"cc9aabd7-e448-45f6-afb4-9a7a6e99d992","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":110,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"1ca0002b-2bfb-4c39-a055-d5206dcd627c","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":110,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"b822da81-f709-487b-9c49-5a01baf432c9","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":110,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"9faaee22-6393-4ad8-9133-85f565afbeea","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":110,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"57b34e81-b730-485e-baa3-025b9322b285","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":110,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"44242827-7f0a-4d28-8046-b7343a56f261","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":110,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"68e13979-894c-4eb1-b129-bef7cca0c81b","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":110,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"94933422-67fd-4292-bf6c-58d34fd98754","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":110,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"c311c17d-7c1f-4520-8985-e7b8bcaf3893","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":110,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"0714aa1b-24b9-456c-b71b-707f56e33a00","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":110,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"ac564e7d-193f-428f-8a75-4ca3f89e6f41","block_type":"box","text":"II-73","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f36246bc-bd5d-48e0-a41a-54f70660cacd","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"062db942-a478-4165-8c88-fd9c162e6d9a","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":111,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"7069ac22-4633-4324-a4b2-bfe1eb9a0e35","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"a079c902-6e88-48f9-b98d-3230e57e2659","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":111,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"9c616315-2f6f-467f-9a08-1ceec5fb6937","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":111,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"bb410924-b3e8-4bc9-9b72-edce0e9a6100","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":111,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"8dcba442-8900-4a5d-a9f6-1e5015a472b5","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":111,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"aca59dc7-928b-4897-89a3-ac6b82b4e177","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":111,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"d0221892-bb3c-4992-8813-c4e4e6caa4c1","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":111,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"bc11d2ac-bb99-4fc6-8abe-9355988d0c1e","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":111,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"7597f651-7aeb-4716-aebd-a70920f7975b","block_type":"box","text":"the current expected compliance date.","page_number":111,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"f29eb880-6fa8-422d-bb82-d8a8c21f1e52","block_type":"box","text":"Short Sales.","page_number":111,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"e55b5fde-7ef1-42c6-a41a-320dfd0405a2","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":111,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"2e8e8806-525d-450b-84a7-1b7c6299a9cb","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":111,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"cc9b60bf-1d87-463b-b57a-c121bff0b974","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":111,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"fd09d4fa-0a70-4ba0-96ae-dcd5e187bc78","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":111,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"afb20457-d521-4236-9565-d58720265615","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":111,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"26202a0f-ec7e-484c-a91f-f2366640dadb","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":111,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"0667d1f0-a88c-4590-bc0c-89f6c9fa148c","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":111,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"99b77a39-8d23-4e56-8d59-6f60c8c9a475","block_type":"box","text":"securities to the lender of the securities.","page_number":111,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"faf9b526-331a-4d35-aa7b-76b4973e60d3","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":111,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"bc3370a0-6e36-43d8-954e-cafd1c3e16d8","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":111,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"a26640ca-8e4a-4b04-bcc4-a6f6f71b5d94","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":111,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"1afc52cb-6ac9-4059-8f6a-c807d2339bde","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":111,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"a0977a9c-1cd0-4d77-9b64-5f60492882e1","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":111,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"0f2de520-5bf0-4a2f-a6b7-54567b8feb32","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":111,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"a265e3d2-92a5-4e10-9e74-07ea1af0adab","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":111,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"5d1ad124-2000-42a4-83f4-7f81f8bef8b6","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":111,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"fb80c9d7-1092-4d41-a87a-6967d93089a0","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":111,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"67bbd6b9-ed71-4225-8fb6-3385a43d4805","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":111,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"d7d5a914-6165-4dd3-a681-af01ee2539db","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":111,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"8d2b34fd-ae0d-457e-9feb-50317f0cd47b","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":111,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"e67755fa-f9b4-4297-84a6-ecde2b42a57a","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":111,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"f1a94bdf-9a8f-4293-8a93-a28617d29826","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":111,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"b0863466-0aff-4416-8c46-ac38fc520802","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":111,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"63b3e5bf-ed96-44ab-927a-783570fecaf2","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":111,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"7e24ee7d-f92e-4ddd-ba3f-595ecf6a4f4f","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":111,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"5e2966d2-974b-43e3-b867-2bb8d10e3cce","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":111,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"67f6d27a-a181-4d2d-8c40-099abd6dcac0","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":111,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"0e603774-81a7-4216-81d3-3b4d19c10673","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"aefb391e-3f2c-4670-8699-5aaed838d713","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":111,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"5816fd9b-3ee7-46ae-b1bb-e5550255407b","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":111,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"0d394299-9f50-482f-ba7d-30d514562dbf","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":111,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"96528c5d-94ae-431a-bb4a-b40923b80ee3","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":111,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"765e2c3d-8bc8-443a-8a4a-c8ffadb27d5d","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":111,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"3fb6becf-1340-4bff-b5a3-6c2fbe251b7a","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":111,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"504da24f-80ce-4050-9d2f-e70145d3288f","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":111,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"3606b4fd-ddcf-43a0-9a76-8c614f8e93c4","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":111,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"0fe0a14e-b955-491c-b694-99da26f3ee2c","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":111,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"2a8231cf-62b3-448d-819f-b4228a75383d","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":111,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"3884f4a6-8332-4b7a-a3ca-2a8ae4397f0b","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":111,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"a02192a2-c58b-4248-bbcf-09e3bff8579a","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":111,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"93c8db4f-b10b-43fe-acc7-f00e9c843d47","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":111,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"8ca5f4d6-96e5-48a9-a9c8-0b1c596ee711","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":111,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"103786d3-8b09-4be7-a7f3-f321beb0cb71","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":111,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"fd7febe5-007b-4e28-b924-0f65767f5c59","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":111,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"2ea30d50-1372-4d0d-816d-76d0a78c061b","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":111,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"334d9f3f-10e4-4ca5-b3ae-c04b30b890f7","block_type":"box","text":"II-74","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef48223d-64da-4ec8-afe2-8c1226619261","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3d3d2bf-ea93-424f-8cf2-2133674de7db","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":112,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"124d527b-7e25-47dc-b1f9-69f12857a183","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":112,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"721a48fe-5e27-47f8-add6-0d0369673e7f","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":112,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"b7c19457-ecd8-4b16-a15e-c7583fedb167","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":112,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"e5f70165-22c4-4edd-9185-2ed34160492f","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":112,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"a052f369-7d1f-403e-9bfc-91516ffb7157","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":112,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"d4888edc-0d55-4409-8dab-dd031d146f89","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":112,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"6b7a2547-25c0-4cad-9540-220bdfbd4e3b","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":112,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"eef42e06-dfaa-4859-a408-875225688257","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":112,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"373cdf21-88ed-4f91-8f14-04096519da90","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":112,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"eee29ca4-1bb0-4e04-a308-fa8a1a0c8496","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":112,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"fd6de79c-3349-4253-9fff-ebe95f3de39b","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":112,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"40392f4e-2f96-4ec4-8932-f8b74f991431","block_type":"box","text":"Standby Commitment Agreements.","page_number":112,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"2bca9124-a1ee-4317-a6b5-8c11330bcc25","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":112,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"5036b80b-045f-4e5b-b2ff-f07a61a96a1d","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":112,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"6860b067-3ec6-4f60-a359-c9126e95ce27","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":112,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"2d4258ff-19a9-4d74-bf98-e3626906ecaf","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":112,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"0057be16-04cc-4499-bc78-3cd29f198703","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":112,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"ae2ca65c-14ec-481b-8a04-8b25c0acad35","block_type":"box","text":"advantageous to the Fund.","page_number":112,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"11a41275-8907-4409-9a5d-144a13f471ac","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":112,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"890fec34-54ca-4eb1-8231-f5150d2a3b25","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":112,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"ee1d12bb-71f6-499a-bcb2-f8fe5b392287","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":112,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"d5338986-392f-42e5-85dd-1e91f690f277","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":112,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"bf785637-a4bc-4600-a2be-7e801ca8bb83","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":112,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"13801d69-4ab1-4515-8751-daff73d8501a","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":112,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"3624afbc-aeb1-4973-a11b-272bec4cdf57","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":112,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"16110d19-d3cf-4e87-86f6-2a117367e54a","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":112,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"0fd9996a-fe2a-4370-9879-c51838e81a20","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":112,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"2aeb1455-bcf1-4d6c-8396-d96a11560dff","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":112,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"9b35de38-cbfd-4bb9-88a1-7b4422a5732e","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":112,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"137d4c71-786d-4678-944d-435fe4f72cc4","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":112,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"56c36dc8-579a-4279-8f95-f89e07460f1c","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":112,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"6e2be9ff-f362-428b-a7fb-4320d7d9768e","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":112,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"d23210a7-f78a-4218-aef8-5e669266a9b9","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":112,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"b21e7934-b4d3-4dce-bff8-1dcca8f494ef","block_type":"box","text":"Stripped Securities.","page_number":112,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"3e88c4bb-eb8a-4d0e-a439-d40a5d3c587d","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":112,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"f2b6414f-8dad-4be6-9856-c7cbcc55dc9e","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":112,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"9be5facf-3328-4037-ae8e-34f4fa4779e7","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":112,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"47fb8a6c-241e-4958-bb21-878c1e03574f","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":112,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"e09d844a-7303-4236-9e65-a05e3f271c50","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":112,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"f6a41774-7591-4b9f-88c3-450c00dd5f7b","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":112,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"6319e76e-6b50-4013-8005-5e55d107f628","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":112,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"9a2cb440-af35-43c5-806d-8d1aaff9009c","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":112,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"3f3b554a-2521-40a6-ad47-691335b21f23","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":112,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"c49a4b25-d0a3-4edd-aee6-8aacbb2e4a1b","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":112,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"94d8c26c-73e1-4a35-ab72-10f563c47154","block_type":"box","text":"Structured Notes.","page_number":112,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"ae29b3f7-a5b3-476d-84fa-27f266a83948","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":112,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"00d18031-4190-4657-90c6-35d29bb808ee","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":112,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"b0cc349e-8f3b-4707-854b-226b20a71ac3","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":112,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"387f56e9-1eca-47ed-a69a-214461d1a5e2","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":112,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"5a7b29c2-0b92-4490-a6bd-3c3d61319a9e","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":112,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"ea6aeb8c-56a4-45f9-ab4d-4b35b676e975","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":112,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"41ad7229-4e4a-42a9-93da-7c22f75aaae5","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":112,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"d494da50-12b5-49dc-aac7-8852ac4b9bae","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":112,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"79255f8d-4f43-42e2-9602-9fc41ab8681b","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":112,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"b7417d0d-8d43-48d1-9799-9cacfaececee","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":112,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"48d1c273-b9eb-4d27-84c6-37f3491b3474","block_type":"box","text":"II-75","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5ab82996-0068-4525-a05e-464c053cbd2f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18d44078-9ae5-47c3-96c1-e2b7a5bcbfe0","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":113,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"6c8794d6-c1c4-46ff-851c-7b896a4bc77f","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":113,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c74bc954-46b1-4e45-8430-315e8ee1b62b","block_type":"box","text":"the risk of loss.","page_number":113,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"09024a5b-7770-42be-87a1-b48deebf7700","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":113,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"4dbfcc44-9c3e-4b3e-b216-fa0c0c74c7a3","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":113,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"70d158c3-c7ce-4a6f-afa1-6fa2b9ad49cd","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":113,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"3687e013-5073-47a5-a27e-e0323a65d3be","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":113,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"e75e787f-a45a-44d2-bc1a-9f5af6f2759d","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":113,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"8a4071b2-3ffc-4a6a-aa6d-b15e48c6c563","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":113,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"cd60719e-e2af-418a-9522-02c5d82755dd","block_type":"box","text":"Taxability Risk.","page_number":113,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"48756836-2b28-4258-bc60-503f8c085368","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":113,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"d77004c0-647a-45f3-8ed5-8aa4fa4ecc51","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":113,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"31846a9a-aaf7-491c-81c9-55fbe432d641","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":113,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"697e7065-0e6b-4977-9a52-01a704b5ccd9","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":113,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"2519e076-1bcd-4a06-bc7b-1a837f3ec4c8","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":113,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"fd105409-3371-4dae-99b1-5aa2697d9c48","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":113,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"16c01813-5be1-4792-9823-259f55538b6d","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":113,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"4ff7ede8-73ab-4896-ab80-09be693d6bc1","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":113,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"ed29705a-92e5-4433-a6c0-56998563731b","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":113,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"9c0f322c-6968-42da-8ced-e8843ac3cc57","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":113,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"2fe9d47a-66ee-40eb-a83f-1ceaa8080021","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":113,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"7fbdbcff-2ba4-4c4e-bc8a-b056f7f38fe3","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":113,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"a35927f6-2ffc-40f4-92de-47ff6b1568d5","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":113,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"eec8505f-14ef-488a-88d7-e6aa3a8810a8","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":113,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"91c3ab32-3415-4e3b-8a83-42f49b1e4408","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":113,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"e51b3147-7b1c-4e6a-9124-a3494c6780b5","block_type":"box","text":"the value of an investment in the Fund.","page_number":113,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"34de3e44-24db-4218-a6c2-da82aea88ccf","block_type":"box","text":"Temporary Defensive Measures.","page_number":113,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"61c2ca21-18cc-48dd-9b5a-d0c5d35410b0","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":113,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"c777689f-7f1e-4890-93de-013b38d1d2ee","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":113,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"8979e66f-8d56-489e-b59a-acdd621feb5d","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":113,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"6dc0e7b9-34dc-449a-add6-3432f8afdc6e","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":113,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"c8f6851d-22c1-45e4-906f-ee0dea5fec79","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":113,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"a07153fc-73e5-4831-ac6d-eed33fde17be","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":113,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"135c0633-5dd8-45dd-a58c-351ef7bfc726","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":113,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"43995736-c3c0-45d0-8c8e-fa148765cc73","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":113,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"b7f37742-4905-4c69-a2a5-c231147692cb","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":113,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"6d8e6c39-5f57-4f31-bde1-e1fda02bd9e2","block_type":"box","text":"its investment objective.","page_number":113,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"63ccaed5-8073-48f9-b68e-f56cb7776161","block_type":"box","text":"U.S. Government Obligations.","page_number":113,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"08c398bd-ea26-4c47-bc80-159c2658d8ea","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":113,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"aa05594f-c0f3-4ed4-a062-f3d52f2aaf66","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":113,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"b4844b52-13dc-4162-bb89-eb48caa60fe0","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":113,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"59798138-d7f3-4e9c-8616-c5e2629bb164","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":113,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"95163f77-daec-4320-b4cf-2502093a886c","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":113,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"bdaf4089-fadd-4a02-8ac9-3c9c52e8cf41","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":113,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"da7fdf3d-d695-45ff-8918-7efc887af8a7","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":113,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"d0475383-a614-418d-8d73-0f9e8fe36aac","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":113,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"cf688e22-c4be-4a37-bb6b-456b2ae8b0ed","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":113,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"b6b34df2-cb70-4c59-a97e-11a442c83af9","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":113,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"b9c77af2-02c0-4f97-89c8-084b5557e1a2","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":113,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"605a08cc-10e0-4f23-977e-7257e24144c7","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":113,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"d06c3747-9aa0-4d06-a5a7-aa0704412a53","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":113,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"094f031c-e964-4fa4-8de5-61593870ab68","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":113,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"74f4cca3-9aef-44c3-ad2f-74314912e601","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":113,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"df30fac3-bbfd-4e49-a12e-de849c0871f0","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":113,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"3fd26acc-c437-43ed-9d9a-864325b03f91","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":113,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"9089793c-276f-47ce-865b-b064766fa059","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":113,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"54032299-f982-4d63-be8f-7aeceeaf29ff","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":113,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"eb66ab8f-2c4e-430f-be4b-a86a5a055700","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":113,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"db0c9b30-90ff-4416-8153-b255cb6739d6","block_type":"box","text":"II-76","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ea786c7-0cd4-4ab2-8b9d-e6c86056d27d","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdc2acd7-ed68-4135-aa45-a9185f6acf21","block_type":"box","text":"U.S. Treasury Obligations.","page_number":114,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"0d05269f-95fe-4e88-80a3-0fe9e6d70f63","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":114,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"ede1a845-80c3-4183-b5b5-7a5a8839d257","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":114,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f995e914-4125-4731-809b-8fa08b17cc5b","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":114,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"09ba3281-4796-4619-bafa-18881bb24d95","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":114,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"48ac2fd9-4fca-4d6d-9772-aaccfc3f4d21","block_type":"box","text":"do so.","page_number":114,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"91968874-5375-4c9d-b0b1-10fc70d9d11c","block_type":"box","text":"U.S. Treasury Rolls","page_number":114,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"cca7cb1c-4691-48f0-a982-412e9f5051bf","block_type":"box","text":".","page_number":114,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"3006fa8a-5360-4368-8b7c-b66550da3e35","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":114,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"3f362dec-54f5-4961-911a-4e840455dda9","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":114,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"c40a58a5-1dab-4d5c-8dd0-42d6d430bdc3","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":114,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"9b33a94e-759e-4926-8de2-a8a073ab6447","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":114,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"c58e28fa-c3a6-4009-8ad4-78034361ccec","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":114,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"ed1f80c5-fb54-4329-b1c7-b9fd3c566ff3","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":114,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"aa6290d9-6b43-4e18-9173-19b348c8bf22","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":114,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"d445f174-02ea-4212-a78c-a6c0ca00b814","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":114,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"518051da-8205-4efd-a2e3-21eabb7120cd","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":114,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"731fa740-f345-4684-b99b-c2eaa707645c","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":114,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"2c6fbe9f-3d75-4197-a846-7e350e458c90","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":114,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"dce62db2-f523-4037-a4a3-ac34009e9ec6","block_type":"box","text":"Utility Industries.","page_number":114,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"db7e3295-4ff1-4d85-a83b-d4661f2d5cc9","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":114,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"0863de26-cfb3-4192-9575-aaddb2ad4a71","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":114,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"453f168a-772a-466f-be19-83a3d8ca25f7","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":114,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"b3bd3d15-8d7c-4321-be2b-0851631960f7","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":114,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"a10c9d35-26a4-4ed5-92ca-12d626b97149","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":114,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"6a2320b6-001b-48ba-a39c-8d23566576f5","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"5b7b439c-45e0-408d-8361-8be8df799bac","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":114,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"25cae204-8f93-4482-9141-0248a396bf99","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":114,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"d901287b-b146-40b3-9aac-7c7af226e7a9","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":114,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"ca3ce20e-039d-4190-97d9-4cb352da8882","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":114,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"6ea776e8-38f2-4474-bc2a-93f11a113deb","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":114,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"899a5a46-981f-4b59-8596-0b9d336d2316","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":114,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"c469a78e-756b-43b1-8f29-d1d5df14518e","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":114,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"5ad61aed-101a-4ed2-9391-4f6310490ac3","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":114,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"0c42decb-20e3-4ac8-a7a5-9722b1bed542","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":114,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"c8058d58-534f-4ba2-a39e-afa7ce6fe161","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":114,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"6702998c-e0d7-4c0d-8344-289b03262ef8","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":114,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"b2712785-c1af-4790-ac0a-8a34be72def0","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":114,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"c4436854-ea0f-4b10-a6ea-27c03e84e43b","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":114,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"10074414-5490-442d-b6cf-409c37f5ff6e","block_type":"box","text":"utility.","page_number":114,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"3fb6192a-e533-4dcb-b549-bbb30fc63982","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":114,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"3c966ca7-e3e9-4287-8f5c-a16833694993","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":114,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"667e56cc-6d1b-4904-99be-8a9c2b055f9a","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":114,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"c079e94c-c77f-4897-913c-c34792b806a2","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":114,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"d95d9f4d-6e4c-460c-87c5-6b80b1d5e8e1","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":114,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"2d499070-8f61-4e1b-97db-2cc32c1d1e99","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":114,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"182917dd-e4f0-452e-ba36-c1d64fec541f","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":114,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"40ceba9e-f471-4c0b-841e-536f0225b8fc","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":114,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"62b25f4f-5500-4c5b-acf0-ce850ed4a8d7","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":114,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"5781a393-85b8-4902-86c2-57322ebac1f5","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":114,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"f45a53a0-af2b-41fb-89e4-7fa764b8b3a9","block_type":"box","text":"continue in the future.","page_number":114,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"ef7add23-e67e-4b53-aa7e-4298cda702e2","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":114,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"b36009d7-3016-460b-a8c7-f9e0bb59e628","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":114,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"8cfb3d8c-c14b-4c7f-ae85-1586d1233585","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":114,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"93be99da-7225-41e6-b072-c0b04c35e2b8","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":114,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"b35c5e2a-dfbf-4abc-922f-3db2794b7930","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":114,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"47f0381d-db36-4fc6-88e4-3c1d6f25e631","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":114,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"faa304db-ddd0-4efb-8f96-03658bfcee2e","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":114,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"bb19cc57-2e30-4970-89c1-8d1d246a7a53","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":114,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"9de39c37-cccb-43c6-8a32-e2e6dab8467b","block_type":"box","text":"II-77","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7579f30-87c3-4a2f-aebd-23050f5c304c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b4f1f51-f0b9-4ed2-94a3-e9754b9fc885","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":115,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"386b726f-81c9-4bfc-ad40-e7f78f9fad76","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":115,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"e57dbca1-22ae-4b85-b509-fd339ee7840e","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":115,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"61662d31-480c-4ceb-9731-22e1e612fd26","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":115,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"2d92ef8c-0027-49fc-8c62-aac4935a7d91","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":115,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"7953dd22-ed57-42fe-9b75-fb5fea02a967","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":115,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"3798ffce-3c9f-4e98-8ae8-bd099d1ff69e","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":115,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"767111ac-2df5-420b-9164-92d2ca776b74","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":115,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"74992fc5-8761-4f35-8b3d-069f8400e3e3","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":115,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"b5253e4b-da54-4adb-a714-c081eb3e2340","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":115,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"e7e98311-7001-4d2b-9b55-8f61f6efe5ca","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":115,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"93f88146-c9fd-4c2a-b506-daecf1c0e723","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":115,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"dc58952c-4673-4392-8752-e5b6bc29dcc1","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":115,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"fdceac9f-45e7-4f84-9cfa-1f900e3ba4a3","block_type":"box","text":"ways different from regulation in the United States.","page_number":115,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"800a8b42-31bb-4b3a-8de4-23cfa1972963","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":115,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"7da862c9-d77a-4844-b81c-5b9b00f9fc10","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":115,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"ab46aba1-e909-45f9-a609-bd59733fbadc","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":115,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"f2464c96-4acd-4363-bb94-3c00b107c9a5","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":115,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"e01da508-75bd-47cb-9c4e-2213782aca81","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":115,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"8337394c-a3d2-4a6d-ab40-cbd4101777ac","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":115,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"5f42488a-d4da-44ff-a768-c1c137c7683e","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":115,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"73956ff4-715b-45f7-a0d5-d694ce4a1abb","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":115,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"83ac8466-0f20-4d29-9ca5-fb9e6bcdd280","block_type":"box","text":"increase.","page_number":115,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"981c745e-b222-4b00-ad45-abd92f666a4e","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":115,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"fde9fa2f-3e84-4f8e-bfdf-9136d4815e97","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":115,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"3e6da9cb-d418-41f7-aa06-29fa9317f5f0","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":115,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"3f6095aa-fdcc-4df7-bb34-60341812a7ed","block_type":"box","text":"Electric.","page_number":115,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"1c6170d4-6dec-4bb9-89be-669ae544188b","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":115,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"82ec5ece-9102-412b-a777-3aaaea80bdb4","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":115,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"5b9cecd5-f27a-4eb2-a229-d7cd30b2809a","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":115,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"0d60360c-5dd1-4dab-b67c-521428b43761","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":115,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"400c44ab-350e-405c-b2db-d3f384c5f91b","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":115,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"58ffc1ce-fcfd-4c34-bf64-e853c5209a27","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":115,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"61cb1912-3c0c-45cd-bc50-ec20ae8a6d4a","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":115,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"1d216bc1-9f3a-427a-91d4-ef399be462fe","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":115,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"950c8a93-71b1-4ee5-878f-38954cf6b3cd","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":115,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"84543cbe-4d60-49a4-9069-147eaf1b3f64","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":115,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"d180f26d-19e9-49fd-90f8-ec088cab2cec","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"b5fe48e0-7936-429f-bb12-5d2d6026ad17","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":115,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"2aabdb77-5745-4ffd-b03d-542549305f00","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":115,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"ad1ac54b-496e-439c-adfb-ff0e5899ad97","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":115,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"48eee27e-245e-4f24-83c1-30332ec62942","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":115,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"d82cdb8a-063b-4bd4-8e3a-554184c29a6d","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"1110f0c2-784c-404c-9035-c590b5118d7a","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":115,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d67486cd-8a24-4568-b8ab-47f302010387","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":115,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"a513b1f6-187c-432b-be1d-ed9cf877e412","block_type":"box","text":"and for decommissioning such plants.","page_number":115,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"514a2528-e977-45d5-b367-2707f45f786c","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":115,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"5f343adf-b97b-426e-a966-7acfdccfa9af","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":115,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"404599f2-4a85-4353-93f4-e32d80f9be17","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":115,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"b54da2f1-8f4a-47c3-8a94-226c69886791","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":115,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"df1959d2-23d3-4460-a7bd-f059143bc667","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":115,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"c53ccd13-c217-4124-874e-6db4261fc505","block_type":"box","text":"greater predictability of cash flow.","page_number":115,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"32f06af8-ef7a-4f6c-9e72-fb445b836c1e","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":115,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"7b7af7f0-109e-463e-9165-20659edbd2ad","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":115,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"bd1dd69e-1593-4e53-bf48-28f250a921d9","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":115,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"86b9b1a0-b26b-4961-8b0b-839543eb31c2","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":115,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"8ba57b8c-829e-44f8-a91d-ea290c1f8e13","block_type":"box","text":"II-78","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6378cb78-b0de-4dbc-a1dd-4f69cc505cd3","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75edefcd-98c8-4cd0-ad59-e27e91b1bae1","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":116,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"6905ccc3-9301-4ed8-ab86-6a5fd201ddd5","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":116,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"a1067b79-79e9-44a5-9988-659778217089","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":116,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"a32c6981-c466-4013-8d38-5759c29fcbf0","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":116,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3b089264-7b7f-4695-95f0-580849846352","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":116,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"15dd1f32-7e5a-4510-9763-9f5ec4577cf2","block_type":"box","text":"Telecommunications.","page_number":116,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"003ee25d-476d-42e9-923e-36119f6cecf2","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":116,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"6734bc99-38cb-41fe-821c-4a2db61736a8","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":116,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"4f307c16-776d-410a-8778-b777e3ca1633","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":116,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"219bdb38-c7dc-4473-8b9f-5651142e3ba0","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":116,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"018c5f4c-9e0c-4569-b842-8ead99d2d948","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":116,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"afb6a940-359c-42d6-86bb-42cf33b33461","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":116,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"970d5868-9ece-443a-92cc-bf18dd0f66c1","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":116,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"6a866464-7885-4c89-b6db-de4271ccd3aa","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":116,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"04c08cd4-f290-4b95-9dda-8e65a96a38c9","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":116,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"175d8b7f-2f28-4201-9d5d-44ad5a3691bf","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":116,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"634dc266-3264-46df-ad85-58fadadc0835","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":116,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"57e58599-ca24-4759-b5f6-b61fa3d454b8","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":116,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"2321875b-e532-432d-9dc2-cf2a98b994de","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":116,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"32a5c351-2829-406d-875b-1d26f925e1c1","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":116,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"0a651047-9248-4b80-844a-dec49898a665","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":116,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"82f7a114-67fe-4b45-a767-c25e823acdb5","block_type":"box","text":"residential, corporate and governmental customers.","page_number":116,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"4ebc89d1-0174-454e-bfa2-a3a22cc3e1b8","block_type":"box","text":"Gas.","page_number":116,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"4989530f-5828-4a68-b2a0-cac180668146","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":116,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"6dee04e6-4ae8-47c7-8965-9b741ae8c579","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":116,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"6596ac1f-329e-4e4b-b8ae-2919654e4b35","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":116,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"b824b0e1-6a4b-461d-b4b6-0acd2c6d7465","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"137be8fd-68a9-49c9-9a0d-cd5a24d2100b","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":116,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"145360d9-0286-4d8c-b0d4-03e0104834a2","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":116,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"21a04ca7-0dd7-4e1a-90cc-c90c754f90be","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":116,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"e1bde7f2-ad9d-4589-aaf7-ade8fe35e918","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":116,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"3d4b623a-685e-43bf-8294-6f8a202dbb4a","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":116,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"a5c2eaf7-22cb-4f09-a99a-ed75c0b0683b","block_type":"box","text":"Water.","page_number":116,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"cbc12dd2-2b9e-477b-b921-379ae548282e","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":116,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"722b7b6f-e769-4c8e-b01b-64ed89657719","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":116,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"39cda459-5b07-46e4-9ed2-b971aabd66ce","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":116,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"3e25f839-7a19-4bc5-b4cf-d8ab008eff4d","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":116,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"09dd7376-f4ab-449d-b213-0b5da1435c3d","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":116,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"c40a8ef7-49ba-45a3-b87d-6521e8eabe90","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":116,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"90ddd675-8f61-44cb-8f89-83c30f3d0f70","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":116,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"002b35c3-11de-49bd-843e-34f2fb695ce2","block_type":"box","text":"Utility Industries Generally.","page_number":116,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"61a849f3-7e0c-41dc-9fbe-6dc452b2b6a1","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":116,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"6b99b262-5bf7-4f4a-bb0a-705361f79543","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":116,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"8c70d5b3-6563-4d33-bcf0-c20a8e9a8861","block_type":"box","text":"not develop in the future.","page_number":116,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"9cdbe2b1-ae0d-4cdd-9716-e0347420e1ee","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":116,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"a718fcb9-1c06-4645-8d54-38557acacade","block_type":"box","text":"A Fund may purchase or sell","page_number":116,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"88e868a1-116a-405f-bcf2-48372090bdd8","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":116,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"7ae61a14-38ff-4adc-b52c-cb01da54b38d","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":116,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"7417d2f5-cbc9-4d57-af8c-2768f049ecfa","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":116,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"d1765be8-047b-4b4f-b1ce-ed8f557c1f3c","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":116,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"71463bf6-711b-4673-b2a2-204bc2ee4ef5","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":116,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"ce84015a-b6a4-47aa-b416-3419244d6e61","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":116,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"f91f0539-9ac4-4704-8824-bd83d125ba3f","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":116,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"23a4f9d6-09dc-4181-addb-5bb2cf2647f1","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":116,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"5b5bf3a0-9294-4dc3-9c9f-78536586b012","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":116,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"920fc2f3-3291-421d-ad52-96688dfe64eb","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":116,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"ac976cff-c2e8-4f6f-8b74-c07d5928ba63","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":116,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"6a994d7b-b168-425c-8c35-b371c4a895bf","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":116,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"161f3a1c-73c9-4b91-9ab8-5cdae1c8ea9f","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":116,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"af5ff974-3b18-4fde-a1eb-b8fd7ca4d1c4","block_type":"box","text":"II-79","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f2bd299-459c-47ad-ae96-bf682d36130b","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19953f4f-0f29-4f97-8af2-1cfad393f53f","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":117,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"74cbdba6-9912-4827-bc1f-5d1db1b95b2a","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":117,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"13d21b71-0439-476e-a9a2-aa94dd865a3a","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":117,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"75e3ae43-8732-49f1-a1ac-82ffe9c031ad","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":117,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"21e01d8b-b0df-4057-a446-0e73ca1158e0","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":117,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"08ef6d64-51c7-4295-b77c-df1870a40b23","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":117,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"28ab3443-1be4-47dd-a2f0-579d8d6a12ae","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":117,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"9436bbdf-deca-4cee-9a6e-0e531cd16af7","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":117,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"b025f6d7-6a81-407f-b63f-07d653f19285","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":117,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"6249cc44-0af9-471a-9676-619fb816e6e6","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":117,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"591e4cf0-2d32-4a29-932b-264cb69edec6","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":117,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"0dd29c95-2624-46c5-a062-41af7d5024c0","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":117,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"4b3f2db7-a29e-4bcf-a18e-e3fd02ed45de","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":117,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"c5006806-5d1e-49b3-a58e-9ec2e5dce0f3","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":117,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"8d46bb1a-11e4-42d9-9a6c-3b4e5e71a0b7","block_type":"box","text":"securities (","page_number":117,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"6ffb7837-ae77-4e8d-ab8c-a59b10a047fb","block_type":"box","text":"e.g.","page_number":117,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"075d9aee-12d7-42f9-acc1-7fa69d1bd5a1","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":117,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"5c9a9f32-ce79-4360-96ea-1b5b640de13a","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":117,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"d4e2e00c-d760-48d7-9f9e-0a24ea6a204c","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":117,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"d0eef167-dbf7-4398-832e-884b07a62395","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":117,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"7633f8ba-6d69-49b6-aebf-f4a041d88a3d","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":117,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"19c0a4f9-920d-4b7f-b8c4-76a27b8e0615","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":117,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"dbbd1f39-8ded-4091-9306-0e6a4544658a","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"8401652a-2ce9-425f-81f0-a1c2ce62f3b4","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":117,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"7df41be2-bef1-456b-99bb-d6a957d7f5dc","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":117,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"92fa6e50-3339-4177-88de-b59535927085","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":117,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"e9fae35e-3a04-4afa-8ca9-229acb45769c","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":117,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"43ec8eaf-5a3d-4888-8064-48c84861a7d0","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"26a473b6-e589-416a-8e88-ea6dc8a7c993","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":117,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"23e2e74f-0288-44b8-83cd-86552f23f748","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":117,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"1b7425bf-cadb-45cf-b399-f81398ec5cf0","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":117,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"bf43bdf2-2bf2-45bc-a6f7-5bedd33eeaab","block_type":"box","text":"Yields and Ratings.","page_number":117,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"26b66d9c-4b21-4082-b172-17332ec799f2","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":117,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"ad55e63c-216e-4aae-bc4f-b9b0dc31e345","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":117,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"5ae0fb99-7fbf-41bf-a48d-4002fc678332","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":117,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"cfd9413f-89c4-4d46-9192-93a0547613a2","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":117,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"80508553-b202-40a2-a08d-cc8559ba0c48","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":117,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"5e6f2589-53e2-44a7-acc0-288ad858c94c","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":117,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"1a884e2f-a9a8-42b6-8636-9a29963aeb8a","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":117,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"759bd523-bfc0-48f6-b954-49ef223ace08","block_type":"box","text":"continue to hold the security.","page_number":117,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"347adcd1-a566-4970-8d9e-760bd15c3441","block_type":"box","text":"Zero Coupon Securities.","page_number":117,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"8b42f79a-d9c0-4320-ae4d-2fb3655c3f5c","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":117,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"4da64de0-85a6-4125-8f08-6c3d74fc8f42","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":117,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"a284ef1f-c60a-4166-bf5f-993d5d2491f8","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":117,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"416c5bf7-933c-45a2-84ed-78c14c80d74b","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":117,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"f65c18b8-72b8-4c55-b653-0fdaef21b7a5","block_type":"box","text":"security.","page_number":117,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"ed66e9b9-7acf-4ce0-bd8d-cce843c21640","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":117,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"6ebd0f19-2f2b-4323-a83e-a0acbba78b3d","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":117,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"e8205b22-2fe2-41e6-a02a-a52d90cabde2","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":117,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"997588b6-ca8e-42dd-849f-f311ab1bd622","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":117,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"e08947c0-630b-438b-b4cf-9eced429c268","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":117,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"6d9c7b56-db98-4c9c-8d97-994f0069d09a","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":117,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"7a3d0eaf-6353-4112-bb4d-f4a188f67639","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":117,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"598e0f5a-2994-45c7-8631-1b6ba904179a","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":117,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d8d74b0c-73e4-4fff-afd4-8a758c4a86c5","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":117,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"e759e295-6db4-4e54-b34a-96c64308f919","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":117,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"f0fb5487-219d-41a0-bc42-8d76aeb2c9a3","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":117,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"50fadc76-56d9-422b-87c2-2cbce654b627","block_type":"box","text":"II-80","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"484b0d44-72cc-4292-bb01-7adbb187601a","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70c0f977-680f-426a-a4fa-769fa4ab6025","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":118,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"b5326031-1590-4c5e-a7aa-84709eea9f57","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":118,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"39889787-7e23-43b9-b684-322d01d98bcf","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":118,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"37c2b5f8-419d-4d78-a202-cb7f4077d9a2","block_type":"box","text":"intervals.","page_number":118,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"5eea77a9-3890-49bb-aa54-f4049ddc889c","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":118,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"976c6c46-6086-4271-8812-88a9b1db3fc0","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":118,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"38430b68-f691-44fa-aec5-4d40182bf819","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":118,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"30b2a2fa-d87d-4f65-a58d-e7c4e225f834","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":118,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"223ed2a9-f1d9-44a2-9afc-58e4ff5a1ce3","block_type":"box","text":"exposure to zero coupon securities.","page_number":118,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"22824672-e51e-4429-adf8-0c5bb2b47366","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":118,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"5f96e5f9-272f-4c6f-b800-809e3cb05828","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":118,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"6bd98ffd-8936-44b8-a1bf-99d9337c3c3a","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":118,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"db768d0c-d92a-41c7-b536-8841b6b371dc","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":118,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"1a5d72b5-9d38-4fb9-95e1-abf0a5cb1d77","block_type":"box","text":"Suitability. (All Funds)","page_number":118,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"035d80bc-a49b-4f0d-8983-a52623a81af7","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":118,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"a5765ce2-8ef9-40a0-b37c-56c0115b702a","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":118,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"ba55caf0-5164-42e7-84c5-df80d7a362e7","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":118,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"67dd9dad-4dce-4830-8300-826b4200f2b1","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":118,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"b471d40e-deb1-4c07-84d2-9a1f7be71d52","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":118,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"d7e39239-2802-40d3-b99c-196908601092","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":118,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"ff056119-e7d9-45a4-8b1b-f6269fb6ae03","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":118,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"b18ebc06-4262-4ffd-ba1c-4b2f499f20a3","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":118,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"0142de1d-3bbe-4e86-aad2-840dcd938852","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":118,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"d06ef766-79a4-42b9-a187-d28b31ae76c2","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":118,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"b7856866-ad74-4f4e-87de-1b62910dd54c","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":118,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"431a6675-25e1-4ab2-bc78-267dd8fa00b3","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":118,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"fc8f598f-7f85-4d02-b010-41d770fa6a30","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":118,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"df97dff3-659f-4470-a79e-f77e23a24e65","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":118,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"81936e82-b149-436e-a4a0-254996b56396","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":118,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"c22f8eda-15b5-44d5-888d-00c8ed47ebcc","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":118,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"9a6917bb-9c93-4ca6-8559-901e9b2b3eb4","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":118,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"9e4985e9-7787-49db-aaf0-9f652ccf0a93","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":118,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"2f349fce-526b-41e6-930b-8fab83c91731","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":118,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"867cd1b3-0271-4344-ad10-95a856913264","block_type":"box","text":"(","page_number":118,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"71338398-19aa-42fe-ab84-1f5f956c465f","block_type":"box","text":"i.e.","page_number":118,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"047b3c3b-f6e0-4c05-b75a-b84237da3cc3","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":118,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"0e8a320f-a9f0-4377-805e-ebbabc019aed","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":118,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"782dd54b-cdec-4b04-b45f-a73f7ea46bf2","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":118,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"a92295ce-b76f-4d9d-be93-71fa44c48b71","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":118,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"95ccc448-e657-4896-87f2-3928404119f2","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":118,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"f39f47bb-7996-4726-8e37-860f6ecb3a9d","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":118,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"b4a0e0b4-aeaf-422c-89d4-b16a4e6e3299","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":118,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"bd1657c0-ce60-4b91-8efa-d56b16c1a6b6","block_type":"box","text":"regarded as the sole issuer.","page_number":118,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"9a045429-679f-4bc7-b5e6-fc94b72813de","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":118,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"0698eefe-163a-4bba-a9b2-59f515948f2a","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":118,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"2e137854-f4bf-49fb-9ee1-4060119bf399","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":118,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"24a87844-f6d5-4781-b267-1d3c3b5e310c","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":118,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"abecc872-e8eb-4108-9225-0dbc96e05913","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":118,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"26d54035-41fd-4ce2-8966-69e746ee8810","block_type":"box","text":"75% of its total assets.","page_number":118,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"dd163a56-ab78-4618-afac-d25d51e10653","block_type":"box","text":"II-81","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23f913aa-d8ea-46cf-9f70-e0d544350d04","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"895b331a-b7a1-483a-aa9e-3f00b5f8d745","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":119,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"97377005-415f-402f-9a72-429179295244","block_type":"box","text":"Directors and Officers","page_number":119,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"6cdd5aaa-eca6-48c8-90c1-c6866a3c217f","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":119,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"c1f26f26-fb0b-465d-b1d5-b047df0cd8a4","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":119,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"5aa93959-4666-41b6-b883-89b42ed556e1","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":119,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"96a11d8d-af75-4505-a93a-294613696ad6","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":119,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"9f3de018-1061-4e03-ac46-20d121059d85","block_type":"box","text":"Management Arrangements","page_number":119,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"f64847ec-4460-4a90-9be2-b6fa9166674c","block_type":"box","text":"Management Services.","page_number":119,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"2f92e356-235e-429c-9e4b-c2d4a8907127","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":119,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"265b41ec-146f-44f4-aed5-0702a48f0c4d","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":119,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"1e7d6f1a-1189-401e-a8c9-bf0afcf962b2","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":119,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"fe2e6d89-8b28-480a-875a-6a66a9e0185e","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. 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Certain accounting services are provided to each Fund","page_number":119,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"f4971eb7-7ad2-4e8d-8ac8-cefa8316a7d9","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":119,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"a91964b7-2779-4e82-a388-86bf39ec2f9a","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":119,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"3231f38d-9711-4ca1-b2f1-6685a0396c18","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":120,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"f5845581-e361-48bf-a658-82922c6b4ac0","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":120,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"2e04ae75-6ea6-4c15-9cca-4cbafe875b4c","block_type":"box","text":"Custodian Services.","page_number":120,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"09bbe81a-6544-474e-aa8a-24eb9bab792f","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":120,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"fc9ffc1a-c492-4130-9157-a4749a020dac","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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A Fund also may use special purpose custodian banks from time to time for","page_number":120,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"49a105c8-6f07-4134-b352-0bfe1038a97b","block_type":"box","text":"certain assets.","page_number":120,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"3dbfdc26-3955-413f-9c75-8061e035d790","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":120,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"8c4a21fa-2519-4f14-9d50-a5592dc6ed64","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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The Distribution","page_number":121,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"2ae5336d-09e7-42c0-ac2c-94c4664ba4a5","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":121,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"5b2e3cd1-73ac-45ce-9999-4557c41dcb22","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":121,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"f3a413d6-24ed-4253-9bd2-3900f408f46c","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":121,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"cde4b7a2-b24f-4963-aa30-d58dc5474084","block_type":"box","text":"in connection with the offering to dealers and investors. 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Each Distribution Agreement is subject to the same renewal requirements and","page_number":121,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"f1246592-5f1b-459a-aa5c-cc994f46de82","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":121,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"2d9cfcf9-2032-402a-8474-bed047b75588","block_type":"box","text":"Code of Ethics","page_number":121,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"75220bdf-4222-4e0c-ae96-2df33b411f28","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":121,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"cee9ccc3-e604-407d-8923-a5fe3b847f63","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":121,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"9957b286-1714-4e01-945a-8c37f8038665","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":121,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"524fb5d0-c624-4c8c-8349-4b37e7509980","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":121,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"0b27c38a-3402-4f5a-b0a8-72bf74cd8c97","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":121,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"aac2166e-7535-4427-b2b5-b8bd6ac2a630","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":121,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"13d89105-ab29-461c-9686-3ae9be1ca69b","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":121,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"7e9480dc-3242-4164-bcc5-2ee7fe6dcc51","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock may have a potentially conflicting division of","page_number":127,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"cb9abfe9-1fb9-42c7-99e5-cf1a82d4d9db","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":127,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"2465d618-3301-464b-9ce0-985123394be1","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":127,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"c5a04ddf-6a3d-44f3-a887-b5f01cadc3e4","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":127,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"69d03751-a63f-49b5-b803-9237ef53ea20","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":127,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"a71ff127-c149-4d74-a757-57452b943637","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":127,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"6735a606-133e-499c-9958-9b2106718fe2","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":127,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"0df986e8-3054-4153-84fb-4f98ba2de552","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":127,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"32741927-39c1-4ab4-818a-9d8e31519bee","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":127,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"d3366f4a-2288-4c81-8c14-610a880e12e0","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":127,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"26e289d4-7f11-46f2-9a21-5cac2e432727","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":127,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"f7a2d3aa-291d-44cb-b2a4-11e7489d66c5","block_type":"box","text":"II-90","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d535396-e811-4b48-8010-df9ea87bc261","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97c3f68b-8517-475b-bcd3-55b892ea9b2a","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":128,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"6112e9c6-02eb-471f-bbc1-58410745c3f1","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":128,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"1687dbf2-3dd0-4cc9-9696-07478aa7dc92","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":128,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"08e4612f-fdd8-462a-8d21-6a038cba8c82","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":128,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"45c40e10-fc7d-444d-8e5c-e05b4069a72b","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":128,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"42df96a2-4012-46fc-b128-068dbdad1701","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":128,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"bdf31011-d4fa-407e-820e-40a6ab508d89","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":128,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"0c2385b8-273d-4f50-bf80-97aea559cb6c","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":128,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"767bf559-c06b-475e-a4c3-4af429c2f796","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":128,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"31112e6f-fc8e-4569-a1c6-a8c2f5590da7","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":128,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"b61a590b-fe63-4d46-a5d0-66d30c408d39","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":128,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"31291ce8-bfc7-44fd-9d23-c94cf798d142","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":128,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"21f8aab5-dc25-4b80-98fe-ef8163290442","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":128,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"696949b9-5a14-476c-8ca8-73a966605337","block_type":"box","text":"managing a Fund.","page_number":128,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"57c8ffad-9a33-4d84-805c-f268f5a7e10b","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":128,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"cc77a9e1-80ad-4f57-9877-2a4afe250185","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":128,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"2253a292-772b-486c-b52d-3d7546946637","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":128,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"7fb63991-1bc2-42c6-b9b2-61e4ed037e30","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":128,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"903f4712-76e6-4a60-b4a1-ff0d0c767155","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":128,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"cb97952d-1232-4c3b-9704-ee5fc3dc3930","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":128,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"a584c8c3-31c0-4ec7-bcfa-90d17ed0f3c9","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":128,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"d295d93e-b57e-4231-9b52-4fdab26297f1","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":128,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"b7045dc8-a8c4-4822-91e1-1f110f55a109","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":128,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"8851bb53-f270-4862-9223-1346e1be48cf","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":128,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"60fb8109-fbb9-47e1-881a-d9cbf6c59d74","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":128,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"c50064c0-01f3-4709-b3db-c3c661e90ab9","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":128,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"1a9559be-d33e-4a21-8abc-cc7d256d4f58","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":128,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"e37fc7cd-86cc-4321-96d7-06e667bb9561","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":128,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"7de283ad-9925-450c-bc6b-590cbf1e789c","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":128,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"d8f629a2-5191-482e-9c71-b43ecfebd4d8","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":128,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"5dc03067-bad2-4acb-92c7-3156ffc88da1","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":128,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"bb74b042-f250-4f6a-a495-e822e53bf894","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":128,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"e899f92b-85cf-4aac-9cc4-2e3cfa0fee30","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":128,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"417e8e0a-7eed-46a7-a067-1d02b40164ef","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":128,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"b822a22c-cb56-4169-82a9-ffa5a0ac8eca","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":128,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"29bb0c46-acdf-41e2-b53d-bd09ddc4cec1","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":128,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"ce0d5305-f606-40fc-8d3a-88d3a9d36500","block_type":"box","text":"under management for BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"af602d2d-6fdc-4ef1-a681-0e12da089f5f","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":128,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"34c15c96-d85d-4716-90ed-5a5de876bcef","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":128,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"c9f95f46-3f88-47c6-a6c0-2429ab2090b8","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":128,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"d9c8685d-1511-4cb4-b0b1-cde87412d462","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":128,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"28b43dfb-a1fd-40aa-be80-c95271d93748","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":128,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"77d1d343-eb16-44be-810c-7c5868c29d0a","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":128,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"cf4276e9-85f8-435a-bd6e-be9b58f3c25b","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":128,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"d16af612-f3ea-4cf0-89ea-1cee1014a75b","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":128,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"6dd0f1cf-ea77-440d-a023-7e5d8e4b2180","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":128,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"25b2f32c-8b19-4fba-8a27-68d895742c15","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":128,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"65e8f0d1-33ea-4818-8052-bba2f9d778be","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":128,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"3f8c5544-f4ef-4217-96af-acad52127a96","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":128,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"865deb5d-8b25-4131-b053-281f40b0ad64","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":128,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"fc9a2095-b397-4c92-b2f8-b4bc8d47fd63","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":128,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"e0dd9ca1-3766-48ff-955e-b280ca0b50e7","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":128,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"eabc56dc-509a-4c6c-9e03-de3ce194b99a","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":128,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"95c224c6-3cb0-4e40-8f8b-d5b66a4638c9","block_type":"box","text":"II-91","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bab7cdfc-bfc2-4296-bcf6-135a9aeca829","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79e05e8e-6775-4f40-8c46-5b58c780e162","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":129,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"6160214e-204a-4015-b9d8-75ae6db4213a","block_type":"box","text":"any such fees or other amounts.","page_number":129,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"afc691ff-e002-4d5d-8fab-f2c874e5541d","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":129,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"3fdf0ae1-82a3-43d4-b74f-162dc95dbe1e","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":129,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"d1062502-d9fc-4e83-b6e6-b38f7dc8e8ac","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":129,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"1ec7b07b-d6a2-4f46-95db-b0bf01dd2c0d","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":129,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"154d0205-5e16-4045-912d-83d9547a0f82","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":129,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"33f62a64-4240-4963-a028-d49a7d168545","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":129,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"73d6d689-a378-4a9e-bfb1-34a0ead9c345","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":129,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"2ba3d7b6-c752-4324-8a74-ec74a49a912f","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":129,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"caac2324-2e6a-431a-bae0-60720d08fa90","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":129,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"6612d92a-1dd4-4ff5-86ff-0afb24013c73","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. 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As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":129,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"36871cc2-5901-4775-ac82-d5d7a28c2721","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":129,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"576e3657-5da6-45ad-94ce-7924569773eb","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":129,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"23f99614-097e-4214-a0ed-b28180d1c512","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":129,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"08cb5b36-b2df-48b4-bb70-430654b58a25","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":129,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"ca262e16-daa8-4925-bdfd-3f39edcfafee","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":129,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"9e916348-20bd-46de-b67d-ebb790cc22a3","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":129,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"44b73630-bd50-4478-8fa8-c3ae30d87ad4","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":129,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"d9a0b6a4-da95-44d0-b536-c9a422fe7b93","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":129,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"04e56ef9-844a-4a9a-b2fe-920fa5a7ca8d","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":129,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"d9c7cce9-d435-496d-b4d9-5044593bcc2a","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":129,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"ea281955-4054-4237-8949-4215aa4bc210","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":129,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"07d89e91-0200-433c-9ab2-ddf81961f7eb","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":129,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"fcd5a148-b8fc-48be-943d-8360a7d11c80","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":129,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"18371ef2-841e-4497-a02e-37c1006d5200","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":129,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"d5f200c9-bdd1-4c22-8759-13640a4b3e99","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":129,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"3ff81289-b0a8-47d8-b938-5da8d5b38b45","block_type":"box","text":"regulation.","page_number":129,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"8fd25b0f-5755-4631-9131-3cd214706b6f","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":129,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"8e5c6159-a898-45f1-9b77-d2c7c4f09bbb","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":129,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"d380c39b-0d4d-44e9-b77d-828ef3b6aeb3","block_type":"box","text":"various program limits (","page_number":129,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"2d47e470-2c19-40eb-8672-9f42a5ef83f6","block_type":"box","text":"i.e.","page_number":129,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"4246e667-311d-4c70-ba07-082873f666b0","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":129,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"c28611e7-5c1c-41ca-b4d7-455fc2060c57","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":129,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"63c44087-2c63-4e5f-8298-b527c4676897","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":129,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"a2824354-eeeb-41a1-bb7f-a92e9f80443d","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":129,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"ee19bdb7-210e-4ea0-a16e-3c96a5e8321d","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":129,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"c0b81eba-088a-4d57-ac9e-e60f0fd6cea9","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":129,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"fd8d82bd-4ad6-4c83-a613-885d400752ef","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":129,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"4bf438d9-98b6-414d-a41d-b6265ee90a77","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":129,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"d34a8ba2-16d5-4566-bb80-f59f4cefbd0e","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":129,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"557feab9-c1dd-40f9-a668-4eecf303cb46","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":129,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"5a38945d-a348-46b1-a99e-29133d228fa3","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":129,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"c5026773-3911-42dd-bfd0-412552b88de5","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":129,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"c1101c84-73a3-452d-8c5b-4a577304a1a0","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":129,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"a9f5b4b9-7669-40d6-b106-984a5219f311","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":129,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"7bad00d5-0130-438b-a58e-e543a4d28140","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":129,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"287fda45-3e53-4306-b39f-2dbc9052a336","block_type":"box","text":"II-92","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c4845e0-c9e8-4809-b34f-3e26abfc8853","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a0ded76-b986-488a-842b-22dd571c340a","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"bbca262b-ce60-45f1-88e7-0e656bbc7708","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":130,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"0e785b27-abaa-4501-8fc7-11fc7cbbb89a","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":130,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"dbf13215-14ba-48c9-ab94-f6fe4d345e21","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":130,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"f4cc1f92-581e-4283-9fc3-adff87c45588","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":130,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"42b64c94-d08e-40b6-ba50-60b525c7cda2","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":130,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"b7af3301-358b-473c-bc2d-0af3f9705287","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":130,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"0f16a07c-daa1-4809-a6cd-04a90f1a07ff","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":130,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"f9934b1e-ffc4-4d9b-99b3-c8a7d3fa7295","block_type":"box","text":"than through client commissions.","page_number":130,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"75a5e437-105f-4530-9155-8a9714f4f76b","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":130,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"743cc838-557f-4639-89e1-9069481a8672","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":130,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"563a1d0c-7f30-4141-9727-ca5115635275","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":130,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"ce2ceeb4-b120-4779-9ff0-472bc391a1a7","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":130,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"bfea4c1c-4e65-4fa2-8b79-5107748e71a0","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":130,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"40d189b1-c326-4eff-9c28-9ffbd8804f2b","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":130,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"8f249f68-733c-45ef-b78e-32c182b1a71b","block_type":"box","text":"research-oriented software and other services and products.","page_number":130,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"f5dbae1e-8aea-4206-b5c0-d1e8b0c9ff32","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":130,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"f01c0c4d-597b-408b-8563-e168d7a40593","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":130,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"128df568-db8b-4a18-91b5-642d3a25caf7","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":130,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"709e03ad-9c82-4b20-88b2-e30e62263871","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":130,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"c64459c5-dc9c-4c31-9cc3-c867fd53d5cf","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":130,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"b79ae981-cacd-4eb6-92bd-959a83567121","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":130,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"7a06f473-97d4-444c-9acd-3a72cfaa59be","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":130,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"e8512af8-a199-4443-b1d8-1b4e7b5be834","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":130,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"84ce228c-5552-4a69-acf4-5ef88b428fcc","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":130,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"ae758166-82fc-4a1a-84d4-bb17eedcce35","block_type":"box","text":"and services itself.","page_number":130,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"98247df8-745f-47bb-9b70-6283df23432a","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":130,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"7264d49f-c0cd-4855-aca4-dcaf542b38d8","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":130,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"cb50403e-b989-49fa-ac3d-29f76f713b53","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":130,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"2f1ed232-c743-445e-ac65-447a008a83d4","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":130,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"a9b3d503-663d-47e7-bc0e-f4f7bc28ad5b","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":130,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"c0ad22d8-1b3b-45c7-a996-c04955a06c1d","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":130,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"9aa80360-4a01-4aad-9273-22f31ba3b708","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":130,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"3198d859-6c0b-4b64-9afd-dc920b53f6fb","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":130,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"f524be1d-b126-4d2d-b7f1-0522a3fb6e9f","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":130,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"f52f06bc-1ec5-432f-ad47-ed32c3b5023e","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":130,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"b27fadb7-954d-4a89-878b-23115bdcbea3","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":130,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"0e26f11a-74b0-4da5-85b4-8e8be31b30aa","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":130,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"53806726-0cc1-448f-9cb4-ba31b8867b0e","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":130,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"e59a8819-ea2b-4c02-99fd-e680e8237032","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":130,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"7b66326a-ff5a-43e7-a8dd-96e78f88e8bd","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":130,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"b10ef1c6-bb35-44ff-95e2-5c175a57296e","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":130,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"5635a962-a7ea-4381-a9c4-312edca65bd8","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":130,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"645a584b-aa4b-46ad-9235-6409bd5c8d0c","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":130,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"34049969-1e83-420f-813d-7aa36d08fdb7","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":130,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"ddb7a82b-5c04-441f-9e17-02232e835a4d","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":130,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"a2996bb6-7381-4c4d-a751-1ce774e9966f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":130,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"eb27297b-7bfc-4ad7-9bd1-0943d1ce12c4","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":130,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"f9aaaa5e-dcb6-4254-9adb-9282d2567ad3","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":130,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"faa60dec-4632-412c-bc51-5480dc3cfbbe","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":130,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"23da281b-7032-480f-9bd6-135bd53838e8","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":130,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"f254aad1-aa47-4725-be41-525f36c7f2fc","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":130,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"5d02677b-139e-492f-9bd0-da49090a3f99","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":130,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"3f969f5b-dc83-408b-9600-39e1b31d14db","block_type":"box","text":"II-93","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5e890ac4-4c7c-438a-87eb-be698bf7419d","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc663ba4-4bad-437d-babc-53318c6709b1","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":131,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"ee0416f4-16fc-4cbd-94f7-4ce836804630","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":131,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d8385774-7133-46df-9d8d-4920f0999029","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":131,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"439b7648-e9a1-4d0e-be2f-a86700eeb0aa","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":131,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"8d041233-ee1d-4356-99de-5b409937e6d5","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":131,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"3a9a3a2f-428d-499a-ad3b-3982836bd803","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":131,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"106ee00c-eebe-48e8-a510-108096dc0c7c","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":131,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"0fbfba58-e563-4811-a3a6-44b9683089b7","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":131,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"8e178f2f-b60e-41ac-af57-e941f9852700","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":131,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"968fda64-cdff-4ebe-90d5-5b72556f7856","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":131,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"81d02f66-4df4-4376-a499-311d0ebc6d4b","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":131,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"4881818e-369a-4689-bf61-b4b150c357cb","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":131,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"b7c2e3d1-abab-4b5f-b1e4-4fb033585d53","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":131,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"41bed3d1-84c8-49fa-945a-9dd094c2772a","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":131,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"5c50e4cb-979f-40a5-a43e-f21de57c6696","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":131,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"03bbfd2b-6b3e-4cbd-a183-b36a395b4b5d","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":131,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"43da7082-574e-4f86-b85d-cd277f1f17c7","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":131,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"a3ebd6a2-45be-479b-aba3-9ffc065eba29","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":131,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"418eab31-7e97-4244-88a5-43a8d2344ced","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":131,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"ce54cfd1-ca0a-40ef-a856-33a1a319ee26","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":131,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"3f66bfc0-caf6-4b07-ab79-081de959ab1c","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":131,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"a3738e42-1187-4225-a8de-fe83de7caaa4","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":131,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"c30962ae-808d-450f-9b85-edc88fb2e51e","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":131,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"f1e768e7-6dc2-4a04-95c9-aa1cdcbf05d5","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":131,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"92d9b0cb-9a39-45ea-b506-55127c0425a1","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":131,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"649f5df9-c784-4316-937b-7e74637bf7fb","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":131,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"e3c3c792-91c7-4337-bd03-d3a8bcf7290b","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":131,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"2ad3cb07-ed3c-421d-8436-2fa1fff3e894","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":131,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"d384394f-8f66-4608-b645-3589314a8cf0","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":131,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"bef79cd0-bf7a-487d-8d74-da19fb0f6cef","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":131,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"0337b626-1c1e-4a50-aa60-b64cfd7377a5","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":131,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"e40cc4d6-e6ae-45ed-a8a1-02df4b27aa27","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":131,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"641a7941-3361-47cc-a003-8710ce6d6667","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":131,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"480d53e3-85fa-4406-9730-2977c18c0766","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":131,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"29145bdb-cc62-48e8-a8da-11d10c835d46","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":131,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"001f0e7d-ae1d-4a06-bee9-777eebbf787e","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":131,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"23705601-9faf-4cd9-9f31-96b21e17d0f3","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":131,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"796cbf87-aef5-4ff5-bcca-b085ccd0c6e0","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":131,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"836b2fc6-8cde-4e71-84a3-5604e80ae6c9","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":131,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"f723df01-8d85-47b1-acf1-c3adf4c791c8","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":131,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"361649bb-5d7d-432a-948b-b0151bbca933","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":131,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"5e54cfad-2e40-4197-9c76-034ac30f3cb3","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":131,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"9146ac2a-c09b-4565-8930-303c0e6cf04c","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":131,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"369201f3-0c8d-4d6f-9432-6a4787ca7166","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":131,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"3bfa2957-f98a-464f-82a1-87e8f728cc6f","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":131,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"da8df8fb-69e3-48e9-b7c0-022b1a1cf872","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":131,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"f65740ba-85a1-4cc0-8600-5c222634fb0f","block_type":"box","text":"some additional expenses.","page_number":131,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"9f6fc5c4-03a4-49ab-8e7d-282e20326e4a","block_type":"box","text":"II-94","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a5008ae6-19ae-49b9-b9f0-d0b12e7673aa","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e881047-1ee8-4404-979f-39d72dbd89b9","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":132,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"fec2d955-b5c0-4b7b-b2a2-8c46e2c027b4","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":132,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"03d2dc3c-1884-41a2-931e-c5ccb743e3d3","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":132,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"6ac59074-a2e7-42e6-beab-07a927553195","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":132,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"240c345f-5ca3-4c82-a95e-dfbeaa239a78","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":132,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"cc118283-377b-4d55-81f3-d3deaccf7f3c","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":132,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"aa3ebe26-5da0-4cf6-af90-4d9eee46819e","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":132,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"fd45063e-42c5-4fad-a179-f24cd6e42275","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":132,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"959a3a1f-f220-4684-a594-acd8c95510ec","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":132,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"7e8e9b16-0d41-4372-8b2f-e37db96c0835","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":132,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"260f50b1-2252-42cd-b0c8-27a8d29a102f","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":132,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"f81de727-a740-4400-af1d-b6a18c842d44","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":132,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"66073d43-22b0-4127-847b-12ba56a6b015","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":132,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"6f705ce8-2455-4c4f-92f6-085bafe77ed7","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":132,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"7860779b-639e-4b90-998d-50b2ec8bef43","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":132,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"6e878845-ddbb-4f97-a902-789a63ea4063","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":132,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"51860d0f-2ca1-4966-b08f-62433ec27fc4","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":132,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"8e4a33e3-dcd4-4c88-a0f2-a53a9d6061ca","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":132,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"3ee5911e-3870-4ea3-929a-13d5487756f3","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":132,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"c7a31e39-918c-4c0a-b8b0-b3a5225b5d8a","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":132,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"8a298175-e0e4-41de-98fb-6e9ad2c26344","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":132,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"860559cb-5c09-445e-9612-90f535a3d08c","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":132,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"c83b0cc8-3889-4619-bdbe-f9951242d765","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":132,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"bc19a150-bec2-4536-bfd7-664d8b9e3b7a","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":132,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"458ad697-984d-46e1-bc89-c6565b045599","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":132,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"656a6fc1-75f8-465e-9518-7ca84e4dfbed","block_type":"box","text":"public information about the company (","page_number":132,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"4a1d49b2-11b3-4013-9d73-986da8d848a5","block_type":"box","text":"e.g.","page_number":132,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"934c15a7-9eab-4ce6-a7a6-642d4297d332","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":132,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"6ac74cdf-a2a2-4553-a015-5c6cdbd1d72a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":132,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"c9602ac5-8c1e-4edd-b64f-1d45108973b7","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":132,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"a55bff09-896d-4e07-a304-c0e4085e1230","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":132,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"998a3ee8-374b-49bf-abf9-f0e964dd5445","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":132,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"4c4e2597-3485-4a17-8d4f-0594f78ebf26","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":132,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"f95e8884-4660-4217-89b4-6eb9f4c952ab","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":132,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"f883731c-4255-4b5a-a42a-7825b21e6f4b","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":132,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"ec386ce8-2cdb-4971-8568-123d42577068","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":132,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"a9b09b0e-5c44-4fc4-8d26-d2ef8f20da0d","block_type":"box","text":"of the issuer.","page_number":132,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"9c7ee867-4791-4ead-b24a-d143bf1c5a7e","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":132,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"f33f39e8-d642-4bf0-b718-5a2816607261","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":132,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"acb53281-ad92-460a-82a9-c6efbcfcb3b8","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":132,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"ccd4be5f-1a44-4541-815f-7e30b535d9e8","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":132,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"abc909df-c2a5-45f2-ae9b-e9252a826b6a","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":132,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"5590bcbb-5a19-4777-aa40-1356a061e354","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":132,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"1b013fd8-45ef-4c73-ac78-c40a7986e408","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":132,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"5aad7242-a1f4-44b0-8380-b01b31b87bc5","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":132,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"cecd317b-94e9-43ca-819b-3eb7abe5a4a2","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":132,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"1df8794f-e47c-4388-ac16-49ea171051f1","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":132,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"c32cefe5-c7ab-4bfc-a7c8-1cbecf321f54","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":132,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"a585bf33-9bfd-4936-8c49-c3b9bae1815c","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":132,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"b8731c06-6810-491d-97a2-25a2dacc6cbf","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":132,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"bbb92def-1e11-41d2-b49b-ca806a72ca0c","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":132,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"16806abd-4359-4c99-bd17-7720f5107578","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":132,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"02840ecd-f78c-400d-a957-1856727b1ae7","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":132,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"90421fc1-afb6-43c1-8036-4fa689da7022","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":132,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"bc200424-0bcd-4434-bcaa-27a17196a8e9","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":132,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"dd3b5339-c059-4d01-b459-14d61cd6a3e8","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":132,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"7a5699ba-6154-44e9-888a-a35d206f2094","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":132,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"b4955b1c-d296-46ea-b861-6c26bafacd98","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":132,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"6a3344e5-eb23-4f00-ad33-edac0d828f73","block_type":"box","text":"II-95","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4a058ee-82ea-4f96-8698-f7f6a0fa0d72","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c75eb62-2f51-4e01-85bb-caba06e262bd","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":133,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"beb7bec4-6505-446f-b157-9c80688cd659","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":133,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"6b32baef-575e-4aa0-9099-68160e57e305","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":133,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"cff3cf3e-0652-44dc-a084-fe9879ab47cb","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":133,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"15220092-3a07-4ebb-b3fd-84f2af46268b","block_type":"box","text":"a barrier.","page_number":133,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"a10c67d6-93a5-4b61-b5b4-9e072a10fe81","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":133,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"64ed0984-54df-4073-9df7-e68eb6f62091","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":133,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"732f0fcf-2115-43d3-8f68-9ffa195d817a","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":133,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"2035b13c-9793-4e45-8891-cb8228154cd5","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":133,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"16a60d9e-366e-4eb7-9172-801c30b26cb1","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":133,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"e0f2e58d-e58b-4eae-a888-af647a38a893","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":133,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"6a270c64-cbcf-4524-ada7-f3c68afdab5f","block_type":"box","text":"that operate in certain industries (","page_number":133,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"8ec1fd9b-d1ff-479c-a082-f1d4eef154ec","block_type":"box","text":"e.g.","page_number":133,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"9b8ba3f6-ecdd-4e5e-ae30-cf6eb00e5622","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":133,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"89286979-1e51-42b3-84a3-b8c5b770bfca","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":133,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"19890423-3ba6-421c-84dd-9fc0ebb2fd47","block_type":"box","text":"e.g.","page_number":133,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"f76e7c61-f386-45e6-a01d-6ebe26d3e567","block_type":"box","text":", with mechanisms such as poison pills","page_number":133,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"658ea53e-5886-4b8a-8645-c5647a843884","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":133,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"a8e94d6e-321c-44f8-9177-6843a41d5382","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":133,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"86c73a40-8a5c-4b14-9f29-6f5d3e0bf692","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":133,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"226a2c1c-081d-4c93-82bf-d612585e3cba","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":133,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"d4e8db06-5af5-46bb-a745-33b9524f7640","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":133,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"26ed894d-6569-4f65-ac54-b9c1a86ea3b8","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":133,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"013a07df-e214-42a9-aa80-6d344af2a79b","block_type":"box","text":"seek to make indirect investments (","page_number":133,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"3c66ce88-8454-4dcd-9d31-490b18822d6a","block_type":"box","text":"e.g.","page_number":133,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"7e80254b-d7cd-464f-a19b-e08c3a5bf559","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":133,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"06d923eb-0fa5-4cca-a537-98310b67d1df","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":133,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"4aa3ebd8-0bf2-48a3-a0c3-9530bc2b8bda","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":133,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"a1440441-3f46-4aa4-a36d-7afd92d0ff48","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":133,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"361af65f-b885-43dc-b6bd-5ee5d96ef2ca","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":133,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"03736a72-71ac-4537-bc56-218aafbd10af","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":133,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"83bf4b06-a4ba-4a94-9b3f-05a4bfb6c340","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":133,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"910e5c17-4f68-4ef2-bd81-cdbf593ce190","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":133,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"00181f45-7230-498c-93f8-be31dec3f0c0","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":133,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"103ca4f9-fa72-418f-bf52-707571bf5c88","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":133,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"26d08ed8-8a41-42c9-b546-442a95510ca5","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":133,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"d2060a64-fd22-49ae-83ec-db8e98c973ff","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":133,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"b1ee6a5d-f731-4a96-a60a-9c694fdf6d65","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":133,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"87cce3f1-d795-4286-a2a5-7250c4fe22f9","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":133,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"03ec1cfc-13ae-41ed-ab8e-e0d9bc73148e","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":133,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"1eb69292-676c-487d-b94e-155c09c50a66","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":133,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"ee7d62b3-ec15-40d6-af96-e581414882bf","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":133,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"e1f9531c-32c0-41a1-b3fe-3c10d97db182","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":133,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"84febbb7-a2aa-4711-93c4-8e34b93e302f","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":133,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"42ee3dde-27b8-4705-858d-572ea7d7c0ed","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":133,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"1352ee85-16ad-4900-9ed0-63c051381818","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":133,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"bc57cc08-61c3-47bf-89dd-4fba952314eb","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":133,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"2369a50b-ab92-4963-b2db-6d27ac026e4f","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":133,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"8ac89f06-1db8-4e3c-971c-77dcf4cda006","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":133,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"8bb7ffc2-c59a-46b3-9aa8-13acf74ffbf6","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":133,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"d606dce5-5524-4427-8b62-32d6516b8aad","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":133,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"f9ec6a7e-ba2f-4483-886a-178b1b43d9f8","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":133,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"dfe16404-d410-4130-8d2b-bc26e96f86f1","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":133,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"936c2ee8-b761-48f7-a718-4316df1b5a4d","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":133,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"be5b5425-7fae-433c-b9b8-20865fdde128","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":133,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"7b209340-27f4-4d68-9a14-ebdd372a69fe","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":133,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"7a570bef-bb73-4214-817b-1bd500477843","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":133,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"d319735c-1fb6-41fa-9652-6171e81c4a56","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":133,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"5814d884-1555-4d48-9029-effb53bf540b","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":133,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"25143c4a-d8af-4c9d-9303-6f15914afcca","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":133,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"ad6804cb-1f43-4a54-9512-5256bbb8cc98","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":133,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"fe7e3431-006b-48cc-bf88-916c42c1ff4f","block_type":"box","text":"actions. 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It is possible that, despite BlackRock’s intent to either comply with or","page_number":134,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"441166bd-a7bd-47b2-b910-2740b03b400f","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":134,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"6c7391be-45e7-4435-9ba0-4c33327e34af","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":134,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"a208f5a9-8e61-4ced-98ed-5f31f7a5a7e1","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":134,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"8b29709e-b22e-49e6-b780-6f03585b7adb","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":134,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"97cf8778-d5ce-4b4b-b8c5-609b5d2182fc","block_type":"box","text":"strategy with respect to such security or asset.","page_number":134,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"82384076-9bbf-4590-9b9d-40746cb1e1ae","block_type":"box","text":"BlackRock may maintain securities indices. 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In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":134,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"b96eb971-a909-4a44-ab9f-d9207b4a8c12","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":134,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"4a6530f3-8520-4371-90d4-6942b4406cb9","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":134,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"e9508002-64b6-40f6-8d1e-482011960ffd","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":134,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"07c23751-8547-4c37-ae9d-5532a8feedad","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":134,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"98d52fa7-f0b1-4737-a8b6-4aec79db7672","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":134,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"62147007-2e00-45fb-b62c-6823214103fa","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":134,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"8421aeef-43a5-466d-899f-b12fad7e251f","block_type":"box","text":"e.g.","page_number":134,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"e66b4b06-1253-4e9e-af1b-7f3fa0507ee0","block_type":"box","text":", custodians,","page_number":134,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"515e538b-4407-45ea-8dc4-fceaf9cbda59","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":134,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"26a26883-cf3e-4132-969b-ce0cbbd43f17","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":134,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"af595b65-4c67-473f-a198-26754d9af3bb","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":134,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"aea288f6-dbb8-4335-854c-bca83b136209","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":134,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"d74ae87e-2386-4292-8d94-097390f00319","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":134,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"6a4c2ffa-9b21-4f4e-b03b-296784f64f07","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":134,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"c7306a3c-a896-4d84-b113-0504f1dc39c5","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":134,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"df7a10ae-f901-44c5-8b80-e4c106fbf6ed","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":134,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"0e266723-ac5e-4367-a002-cfaf7e763050","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":134,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"8ad1d635-568b-4486-a552-c690b377d075","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":134,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"6c3c2e0c-e966-44c6-aa4b-d431bbb17411","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":134,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"cf606287-4bde-4c5f-9dcd-f6c7495b2346","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":134,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"035681ab-84dd-4fb3-8e07-0800d3e1fa95","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":134,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"7841f20b-3e5b-481c-bbd0-882214f2f4ea","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":134,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"328071d9-fde0-4418-bd27-e12401c1f2ec","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":134,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"569f2fc3-1e9e-4a31-b88e-70db93ad0b68","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":134,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"5fdc226e-3957-4395-80a7-70de34b42ae6","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":134,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"1a1b9608-345f-4430-b6dd-ba3044f0b361","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":134,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"ebb669aa-965d-4408-865e-62ef4bd0bf23","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":134,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"ba122dde-074f-465e-83ba-86351c7c4a40","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"1c799064-07da-4117-8c92-aecc688048ab","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":134,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"16d00538-5cdf-46b7-b6ce-ca2db21c91e3","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":134,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"037694c5-41b1-4719-891b-889c14d6d7c4","block_type":"box","text":"provider.","page_number":134,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"c618e0f6-d074-4f16-ac17-cfec5ddad3d5","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":134,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"952e9bb5-1ff9-4610-8644-561f449e418f","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":134,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"6454fc0d-35b6-4256-a64f-08aaeb47290d","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":134,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"261e75e3-b85e-4a40-920a-87925993d1a2","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":134,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"6253c285-a830-4013-bbe4-a2548b142241","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":134,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"e3ba8085-adf4-4046-aea2-90b944786b39","block_type":"box","text":"PURCHASE OF SHARES","page_number":134,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"e49a1ffe-927a-4d2c-9cd4-6de6106d31d4","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":134,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"5cb00cc3-e9f7-4a08-8900-c96e1e06b3f7","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":134,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"95af2087-c8a4-42de-8189-f3d5154697a5","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":134,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"926f553f-04b8-4561-87ff-b6b808a66da0","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":134,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"5f3830ad-15ee-42e0-aa57-8bb4ccd9ae00","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":134,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"0473ac6b-1bb4-45f6-b6c2-e536d804547a","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":134,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"df782e31-2d97-41c9-88a6-6e7b72ff5039","block_type":"box","text":"II-97","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f375d9e3-a521-4eca-9171-2968ab13f75e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ffeeb1f-4ee6-4785-b50f-9e9acdc27fd5","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":135,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"31be67d6-6098-4682-97ed-0f01840d7373","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":135,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"5a61f49d-8baa-425b-9a33-b4d38b144572","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":135,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0a5baf1d-f42b-4738-94fb-612e41399293","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":135,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"4ba1e069-38bc-4b48-b413-841f8f0b1141","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":135,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"d187812a-93cd-4d5e-a770-778f156298e0","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":135,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"9d1210c0-aeb8-449e-a836-ab7812dab50c","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":135,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"97aa713f-eb60-4761-b9f1-d226d642559a","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":135,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"c98400e9-b8d4-4dff-867e-c08f70cf4c04","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":135,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"2a5cc3f4-a0ff-4716-a880-4b3ba73016b5","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":135,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"9f889729-6f98-49d8-99a9-78f03a2f6a1c","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":135,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"35ed7125-bd79-4da8-b052-20b1b52947be","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":135,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"ff24d237-ae11-4c6d-9d6a-fd007390851a","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":135,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"189bb1aa-8a48-4c8e-8375-6f04f32502a0","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":135,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"a9138cce-6755-4a83-bf49-18e8035a6360","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":135,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"dd1370aa-205b-45ec-87b3-eadb698365e9","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":135,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"071c8255-e3d4-4c58-b54c-2c8954aaa0f3","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":135,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"6ed894f2-288b-4ed3-ba78-f9985dbbcbe6","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":135,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"f7260631-7035-434b-9ee3-a97f1c5fe6a8","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":135,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"d4a83542-db00-4e58-ad32-a8e1dca6657c","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":135,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"882e0104-b8d6-4c5c-92ec-ff6b81d2d65c","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":135,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"8a90e8e0-659e-41b0-bcb2-b6288385673a","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":135,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"2180579e-ab54-4fb6-bc6a-1ce320b9cf12","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":135,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"a47d87e2-cf5a-422f-8c6c-102ba7277edf","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":135,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"26facb79-3a08-47d9-93b2-b378b43a0088","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":135,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"16252007-7f51-4ff6-9bbf-89dc2615a79a","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":135,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"c020344b-2fb5-49b2-947c-c9c731796479","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":135,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"5eed41df-57e7-4f2b-a5f3-56bac2c0e068","block_type":"box","text":"investment is $25.","page_number":135,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"376f0de1-574e-488a-89a8-06322d272cb7","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":135,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"6baa7960-9693-4f0f-a28b-8c6ba3eb87a0","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"31274c4b-971e-42a5-b844-258e346d570f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":135,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"72abb276-9cdb-43a7-8413-6cdffca88d55","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":135,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"a78d0590-8eab-44a1-ada2-9ac74b803642","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":135,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"20b11a72-6f54-4756-b329-f4314f73dd0e","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":135,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"c921fe0b-6a39-40d9-831c-dadfce1580d8","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":135,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"8c5275ad-9f9c-4517-ba43-fb65447b851c","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":135,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"f18f6760-5806-4c93-bd5a-180e22e816d1","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":135,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"f1167824-2234-45e8-bf2f-7fd13f2ca16d","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":135,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"23ab80c5-8572-4cd9-aedf-4665813723f7","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":135,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"e0d36ef3-969e-450b-b1ca-69597fa94c7b","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":135,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"1c2cd428-a809-47cd-99a1-ff41b4be2c92","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":135,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"41385f11-a318-4ace-89a9-32aa26ee2b25","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":135,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"9df711c7-7c87-41ba-9694-64d2a4910e45","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":135,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"b1a77ac7-3197-43e8-b414-3d6a79ffabb0","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":135,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"97cb43a5-1037-4b89-a509-b09c93b5585c","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":135,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"d63b2f52-3baa-4486-8e05-bf0763065690","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":135,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"a260ccbb-a45a-4fa0-8659-543191455e24","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":135,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"efad2a79-8665-4cc8-a73d-e036ecfebf48","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":135,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"5fc8c5e7-4a5b-4ab0-bcc8-26ef6766b8c9","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":135,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"6cb741e8-fcc3-4297-9258-ac34553d63e3","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":135,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"b28e7e40-2554-4e45-b3fc-b69bd53e0c3f","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":135,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"942a3355-41d7-4b9d-8b86-456f4f03e56f","block_type":"box","text":"adviser.","page_number":135,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"64965a41-f6d9-4849-9004-1e60cf6d5c4d","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":135,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"ea589a8a-8be9-444d-ba32-bb379fc640b7","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":135,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"871f72fd-e0dd-44ee-95b3-80cb989452fd","block_type":"box","text":"II-98","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a10e580-213d-454c-a0ca-189cd540c0dc","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"830a6c68-0bb1-46d0-9d90-5364be9c92ab","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":136,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"575cc2e1-f9d3-47e9-9e6a-9b47f9b3d8a5","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":136,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"7a8b7a74-4bd5-4fec-b751-b3ee1890af1d","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":136,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"24d9ce35-b85b-4d50-ba88-ab0ba61cd899","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":136,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"5eeafe49-b293-40a9-b475-78dafce6800d","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":136,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"1d380f23-5e71-43fc-8f8b-9a200e88b1ce","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":136,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"d96c1a12-b444-4955-bef1-057b7ebf8a3a","block_type":"box","text":"also be restricted from making additional investments.","page_number":136,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"4c7c6f68-5bdf-4ab1-95be-5dd9ce318c4d","block_type":"box","text":"In-Kind Purchases","page_number":136,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"76e88bba-b1a1-4998-bd57-5c5e53ab148f","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":136,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"a93f314d-d931-4918-8e86-93682b840977","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":136,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"ce97385a-a41e-4407-b139-c8b424496977","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":136,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"f6d2d88b-3787-482e-98a3-6e800829301c","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":136,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"af811e09-407b-4bb9-8cfb-4246b106819d","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":136,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"bd66a938-bbc0-494f-8361-28ee875f3b66","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":136,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"3152b1c8-5ef5-4406-b9ca-fd8f15311905","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":136,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"235a210b-eb3b-4fca-a692-45de5cb0c1c8","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":136,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"3ba99f91-8f96-4111-a754-792c3e77e758","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":136,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"5bc198e2-2da4-4967-b4ec-3951bdad90a2","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":136,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"abf32c44-ba4a-4a42-abbe-46a1b397210e","block_type":"box","text":"has settled.","page_number":136,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"9a90165b-fa2a-4b6d-8887-3f4e90ffd522","block_type":"box","text":"Institutional Shares","page_number":136,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"1fc8faff-9a6a-416b-9dbc-f7385e9ff0ba","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":136,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"a60c4025-5bc6-4830-8da3-88bcd02b7c01","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":136,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"5a3693ea-a92a-462d-a86d-66d88d81407b","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":136,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"90377972-8659-4986-8b79-aa8e025d0ffa","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":136,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"273960a8-145c-44f1-8603-5fde9a91a634","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":136,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"efe43f44-0ef4-499e-8129-573ca3aeb35e","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":136,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"77af81b0-eb4f-439c-86ad-870a7001dce5","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":136,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"b43d2de6-c681-4338-92c2-cb0b733c236e","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":136,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"e5025a5f-4b6d-4965-8b5d-0f155d8a163b","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"da496bfd-2fce-4c3b-b963-ec1f846146c4","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":136,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"897b698c-424e-4bf0-8e54-5064a4b792fe","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":136,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"da5a7960-5f50-4c57-93a7-45a271f7fc36","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":136,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"f9982ca0-1da6-44eb-9e15-a0d356dc0627","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":136,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"49cdac1b-a507-488e-b555-45451fc7e6a2","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":136,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"1aead992-e858-4d97-bb4c-ea548acf3f41","block_type":"box","text":"these fees and conditions.","page_number":136,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"4c0e15b1-f8ad-4019-930a-e473ae193081","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":136,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"2db55fbe-7011-4167-b7e1-333b4b3d4cd2","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":136,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"b0ef6e49-32c0-4c6d-b10e-c773747029e8","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":136,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"1e992454-865e-47f3-aaf3-ad4f23f4db80","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":136,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"5291b12a-5579-4206-b665-be047e3c41d0","block_type":"box","text":"incurred by the Fund.","page_number":136,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"bd077ed0-71ba-400b-b06c-fbd3f5c65178","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":136,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"8600f714-60ba-4181-8201-13a08b74e100","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":136,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"95219320-ee02-442b-850d-a858d5244b59","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":136,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"9421f779-ec57-474c-afec-3d9c125074f1","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":136,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"1621c236-9ad9-4085-b489-7dbf908d41b5","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":136,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"5699f779-ec6e-4c6b-98b7-e94673b5431d","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":136,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"680f1b03-3258-4f3f-b404-b26d64f65c01","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":136,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"33ccfd9a-dd99-402e-8f0b-bf7cfab0e797","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":136,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"bafa0170-5e6e-41ea-96cf-4e8d213b0605","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":136,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"76951ecb-7ec9-4848-ad92-c5d540eeb74a","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":136,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"d3baaf3d-0ee8-4494-b6bf-4d56ff4290e9","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":136,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"faf137ca-0d1d-4007-b095-0c6dadf8a7b1","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":136,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"2123a06d-79ab-448c-90a9-e19f4502ec6b","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":136,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"9b80484e-c3e2-4ef5-b7fd-7657452e082a","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":136,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"8e255d72-8c91-4270-9ac7-e715f16bc4c6","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":136,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"b436436c-5495-4c0e-93ab-1cd3f32d4c53","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":136,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"7484b98c-a296-4670-a32d-ad29ff5bfa28","block_type":"box","text":"II-99","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6cc7698-2908-4bc9-b62c-06434f1857ef","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2858f99-2221-4c87-b3c9-1c587ce093f9","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":137,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"6ad95632-552c-46aa-a8cb-2b16132800bd","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":137,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"396c8d87-77b1-49ce-98e0-9364ea23c9e1","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":137,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"c9e19171-2537-4ada-9580-e5bc1cd4b3b7","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":137,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"759a11df-9e80-475f-9d5a-d35d7696837d","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":137,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"96962a69-8d73-4e6d-894e-8b4dd7e74e16","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":137,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"0c1ec7cc-8108-42f0-ac69-3545126320a6","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":137,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"2f6df2cf-6e75-4160-8e04-bab22ff81d9b","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":137,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"584bd7f6-0988-470a-acf7-bb21b245c681","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":137,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"7cf2ced1-438e-4651-9f8c-0b0541d106d5","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":137,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"a0fedc38-00a0-47ab-bd05-f78196c1f37c","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":137,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"0590f4aa-f790-4715-a9a5-bfd82009f2a2","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":137,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"4a184bed-04a6-480c-80dc-948e13abe712","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":137,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"82c3ce5c-fa83-41f3-8ccb-d6fd0841f696","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":137,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"d480dca2-9846-49b1-8868-9915d8bc05c4","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":137,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"ea598388-366c-4c9c-8c6e-32bf695f13fb","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":137,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"edece22f-8adf-4eff-bcf2-3b55c8e50d36","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":137,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"6546f4f5-9931-473c-9f01-a6e63fe8e997","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":137,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"ee347122-c146-4249-bb18-1d98981f97ff","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":137,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"2471b88f-6f37-4b6d-84af-219b6fc30609","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":137,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"0c97992a-965a-44b5-bb29-6ecad85ea690","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":137,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"79b0f7df-2cb5-49d6-91b8-1a585cafd4dd","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":137,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"dfeddfd6-b018-4d8e-ad53-886947c25fad","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":137,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"4283e716-ed6b-4dc6-9348-6134e973dbe7","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":137,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"a6b448d3-6aa0-4940-bb87-cb179202e6b1","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":137,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"b9d73544-4ed0-4584-a316-8af8b3f665ce","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":137,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"026e2284-05e5-4cb6-9f4c-e38b9cea2a9f","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":137,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"32df436d-abb2-47c8-8f1c-a6a3eb8d121a","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"929e84a1-2303-46c6-95a6-367e41a23000","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":137,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"699d92c4-1eca-4daa-a35b-b8140a64e19e","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":137,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"eaa82cd8-e9d3-470e-8f2a-ac5e82844546","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":137,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"fb03edee-d28a-427d-9ad2-d48b40f96eb1","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":137,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"e3fb4854-2819-4110-8e10-7a073f9dc4aa","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":137,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"fa2ddf57-35c4-440f-bcd0-d37284e667d3","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":137,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"0d78a92b-44bd-4912-a5c5-a6bae29007c0","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":137,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"d2ded3cd-cfc2-4696-90d9-8441aaff2bc0","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":137,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"052b53ce-746a-4a98-9453-c4c0aaa42ac9","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":137,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"61b908c8-232b-43d1-b62c-5dc7a6562537","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":137,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"a89db668-7aed-4e20-b515-f73fea61afdc","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"388ad673-1c55-4982-b2b0-9dce4e3f15a5","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":137,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"7516583d-05aa-40b0-984a-604878326b92","block_type":"box","text":"periods indicated.","page_number":137,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"cecb3bc0-0b98-46d1-a396-7ec9a746890d","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"8dbb487d-0944-42d9-ab7a-f1955ab7fe70","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":137,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"51bc7599-e5c5-4e3a-9333-11e23237d39a","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"a70a9b45-f55e-4737-b5fd-6eccb56a5bb3","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"2a85091c-4ebc-4d32-b875-10de35556f5a","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":137,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"07af4c14-5664-4f5e-af6c-e761362b3c26","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":137,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"bda33a18-7319-4cf9-ae41-5bc418eb95c6","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":137,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"7c82c6ef-228d-4ef6-87cb-d49c79a1f717","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":137,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"e3d50373-b4fd-443c-8405-1aef0567a216","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":137,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"11191fe2-4ade-43ea-b639-8c64a5551f09","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":137,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"ed41a77d-f2c7-404a-a590-b6452cee0ccc","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"854a068e-d1d5-4cc3-a091-e7de53552229","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":137,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"2e2b97b6-e529-4282-8837-6b21853e2b75","block_type":"box","text":"II-100","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"eb087753-d1df-473f-b65a-bdfc68b8601c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c742bd75-e07c-49cc-a464-ebfc755b83c7","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"79ed1667-182f-4f2f-9ca6-e901e675c07e","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"a249f834-bcd1-43c5-8788-8de2b957580d","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"346b0df6-92a7-4ccc-9a84-4bc27438315e","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"5222543c-1c83-4806-9faa-c0fc13c20574","block_type":"box","text":"Reduced Initial Sales Charges","page_number":138,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"8e3daaa3-f2cf-40a8-9ba2-5f0f961d44ae","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":138,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"6dc3ae83-4d8c-4947-85bf-89b106baf9fa","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":138,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"70731d09-4f16-406a-9ed6-dc28da17bbff","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":138,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"7de76539-744c-4082-9284-9386ee5322d0","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":138,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"00cd2a59-ba86-4748-90d5-d6c2d5e4e207","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":138,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"ebbb0826-779e-4ef5-a01b-30980c819de1","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":138,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"01436664-a057-4755-9f12-4e0d863a35ac","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":138,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"d4238f52-62e2-42f7-96c6-5a0e8d49c44b","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"d301281b-efaa-4be6-827d-8dfd7a25caad","block_type":"box","text":"Reinvested Dividends.","page_number":138,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"a4922481-32e2-42ab-b2e9-0168024fa74d","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":138,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"c8df4bcc-ec8c-4b74-980c-38d1d4feeb15","block_type":"box","text":"reinvestment of dividends.","page_number":138,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"aebb81fe-7811-442d-ae0b-0f9c082f3155","block_type":"box","text":"Right of Accumulation.","page_number":138,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"fa0373f1-a451-4151-b518-eb20870176e3","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":138,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"8719d2b1-7f2c-4b0f-a82a-5cbf5d550fa8","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":138,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"de0b288e-ab59-493f-9d8a-14a607c5961c","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"024d8ec1-4b8e-41b0-98b3-04abf40d2f4b","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":138,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"b0c1c7ab-d74d-49a0-99bf-ac4bb0cbf2a1","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":138,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"1b811316-86b9-4dd9-9e30-f55d9dc36838","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":138,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"d7962ebc-c7bd-4599-8569-a7f03f9a7723","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":138,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"32e4e14b-12b3-4b6c-aac5-4e3c2e1118b3","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":138,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"14722f57-8831-48d2-921f-54c42721aec5","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":138,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"e28fc2f3-a7eb-4961-bae6-537a61824546","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":138,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"c34ae6cc-739c-4701-bdd3-2dd6f82a3696","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":138,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"08afae95-e72b-4181-b5ba-cfc2ce793262","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":138,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"6c47953b-ff52-46ac-a237-24ebf35e6b9a","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":138,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"012deded-b124-41c7-9335-37fc875eb936","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":138,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"3a56aa6a-47c7-49ac-9f8a-01b6e10fa151","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":138,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"c6fe3ff7-9174-4b00-a400-77c9fa84a2b4","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":138,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"e1d3483a-428f-4267-b5e8-95fbfdbc397f","block_type":"box","text":"Letter of Intent.","page_number":138,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"fce22cbf-4faf-484a-83fb-0bf1f169af21","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":138,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"d6a135bd-d495-4816-9d8e-22977d5b7168","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":138,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"535e8e20-9678-4823-9f7f-5b5d31e8f4ce","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":138,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"d32de665-9c91-4f6f-973d-fe16fb6a4a92","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":138,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"4dc5a3e0-c048-45e1-9a9c-494e280ab0f1","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":138,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"9e37a24c-f5bd-49ad-abe9-d925f4af9a97","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":138,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"894d6ec4-8c4a-4b7c-9800-714b130259d5","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":138,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"a072935f-5fbf-4357-a673-fd3c5b06284f","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":138,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"b3daac1b-c9c8-43d8-a8fe-8cb61ef3e6d1","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":138,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"569b9a8e-b83d-4203-b4f3-62f5282df3d7","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":138,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"fdf83420-1c10-4eca-9473-e04f151c1736","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":138,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"37a6f5c6-2e1e-46f0-a973-721190d482ac","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":138,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"548fa3f5-74ae-41cf-9058-ee0c4bedfa91","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":138,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"1bad1abc-cfe3-41da-889c-347f92e4ab8f","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":138,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"831ac20c-2e5c-4ff7-b466-8210068be864","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":138,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"c5cd3349-5148-46fe-bdc4-d547dd1fbd1f","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":138,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"91f6cbe2-3c24-4f87-8e82-a4848f083a84","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":138,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"1eb1b78f-8af9-435e-a2d9-98fe602e77e2","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":138,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"c4f3a01e-94c7-4076-ab2f-0ff4ca1e62a6","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":138,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"32b45854-0aad-42e5-b653-b23eb5e2b40e","block_type":"box","text":"Placement Fees.","page_number":138,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"98b9f1d6-11fe-4fd8-bf25-f6b48f0b3101","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":138,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"05f91d7f-6e29-41d0-8e67-acdfb891a921","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":138,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"37985c08-e537-4a95-a0e5-120404e3e07a","block_type":"box","text":"II-101","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4d8f4147-a5ac-4b3d-a7bc-efaf9637a7a8","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd8387c1-db00-4be2-876c-819405b5f100","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":139,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"6c81eb5e-e556-4c9c-96b1-d9f4afe575c0","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"032a20d2-a0c5-4239-ae80-30bfb68d9f18","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"051ea8cf-c1d2-4aad-84a1-f8084caa3a52","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"d1e9e4c5-ff95-4209-85fa-a3fb93a1731d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"f0949940-2710-4d59-8c16-1346209b2a38","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"2ad566bd-79e2-426c-9f76-1b3394828801","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"f10609d4-614e-4ecd-ae73-da1b45e2465c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":139,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"7df86290-1dee-4dcd-988b-f64fca42cb1f","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":139,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"cd591a84-8666-4bf2-82eb-02b78ac0483c","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":139,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"415e6429-0c80-4076-983b-68bdc5a548be","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"97e4ba6e-9148-40b7-a302-5098297014c7","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"c8f5dca3-e0a8-4c32-a68f-4e7786138644","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"29ffa93b-97f3-4e44-aafd-9d45a8a65c88","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"06ae634a-5d9f-4f7b-9c3b-eb8d442456e9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"e865f971-d1ad-493d-ac28-0a9996a735cc","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"b898b7c6-705d-4c42-8bed-ec2a5f6bba10","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"477ebd77-d41f-43c1-a91f-4b51fc23d90c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":139,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"0f8c3a0a-16bb-4b2d-bdbe-d37a7fcf3843","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":139,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"1919ed50-9d4c-4286-b3da-229f8c59f878","block_type":"box","text":"SM","page_number":139,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"d7fe2e2a-6198-4047-a04f-84f6862244a0","block_type":"box","text":",","page_number":139,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"978bb965-960b-466b-9291-a1345866f5ba","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":139,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"cc22a600-d6f1-4004-8efe-d5f4502f1fa9","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":139,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"079cbcc1-51b4-4190-9817-3b9f444e05b7","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"5d210762-3f7c-4f4e-968f-69102b1d5599","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"1b0cca03-a388-4bb2-8f65-9989e7f1f01e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"ca5d5dc1-5547-42dc-920d-bec7e8bf67ca","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"bc106970-7108-4034-bc2b-6c415d9cfa99","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"1007b33e-331f-4714-8510-fafc0a19f2f1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"0402c1de-2373-40e3-baae-586bd8cf02d5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"225c2095-b375-475c-ac2f-c73c16e21392","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":139,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"2feb4b2d-84fa-47cc-b3e8-4f65387a808c","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"08210452-3098-4703-b0c2-1f9bbe22da93","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"c5d829ae-6ace-45db-8bb6-f039f7ef9356","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"83a26cd7-70c2-40c9-b50a-29fcbdf018ec","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"a93e6c0b-d52a-4039-aec2-fd21ad23fa52","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"dbdd295b-506f-4ede-a4c5-027c89b4f5a2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"a316c744-6cc3-490d-9fb3-3c4deb210860","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"75a8acfb-3032-472b-9466-b535da2fcf38","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":139,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"60c677ed-594e-4591-bd48-3a4754e00b26","block_type":"box","text":"may be up to the following amounts:","page_number":139,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"61539f3d-a0cc-432b-b3f0-337ef982eaff","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"3e1f449c-0ff5-495a-abbe-f4ec56415bfb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"e2f9c565-cc7e-40c4-b077-2e49ca0aec41","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"fa7712f6-64c7-43ce-90b6-43d57a27ca3a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"a59ffc9a-05d2-4d26-aa31-5554a95fb538","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"ce30407d-a155-4ad8-b35e-d441b9bce928","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"f486144e-3151-4ea2-b07f-363f7f2760c3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":139,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"eb660578-a915-43e7-a466-42e31934a85c","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"3f01c32d-158d-4a31-a713-ae32f69e3ca9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"0d123b90-2184-4853-bd3d-b352de553055","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"ba50d987-8ac8-47fa-b58c-801dd26c5612","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"c7b1c7dc-f952-4123-b793-dad46b194540","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"df63765c-5372-48fb-8d18-c84a28960562","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"e88a4862-86d3-4e1f-b17f-b0bc3ad7bd9a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":139,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"916b26cb-ccbd-4132-bc4c-f7787f632245","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":139,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"2563a262-8295-439a-b60a-ccedec2182ca","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":139,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"09931756-2304-42da-836b-1a7a8247a536","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"7b5b7462-ec41-4db7-a177-ab32a344754d","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"c3a10efa-7d78-4b33-a298-6b79f517f3e0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"0ab16bd5-11de-46de-a7e0-599e90e6e8b8","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"b140eaef-4e87-46c0-8584-e39bfcd8b824","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"2a3275ef-83e5-49bf-873a-f33ab07d7c37","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"e4d5e07d-fbb5-45f3-8226-505c8d2d7597","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"c4997149-628c-467e-abc4-6a3fac83e437","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"3a86a7e7-133c-4148-a98f-331853b4b4b3","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":139,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"013ec414-e051-462f-88a6-f8096274b573","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"9d95610c-9a49-44b6-b19f-cdd3c6665860","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"fc393eb8-6502-481e-9b65-178afd3bd059","block_type":"box","text":"II-102","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f689bcd-f0c1-494a-b126-29fa6db7b6a9","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf65a78f-7e62-4fa0-accb-b66907aa55cd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"1dba1271-d4d2-4ccb-8a5c-b9d647565c5e","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":140,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"2bdd8fba-8ea7-4019-8a1a-ea31927e62ef","block_type":"box","text":"the following amounts:","page_number":140,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"a727e8c6-f523-469a-bb43-0e5aecf0ddba","block_type":"box","text":"$100,000 and above . . . .","page_number":140,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"e932b90e-96fe-4ade-a734-f33abe937abb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"44107135-062e-4617-9207-3c7ff42f95b9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"5183296e-71ab-44e6-b989-25970e47d997","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":140,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"64d69b10-4871-4605-8d44-21143c664b9f","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"3134a6b6-d6dc-4eb3-a6fd-7ec2b43ab01a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"b58f21c0-f7c8-487a-ab2e-058b62753921","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":140,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"25f919fa-1710-4bc2-942d-dc9e8a90d78c","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":140,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"02c472cd-8878-4707-b1b2-054af49d749f","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"e69a3f85-c3ef-44b4-aa98-e0ac140af2ef","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":140,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"ccc1dffb-1603-4c75-a82a-9dfabf3b29bd","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"002b172a-a1ac-4ca8-b4ff-5a630dc2968f","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"5cab28e9-c2b7-4df4-84dd-1f4f344458a5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"da4b6a96-4d41-4473-a128-1cc0dbb3dfd8","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"e5f8685a-5266-4d6f-8808-4665c8d50bb6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"d120a662-066c-4ea9-9049-21b7b9868dba","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"4c76d5d1-c8ab-436f-ad60-ff88d3b6e2c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"47175661-3ef5-4fb0-a403-47f687f11081","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":140,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"ed7cb70d-201d-486c-ba09-58c9d0a2393d","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":140,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"d3be8509-af38-4516-9ac0-9e44c88008ca","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":140,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"a1c65ea1-5ae9-4a1f-a2be-bcd1f62acc02","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"ee4a58a5-e68b-4e69-b82a-a55f8bfb6b7b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"d7f7e0be-247f-401c-8693-a09181966c3d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"7963b0db-5ac2-4198-93da-a6e3ac50a990","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"1981a325-daee-437b-ad4d-5994c486a20d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"b76c16e8-3db9-48fc-be91-a29e40f59890","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"ac77c9fa-b864-4ec5-9524-4e7ce0030638","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"c70433aa-fdc5-478b-87bc-705b32cd72db","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":140,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"995a930a-db26-407d-af52-9b440a71b740","block_type":"box","text":"®","page_number":140,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"cd215a5d-ef48-4e5f-bea6-5037422eb26c","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":140,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"0c0f0631-cce8-4c80-a9fd-f66ada70cabd","block_type":"box","text":"®","page_number":140,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"e12b8756-24a7-4715-add5-fda69a043b19","block_type":"box","text":"Index 2035","page_number":140,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"79d448de-a6d5-4c08-9404-58b5c5e3d57f","block_type":"box","text":"Fund, BlackRock LifePath","page_number":140,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"0467997a-3d21-4730-98f9-04d7ecefcde8","block_type":"box","text":"®","page_number":140,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"2b52a500-2bdd-45cb-b017-3d91f81bcc8e","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":140,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"10488fff-eb96-4132-bc83-b1d5a387e704","block_type":"box","text":"®","page_number":140,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"cfbfc96f-8257-42da-9dfa-9fa33c4d4d6c","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":140,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"5f307d36-56f7-4016-91a0-971be3e10157","block_type":"box","text":"®","page_number":140,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"fb366ec3-94ed-4612-a40f-61a19eb1b64d","block_type":"box","text":"Index 2050","page_number":140,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"a60c558a-0370-4907-9f27-f6371c59914f","block_type":"box","text":"Fund, BlackRock LifePath","page_number":140,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"41748bab-3711-4b22-befc-5d50cc8dc1a3","block_type":"box","text":"®","page_number":140,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"5a64f247-8618-49d0-9ecc-61b0e3cfbefd","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":140,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"41f1084c-f1d8-4835-8f2e-860d7adcd9ca","block_type":"box","text":"®","page_number":140,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"f5efe0f9-0d0c-462c-b2eb-c7ff9f1da4ba","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":140,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"0a0ad801-35da-4e2f-9726-bab890d297fa","block_type":"box","text":"®","page_number":140,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"d0d85743-3201-4849-80ad-5be5b95b74c8","block_type":"box","text":"Index 2065","page_number":140,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"fc6d52eb-d2e1-405e-bbb8-c8a2431421e5","block_type":"box","text":"Fund, BlackRock LifePath","page_number":140,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"c15909ac-565f-4b6d-9114-3b7d88b7d6f3","block_type":"box","text":"®","page_number":140,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"1ba3a93f-3971-4311-bfd7-6076ab6b5512","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":140,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"29c2fc2f-59df-4eb5-a080-2f4201e85576","block_type":"box","text":"®","page_number":140,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"a089a312-5e0e-4f2c-b3c5-10d74a32adda","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":140,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"f15381cc-4705-4624-be4e-abaa0fdbd350","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"3a68ebaf-aaa1-4bcf-9e90-e8e9000ec4fd","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":140,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"26951d5d-5baa-4317-b811-c8c834c5e37c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"5a9ef146-8ea0-43ac-889f-5ac253d851a3","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":140,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"7e2afec0-20c6-464b-85a1-04543321923f","block_type":"box","text":"SM","page_number":140,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"7d48f392-cd1e-4442-a48d-fab3a0e30e9a","block_type":"box","text":", the placement","page_number":140,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"f915475f-6fda-438c-92f0-98be8eb3904c","block_type":"box","text":"fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"1e7a55fd-aacf-44e6-acc3-e3076fbefc9c","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":140,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"b0a32d9a-aa7a-4928-bdde-0f417764e8b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"79f6c4c9-edf2-4e43-9d29-05cc747ccead","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":140,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"10cd0edc-51d9-4f76-9ac9-8de3a929c08e","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":140,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"80ad96ed-f7f3-45ac-b764-5654fca5126a","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":140,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"1a74f767-0baa-48ae-9931-8a4a82d3ab02","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":140,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"9713d30f-f0e4-4419-9cde-12be4b8c67f7","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":140,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"9e8cf2c8-e1ae-4e18-a151-418fe737a377","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":140,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"37220399-21ab-4815-be68-b8e1f4f4130d","block_type":"box","text":"$1 million).","page_number":140,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"2b10cfa0-0ad0-416a-b7b0-ebfec7687be4","block_type":"box","text":"Other.","page_number":140,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"8081735b-f053-4458-ab6d-fbb8f438ba37","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":140,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"13d3fa52-a275-4357-b9eb-bc315cd04d80","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":140,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"c8da9c2b-e4c4-4cdd-ba1a-6328cf998f62","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":140,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"905c6c30-3d63-4083-b086-8c4f89e7ca88","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":140,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"ba8068c8-4920-4878-862e-df5f33699800","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":140,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"8fc40df6-5e25-40e3-87c1-81035792d678","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":140,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"175925c8-7735-47f6-aabc-c82ae7b93dfc","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":140,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"85177df4-1ecb-4fd7-8d91-0f727912cb8f","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":140,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"1d4dff85-035c-4c61-b68b-21c1feebaea6","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":140,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"8b44b0b9-496c-40f7-a0a8-463963d68915","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":140,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"b7f4a9f9-0936-4bb0-b6e2-7c679857a58a","block_type":"box","text":"II-103","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7f636f7d-cb45-46af-ba02-e08b301ff7ed","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"620f78de-d3bf-4bb0-9b15-486313e7cf38","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":141,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"fcbd758d-11a8-4231-a475-4aaa8ef0a77e","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":141,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"15bafc03-8b11-4e71-aca7-7e2cc0f29fc6","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":141,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"7da0ad48-5a33-4eea-abc3-99224ebd5073","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":141,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"699207b1-0ea4-41ce-b6ae-e4ef9626b72d","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":141,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"7b17ab44-b090-4c61-9bcb-9bede3ae0180","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":141,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"10cd0a73-188c-4f59-b3b5-566a1f9498b6","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":141,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"bf0e5c8b-7a90-453c-be24-08950b3b2a9e","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":141,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"422c9a29-218f-4e0d-8a89-61be69611b1e","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":141,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"16939c85-b4c6-4e93-98f0-c5f541488de4","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":141,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"2602df93-fc5f-4e17-be3a-65715aa13c3a","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":141,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"100d15a9-3e1b-4248-aaf8-bc4d0fe5187b","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":141,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"5c9b2728-adc2-4c55-9c1b-ae6bbec47a7c","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":141,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"0370a522-18d5-471d-adf2-96710f10c5c4","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":141,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"ce55d709-bf52-4c27-b5ad-698ef7fe3bd9","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":141,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"ac9f1294-65d4-4dfc-803e-c83c104f9358","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":141,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"6d9c4632-6d86-42eb-8edb-33747ff677ba","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":141,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"0073c1d3-1751-4cf4-919e-56bea4f7e2fd","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":141,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"b9907d9f-89b3-4a1e-b726-e8bef8910321","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":141,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"4a97b7d4-89a4-445d-9654-d711fa43daca","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":141,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"64bdf1ca-d1cb-40c1-95e5-9abd19b3adfa","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"24b7d4d1-0a5e-4d9a-aa91-7d286bce81b4","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":141,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"a8264307-31ad-42b2-b45c-df005d6e354d","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":141,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"05b4b9f8-61b8-4a6b-acec-53d1f4234f22","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":141,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"7dd33465-3741-4c65-af92-a0555dad11ea","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":141,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"ba7b9e7a-992d-4953-b16a-7838430ec2ae","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":141,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"13ba8ba5-30cc-43df-b13f-94ba8bf71b54","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":141,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"6b18b729-0ca4-4f1b-9cc8-6ff15fca2c15","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"d917ceba-b34b-49a3-b162-7a72ac992333","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":141,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"41b6f78d-b60c-4f13-9d62-a10929dadf36","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":141,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"60f75cbb-7c83-4f62-806c-2c65ff20b5c8","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":141,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"d9944479-84de-439d-bec0-b52f564dfbfa","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":141,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"62bfb3f4-3ad5-4d92-b77d-bcdc52b4f7b5","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":141,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"b1c6756c-d289-4c6c-bc08-8dd6d3cc0727","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":141,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"15ba4004-ff36-4267-90ec-c5803780f3b3","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":141,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"49ec67c9-aa4f-402e-b508-b9529bdfec3e","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":141,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"8bfb05f4-5645-49cd-9676-f3a5b3d9212f","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":141,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"bdc680d8-52f3-4840-b625-aa1ad3ba761b","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":141,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"e8215bcc-5092-4949-8275-68bad68da4a6","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":141,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"ad1ca777-24e4-44ed-b3a3-5749a548345a","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":141,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"e6487e58-560c-47dc-826a-286be35c7352","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":141,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"858e2ef8-625a-4c51-8758-ff8b506d71de","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":141,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"394665a6-f712-40a6-beee-6e2703da9c27","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":141,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"c881423a-1a11-4bf6-ac75-e435549e5f16","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":141,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"c7b894ea-5926-4799-8af4-12b657ab95ef","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":141,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"e2f8885a-a9d8-45e3-85c2-10dd68ac1cf2","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":141,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"703dfb5b-188b-4382-bc62-3e02e68b5d7a","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":141,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"ebb254b3-8173-4205-9df6-56dfc9f3d2bd","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":141,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"f9546950-953f-4cf2-8650-7e930b416b56","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":141,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"5594ecc1-2585-42ef-9d0f-a72f6774c5ef","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":141,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"ed660cfb-43a0-45bb-9ccb-9fc697ddaeb5","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":141,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"c79e3c31-712f-400b-97b0-8e7089562872","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":141,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"be311a50-7e66-41bf-9dad-ac1b0d675e32","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":141,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"3cbc7724-535e-4208-a6bb-b6287da03e2b","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":141,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"3eb627de-0d3c-418f-a3b4-22aca6694bbc","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":141,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"471f70c0-c98b-4c21-b8aa-7e43e391d0fb","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":141,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"22a1722a-05c9-49d2-a6de-878304335097","block_type":"box","text":"II-104","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aa325009-63e9-4135-ab0d-68fc4316131c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc958c7b-5130-48eb-923e-8ba6bdecf99f","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":142,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"196c5172-3d10-4e86-ad1a-22e27b41ae44","block_type":"box","text":"the absolute discretion of a Fund.","page_number":142,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"ddd6ffbd-595f-44da-b645-59498d5a38c7","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":142,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"328b3b47-34c6-4fd5-9e75-d4ef01d5a4bf","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":142,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"bd78dd69-aef9-4397-8b59-6532cb80183f","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":142,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"7e34076f-b897-4724-8011-fde1a81344bf","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":142,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"566a00d4-f373-4626-93f6-f36df1fed118","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":142,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"9b5ca51e-c97a-41f2-afed-fbc01533e316","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":142,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"9a57fa46-1427-457c-bd3d-a7f5b085d23a","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":142,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"e25fbf9e-86d8-471e-af0e-b640cb31ed29","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":142,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"1b9f7606-b24d-4076-984e-f94813571a5d","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":142,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"10ae36e4-6c6b-46ed-8087-22c809ee1a67","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":142,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"dc956ab1-6287-4e81-9991-75498393b127","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":142,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"b9ae555b-ad35-4f68-af66-8108f6be10b0","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":142,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"51240391-4966-49a4-8e9d-f233bbba9455","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":142,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"97f47851-9af0-4868-a2cb-608317f77690","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"6dda703a-bb0d-4043-84cc-d41c5fc38e5c","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":142,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"4887a961-1456-4283-bdb4-832e18897529","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":142,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"f1a72b6b-b943-4936-bdce-630b3665f14b","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":142,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"edec8a60-8f36-4875-b63e-cc86892cf094","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":142,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"1f32b9e1-359a-49cd-9f4e-a6e89904fff5","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":142,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"4c42420a-2e9d-47ec-a2ca-eb3407dee404","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":142,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"88c980ac-9ee0-49d3-8dea-027dd1bf853a","block_type":"box","text":"public or private investment company.","page_number":142,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"a29c32d0-875d-457f-b3df-156f1a52182b","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":142,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"3f6f4b4d-4f33-4f7c-8b01-bb12119df383","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":142,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"b000b2bb-fa6a-4f8e-87c7-06c7e7472773","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":142,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"e5ac65e0-d515-463f-8aa1-67ba39adf46b","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":142,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"45604405-fda8-48ed-b515-a60ea4fa607e","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":142,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"ee2d423b-931c-4945-8487-07f5f6adc253","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":142,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"2635a87a-d708-440a-80a3-d0b694b0b44e","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":142,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"cdc4e372-1347-45df-a6b3-7226104f288c","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":142,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"784821e0-66d6-4c0f-83e7-c16958ddb490","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":142,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"fee548e4-e86f-440b-a3a1-add3a80d3d8b","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":142,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"8c693df5-4393-4836-8303-0124bd5a2faa","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":142,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"272032a5-369c-408d-9271-1398208b76a2","block_type":"box","text":"intermediary associated with the account.","page_number":142,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"aec1f9c5-fb64-47aa-b72d-a11b62663d6f","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":142,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"6b982143-2707-4dc3-8169-dfd58f486bdf","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":142,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"2e024f8d-8d7d-4aec-b25e-b5c5660c5086","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":142,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"b836fddc-d703-494f-aded-9053f361c46c","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":142,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"82411398-ea3c-4325-ad1f-f58dfb240926","block_type":"box","text":"CDSC shares.","page_number":142,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"87eed960-bde4-4a51-b95f-477867ec7be9","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":142,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"82d27918-563c-46be-9917-603ef9c45f72","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":142,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"6d1c0720-b9e2-46dd-8ed8-9c02b921c9ee","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":142,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"fe9c756c-3cbe-44cc-8a60-78c409629412","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":142,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"5bd85fad-7068-40a7-a89f-3f497d36bf12","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":142,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"8ec5b72a-8d93-420e-b0de-2cd8179e7ce3","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":142,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"a0a440fa-52c6-4a6a-8d53-6bbeb9df767c","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":142,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"6176333f-9188-4b65-940a-e64bda7b1937","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":142,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"a589b8cd-87b2-4a32-8776-014902842983","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":142,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"9ba2ab0d-3764-400a-8162-a4d13fdc6f50","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":142,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"7ca35bfe-ba24-487f-ae55-782031e35746","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":142,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"ec4ff39e-ca85-42c0-8a56-ea81bd170b1b","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":142,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"6b9b1ee9-758a-41ca-80f7-3699a124a7f2","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":142,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"678fa1a9-f556-4ffa-b07f-2287b10d28cb","block_type":"box","text":"II-105","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0e589724-bf2e-4490-bbe1-29516ff21be0","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8efeb61f-1b22-40a7-afd1-07bc512a6f97","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":143,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"d2dc115c-03b7-436c-86c5-9f4b87ed6049","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":143,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"c05a13ba-4cf2-4f2e-bd91-993a31c2131d","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":143,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"0178e5e4-0eed-4fef-aaf8-9f4234102cd9","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":143,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"5b47ce30-c22a-4ff0-bacf-3c402f23bdf1","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":143,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"a19e8c3e-1e49-470a-85fe-192a8661c866","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":143,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"2ac12522-ead3-4d1b-a090-531d588e8929","block_type":"box","text":"Investor A Shares.","page_number":143,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"d35a7a74-ee81-42db-9903-3bbd4c9496b3","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":143,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"33fe2dd4-b241-4151-9a29-9606b850caed","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":143,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"53cdfb7b-7499-42ef-a914-245f8df0a39f","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":143,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"7e546546-dd0e-4e9f-93f7-81b25a1b1cfc","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":143,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"8c468394-cc9a-4129-a417-90b1ae550eca","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":143,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"db89b44a-8bb9-466f-8277-9569bc81c66a","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":143,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"8f453872-e246-4f91-9a23-845e7b0c4e39","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":143,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"fca9754f-0436-4b36-a5a5-4a2a5e0dc7ac","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":143,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"766efff4-8bcb-4b7d-8274-48b1dee0d7a1","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":143,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"b9065106-a94f-4bc2-9c49-3cce41a8b703","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":143,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"a80b6850-82ed-4634-8920-318fbbb51c0a","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":143,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"061233e4-0562-46c6-a7aa-246ec27d7ea6","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":143,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"6a273b21-7463-42b3-893c-a619c5fc7b1b","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":143,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"faf7ef92-646b-44df-b9b2-f5f8371aeb0d","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":143,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"bcf219b3-e613-4bf3-b3ea-78078ccf9a5f","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":143,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"d9d141b8-d0fa-4ace-a4b2-53dd4cc592e8","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":143,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"6cdc19bc-e071-40a3-b39f-e69157907dcb","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":143,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"b5c0c9c6-f40d-4f6e-9644-6fa222ee73b7","block_type":"box","text":"“Investor C Conversions”).","page_number":143,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"355e0875-d744-4fa4-8693-a55367951b6c","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":143,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"4d4d2f7f-1ce3-4db9-b307-c71dfc96fb4a","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":143,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"50267358-3193-40be-8a5f-1e11b053fee0","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":143,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"d3b28893-a618-40eb-9fe4-4b3f378aeed9","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":143,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"c8ab48c6-5fc4-4ff5-b3ed-64138d6b141f","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":143,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"3fd9ae19-20a3-4b3f-81a4-ec6b26b25778","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":143,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"7b706547-13a7-44ee-be35-019c92031ee4","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":143,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"7e9dc6e2-f627-45ac-829c-2b2fe1211062","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":143,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"16ee6c1f-adb2-4d70-908d-8c09a254a32d","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":143,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"724f6f28-d806-431f-a40e-9616caf58901","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":143,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"f4a7c9c6-c274-40fa-acc4-28e9d898e56c","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":143,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"89eb8285-d1a9-4e57-b890-a50a320e38c6","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":143,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"25c1b980-a2a4-42c9-a2c7-25ec1070ca6f","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":143,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"f9d8c4db-272a-4a1b-88d4-01d2d5f5643a","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":143,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"4aeaa737-4723-44cd-8cd3-b39b8e78afa9","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":143,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"65b7c23a-076d-4512-8ee6-e0bfb1ae2e01","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":143,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"8d09d0bb-3092-498b-9c84-3f997565c3e7","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":143,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"b063a3c6-4b07-4b3e-b852-d69a573acca0","block_type":"box","text":"redemption.","page_number":143,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"a01cfbd8-ea0e-4f94-bc1b-c08d0676d879","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"49434da7-8c4f-4e5b-871f-23a604a6dba3","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":143,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"8eb73061-8573-4374-a0fc-7011805524ff","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":143,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"39f9367b-7b35-466a-9f48-24083e898290","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":143,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"74bf10d3-ae68-4f89-b759-01981b758c40","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":143,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"098941de-0d5d-430d-80d1-aece7b5c5d76","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":143,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"47948a02-0c83-4ce6-9ff9-71ff99127a8b","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":143,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"ffa651c7-f7f3-4a2b-8304-b400cc0fa15d","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":143,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"2b0b0ea0-9564-4b66-b115-bb9970360d52","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":143,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"adee9623-5661-4032-8900-af9d24d74b9c","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":143,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"e9ae0d0b-2c3d-431d-afe9-17441ee81166","block_type":"box","text":"II-106","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2dcf4f6d-87b2-4153-865e-bcbd9dbc825f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f793c6de-5317-4a18-901d-751b5c195479","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":144,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"fbdd6017-a20f-4246-9b22-dd45b674de55","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":144,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"3bfb46eb-c9aa-437e-b3f5-0125a8ea634d","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":144,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"5ced1002-937e-4ba3-9cea-1095236459c0","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":144,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"d53e3d43-3f44-48a4-83ba-22547272ceee","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":144,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"9bc9af3d-fd85-48af-bcb5-1bb26c2ae9d4","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":144,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"20f9cc59-b04a-474d-b51a-8f4490882f05","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":144,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"ce211580-e748-4057-8053-fb35a8c202a5","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":144,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"3a9f2945-0d7f-49ad-8ee4-f9f593f1990b","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":144,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"ac17dcd2-89a0-491d-b8d8-08945d3108bf","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":144,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"3ed9df71-3f96-4cfe-a014-b64eea867082","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":144,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"36cffab1-f5f9-4cc2-97da-35a2e007a5d5","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"6125cf83-bfbb-4821-9623-9a90078f1db2","block_type":"box","text":"Class R Shares","page_number":144,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"b7e7b751-41ab-4b1c-8047-b2cf67ce4ded","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":144,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"de2d4f4f-6508-4978-9420-87689754e5a4","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":144,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"a38270ed-5fc7-451a-9b57-48997f894bfe","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":144,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"7bc369cd-84c0-4436-811e-c7ef5e39d1ad","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":144,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"9c685584-4007-4102-985a-3235be057043","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":144,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"8a39bcd8-79f5-4ae9-b50a-49219fd10366","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":144,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"7f3bd419-c6e0-4001-b06f-875fa7896da7","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":144,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"aa8d757a-c349-4637-949b-0170b5d28391","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":144,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"c592eb3c-dd01-4a1c-8bb5-c939af116631","block_type":"box","text":"Class K Shares","page_number":144,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"331af635-20a7-4fe1-a870-268431e637cb","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":144,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"1820f89d-6f40-4d89-86b9-0fad83d10a40","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":144,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"5987b079-440e-4347-8af2-4ee3b22287fd","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":144,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"90137324-f5a2-4bca-9b99-9533913f5037","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":144,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"357a828d-b409-4252-9487-f02a396a9dd4","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":144,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"03fa2e70-34e0-4243-8905-998b13342008","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":144,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"a28f8c83-b87a-4693-9836-6aacdad3fdd1","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":144,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"d70e072b-91ec-46e4-a772-9a43ecf4aebe","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":144,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"4e8c8244-851d-4315-8b02-8e35e16c1e06","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":144,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"e879b2cf-659a-42f6-8fd6-d47fe8799d9f","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":144,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"21e9f89c-b60d-4b03-a182-879987849d7f","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":144,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"2e0af2de-c1ab-4cbc-b7bc-5fda88a7646c","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":144,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"64e7ef34-71ec-4210-bc3d-ef8565f30154","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":144,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"4b609ccf-ca3f-443d-8d3d-7feb0a25328f","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":144,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"ff955604-42d6-4a88-afa7-c6a037c4d614","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":144,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"c0b1a1fa-a274-440e-86a4-300fb05c29d6","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":144,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"6be17f56-afec-40f5-ac3a-cd9af1cbecd8","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":144,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"c29df8fb-6859-4058-a4f6-50262db042b6","block_type":"box","text":"distribution and marketing agreement.","page_number":144,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"644559c3-3f6b-4616-9753-ac70c8e1b048","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":144,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"bdb15665-261d-436e-9973-37f5cb75593b","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":144,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"3f6565e5-219d-4e23-868a-cd340e556851","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":144,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"0786a90b-df44-4434-aec5-a3dbb03530ec","block_type":"box","text":"Class G Shares","page_number":144,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"d2b131f7-ba83-4398-a381-cbf2bd2469b9","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":144,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"6fe715f6-90ca-4b7f-87be-cc8c1d9279c0","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":144,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"1b773d8e-ab75-4b1e-85f4-8c38904ca443","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":144,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"45cefd15-7ad8-46e7-9152-fb7823f293a5","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":144,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"3178d0b3-312e-4b77-baad-ee7145e498f7","block_type":"box","text":"eligibility requirements.","page_number":144,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"229559ef-e916-43a8-9bb2-f0150e444923","block_type":"box","text":"II-107","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b6b273a8-cc9d-4eef-b509-dd4ce111f1f7","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"985e3541-adc9-4b10-8d00-0054cdbefe12","block_type":"box","text":"Service Shares","page_number":145,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"05a90827-284e-4879-91b4-127469224cb5","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":145,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"983b507c-bd2f-4674-aaeb-ea9e73480bb6","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":145,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"43600345-ad0f-49d2-94ea-0c542abc2e7c","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":145,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"74345669-1aeb-4ceb-9015-ab67aaa60122","block_type":"box","text":"®","page_number":145,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"6e230797-9796-4895-be14-91c34fea9e00","block_type":"box","text":"Fund in 1996; and","page_number":145,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"fd5c6c10-7954-444c-8244-e6441ad55a38","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":145,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"492c085d-3268-4262-aff3-4e6ae0dc01d4","block_type":"box","text":"SM","page_number":145,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"3cf20d63-d9ea-448b-9515-35c7c7435f69","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":145,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"08d9341f-1be7-4e41-b1aa-aa5d063a886d","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":145,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"a3426bad-51b9-4f24-951f-8b05196a38a5","block_type":"box","text":"BlackRock Shares","page_number":145,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"a835d2d7-4371-4bac-b132-986612758f12","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":145,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"76eafbcd-c7c9-494e-9252-533ee41457d4","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":145,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"7a62517e-4246-40d3-8649-f25df3408761","block_type":"box","text":"fee-based programs.","page_number":145,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"54df01f3-120c-4d45-8c9d-345b6db0da04","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":145,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"c17cc9ed-e08f-4866-b738-566ad15e7010","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":145,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"627ce810-4458-4f38-96a1-77c800fcf805","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":145,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"0a2fbd4a-258e-44c7-8c05-97e7bf6b0945","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":145,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"0889a00f-c894-488e-9a3f-f710cdd60f19","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":145,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"ba4582ad-a049-4679-bf91-7411c907b2c9","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":145,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"53d83a90-5706-4805-843e-3381124ec1c5","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":145,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"cddf9471-c4ab-4cfa-8c6e-bf4198761305","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":145,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"1d93f508-8530-4983-bd2c-8763dc9b316b","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":145,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"2280e620-2684-4e79-bfbe-c9c6ad72b2c4","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":145,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"beac6523-e8a6-48cd-8daa-90fe60331173","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":145,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"85f046c7-25ec-4c4f-8b9d-58a57d0b3c29","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":145,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"e72a12f3-7a0c-4657-a78c-980df13f13d8","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":145,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"ce3ddead-95fa-4151-a245-ced1300af0a6","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":145,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"b4231338-823f-4675-9489-5dc1b9eb2e12","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":145,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"799925fb-0122-4766-84a0-7891ea788188","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":145,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"9c0b3aad-1e4d-4d7d-adfc-8b13834ef29a","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":145,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"eb9cdfae-1e92-4bba-a9ac-c269f8c22047","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":145,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"f635a35a-e533-4cbb-a826-fb90ed20b64e","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":145,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"ae679576-3866-44f7-9bcd-8114f24b2653","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":145,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"25083ce1-e7a3-4f03-8a59-279c873f5320","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":145,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"bf597336-8b17-478b-bb09-e10e6ad6289d","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":145,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"684dba32-9a30-4275-b1d6-b74207244d97","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":145,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"fc9391b1-4a07-4399-b6d7-b1e42e225d03","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":145,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"7b425219-1890-40fc-93b7-1ade3f5d9a5a","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":145,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"1cb18592-cc07-4dff-af22-9c018f6431fa","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":145,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"239fbad5-529e-4e08-a028-71ed722a2fee","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":145,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"0e2e0fb2-d608-4346-b71e-fdf0ced60afe","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":145,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"4fb258e4-1148-4909-903c-af3818433c45","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":145,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"480b32d8-cd98-4410-9d86-666567765507","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":145,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"57684fd6-7b8b-4cd4-abfd-63237315e87a","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":145,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"4712f54c-e4bc-4474-b09a-ad1bf8dbb837","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":145,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"c67205fa-836d-48b1-9b5c-786c475a8017","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":145,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"77352c7c-c5de-454c-9aa1-34fb38bf5811","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":145,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"f4453ca9-2c12-4882-ab87-a9af16a5d6c5","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":145,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"8d2d5338-59aa-44a5-8b7a-e1105f83ff80","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":145,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"5bfaa54c-7835-4385-9cbb-07662ffc0296","block_type":"box","text":"compensation for selling different classes of shares.","page_number":145,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"93d2458d-b505-4621-b3ca-bf79201e3283","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":145,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"a3a0a9eb-7203-4972-bd91-1ff7ae0b05c8","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":145,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"f084c965-75d6-4384-8ab3-1c8e374b8e69","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":145,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"90ee0b66-874b-4e85-b238-afc8382bbad7","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":145,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"5b73f220-7ab1-48d0-a79a-9c775dbeedcc","block_type":"box","text":"II-108","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"04440448-002f-4ca9-8a89-4e0115efab80","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f21d8c4e-e57d-49cf-8235-b688333259ea","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":146,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"2f45ae8f-260e-46ea-ab80-9f7e5e68c7f6","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":146,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"58b3ede7-29fb-4c91-a61e-f045b0a912b3","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":146,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"4e256304-8353-4081-aee5-1bd0c0cfccb0","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":146,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"0915df37-efd4-42e7-8952-a99d3fc3cad9","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":146,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"a73f357e-7a21-4f34-8fbb-21f6fefb6056","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":146,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"fc7706e3-ef90-4792-8a66-3e8094acdb95","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"357f7de6-d1b1-478c-981d-52de013b910b","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":146,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"95286acb-958a-4832-95fc-19e05fbf47aa","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":146,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"07d814b6-392e-4649-85a5-6e4d812dded1","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":146,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"e96a0493-f4b9-45f5-b2d5-dd0f125b1ec5","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":146,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"b6569c82-5e2c-47f8-b0e5-7d0aabc2aa0c","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":146,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"48320e18-0a69-4218-a99b-d4db2d40bcfb","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":146,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"3f2f640b-c10f-4d4e-ae7c-63757787a8a7","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":146,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"62a53bbb-4da9-40d6-9774-316fbdf10fbb","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":146,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"bef930f8-09cf-4a99-951d-893dfc0b6965","block_type":"box","text":"easily accessible place.","page_number":146,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"066c990d-66c3-4af8-a114-f6bb9c7d8908","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":146,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"3b3fc72d-b1ff-43dd-a504-f4ebb20eecd2","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":146,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"ea1a69a2-d35c-4649-b36a-c37f3c450d7e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"97c00352-26ce-43a6-ae7f-46991a993e23","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":146,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"37daad3b-96e7-4840-9669-7c1e0222bd58","block_type":"box","text":"fiscal year.","page_number":146,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"23b02eff-2713-45ea-b0f2-5a2db235eee0","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":146,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"60f29b72-fcef-4849-8e72-c4cd130d2a0f","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":146,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"bd0e0ef6-c99b-4b5c-80dc-2c0b2ba1ad90","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":146,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"c0774f32-ff52-4bf7-84c0-740688e1d1de","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":146,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"f933d379-cb0d-4ec7-b9c8-17eee897bfde","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":146,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"04795586-d454-4508-b3a6-5c56bcdae18e","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":146,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"35d860e4-11ba-4a11-abac-d4b7ce238d87","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":146,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"f1e8df8e-f3ae-4413-a091-4597bf627893","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":146,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"26c3f820-c854-4789-b28d-88f678fb2830","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":146,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"d950ce49-916b-4867-82e0-6f56b7116f95","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":146,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"4d041ea9-201f-4000-a1c1-a744efed395d","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":146,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"f8fa4d9a-ef3e-4000-add4-65f9eb950dcc","block_type":"box","text":"and Class R Shares of your Fund.","page_number":146,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"3ec9f749-efa7-4129-b60e-2011e373baf4","block_type":"box","text":"Other Payments by the Fund","page_number":146,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"c3b567ae-5bfd-450b-87e1-ce9aebde56c0","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":146,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"fa3ca126-a11d-4a45-a768-35333e7aff88","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":146,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"4f5cb9d5-b822-4fa2-8ed0-d0dd72cfbdfe","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":146,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"7a08ee63-386e-4039-a00f-50acbbd5b843","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":146,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"1cf40046-d8eb-4d03-85d8-9dc9df5ea44a","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":146,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"68932808-a4fc-4cdb-839c-8a4784fbf56a","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"4120dd47-698a-4c0e-8d55-edb079e904d2","block_type":"box","text":"of these payments may be substantial.","page_number":146,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"79922f00-5466-41e1-b5b9-2a243ecc6259","block_type":"box","text":"Additional Payments by BlackRock","page_number":146,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"6d2ffdea-a60b-48f7-9507-2cf1a551d09e","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":146,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"96f68c04-160d-45e8-b089-704c6f31a2ec","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":146,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"d98f4757-a96e-4d8f-ac75-c88ab45e9cd6","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":146,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"bb08fd7b-4363-40ad-b927-08048df9f7db","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":146,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"2db9140a-9039-43c5-a565-df51c17be409","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":146,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"5990a78b-208c-4aa7-ae2f-5647a4e1d26b","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":146,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"9c19d600-d35b-440c-b65a-a3d913cc09df","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":146,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"74419a65-7df5-4842-a753-42817fd808b3","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":146,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"15e9c316-f05c-4b7b-aa20-e889ff802782","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":146,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"eca89cd5-151e-46bd-b091-bf16335db652","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":146,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"1ad70419-6d3a-4e75-b763-ac4c3a6c02be","block_type":"box","text":"II-109","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f3340af6-0e44-4d14-ad81-506607de28c7","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e7783e2-b103-41e4-86ad-ca7bb9b35a9b","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":147,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"55e57420-6db7-46fe-89c2-45ec9897ffeb","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":147,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"abeb230b-8427-467e-ac4d-0ac368a83d84","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":147,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"700050b3-1233-4d93-9b91-653d5a0a495c","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":147,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"ad16d4c0-94b3-46e6-a51b-121c41b67237","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":147,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"169ec975-e35c-4acf-a85e-4e5f738d3a7e","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":147,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"0a87b9a9-d011-457d-9a7a-3582ac1735a3","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":147,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"a3a4c728-46f8-4ee1-8d01-2ecb0d292d11","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":147,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"93b6cf8b-95d6-45fd-9f31-dfee2ecf1ba3","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":147,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"f3e38b7d-2f3c-4e81-9667-b014ee3474c3","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":147,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"0fc329ad-5ae8-4c58-b7d3-2f0f97d92414","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":147,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"6f389703-35e8-4789-8d9a-d5269888fc0a","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":147,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"77ad2052-39ce-49d0-a4b9-31a0e3ac1098","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":147,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"7d5ee47a-538b-4680-a035-68fda75b4a18","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":147,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"afab9e01-8a18-4f28-8597-5640ee1ae81c","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":147,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"cc8ae7a7-101d-4da6-b866-1f68fa161b93","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":147,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"14284800-60be-4116-a59a-d1691f3a7714","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":147,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"18f41754-0cc5-4680-baad-ff51a3614873","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":147,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"52df035f-b645-4581-8c56-117b3524b0f4","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":147,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"07cf16c0-39f1-462e-83ce-0c1a5caf7eb8","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":147,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"8e7bdcff-4fe2-4a9f-b43a-608418a8d5dd","block_type":"box","text":"Funds.","page_number":147,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"808b86f1-8190-4e18-bc43-d2609370b72c","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":147,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"c31637ff-9f70-4a2f-95f8-e34e997d9e31","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":147,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"68d32db2-af4f-496e-9929-3fe29e21f7bc","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":147,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"914aaf7a-901d-4941-bafb-0b24316edbfe","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":147,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"40c3f7ef-e9a0-4819-8656-1e1bd9880f95","block_type":"box","text":"B. Shareholder Services","page_number":147,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"e04d9256-f4f3-4998-b9c0-78e18d67543e","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":147,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"8da95dae-7956-4d2b-b8c1-3135543bf781","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":147,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"cb40b970-97ac-48fa-b1cd-998efe61a8fd","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":147,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"f33fda76-0b6e-4827-81ab-ea14720976cc","block_type":"box","text":"II-110","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0ddce4c5-459a-46a9-a4f7-34a110c9fa16","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0e03ef2-9a2e-42ba-82a0-06ae67e3ab4b","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":148,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"2e0a68bd-b0c9-4db5-b398-ecc620f49d9e","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":148,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"9f3c92c2-6785-44d7-9e80-e5004be244a9","block_type":"box","text":"payments 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BlackRock","page_number":151,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"1fb1d7ef-0b5f-45e4-ac4e-33c5a0ed45fc","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":151,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"10735078-ab41-49de-b499-ebcf17c97268","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":151,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"d174463b-960a-4a79-bed3-be97876a3667","block_type":"box","text":"traded products.","page_number":151,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"c3cb67af-4413-4650-943e-52f42ae1bdcc","block_type":"box","text":"F. Conflicts","page_number":151,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"82b8fc60-dbfb-4ede-a8c4-afc1eedfb192","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":151,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"efe3a845-f70f-42be-8963-02bbbb61088e","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":151,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"12d5c735-38bc-4be7-8cb2-2b0ce2a04b52","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":151,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"35f0a312-2eba-43f2-8c73-64932d080db2","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":151,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"1f24c67e-98ce-48ca-9d54-aa76e0fda7ba","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":151,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"bab69f08-93c8-4582-bd90-58592b5b33e2","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":151,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"23c57da9-8dca-4707-a8c3-46c346e5ee14","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":151,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"9120a721-bdfb-4b73-ba76-60ced4c25477","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":151,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"a2a75207-69ad-49b6-9746-e8fd88d1d5fc","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":151,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"57c70de0-a704-4089-b386-b996e861a2a5","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":151,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"c1fa922b-7098-4576-9e38-60f69bb3c033","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":151,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"69325444-7f3d-4440-837f-58bbcc23a8c8","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":151,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"53d7b00e-0b97-48bb-b60f-73f23406c444","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":151,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"7993b878-8840-404d-9b66-bf1363acd5af","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":151,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"f9913688-d492-41d8-9e66-4ab75f1895b6","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":151,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"3a5d99c0-bb7d-4c8a-8f49-e0cfbb17a18b","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":151,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"4de72197-66a4-41ba-a9fd-0dc2ded7d89c","block_type":"box","text":"appropriate.","page_number":151,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"acd85029-1248-432f-8db6-d71a60fa5eae","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":151,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"86c3023c-ea7a-4870-bcab-65935f071700","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":151,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"189a08a5-983c-4dc1-91c9-ba61c8c7c757","block_type":"box","text":"described above.","page_number":151,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"b2195ae4-0356-41e0-90e6-075ee3277de6","block_type":"box","text":"REDEMPTION OF SHARES","page_number":151,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"343fb259-216b-4f68-9b7a-7f94d2f9ad38","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":151,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"55419a04-6eb2-46bc-b265-dbb9849aec78","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":151,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"459fe807-1d3a-4879-997a-e345a8312489","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":151,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"878653b6-7479-4760-a5c5-f3742ca7c8a2","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":151,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"f2cda1ae-f637-4145-9d15-db85b6cd4f44","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":151,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"c0c2ec5d-5c7e-427e-a0f9-8517c3729fa8","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":151,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"0a9db486-41ae-45e6-b019-f28f6c387fdb","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":151,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"10285e8b-a5a8-4245-b69d-db103f6c9006","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":151,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"811ac489-4416-440a-85d4-7a85eefa03c1","block_type":"box","text":"II-114","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"156ac08c-4439-4069-8f90-652f84f9ff21","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4e292ab-69cc-4ddf-a471-9ee6696e8ffd","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":152,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"d691f904-1b08-4740-a31b-c128507aa9da","block_type":"box","text":"for any shareholder of the Fund.","page_number":152,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"74e57468-9571-4781-9042-e48bb96ab994","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":152,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"101e1d66-c3f7-40cc-93b2-0a351c1d7af6","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":152,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"88aa9fb8-5916-4ecc-b0a1-366e0986aee5","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":152,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"7dc19fa2-f416-4c65-b6e0-adca34ed2647","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":152,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"228bb57c-1881-4a87-b37b-f69cd1a62b42","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":152,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"23ff22f0-fb03-498e-a91c-5fcb29a24caa","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"8bef488f-254e-41bf-86f0-d1ed1117d326","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":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"fd0f2d4c-b6af-4017-a9cc-b6b26a841efd","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":152,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"4539371b-9cef-41f5-9720-9d67173dbb6b","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":152,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"fb9a0bb9-9eb3-4d7d-9a7c-34d136091263","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":152,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"26978266-ea4d-4aff-80b1-3c705a5da7d4","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":152,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"cee4301e-ffa0-4f45-a84b-abef7fc2091e","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":152,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"5b6b1994-f6bf-4f52-bbee-153260fcb731","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":152,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"2f43a62f-caa2-485c-ab4d-2ebeda7fe7ef","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":152,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"31a58291-b872-48ab-9a36-80ce7bfb5f41","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":152,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"095bba2c-c843-4032-9e4e-fdc07ea08288","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":152,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"d7b554d1-af83-44db-aa87-d3abde7b2084","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":152,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"f630cfa0-1175-4370-b232-80c1f8bb196f","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":152,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"16c3f728-b4dd-4b8c-aa52-7880a8a08d28","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":152,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"88711cbe-9be1-4129-95db-0dcc57570a0f","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":152,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"38dda43c-745e-4e3d-9eab-414179a5813c","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":152,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"bc6a8262-5724-4390-a9b9-e5ad9088b682","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":152,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"26e89c3f-2a4a-4b4e-92f7-2402b99c84cc","block_type":"box","text":"Redemption","page_number":152,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"e92534ea-b46e-44e1-9c46-25bfd49f5d69","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":152,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"58509dbe-9899-4fa1-930b-ca4fb860d23e","block_type":"box","text":"Redeem by Telephone:","page_number":152,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"7a3d4c32-804c-4995-87a3-e30e3bf0b4f7","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":152,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"727d86ea-8b7f-4fbe-8eef-827de3ab1bb3","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":152,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"84503b61-29e2-4aa7-9bc4-093b54266c9a","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":152,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"c4cbb929-2a7e-4f1d-bdc0-ca65b0ff566e","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":152,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"1351ce63-a74c-4f67-a8c8-e80bf1ce6376","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":152,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"e59a9bc2-855f-4dfa-97b2-a44c3e21ee36","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":152,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"6dc26f4d-f9b0-4b9b-a825-772ef7fb6e3e","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":152,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"91f9c31c-61cf-4a67-8945-9b2428533e5c","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":152,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"d290184c-f6ca-4363-bfbd-bbcf0d2103f2","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":152,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"85238376-9701-4203-8699-9dd77887d86c","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":152,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"7282c715-7209-44c8-8a66-78d33c4fed72","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":152,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"cbb8f40e-9c16-4a99-90dd-b05d1470da3c","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":152,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"8e9035ad-8e6e-4e3b-8e43-3ba45d2728db","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":152,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"c44479e4-e715-451a-9d35-a71ea5efde5c","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":152,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"7effccc8-351b-431d-b052-31eb5f1500e8","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":152,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"abcdb1be-3767-43f2-8435-094990b7176c","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":152,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"659fccf8-86bb-4a89-b66a-e1384a888c6f","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":152,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"ee9dcac5-58f6-4f02-93b6-eff8becd0922","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":152,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"ba5e8dce-019e-4b98-8885-c1ffecce8081","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":152,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"279632b9-62b5-4cf4-a4f9-594acce9aea1","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":152,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"c01294eb-8129-4162-8321-fc770ac9429a","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":152,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"b8ac92a8-64c0-4a3a-8b9e-ee51b1847e2f","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":152,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"e594cb13-9bda-453d-a7f6-533e69397f71","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":152,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"3ed91b00-9940-4fe2-96cc-40e88b372036","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":152,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"8386b064-8aa4-4291-a0e5-40e106f001de","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":152,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"be988063-60e8-4879-81c8-83b42edcdfdd","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":152,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"1d939610-ae70-4ee6-9099-db9380b57a1c","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":152,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"74f46374-b24c-4aaf-bb28-2908801b9f7f","block_type":"box","text":"II-115","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"555ac75e-6c5c-42b7-9f04-163b8eaca594","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc887b2f-9f2a-4b39-a5b8-ea84864034ea","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":153,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"4c3e2b5b-1e26-45de-8235-ce4666f11a0e","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":153,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"2b78ce83-6ef1-49eb-b798-9f0d8c6b007e","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":153,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"80a71c2d-cbb1-4987-9927-6ce533c075ff","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":153,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"4d714ac3-0279-46ab-bf7a-c9641fa273eb","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":153,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"4d1b2791-6146-4a28-89e3-7e888e16eb4e","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":153,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"90d760d0-08fc-4d13-9469-da07d750a4bb","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":153,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"68f21cd8-d639-4017-86e6-e19b6a658a31","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":153,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"94b00bf0-eb81-4866-bf91-e4806a709646","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":153,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"8e7a053b-b421-441b-8986-d58cb43d600d","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":153,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"292e5e6d-cce3-4527-99ca-fef3d63b28b2","block_type":"box","text":"Redeem by VRU:","page_number":153,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"f2d85785-d227-4c13-8cf6-aa234c60002a","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":153,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"5377a276-7409-4484-bd55-b90a71d72771","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":153,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"4120ce48-02c7-4b6a-a60d-4e6d018e3b65","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":153,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"616dc7b6-8614-4b88-a4da-b731ef9c45d4","block_type":"box","text":"Redeem by Internet:","page_number":153,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"77df1a0b-05df-447e-8db2-6a2a91b6b3c7","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":153,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"f84bea08-a46b-47fe-adb7-6a11b7764eb8","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":153,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"97ac3061-dda7-493a-83be-34d045af06dc","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":153,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"976dea73-e74b-42b7-8ff4-56a6ecf2cfe1","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":153,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"e1485fd9-407e-40cc-b3db-d7b8e7837cc0","block_type":"box","text":"institutional investors.","page_number":153,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"7184f782-2e4f-4660-a937-4d36e5e07000","block_type":"box","text":"Redeem in Writing:","page_number":153,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"ec9b8bd9-e6f7-417e-b232-8d0c0b442335","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":153,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"8ef6b697-2f51-4745-bb14-a7126ff270bc","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":153,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"3071766f-094a-498d-a21d-064a5ad7bff8","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":153,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"6efde958-0a4f-4d7c-b1b6-865b40558a2f","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":153,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"ed2b68fe-81ec-4417-b9c7-3aed2dbf5c68","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":153,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"f1f28d78-2e6c-4be5-83fe-36fbe7e82b19","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":153,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"6755ba27-8dbe-4f9f-9dd4-941c458fede1","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":153,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"a1106e9e-55d4-49e4-b0fd-6bba20a8dbc9","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":153,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"eac08b19-d862-4b5b-bd9e-f865fcb1177a","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":153,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"f2db370d-7185-4dfa-800f-dfe293b88915","block_type":"box","text":"or wire to the bank account of record.","page_number":153,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"0642bb26-cd8a-47cd-a29d-dd699ce83a27","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":153,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"44dd9e0e-9da2-4921-9f87-459dca8fea14","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":153,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"b0731126-d1b6-45a0-8599-67a33f3d2ca2","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":153,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"7a83a2ce-2cfc-4e9a-ba0d-9cb8e0041124","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":153,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"4ec48104-7e91-4edb-99b4-9e712e7726c7","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":153,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"7cd3936c-b10c-43b4-8453-04b284b9ad4e","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":153,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"591b1e3f-4114-413c-9a81-828632d770a1","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":153,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"0c467e57-1519-4b0e-8081-1d06c81035fc","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":153,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"e3166554-f1d5-4061-bf71-6baae75d7bf2","block_type":"box","text":"redeemed by the Fund.","page_number":153,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"ff37082f-55bf-4ff5-9467-f5966adcd070","block_type":"box","text":"Note on Low Balance Accounts.","page_number":153,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"55e29f75-9335-4bd7-a251-0c90e5fa8836","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":153,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"b16afe49-14fa-4f10-83da-0f3d9b57c80a","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":153,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"7a3eaa96-6486-41fb-a0a0-ab3f09264aba","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":153,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"1a9ccff4-d749-4ced-af1c-7985723dda1c","block_type":"box","text":"for any reason, including market fluctuation.","page_number":153,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"0d6c27da-68fb-4567-8d2d-a982ec1afbb4","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":153,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"e4a29718-438b-4084-bdc3-be816d2740e9","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":153,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"fc1c4de6-0b5e-4c4b-a244-a8feae265019","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":153,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"814c011f-c55d-48a9-bfae-9b9fd83e6621","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":153,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"6e1efbe2-19f2-4be8-bf42-d258d6c5ebb4","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":153,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"912da29e-b070-4e42-8a08-f7006d83b83f","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":153,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"4968d0dd-d026-4ddb-9210-9289374e3641","block_type":"box","text":"Redemptions in Kind:","page_number":153,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"9322861b-ec80-430f-b686-352530d732f8","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":153,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"35456562-6d4a-4381-a13e-90a5976228f1","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":153,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"69f1b981-0750-4b54-9ca5-e2a1f411b4c7","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":153,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"9e07985c-76c1-4a5e-97f2-5ec4a2b6965f","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":153,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"716beaa7-3b4b-41b6-8aaa-6db50872350d","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":153,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"300eb55d-1cda-4f7b-88cc-16ffbfbf0d12","block_type":"box","text":"II-116","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1b4d396d-f287-4ef1-97a0-28eac8add5ee","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1cc923a6-793d-4a5e-a563-2813d89eca0b","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":154,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"f58c5147-c9fe-439e-8340-866255bef7df","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":154,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"9ee9990e-aaf2-4b8b-98c5-9aa8b337cc5a","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":154,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"6388ed22-698c-4ed5-bcd7-fde613cb6bf7","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":154,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"24f46de1-e51b-48a2-afb9-89fa6d994dae","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":154,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"80f5a5a1-123c-4e39-89ac-3830ac0eb484","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":154,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"3f17e933-1eaa-4ab1-a8d7-5c28c7e4c823","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":154,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"27aa0da3-1b79-4399-873d-44bb5519176f","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":154,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"7f76f654-5453-468e-b331-9f4c14084ae9","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":154,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"d1eea260-4d7a-46e0-86bd-91d46cc611a1","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":154,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"a4f650ce-1e08-4386-9c09-7e1fec0c8a35","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":154,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"e1d321d5-c0b9-4d73-af50-6286b9bdfcdb","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":154,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"78645cc0-46b0-44f9-9f4f-9beb3f0c58a9","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":154,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"390c623b-f988-477c-ae11-2c496263e034","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":154,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"3e555062-124a-4236-9434-d01ede63a095","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":154,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"0a7bc265-a05b-4335-807b-59cf2359c81e","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":154,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"ec54543d-0e2b-4956-a734-8b4856c0c6be","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":154,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"09a640f9-1b84-4d20-b9ee-7ce0ce2a9490","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":154,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"e72f108b-57c8-4620-88ce-ec6406584aec","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":154,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"16fbe9c6-152c-4242-b655-fbe456a60492","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":154,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"58178de1-2494-475f-84c3-5ed25be1c751","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":154,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"86977900-9248-4d52-8ce4-8dba67563b40","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":154,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"b3380365-994e-4fa4-b837-9973116dece3","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":154,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"388e8b66-88cf-41f7-a274-0d72c6c9418e","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":154,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"ca163be0-0cb7-42b5-a1e9-6d939088f2cd","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":154,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"6618fa82-1efc-4947-9c9e-de0213c51119","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":154,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"ac5a6fa6-ed9a-44f4-b862-929a5cce3d99","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":154,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"41be6d1a-abc5-4f59-ae93-99a1d7d18a83","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":154,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"da21066f-abba-4e04-b5cb-29119609ae20","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":154,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"c24576f8-9b09-41ea-a5d6-9797ab7bcd1c","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":154,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"c1074e8d-8795-4a03-80ed-4b8da228e30d","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":154,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"776820f0-b2d8-4737-b42f-eca349055d0b","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":154,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"5f3216d6-cb78-4e1b-b55d-efb3d913b89a","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":154,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"5503f227-14bf-433c-85d8-b07ce3f3d4d3","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":154,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"5f3a3334-5dc3-4a5f-a762-071dd7e69d4f","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":154,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"abeb1f8d-905e-42be-9a40-54b430c4c02d","block_type":"box","text":"Repurchase","page_number":154,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"4a50b2a8-1279-4d95-abec-51abbbd59183","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":154,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"a5c814e0-d2b7-4b09-98f4-77333efc91d7","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":154,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"4ae06b96-5575-43d3-b1bc-de984a388b48","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":154,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"ac9a80d8-2592-4c82-94bf-fe4b01ad4cd4","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":154,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"1df0a44f-b9eb-490f-8715-8ab00ac2c9a9","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":154,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"ada7714c-8cbd-4fdc-921b-9cd20add4b6b","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":154,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"3013371f-953f-450d-ad6b-09609b3f6c8b","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":154,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"a3b9d8ae-0b17-49fa-ab3d-90d00b53af86","block_type":"box","text":"next business day.","page_number":154,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"8ceb31e5-68d2-4c93-9c0a-338a5e780e9c","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":154,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"f7fb5fd4-b9c2-474a-bbf6-4727fd46ace9","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":154,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"06550a20-9957-4be6-bc4f-a06943b9a185","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":154,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"eb8136a9-7713-4a2c-8064-ce0de60671f5","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":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"917f0021-ce99-464c-8dc5-708f88356784","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":154,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"d4bbb3f6-67e8-416f-a8d9-a048fec20f86","block_type":"box","text":"redeem shares as set out above.","page_number":154,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"a476edbb-cf83-4375-85d4-19990757a2f5","block_type":"box","text":"II-117","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3051e5f9-7de0-4282-971b-f781d46cb571","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27b3dbe5-ad36-4587-b85e-27d4592816dd","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":155,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"620f4fac-7b1f-4530-8048-e1e6f621596e","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":155,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"5e6596cc-e557-4e2e-9261-74eb7dd9d28c","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":155,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"d2c8939b-4751-4003-8041-309fe1e00f9e","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":155,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"7fbd9e05-3c11-417a-be80-9dc74e403fdc","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":155,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"0996a53f-100c-4ba6-85e9-7197ab85fa6e","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":155,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"ebbb061a-e7ee-458a-8583-2e4a7b2df243","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":155,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"dd890e47-4acf-45c3-9740-96130fa3a889","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":155,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"3983de4b-5426-4fb4-9352-2e05d0e81276","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":155,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"763433c7-5f75-4df6-b972-3cbb530bffc7","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":155,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"cf3fadd3-2206-4b60-a14e-8e7d70feea43","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":155,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"4d365aa0-43a9-4a55-b0f6-9767a48e3b8a","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":155,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"2cf40d1f-5928-42ff-b367-477928b8c2f8","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":155,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"c2d3ec9c-8ea1-420c-b3cf-69991c29be50","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":155,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"0c7a0403-87ed-4f0e-a093-d26d4334395c","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":155,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"781175ba-f593-4029-a797-371dafee686b","block_type":"box","text":"Investment Account","page_number":155,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"2739515d-32d7-4c0d-85a5-f162a855da08","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":155,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"13061577-dd0a-41fc-a72b-6dc30c4e6298","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":155,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"3db372f3-827e-461f-bd85-571cc8ed637f","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":155,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"b8fc34ad-421b-4743-bcdb-f3a4c3bda652","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":155,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"3bc6e12f-be65-43a7-af34-4f75106227c9","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":155,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"1f9f8a65-cc40-4976-bf81-69ea66f5578a","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":155,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"95635bf3-42bd-47b7-b3b7-2c480ffcb955","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":155,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"10d4d1ee-848b-4be5-93cc-8f71a907ff4b","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":155,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"636ffd1d-e355-49ed-abd0-79c5d0657aa8","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":155,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"2ce1cec3-5044-406e-ab90-94f2d3e3e311","block_type":"box","text":"automatically at the Transfer Agent.","page_number":155,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"103b11d4-772f-47ab-8309-530aaa313209","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":155,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"2ff39c74-6662-40dd-9bd6-639651cfc12a","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":155,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"4eb5ea42-9aa4-4803-b3f2-04a6be363669","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":155,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"3debec2b-e659-44ae-a226-9b76baa8d253","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":155,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"95e4f1e4-6119-410f-a690-e68bc35d05eb","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":155,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"60b93027-fc9b-4ba5-bf18-1b3d1374fdc6","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":155,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"422ec3f3-1d41-4c2e-adf9-6b32c1e3fb0e","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":155,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"1e31b89c-0581-40a5-a936-987456e05676","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":155,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"3fb6f669-c875-42c8-bad4-e761b17ac1f1","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":155,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"525176fd-9a21-44f6-8655-b0d0a413379d","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":155,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"6266113b-bf26-426b-bb62-749f40fed0f0","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":155,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"b61464aa-17e2-44a8-93f5-b9abec016dab","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":155,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"842ac97f-9856-4e5e-8696-c81297eef409","block_type":"box","text":"issued.","page_number":155,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"0ecf0336-1a46-42ab-ba8a-8340276fe016","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":155,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"7c1318b4-28dc-4071-8bee-bfde14e75711","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":155,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"01895f75-e31d-4363-b0f7-7b4762e232dd","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":155,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"30291d68-7bbc-45ef-b512-63a21e94a891","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":155,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"3610e413-a4b0-4476-97cb-d2838f72d679","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":155,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"22cfdee3-944d-4e38-8417-10c81448c748","block_type":"box","text":"Exchange Privilege","page_number":155,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"82f4c0c0-bd16-4ac6-880a-620c0fa6d509","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":155,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"3e862f4a-edd0-4ebd-a528-139c8093ae6a","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":155,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"74edaa2d-d2e8-4225-85f7-050ea5594011","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":155,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"f40d7965-6165-4095-8225-c43202784f99","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":155,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"fa67909e-1f2b-49b7-a5bf-64c64e7180ba","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":155,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"1bb9ed65-b2fb-4951-9fd4-9e3e2c8b492f","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":155,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"58e9875f-3df3-4778-b3b6-8304cb9d2f2e","block_type":"box","text":"II-118","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6ba41e87-c679-4dd5-8633-defe2212ad81","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c10bb81-def2-4a6e-b3ae-18e5e1fe5b98","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":156,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"9397704b-5437-4c8d-b020-c752c862640d","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":156,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"5d6a8077-074d-4828-9d0b-460200862c39","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":156,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"33bd9fcb-3a8c-46b0-a305-baa593b57cbd","block_type":"box","text":"Institutional Shares","page_number":156,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"535efeb3-a0e0-47d5-b260-c0d664d58c71","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":156,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"69ee3093-0e61-4f6a-8aad-f6e9ede5b378","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":156,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"3b699cbb-4c9c-4d3f-ae91-18c9782abb7f","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":156,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"b3c7ef38-8213-4802-8dbf-c4ddef9b41a7","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":156,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"98304e7d-c625-4ecf-8e0f-3c623caacf2a","block_type":"box","text":"for Class G Shares of other Funds.","page_number":156,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"5322d46e-ec01-4bba-aeae-bce0d6fa4abd","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":156,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"d1a7e9a9-8d1a-408e-898c-f99adecc5550","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":156,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"7eb59961-9e0f-49b3-a08f-e0552fb30252","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":156,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"7f0b04cb-f8a5-4ac5-9e36-e48def67db8e","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":156,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"ed787942-50a6-47bf-afcb-c5999202dffc","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":156,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"0b9c700e-560f-4d25-9e27-64466c02f7d9","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":156,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"e4281381-7246-4a3f-b302-1035fd2a571e","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":156,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"7faea0f3-8e90-436d-be05-54d600aadc7a","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":156,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"d9dbec3d-8e49-4d9e-8f7a-fb1717dd25b8","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":156,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"7231bffa-eb4a-4961-b2a6-a06d933f3707","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":156,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"5f7788d0-9b9f-4300-9b9a-c2d753d5c6fb","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":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"cadfa1ef-174b-484e-b4fc-e21217c1a249","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":156,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"7232d933-c0e2-4962-8562-84a313ebc499","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":156,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"0f142271-c387-4c7b-af79-d6134e004f7a","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":156,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"3c5debcc-0d87-434a-95cb-a2f642b7c989","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":156,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"f1bf8255-dc74-4b39-87ba-b414735ee86e","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":156,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"cc24bf35-b3e3-4007-b06b-35e2ec21206d","block_type":"box","text":"Exchanges of Service Shares.","page_number":156,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"9af4f230-d4bf-4139-8818-8af503f895b1","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":156,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"661d962c-89a9-47ab-a478-7bc10c4c07ee","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":156,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"a7669a9f-241f-4c72-aa92-9bb3302f1130","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":156,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"746fefa1-3080-48d8-80fa-f3df888d9f90","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":156,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"4a3f4e30-2ee8-4483-9587-5243269221f3","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":156,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"625293af-92de-4cbf-abd6-41c787a3b28e","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":156,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"4a044ddb-66af-463d-9523-99824fda3d41","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":156,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"bbf11741-501a-460b-a714-4febd22491dd","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":156,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"03e3bb23-291c-4239-ad01-f89e37684c45","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":156,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"05ce19f2-d870-4113-8625-4f0cffe47076","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":156,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"4a69e688-84e1-48e5-8aec-82d25c8c46f9","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":156,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"e00f7728-d4c3-4aa0-a47d-f1d8a59e725c","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":156,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"ffaf88dd-f876-46f6-b6c2-c92f0a43e77c","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":156,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"4200ebee-08df-4257-9b89-d944ef23b2c8","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":156,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"2f1e7b06-038b-4399-bef6-30c472f3859d","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":156,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"1436b296-c758-43ac-86ea-825beb0bdf2f","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":156,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"173e52a5-80ff-4b58-a8ea-47a18e3e8938","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":156,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"7fad63fa-ffce-4df9-9072-7981aea35fff","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":156,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"618c4a62-bcff-4689-b221-3812315f771c","block_type":"box","text":"exchange.","page_number":156,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"8d4df681-9fef-4181-bbd7-2b37ffddb936","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":156,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"f4b2579f-116e-4267-b696-d40ec8a05971","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":156,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"e36c5803-cb2e-4526-a1d4-dee6d0de09eb","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":156,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"15548a34-58aa-4e8a-ae0f-d66d4bde7156","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":156,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"a2c9c125-6574-438e-afbf-ab9e9e410ee3","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":156,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"303ab650-c100-4135-80aa-023ce53d5c71","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":156,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"660de2d4-e7bc-4693-905b-34ddd38188ad","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":156,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"7ffc3987-c25b-4a8e-a75c-64cb6fb17de7","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":156,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"bb04e984-37c0-432d-834e-0021f50c2557","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":156,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"8d829481-7582-4f17-82c6-48445222c970","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":156,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"3d37735b-e5d9-4f0a-a46b-00c4abf98171","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":156,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"a66aab97-173d-4294-b8a7-748f1abaf5c8","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":156,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"da1b696e-9d64-461e-83f8-e1466f328400","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":156,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"0bbcf21d-9223-4f51-8a02-fceff6196ca0","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":156,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"ee993576-60ee-492d-95e8-1fc8bb42e77b","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":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"0fb10f24-4587-4449-9286-1c535ff6cb14","block_type":"box","text":"II-119","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cf2b2cea-b11b-4b27-8f75-db743852d1bc","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a59a3adc-6915-4640-9879-6999dd1c2617","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":157,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"9c76b618-ba4d-45f3-b1ac-08bdc2bc77d7","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":157,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"a94a6bbb-92e9-432f-84fe-47339b0440aa","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":157,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"a0fc1814-be8a-4175-87a0-dbc74e30a16d","block_type":"box","text":"Transfer Agent in writing.","page_number":157,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"e23ea809-9c35-478c-9a64-0aba21f0af75","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"118536d7-ea60-410e-a22f-936ff208d48e","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":157,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"a2e0aa38-b0ae-4990-ac50-804c5e0f6f41","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":157,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f633d35f-c40f-4cdf-a93b-faf1d145fa9e","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":157,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"485b71fc-1ac7-48b4-8a77-6728c8099d9e","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":157,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"98285254-f18a-4b75-8574-292bdc141d39","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":157,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"97454de4-ce92-429f-930b-f9ab18018304","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":157,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"19e145cd-0467-4de6-beb7-f3315ae6723e","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":157,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"6ecae4f4-c62d-4379-a7dc-d0bb3f8ba9f0","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":157,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"3b7ca230-67da-43ec-8b56-4bb6a21eeac0","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":157,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"810d00dc-cb22-453f-aa84-65ee3e2f25dd","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":157,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"6acd4c52-d6c1-4360-aa6f-62b680628ff7","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":157,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"afab5b5f-ad55-4483-97c6-ba1294f15095","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":157,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"29b46446-b150-41da-a375-af6a16a9038c","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":157,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"4fac5028-cd2d-4612-90b3-8460eefbc16a","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":157,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"f82f4dd8-17c3-43c2-9d44-7996a6a07d76","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":157,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"b4699e6d-d53b-4aa4-bea9-77d66424efae","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":157,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"b2a541e7-2b29-4ad9-b8d6-27f84d96d926","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":157,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"10cf2ede-f6f0-4940-a59e-b6992b99e5b6","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":157,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"fb10a089-a862-491a-bf8a-2f1bb6de6742","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":157,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"1c6efc24-6411-4b71-b5d5-adb9ae6543e9","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":157,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"d7ddb72e-3377-4f3b-8061-55ce553107e5","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":157,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"37d8b4b0-e349-489a-85f8-679f356c2483","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":157,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"f87c4016-ee28-4a14-bd4b-4610e1f56afc","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":157,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"35df9c96-eb22-430f-8ff0-5172b4c1578b","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":157,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"b65d8716-970f-4d82-9b56-880087c55969","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":157,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"d0a31176-8ca6-4152-9907-b408c7ac807e","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":157,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"d9b7f382-ccdc-4f00-bfa0-2db840bf8d50","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":157,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"ce903645-4746-4cab-8647-b4534d992678","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":157,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"643aedc3-3a86-47af-a9da-4398af68dfa0","block_type":"box","text":"may be distributed by the Distributor.","page_number":157,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"51ea91ba-ec79-419e-833a-71318df55dbe","block_type":"box","text":"Participation in Fee-Based Programs","page_number":157,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"12a5382d-1f0f-4787-b9f4-75c9db3c82f9","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":157,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"bef71b72-4145-4d97-a455-1bedba0c8183","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":157,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"52a14b41-eed6-4324-9f34-b6e3f045454c","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":157,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"f2757cda-cd72-4f0a-9803-3a31987c4d5e","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":157,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"dd361769-9b6e-45cb-8c45-c34a8ca1a8ff","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":157,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"de5f932c-f922-4a72-9185-fab49ae367ab","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":157,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"102e4784-52a9-4e79-b442-cce378b86e8c","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":157,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"1b37ab60-7c32-40a8-b8ee-7dbb80a3c352","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":157,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"4a38b4a5-719e-4f6a-802f-1d7ff7599612","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":157,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"dd9c625a-421d-4b3c-b00c-59ea6aaddba3","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":157,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"0716d7ec-6f9c-4c6b-9740-959d8d3c5df2","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":157,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"72f82150-7c67-4fe7-8c23-74b54b90dc7d","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":157,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"0ca4b43f-eef5-419f-89fc-e01fe4566e13","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":157,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"19bfe955-1418-4bd6-998b-ed67936a597d","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":157,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"65d53e63-c431-4a2d-86eb-496e480e6b97","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":157,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"49152ef5-3669-4e4f-ad94-24e25c1ff6f4","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":157,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"18d3cfe1-fb9c-4d0b-b93b-6248b78d5ff8","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":157,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"0a878529-7036-429b-a84c-0b8d0d31f892","block_type":"box","text":"II-120","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c9a86983-e3dc-4c70-b48d-861ab748c3a4","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e60f35fb-5136-4f96-ba50-67722c8aa722","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":158,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"867a7e17-257b-4a72-a1f1-5af0446557aa","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":158,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"bd0e83fc-8f41-4f79-b9a8-a6ab48148f20","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":158,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"8c59187a-0a13-4fd1-a463-7a5bd6bc5e97","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":158,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"291d72b4-9785-4ba3-a1f1-084eee6eb37e","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":158,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"2712e75b-4076-42f2-aa32-816aacabb707","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":158,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"f1bb1da1-6162-4a20-a317-21b8f509cae3","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":158,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"7c6cf82a-5168-4e0d-ae74-c46260617997","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":158,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"c3faa0c1-1d17-4a4b-9981-0531ec542f0c","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":158,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"d856befc-cd11-4299-8a78-3f3d803f0aa8","block_type":"box","text":"information.","page_number":158,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"ea842fdd-eb0d-41d5-b998-d8f814f42499","block_type":"box","text":"Retirement and Education Savings Plans","page_number":158,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"fa2f6aa2-f5a8-4e85-849b-3730e5179280","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":158,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"4e6c9a1f-3d7f-4811-a0a6-463006e2cb82","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":158,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"00d3f8cf-30f1-4e4d-8228-82daac1c818f","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":158,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"b5a2b466-7cf9-4df8-a0c1-2d41093ebddf","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":158,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"111793ea-1ae5-4f80-93b8-217391870112","block_type":"box","text":"your financial intermediary.","page_number":158,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"85cd96aa-583a-43e2-a514-09b85f09ef80","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":158,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"7ceb8b62-3546-442b-913f-34f4f139943a","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":158,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"5d7b28f1-6b2f-400f-adfd-06e59f567f3f","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":158,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"1c23e0c6-a6f7-4870-aa9b-39c3c839560e","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":158,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"95c33898-845f-49f9-bdbd-c8449ce0f49f","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":158,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"d783b0a3-86a4-44d1-bf43-c4c6a1524f4b","block_type":"box","text":"Automatic Investment Plans","page_number":158,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"b3153df9-4144-4c7b-9f7b-d0f8e1758e4b","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":158,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"a53350da-7579-4407-a80c-dfaa9bb5a215","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":158,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"dcb2096e-f25a-44bc-a947-252986059a04","block_type":"box","text":"®","page_number":158,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"d1ae7466-000c-498a-ad23-4ba938dfeb5d","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":158,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"731695cc-55a5-44e1-8f4a-6c32250294b1","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":158,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"1075a1c5-d6dd-4796-b4c1-7f9b99c84b07","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":158,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"dcc93ac8-977d-4ef0-aeb9-79923efe5126","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":158,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"e1ab612d-8fa4-48d0-835d-7c56b4591299","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":158,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"9048c17d-5d7d-4de4-a5ca-00e2da7ec9cb","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":158,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"5d3daa0b-6f08-49a4-937f-52555268d6f0","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":158,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"0f23189c-9e6c-43cf-8b2c-985beb741b29","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":158,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"fdcce64d-df66-433c-9874-a37a535a305e","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":158,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"e5a475d8-61c5-4c29-9d2e-2511e09d4656","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":158,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"2d6ed310-0507-46fd-b506-3029cce2d643","block_type":"box","text":"Systematic Withdrawal Plans","page_number":158,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"1a13161c-c39d-4e87-8559-1775243d151f","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":158,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"1ee5df33-5c3e-45f9-86a6-35346e4acff5","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":158,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"70d23411-f746-4687-a055-27c16bb44265","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":158,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"c7d07d4a-070f-4124-85f3-990e624d5f4d","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":158,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"6b6ca66a-0887-4045-889d-01abb6479058","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":158,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"38a06390-fd8b-447e-bd3e-0901f6cbf4b5","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":158,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"9526ee76-2734-4ca8-a99d-de92bf1a39f6","block_type":"box","text":"www.blackrock.com.","page_number":158,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"28160365-4fbe-4485-af34-b22e72922183","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":158,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"91d94d0c-d109-40e4-bf23-122c1ae37c99","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":158,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"80431b34-c532-464c-bd10-24470ca5dbfe","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":158,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"d0a1bf17-810c-4fc9-a883-4ea7e4638c05","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":158,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"a45e7351-4ee8-4ff6-a417-bf6434197762","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":158,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"d10367cf-7eac-4545-8f95-19f4419d0be4","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":158,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"77ae8187-a136-4830-be48-0a174e7a435c","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":158,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"017e60be-ee51-4ef6-a870-0dda053f3f70","block_type":"box","text":"II-121","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bfb219ce-78f2-439b-911e-6620cefa3a51","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8908828-d3aa-48a0-966d-c8a98454232e","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":159,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"56e9a419-32e0-48b2-8c4d-b4063a56ee99","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":159,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"0cae1283-9ec1-4e27-92eb-3bb630796ade","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":159,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"f6c96f36-b246-45f8-8e75-b6176f9d71a9","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":159,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"8d771494-fcff-4f69-8866-8a91b480570b","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":159,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"17c8cd53-f1bb-4477-b509-4bad6991842c","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":159,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"4e44d105-df7c-4cc9-bb2e-bf966323eff4","block_type":"box","text":"Dividend Allocation Plan","page_number":159,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"e72114ed-bd92-485d-a8af-06640944df3d","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":159,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"723ca8bd-7737-4d51-9bdc-b4b502c7c7cb","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":159,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"1e4ed6be-03a4-4f78-b932-7c2497a73d08","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":159,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"a5939de6-6d18-4df8-ad62-1d035dcf7eec","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":159,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"34e97cca-6b14-4f0d-b6ea-7cf416b365fd","block_type":"box","text":"PRICING OF SHARES","page_number":159,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"52bccf29-f455-47dd-aff1-7b7c2f346a67","block_type":"box","text":"Determination of Net Asset Value","page_number":159,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"b61379f9-def7-4ee8-b3c7-98b767e0438d","block_type":"box","text":"Valuation of Shares.","page_number":159,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"799d97ae-58a4-40db-b1f3-1471dc4c65ee","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":159,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"b29ad6a8-a45e-42c4-9c05-8bfe7fdcfcb9","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":159,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"a0d89451-356b-47ef-a2a9-2c69e8c1339b","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":159,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"9e01e9b7-7312-4c26-b03f-d2a2f0254f8a","block_type":"box","text":"Equity Investments.","page_number":159,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"261bb77b-5537-40ea-9e1e-09471136a99e","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":159,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"c54b795b-edaf-4f28-8ca0-763713fb7830","block_type":"box","text":"e.g.","page_number":159,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"566830dc-4d05-4a11-9a99-82461c01e7ac","block_type":"box","text":", NYSE), on separate","page_number":159,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"cc36691f-224d-4a52-a518-f08ffa08ec40","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":159,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"1f67654c-dbee-4016-8672-32ad703ce75e","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":159,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"f350f2ba-23c2-4895-91fb-f0360724928f","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":159,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"da6bfc78-cfa2-4a8e-b216-99169994815f","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":159,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"083f04d8-9303-47d1-a31a-b17da46fda12","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":159,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"82ffda9f-714a-4bd3-80a4-1e84950d5aca","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":159,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"78dda78f-7df6-4e5a-96c9-70759f7672d3","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":159,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"fbd80c59-ec74-41ac-8eb6-8410fff627fb","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":159,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"6157a66e-bc3c-4b12-84c6-3594e4b541c3","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":159,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"bf43178e-c187-452d-a7ad-9ec59f4330b2","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":159,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"f85f10e2-2e05-4879-9da5-40f02c3ce4a4","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":159,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"78d3f18f-38d9-442b-9adb-aa905f46e786","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":159,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"734ea1ae-1d53-44c3-bb0b-9015bb686de9","block_type":"box","text":"defined below).","page_number":159,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"04746027-9235-4eba-bc27-1a2cc071a600","block_type":"box","text":"Fixed-Income Investments.","page_number":159,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"db0550aa-fb38-4043-a701-84b60648564b","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":159,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"10423efd-4f85-4f1a-8c37-ed4e70d4f2be","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":159,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"a898b646-243a-4c57-a659-dab69b2ceba3","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":159,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"28e93cfb-7dc4-4d98-a9fa-9dca783fe7e6","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":159,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"6c5775bf-f8c7-45a9-837e-6fcc5afb3c5f","block_type":"box","text":"e.g.","page_number":159,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"dcde9953-9edf-4c2f-9ef8-ad9ef0d8debd","block_type":"box","text":", recent representative bids and offers), credit","page_number":159,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"a8a38312-7bec-41a6-a3a4-ca09e06d61cb","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":159,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"bc660732-48c0-4a99-a87c-c6b3942a66ce","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":159,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"90f9f9b3-a01d-451c-b9fd-4c738b15af33","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":159,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"343486ca-fdab-41da-b85f-65edc57588f1","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":159,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"f6ead2ba-80c0-4551-98a1-f62ccf419920","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":159,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"eae15097-ba79-423c-ab1b-972b65f269c9","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":159,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"69625a72-c51a-4409-955e-30a41f3e14c6","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":159,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"f1445dce-b114-4af1-93a3-80a407ece955","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":159,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"86c50e3a-b5fb-4945-8937-3fcd77604501","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":159,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"67206ad7-1694-49a7-aa30-70636f4dd4c3","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":159,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"216386f4-6b46-4517-87d6-47a442b5a208","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":159,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"97ad00ae-96e2-4890-9da4-a75d13b2639a","block_type":"box","text":"attributes of the tranche.","page_number":159,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"654e272b-5502-4cb8-af46-ce6089825e08","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":159,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"0e61c92c-982f-409c-9af4-e52efc7b5a2e","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":159,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"725f5a0a-c63d-429c-86cb-54c4776aac32","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":159,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"fb1e9da9-6070-4304-9b3b-87ba8ac7fb3a","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":159,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"ad12d00c-865b-4d44-9e43-fe0d1ef64d3c","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":159,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"bc1aa2bf-2e93-4252-b2df-2da679304886","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":159,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"4e9487b2-e1df-41e6-b563-605dd1eeffb5","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":159,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"5993e0ac-dc99-4caa-81c3-5bc867403c89","block_type":"box","text":"II-122","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9d1b9c3b-a39e-4503-8a8c-813f3772d734","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5a6bf55-d39c-4329-a7b3-5f9a3e3cb42e","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":160,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"3a6c6a24-cb3e-43a1-98da-371b55bf029a","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":160,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"0817cee8-75cb-4ebd-81a3-a015065e317f","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":160,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"172e5e66-f65d-45b9-a66f-8d3e4e358abb","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":160,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"5e1d7951-8140-49bb-8e36-be17f282bd9b","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":160,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"05d19b62-65a0-4c7b-bfee-aec887db8e26","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":160,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"eca88e91-b174-48e1-b860-9615fbbc6398","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":160,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"04125032-b2a3-4747-bb17-15f312893a3a","block_type":"box","text":"Underlying Funds.","page_number":160,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"d375e3f3-3bce-4dd7-8bb7-60cdde0422ec","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":160,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"aab91c69-e518-4a25-adbd-fccf717ba994","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":160,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"21f214dd-727d-40f9-b81e-e4943592fe66","block_type":"box","text":"at their most recent closing price.","page_number":160,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"bd1a091a-89d4-481b-852f-d01ea7f89109","block_type":"box","text":"General Valuation Information.","page_number":160,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"e2af0913-333e-4295-a617-1c155cbe0ebd","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":160,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"0a6f75d1-7f34-4d0c-b659-0970ec040ef7","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":160,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"a8dc2638-e281-4653-9bb5-42c2f36050b8","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":160,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"6605c877-c088-4f84-af18-010b2b889794","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":160,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"41854e69-372d-4aee-8a46-02d098a3dbb6","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":160,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"7b3c28c6-95c1-453b-8873-17685a9afb0e","block_type":"box","text":"the revision.","page_number":160,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"27768318-d5c8-4383-a027-d0084e7185a6","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":160,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"de3c2153-fbea-4113-bda9-a8d383718e28","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":160,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"4e7c1df7-5860-4a73-94dd-2b0a8f76cc64","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":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"552dda09-5815-465d-bc5e-8279cf976b54","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":160,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"b9635d2f-df2c-4de5-8133-76f13e45a9ad","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":160,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"3e5c957c-20c1-48b4-808b-04a186c04f26","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":160,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"092b4946-d247-46c2-8614-34827a36675b","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":160,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"912c722a-1c4b-4b78-9f47-22445d22e8d4","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":160,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"e44f76b3-8152-4c3e-9358-e9a77af2569f","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":160,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"f8c0606d-b3b5-4741-a796-21592b4c9e8f","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":160,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"99dd54ca-c018-420d-98b8-8e85a27d8690","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":160,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"a2948ed0-1e46-488f-a6a0-0b6ceb289c46","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":160,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"d2635ad9-a237-4733-b9fc-f548c269c90d","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":160,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"02cfcc75-ee08-435c-876b-1c88131390e5","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":160,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"877b2394-f638-4ce8-8457-3a42a2a4c16b","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":160,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"ef220e2b-263f-4b6d-b09d-c739af408ecc","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":160,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"c12b4dd6-8707-4be3-a878-86254372cc40","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":160,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"d623ccdd-0896-49be-aacd-38e63432fd74","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":160,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"c2f757e3-5f26-4a76-b7e3-a0f7de50e268","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":160,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"4b1f52f5-fce8-4a0a-ae72-56dae4690f0c","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":160,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"6c7f33e8-b183-484f-8d77-9ddf778d7bd9","block_type":"box","text":"Fair Value.","page_number":160,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"58314297-8750-4dd0-bf20-dea483f0e461","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":160,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"d6f3592f-1437-43ee-96ed-7003597cb055","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":160,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"f567bc86-77fe-4840-bee7-5f94fb70edb3","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":160,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"0b9b118f-30e0-4c1c-b5de-9b3e22f6893f","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":160,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"bc091e5a-9434-4522-9795-37cb1caf830e","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":160,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"317c3d80-ffc1-4a4d-ab5f-24239e68b4f2","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":160,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"36cb7b85-d7eb-4375-b1e0-0a6b088235a6","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":160,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"03e93ebe-10a9-4291-93d7-9d9d68fdb024","block_type":"box","text":"(","page_number":160,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"81f994e5-c9d9-4ff9-b2dd-d0b699d22643","block_type":"box","text":"e.g.","page_number":160,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"1a7a58f7-d069-4e48-b467-a1007eae0239","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":160,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"08f6386d-709f-4289-85d2-77ba67336161","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":160,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"2462ad23-eedb-4e32-b28d-72dcd7d073af","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":160,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"20bfa8e3-c828-47bd-b489-8a9fe11eb923","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":160,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"f11cc675-5f46-4cf8-975a-8f6ae7eb7389","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":160,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"78c8b3d1-3bc0-4843-a276-27d2c71955ac","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":160,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"48895d4d-c35e-4666-ab7a-5d087e7d2f6a","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":160,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"08bd274b-4a6a-42e7-af84-07e648ac1711","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":160,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"76fb9a72-6f2a-4753-9d2f-bccd25845955","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":160,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"be005e00-ba2d-46c1-8926-8f7a12122cb2","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":160,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"f42ff327-150b-4dec-bf8d-561ddb43a727","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":160,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"8a5ec0f3-87b7-43ed-9206-af202095edfc","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":160,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"e1666303-a7d3-42a4-abae-4850dca77a27","block_type":"box","text":"II-123","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b9635410-6aa0-4154-b411-41697d232571","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d03793e-ed12-40f3-8a0b-bf46b898b0db","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":161,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"1379dbbd-41fa-4977-b639-c147f25165c1","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":161,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"f801443b-3c05-46ec-979f-30c37e254674","block_type":"box","text":"pricing time.","page_number":161,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"99642a10-3518-4549-967c-9aecad47b5e9","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":161,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"e68e4eb7-c8cf-492a-ac81-4edd35a5c03a","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":161,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"6e529cac-e386-40bc-be5e-edde4f225f58","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":161,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"51e31747-dc41-4c88-accd-740ed056e9ee","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":161,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"c39ef3d6-e7f6-4ecd-90b4-b49be8b07f61","block_type":"box","text":"assets and liabilities of the Funds.","page_number":161,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"9ebb3516-4ff0-4197-8947-7b5b0837e9a7","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":161,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"b859dda7-f26e-4168-8290-0afe0598d78e","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":161,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"460cccf6-3b55-4e00-a826-4042f10ae654","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":161,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"2d715d9c-c1bd-4cb3-b762-c3a3dc61fa35","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":161,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"900abdd9-f65d-4da9-ac88-5b37c86537a6","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":161,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"54d5018a-437b-4676-8956-cac09518458f","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":161,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"35d3458b-726f-4f2d-b83a-8f0acb00c297","block_type":"box","text":"valuation models.","page_number":161,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"4b52e694-b07c-45f6-a478-08a3ba30a0b4","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":161,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"5fd1e1bb-cd70-427f-b2de-153863ee966a","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":161,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"46c60ce2-ce70-484a-9a8c-17edfaf92f91","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":161,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"4f119b51-ce89-418c-a876-8ab5fe51d03c","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"52446a94-2d99-4b0d-ad7c-f7b53198ac4e","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":161,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"446f70f1-5150-4f86-b4d5-ab9d03581115","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":161,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"d133f435-c161-4799-9153-b7b8ca3d7f50","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":161,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"16fcd282-5221-4a61-b8bc-68961f70166f","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":161,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"8b92166d-bf24-4ee6-a0aa-12f0004f08c3","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":161,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"740d4b6a-8e5f-47b1-8ad2-dce8967c0515","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":161,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"30c2381e-2415-4205-b047-1529578c8c4a","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":161,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"03e4dade-c2cc-4858-8867-71abeff69afc","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":161,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"ce8d0707-d0ea-4d7a-857b-9f8b21577e66","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":161,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"d87ce94e-8e22-4e8f-b8e7-fa35293c9f7e","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":161,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"c9c0f12b-c2c9-4156-b811-62eed7d85ee5","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":161,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"b8721e93-ab41-4285-bedf-5c9179f829f7","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":161,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"a0a6644c-fd08-4d1f-a305-254a0375bd6f","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":161,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"dac37c01-c1f7-40c7-bdb5-f27fbb556094","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":161,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"4e562b31-fa58-4ba2-a4bc-bcb88c1d7100","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":161,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"55d1fa51-5712-4898-9cf5-e8a3cc7aeb39","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":161,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"0126b0eb-d2a4-4f83-bc58-72d799ce1029","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":161,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"4e56ddbe-e191-4360-8201-0f9923e666a8","block_type":"box","text":"party determination of fair market value.","page_number":161,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"00b1e23c-3241-4a7c-ade2-dde2e2f7a550","block_type":"box","text":"Computation of Offering Price Per Share","page_number":161,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"9992d5f4-a12d-4578-8695-deb27257837c","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":161,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"99862a1e-11fc-4027-9faa-3d7459b821e5","block_type":"box","text":"the offering price for shares of your Fund.","page_number":161,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"af855c10-7716-4836-a95a-efb8c864b66d","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":161,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"0b8cf6da-4d26-4d2d-8179-b4fe19ebfabe","block_type":"box","text":"Transactions in Portfolio Securities","page_number":161,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"45771791-1975-4521-8ce8-85e9075b1f46","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":161,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"c0881ecd-72a6-4442-b9b0-5a54004c5db3","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":161,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"1a471b87-d95e-4276-a6df-301e6137aa44","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":161,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"039c125e-9d8d-492e-9c00-9dbe4325ef90","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":161,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"ff4e62c2-6026-44f6-8d10-4c29c4701d5e","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":161,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"b6cf3521-285d-46d5-84ee-c11ae95435f5","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":161,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"afc5a1e3-89e3-4d9c-9738-37a2fa22db10","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":161,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"277b6525-eca1-4c87-a41e-f243c24dfee3","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":161,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"d0e478d7-2a8f-4875-9348-461b6511ec0c","block_type":"box","text":"II-124","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"16c49113-f10b-4621-a37a-890d89dd767a","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"109bd971-a453-40a8-9019-2bd00d4a81f4","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":162,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"4a92fde8-e1ba-40fb-a67d-97ae3fe2c074","block_type":"box","text":"reasonable in relation to the services provided.","page_number":162,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"53498e58-21fa-4704-9f37-cd1404cd69c6","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":162,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"c39be8d1-77b4-4859-9424-4ac7f9300b79","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":162,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"fae23f02-f2d4-426d-b798-a3c434e5f18d","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":162,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"dbb071a5-e442-455e-81fe-d5df82ccef8c","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":162,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"f0f92c66-b95f-4406-9a68-5cd5fc03428e","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":162,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"d5dadb52-17b9-466a-b9e1-0ced1c1ababa","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":162,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"505ef8fe-1681-4be7-b231-a70b31e74594","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":162,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"f51e54dd-8ba3-4bd3-8716-220805ed0070","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":162,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"806bca3b-15a4-473a-ba97-3c8f26f4f33b","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":162,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"a8a4d3cb-43bb-468b-9402-7ae35d200c96","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":162,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"e420a159-1a49-46e0-ac46-3e8959f7d341","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":162,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"22c4f847-189b-411f-b414-16063f41b8e6","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":162,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"87fc0ae2-adeb-4fdd-aea5-858dfb29bf21","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":162,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"046c4b63-963c-4859-8631-21ebb359d3b4","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":162,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"c23baafc-6c23-443e-a07c-25b50782f46b","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":162,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"e115346b-91de-40da-8dad-96afea15ea5f","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"34aab7c6-e426-4ca8-aabc-3199741315aa","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":162,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"71ed9314-588b-480a-a734-4cfe836acf0b","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":162,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"d6216886-e4a1-4ec2-be5a-3b89a979ba6d","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":162,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"0ba30f30-2d93-4e35-9b13-be4202859c14","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":162,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"63a42024-2bd7-44ed-93b0-f6ad48760088","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":162,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"1ec58dd1-e411-4d68-b554-35f7d7871a01","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":162,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"799a5661-a8b6-4d31-9af1-16cb8a20902a","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":162,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"0e7a53d0-7b4d-4aa7-b754-bea3d8b6405c","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":162,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"7b3efebb-512a-4d2b-af3e-a0a0edbb4dad","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":162,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"57f454fc-b2e2-461e-9ac3-53be8f392c2b","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":162,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"851eb380-8191-4d63-adc8-bcf197e32eef","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"007947de-45e8-4c88-9b97-9ab4db22f97a","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":162,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"3a71a498-09e9-46c6-84fc-c238b5480c72","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":162,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"fca9a71a-f321-41c8-8f94-436faeccfe34","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":162,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"c8a9c4bb-a1c9-4095-9ce4-2d8d16c019d3","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"90202c07-0065-43a4-9e66-d0a30367d3fb","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":162,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"5c977e04-1091-45b0-880f-a3298d68c98f","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":162,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"4ebcabce-5219-4c3d-8d19-f3e9b363a8c8","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":162,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"6ecee56e-37ff-458b-8e0b-e114c52fef0a","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":162,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"f80cf995-9c05-422c-b666-fe6b3f29ee71","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":162,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"55c912f4-7957-4a48-b43a-5bf72baf5e05","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":162,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"2b90fdfb-2076-4e92-94db-41bf419ba17f","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":162,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"a011f432-1dca-4478-b3be-ca5731bba434","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":162,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"c9c3404d-c687-4721-81ad-7147c5354223","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":162,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"613de3ec-4de8-43b9-b24a-28a0eee86e6d","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":162,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"5052ca31-e0e3-432a-927f-669de3e8f230","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":162,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"cc2f418c-8cfb-42ef-a090-047e66c26b6c","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":162,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"bf5cd606-7bd3-42ba-962e-da5e94413483","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":162,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"0295b7d8-c142-40e6-9f3c-2005acf43988","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":162,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"df2781f4-109f-41ae-b1d4-ea5ee3f3fad8","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":162,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"6b3d3d24-99c3-4ac8-8ed5-9751ddf9d795","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":162,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"1b5cc19a-a9e6-45fb-8cc2-998788a1b8b1","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":162,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"b51623cc-a62a-4b98-8ccc-195a6aa1ae2a","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":162,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"b3c419e4-fdd3-4d12-b5d1-f8c17ce2af43","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":162,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"76e57036-9cf4-454d-9d94-a66ebf175c08","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":162,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"4ecf310b-572e-4879-a78c-1a9da7d9ba69","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":162,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"a483a887-e399-4cc7-99a8-dc619490a99b","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":162,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"b8524bc6-9b8b-47d4-a20b-97ca0e449618","block_type":"box","text":"II-125","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4cea2122-9c1d-4c34-b86a-02f603712b2c","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f2a17de-bb90-4646-8599-6792b2446a3c","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":163,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"21613994-c905-4e0a-bc6e-e1e57cbac8bb","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":163,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"57a769d6-eab6-4660-96aa-45d49250196b","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":163,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"fa29ecc2-83b8-4b6c-9b2e-80b2ad94cea7","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":163,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"67db0c37-e0cf-45f0-9018-a763f38430c3","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":163,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"f83b01ba-2ec7-4f86-a822-4ae5f61f7ae6","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":163,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"d0ba7472-3c8d-40e5-bbbe-f118d951da68","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":163,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"4556d4b7-daa5-4293-8f33-c70cd891ce83","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":163,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"ae690b6a-0922-411c-b430-a6c471dd808b","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":163,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"ee89edad-d4fa-48d1-8dde-f375d5c55258","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":163,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"71f8f146-5aa6-42dd-b260-3e4e30bf0923","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":163,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"e251dbc3-47d5-4e6e-87f2-d93c55577288","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":163,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"285fd775-08f6-4163-98cb-fbb0d79261f6","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":163,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"00070747-26cd-4f39-a422-80813cd51ba1","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":163,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"e1e8b992-cbfb-488f-b662-ba277691ee44","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":163,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"ce12f5ff-ac4a-447c-84ab-8b36dd35e2ee","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"b48c8401-4971-436d-9bb8-cd2b0f79a20d","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":163,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"d9e7275f-8dc2-4853-8e59-8f34dc57109c","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":163,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"5064f46d-6498-49e4-a6d4-3f45bbcf8e06","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":163,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"a77b8490-9d7b-4635-b340-5946fb80479d","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":163,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"1a0689ac-6bd8-4413-9aec-26ce66c29a44","block_type":"box","text":"brokerage.","page_number":163,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"84efebe3-7902-4a20-9bfb-c82e8ecb88d3","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":163,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"8a29858b-5c1e-404d-8ded-02ee9dca329e","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":163,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"d284c12d-9d37-46d6-a7aa-325c96151ea9","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":163,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"ab41d520-5c11-4bb3-ad31-d441c70cb670","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":163,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"b2724f16-a8dc-4457-ac2e-30d9dc39c5cd","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":163,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"3df3424b-2108-4e1c-ba60-3f8cccc638d6","block_type":"box","text":"Section 28(e).","page_number":163,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"4e9520ca-c8fb-4401-8440-c72b67026412","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":163,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"a2b82d96-69fb-463d-8d62-69d5f411c548","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":163,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"c78e07f1-b111-4b97-8a5c-96f382237c89","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":163,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"039deb28-f27d-49a7-86ea-d9abc69cec8c","block_type":"box","text":"execute transactions for those mutual funds.","page_number":163,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"677a952a-74e6-4513-a31d-2b23ee353862","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":163,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"cb76c81c-882f-4289-9573-6a0d14a693d5","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":163,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"3cc50922-13de-4584-88a2-c0300faba3d1","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":163,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"9bcdf76e-996f-4321-ae93-06e2677893e1","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":163,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"df1683bd-3195-4117-8fcb-72a815d446b3","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":163,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"78a3d49e-0448-4e0e-ae84-6072b75cbfad","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":163,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"86d4e113-5d4a-4d43-ac23-ae8c8539d20e","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"9da9d07f-7df1-456c-b1b5-2e8d25eaca63","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":163,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"edd4a9c8-29c6-40ff-ad89-015f0f1f6795","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":163,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"212c4fb2-e4bb-4d26-ae8a-20bfe200da8e","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":163,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"b14837ae-1d14-44d5-a13b-f18dfbac01a4","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":163,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"c485c491-d0f1-42d4-9913-6da7a8a09715","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":163,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"6cebe012-c70b-4647-911e-634dfd3d07df","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":163,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"338933f4-9e61-4370-860e-1a36460b488a","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":163,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"e56587bd-99a0-46c1-b8f5-9543664eed9c","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":163,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"ebebe634-59f2-435a-aa00-ca8d3a8bb0ff","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":163,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"0c2c2a72-86dd-48df-9c09-4c2304baf299","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":163,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"09c525f9-c3c3-4340-ac83-b62a3175f26f","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":163,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"5d82e766-14c6-4e65-bb29-3cf558ce2b05","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":163,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"ab6f42ce-4334-4e6d-91b6-514425f20d1d","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":163,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"0ea459cf-c92d-4487-a391-da4cce757464","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":163,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"d5e5ff22-9792-4fa3-bbea-aa69fce4c7e1","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":163,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"e2aadb2d-6a89-4c43-abef-7eeb3b0c288f","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":163,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"42d3d392-84e1-4578-818e-e579d7641a42","block_type":"box","text":"II-126","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3d54cb5a-aeee-477b-bc21-e4b3f6961c81","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45d39245-7e6e-4277-a745-7b89e643555b","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":164,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"f50dab4c-a5c0-4d26-a5e1-16a06e7cdf15","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":164,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"ebd753db-a21d-4099-a179-86db22b4b3be","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":164,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"96bf3a99-4665-43fc-b07f-13ab5704d907","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":164,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"7b04f4fe-03f1-4615-b996-c9ce09873ced","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":164,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"2f4670c2-c8d8-4521-af51-e8ec8fcd01a5","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":164,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"39896ce6-8295-423b-81e1-b73fddac55c4","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":164,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"01c2e8cb-c59f-48da-bd33-d5dc51a0b737","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":164,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"9c52fd2d-1ce0-48bb-886f-7f8f5ce335dc","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":164,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"16142926-ae10-4620-be60-d47fbedd76f3","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":164,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"bc80e9c1-f8f2-4e87-85a4-3df08c7803ed","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":164,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"a210d9f2-cb7e-4021-9d50-c981b07436c1","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":164,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"6a3c641d-090d-481b-b84e-d2fa405660fc","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":164,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"75503a37-d553-40e6-86af-5ba98ff0d695","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":164,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"ed5ce652-cc1b-4eb4-b348-732d17ece93e","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":164,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"cf61c701-1b7d-49d2-a4f7-9214b1e8ea43","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":164,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"6aff5e42-69e0-47aa-a969-5f626ad4dda4","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":164,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"f2332fd8-c58e-46e3-82c4-195d67fc4000","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":164,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"ad11720f-1e55-4e89-bc36-d5818cce0fd7","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":164,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"82899f28-21c1-4e10-ab77-a9c9fed5c84f","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":164,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"c5cfce86-c989-45dd-b330-528b62223ea4","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":164,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"8e975873-fc4b-4432-9929-b31137e93224","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":164,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"6f21307a-f7a5-4850-9d91-aac7a1e07ea2","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":164,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"df8c36e5-9621-4a0f-a1cc-d2fa7aaddbd9","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":164,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"6d70f403-4056-4347-bd11-9cbd349ac390","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":164,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"b2e3f615-c0a3-4b41-a577-695564c8113d","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":164,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"d27035f8-a29e-40fe-8290-740025877d62","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":164,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"f5832bda-d291-4b1b-bf64-3293f653f415","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":164,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"0a0e7e63-fec4-4a23-9a58-ce8e46f4def9","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":164,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"b6447130-bc0d-43a9-8bbe-1907618bf844","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":164,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"0ad2178f-9f48-428c-828a-17e427e7aedc","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":164,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"88a866fd-86a6-4af2-8bea-7cf4418b27f9","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":164,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"2a707708-6ba9-4de3-ab8d-dd4ea6741473","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":164,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"526b7160-ec55-4842-9707-d8932e09b4fc","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":164,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"ddaf2b1b-44ab-4648-99ce-97d23b21e7c7","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":164,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"a98a0aec-6831-4924-9f6c-d416720a00d8","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":164,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"8c1a85ec-588e-4bed-9875-ec4c06adeec6","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":164,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"0944f6d1-8b26-452e-9070-8f033a6f137d","block_type":"box","text":"accounts and compliance constraints.","page_number":164,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"27e4ad85-5b1b-445a-a235-02ae3f068a63","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":164,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"d5a50aac-7e52-4731-a66c-e70f1d6a626c","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":164,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"fe5fe8a8-1636-47b7-a3ba-8d0c23274083","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":164,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"a1f80ef1-498b-4b40-bb68-d35da8204974","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":164,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"9512fbfd-a438-498a-bd46-b10add6d1b99","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":164,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"b7a1cd13-8aa8-4264-b3c4-99b1ffec1b34","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":164,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"31dda88e-a1ec-46b1-a214-f283a92a72c8","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":164,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"e1581ebe-0538-4fb1-986d-9d66ee1542b4","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":164,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"551567aa-df2b-4b75-af91-f6d7721c6f2c","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":164,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"a5b9330a-cca5-41e4-84c6-a6269eba6d2d","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":164,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"5694a83c-a1de-4406-ab5e-0f66e0be70dc","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":164,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"2ae4a54f-b76a-4c05-acb7-16d69dbfacfd","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":164,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"8b0256ee-1d05-4851-8191-ace4fe9c0402","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":164,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"4d7513ef-e489-412d-b309-c78710c7e7a3","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":164,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"5698ac4f-faa2-40d4-bbcd-37008a02c2be","block_type":"box","text":"clients may be used as well.","page_number":164,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"40ee7bf2-d277-48b5-b419-066fac26dc68","block_type":"box","text":"II-127","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"63d38846-2389-47dc-862f-9a98c6601435","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92a6bca0-5807-4817-a4d6-22106b2759db","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":165,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"0591b061-aa1c-4972-b2db-26ad0aafae74","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":165,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"022db0ab-93e7-4e77-a262-7a5edb240c65","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":165,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"9ea85d88-753a-46e9-87ab-4724f1660342","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":165,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"bf794a50-2fab-46cc-b79d-6f25ecd59f76","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":165,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"4552a6d6-ae13-4eac-a4cc-3fc32a5e5f7e","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":165,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"e26a7eff-41d5-4720-abaa-ffbbddef747b","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":165,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"1d3eb954-a05c-490e-91f6-4d6067d7458a","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":165,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"49400ad7-d8cd-4d54-a4f1-2f6c9ac2f3c5","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":165,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"0a8ac68a-0dfb-4fb8-abc8-3b639c6367a4","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":165,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"68df9760-0629-4009-9f0f-40e5282862c1","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":165,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"9332a17a-2f88-49de-881c-43e30fc1f8f9","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":165,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"53524db3-3169-42a5-913d-f489d86378d2","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":165,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"980108b9-6c4b-4149-9315-6d1d50860607","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":165,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"8e0e31fc-8492-4e89-8987-7e2d9a2f4893","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":165,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"de0ce109-f70f-4b6e-950b-1e2c68eca5db","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":165,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"c47adbd0-2f2e-4c08-a3ef-d63668ff9cb9","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":165,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"0d9f80fa-65fa-4471-8a5e-47a6fca1b735","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":165,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"c4abd30e-4609-4d7e-9923-7d5eaf4ade4b","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":165,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"b878ca16-3056-4a4a-87a2-4aedc7d7bd51","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":165,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"1a16f660-70ee-4212-9c04-51c6505753c7","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":165,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"a71b0cb4-d193-48dd-974c-a7fad86dd4a5","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":165,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"e9f45509-49d0-4603-b273-40cce227d9a0","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":165,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"d82db628-ff41-4bde-9e18-f8de6f1edb34","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":165,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"254e5619-146f-479c-a71d-b873bbd714a3","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":165,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"72a8876e-aa2a-4aec-8664-ab5bb9585ecd","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":165,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"44fded22-e974-4845-9f66-b342b830c6d5","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":165,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"70907bd1-6f78-42d4-981f-64ff7de0be3a","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":165,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"57aba759-a7c9-4f64-a4fd-ce43fca956fc","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":165,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"67a6fa38-8f20-4ed3-81eb-ffa68b260c22","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":165,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"e08ad12a-5164-4d53-a6ba-f2d5f0894151","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":165,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"cb11d738-b391-4423-bdfc-f79d8944ae09","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":165,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"01ee07b9-9c49-4481-8f51-d4311f4d4d4f","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":165,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"358a04fe-e9a4-40c4-b899-a6d442b51b9d","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":165,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"d1cbba96-e184-4bf1-9bdd-7df4cb814b56","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":165,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"4bf879b0-8417-4d1a-85c0-b400ff53f51d","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":165,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"39a1e7bb-9364-44a1-8aa8-850b886268ad","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":165,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"7856a87a-0652-40a5-a1c0-6dfcad45d628","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":165,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"91e7074d-8a02-4e63-99a7-ce2d98e08419","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":165,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"a91971c4-53f6-4bee-8beb-6718740b79b4","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":165,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"ef1f66f4-8442-4ce9-9d3b-6c0e886a8072","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":165,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"76ff705c-5a09-4541-8835-d96283d415b2","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":165,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"304a0d82-a6e4-44e1-83e8-4754e6b575e9","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":165,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"5e55e2e0-aa0f-434c-afd0-02f76465e16b","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":165,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"e1fbffbe-407f-430f-a144-80435e218a32","block_type":"box","text":"Portfolio Turnover","page_number":165,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"f1a3e65e-7fbd-4ce0-9f85-2a9d99f65092","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":165,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"f4138b9f-c49b-487a-b5ec-27065ba7a59f","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":165,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"b7f318e6-4ac1-4d8e-a004-f5bfaca5231e","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":165,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"a0a5bba7-73a2-41e0-ad06-dff542a79125","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":165,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"c8161135-b033-47b2-8e51-8e98343bbb73","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":165,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"db58cbef-71ac-4805-969c-241222c14f89","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":165,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"913ed209-344d-40da-ac4e-c1c1f8fc58be","block_type":"box","text":"II-128","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f0829e13-6741-4cd2-83bf-022015c55d59","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a07f35d-069f-457b-b714-59f7f648e546","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":166,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"8efc223b-1f31-463d-9611-b1657de0d5bf","block_type":"box","text":"Dividends","page_number":166,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"3980b6da-d7c5-4e29-8c42-3643f7b65784","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":166,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"ff02a7e8-d051-45ba-beb5-c9d151a5e596","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":166,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"bb35132b-0c9c-41d2-8444-de4aa6284295","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":166,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"3c4d32b0-3b97-4a5e-9c1f-4a301d2365aa","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":166,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"fb751f16-1ef2-4833-a52b-4a29a449ffe6","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":166,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"85e3fe5e-0a28-42bb-a361-dbd1aed0a3b5","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":166,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"0de413a5-631c-4997-8d10-c63eca99992b","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":166,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"98d6c2f0-23be-433d-bcf6-92871d3a4ffd","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":166,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"4118d7de-e614-42dd-80d9-d206428b8ac7","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":166,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"1dcd5709-eff0-4e40-874e-f24fc6d6e5fc","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":166,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"df9b2781-c1b0-455f-9517-7d35c50d7c6b","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":166,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"b1c0c791-3879-4fa3-bb65-4a0e62215644","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":166,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"183b9885-525c-4012-afbc-54f8fc1577dd","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":166,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"d9d04e31-65cf-4287-8328-d95a006da89c","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":166,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"b02c120a-1a98-4da2-95a5-3d3dcd710d7e","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":166,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"5de39159-3eea-4f76-b847-6f813314a93f","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":166,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"ad70eef3-4449-4c7d-8379-b9b28bca4b4f","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":166,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"590ee7a6-b218-4dc9-bc23-16cce058da7a","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":166,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"b6400cfd-7052-46f5-be39-51d2552f5a24","block_type":"box","text":"Taxes","page_number":166,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"733619c1-2a14-4877-9452-1c6b012ab5e2","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":166,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"be93a392-be15-4cd1-915d-fd7bd2896f5c","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":166,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"6d5ea670-09bc-4605-bbcc-1c421f42838f","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":166,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"1b519cf1-faf1-4f2a-ae67-09dad7f42437","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":166,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"d5bc2dfb-d2d4-4939-85e8-cc63c842af2b","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":166,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"a36f9fb7-ec42-4793-9d54-a54270aa2868","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":166,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"43585e7a-4c66-4b20-861d-71058cc59c88","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":166,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"6b914dd0-d2f2-4088-a1ad-cdf9ff1242b7","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":166,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"d6dcfaed-fa6f-42c3-8ae7-2c81ff27e55b","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":166,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"052ecd22-b8a2-491f-baf0-52c4fa8355af","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":166,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"7bd42f59-064c-4589-85a5-a7f116992e05","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":166,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"eaadd5c1-0b80-420c-b37e-038d5ad72b79","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":166,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"31ad407c-3a5f-4dcf-a508-157724b31fb8","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":166,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"2abed4bc-d8d0-4a40-af5c-4be571ff2d68","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":166,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"b63262d1-74d8-433e-83f9-06b2e82dd159","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":166,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"94efb39d-416a-4b45-b89e-27e4e297847d","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":166,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"34748e6d-c5d8-4458-a00a-bd9f27f104ea","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":166,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"aa65f347-12c4-4e37-a33c-9cb5c0024c49","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":166,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"b6586d67-3903-4ff5-bc82-8c45e819b5d2","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":166,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"bc6db5f8-da4b-4e8a-8450-50f35a1939d7","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":166,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"1b373632-c04b-4009-bd32-66861ee02e0d","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":166,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"a669d1ce-dc14-4d98-a59b-48b6e0c8a851","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":166,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"da31b36e-1a4c-4df1-9510-994e434c920f","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":166,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"75bf8dbc-d3cf-407c-8342-02545583c674","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":166,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"f4751c1d-643c-453a-ac4a-ed9c34640c57","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":166,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"9271dc79-4e58-4e85-bc8a-50bb269269fe","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":166,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"ed2a52b8-99d2-42e1-92e1-44ceae038569","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":166,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"9fb090f1-c883-445c-a750-a73df3855172","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":166,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"51c2b17f-0756-4fd9-ad50-e0881dea5c70","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":166,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"1141db63-72f8-4e9a-b7d4-c9e2257dc1d9","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":166,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"4923c043-eb98-4435-8c55-e567caef092f","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":166,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"131460d9-6c92-4a12-82e9-2cc6e2517a6a","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":166,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"18e3bf09-8ccb-4983-87c8-d578f6e46983","block_type":"box","text":"II-129","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8ea16e3b-7cb6-4401-9318-afc2e167c056","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ff2815d-0fda-442c-8a9d-ea3cd548b331","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":167,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"cac06b6c-ff1b-4f2d-93cf-5faef6be1623","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":167,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"92d3c03f-9e2a-4a32-adef-00fa1d930795","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":167,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"f4e527b0-5d9c-44b8-9d40-364e13a76fbf","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":167,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"845c5727-5861-44df-b96a-775d6da60ba9","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":167,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"4ddc2cf4-bce7-4815-b433-c48610ffef1b","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":167,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"a6be8a1b-f503-4ce4-b94d-6bcfea0264b3","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":167,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"06116da3-edb4-4c06-a177-962af1da584f","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":167,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"53ef7a06-8f5a-45c7-9f7b-2a509da1ad24","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":167,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"a426e57b-fbc5-4a4d-a9bf-af495aa08f11","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":167,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"6455dbc1-f203-4b19-8c52-d676d79f80b4","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":167,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"82925a3b-8524-4421-91c1-2db694c3f7b5","block_type":"box","text":"limitation.","page_number":167,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"5ed96213-78b9-4f67-aee1-fbaaa57ada4f","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":167,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"69e0bc0e-07c8-404b-a209-ec99078f9ed3","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":167,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"ef404f15-7329-4536-a096-d9448debb50c","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":167,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"661d030a-b767-4b7a-8ea0-8d084cb619f7","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":167,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"69e02adc-0287-48fa-82db-65700fe9b084","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":167,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"ab5135af-802a-44ae-98ac-84f1ee174532","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":167,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"612abb76-e72b-4127-b5a8-0b38ff824c43","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":167,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"031d9641-00ce-4ea5-9e7a-869b80628976","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":167,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"fb822efd-54d9-43c5-9db8-f8c259afd2b3","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":167,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"192f8c3e-408c-41dd-b2c9-9949af42aeb0","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":167,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"137b1b19-ee87-4905-ac7a-d5c6ed00930b","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":167,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"df12474a-7848-466f-9c8b-3c4fb8e4cda7","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":167,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"7f9e7c34-6370-47ca-a10b-20b0ef5419be","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":167,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"510c37f7-8bb9-417d-a78e-52a1f945f416","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":167,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"3848a747-ae42-4d44-81e6-becebaaa788e","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":167,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"82bb39b0-582d-4e11-932f-589e75a6c9a7","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":167,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"f4c9db93-f269-40ae-b314-a677ab26f811","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":167,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"b36df743-99e8-4f9b-989a-fb085f0151bb","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":167,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"f6e3aea9-317a-42d8-9391-fd5ab142a855","block_type":"box","text":"constitute “qualified dividend income.”","page_number":167,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"e3e80e58-fdc3-43e0-af87-161dab3a2462","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":167,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"52043568-9ca0-4ce4-b672-66eadf44f550","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":167,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"9d6964d9-8a01-497a-98d9-670d2235d1f4","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":167,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"96727aa9-ac76-428a-b347-2200d2a5cbee","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":167,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"2688321b-418c-4e15-a14b-79963ff8119a","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":167,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"1463f75c-8159-4b49-89da-5079691446d4","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":167,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"8c0c80e5-de49-4d12-bd77-344fa91acbd8","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":167,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"43727312-4cc8-4bff-986f-e9714cfe5d35","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":167,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"0a6a2c30-cfd5-4346-a5c9-83751df9535b","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":167,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"355c01cb-11cc-423c-a197-67d55ba346cb","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":167,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"90998241-3672-4da3-b900-0e54062e645d","block_type":"box","text":"against their taxes.","page_number":167,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"0307bc00-b805-4cb0-9da7-9588dd231b26","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":167,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"d178dc27-5765-47eb-b689-52c1e493cd81","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":167,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"5ff8716d-244a-41ea-a999-833e6d2624f0","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":167,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"6270d420-f99a-4be1-b638-9f86746ede1f","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":167,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"d43da705-fe00-4c86-a232-cad19e73f582","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":167,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"0389b084-f5fb-46c3-835d-231de21a576e","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":167,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"247e943e-ce54-48a8-a253-4def2bfd3877","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":167,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"fd530b59-e4fa-47b4-acae-01636a7f081d","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":167,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"d4a375a5-af77-4e0f-a6e0-cf12997c7e91","block_type":"box","text":"dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"0313318b-1f59-430e-88c1-e61b6c1a5c91","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":167,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"10f77fb3-a86f-4781-af91-364faa5634e5","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":167,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"895be9ca-ccb7-4d11-94eb-2f0fb25203fa","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":167,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"9251fefd-3264-4aac-8757-10cff7273063","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":167,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"5b7be082-3ddf-4f34-91e4-0699c85d341f","block_type":"box","text":"II-130","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3ff5dd3f-9e8c-4469-8f43-4436801e1064","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f6b20ff-152f-4f43-8462-47efc887f62e","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":168,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"979b9fc0-a795-46e0-a5c3-7b562ebc51f2","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":168,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"a3caec21-9c30-46c1-a459-22a72284d12c","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":168,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"075d53f8-e6ee-46d6-9d4f-b03c09fc8a47","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":168,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"8956ce2a-4530-4749-865c-be86a0cf9ca9","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":168,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"5e506c76-d98f-428f-8c97-6715c0fa975b","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":168,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"cb7f2963-61ba-43b8-b558-d8d9292e0afa","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":168,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"7e1e9b3f-5ba5-499b-ba5e-f78b1d08836b","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":168,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"f72f7628-c55e-4a8b-8b0c-f935e26487c4","block_type":"box","text":"taxable year.","page_number":168,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"ab40d90e-bfa9-42a4-ae82-1ed0173f80a4","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":168,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"ca50efa9-475f-47ca-b0bd-1b92b0cbbb2b","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":168,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"d1ad4d79-3a0f-4609-8c23-dcdb8c213973","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":168,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"c6957188-acd6-44c4-8823-25762dd6f6f4","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":168,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"5061fb32-bbb2-449e-9731-0c7535d0d841","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":168,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"9968381d-bd9f-4c74-bd12-cafd4a83bfd3","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":168,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"74b90ea4-9373-4251-9a4c-a0a5df51554d","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":168,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"7bd54218-4a46-4ff5-8caf-c4c03551c50b","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":168,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"0657ab7d-0d40-49d4-920d-7b5000fde0ea","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":168,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"0391f096-203a-43b1-bbdd-61ce35eba360","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":168,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"ee4c4905-6d1e-472c-9cff-2667949fdbbb","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":168,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"6b79b7f0-95eb-477f-b77f-77c2032d01f9","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":168,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"200704bb-d558-4461-992b-6ed269ddba5b","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":168,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"f72374be-82b0-4bb1-beb8-5d7ba3dac8f3","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":168,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"5243ebf1-6f6c-4bf1-bdfe-a66b6534364a","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":168,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"fb3752f7-9b22-48af-a679-3209163b199c","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":168,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"1e785b83-d0eb-4e29-94bd-b9c57d40dec3","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":168,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"2f6d756e-ec1c-4d31-80fa-22f18711bf06","block_type":"box","text":"special tax rules that apply to their investments.","page_number":168,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"623d7a3b-2630-4708-8a3b-db43378b1bf1","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":168,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"78a71039-9cfb-4208-9b2c-09f366d724b9","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"b67855f9-19fe-4f5e-98d5-f8a442efcc20","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":168,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"da347174-a699-43ea-a348-f42f15ef7aed","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":168,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"dd36dc65-4344-4c23-b00c-35e42770c159","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":168,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"1b15e7da-2df6-469a-b03b-106ed7c9277f","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":168,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"e8044daa-a4fd-4d61-9686-e961fc14647b","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":168,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"fedd3ced-27cd-4133-b8d1-711a9bc0908c","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":168,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"dc5fe766-c45c-40ac-82a9-e2e43ad2147a","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":168,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"d031bb41-e3d1-4f96-939f-4f474a278b6a","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":168,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"dd9fe07a-eb08-462f-9045-9de482ebaac0","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":168,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"42ecc9c1-0442-4aeb-9f2f-d7eca5b9a4df","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":168,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"892c4752-bb65-4cce-9230-1e983ef1b49e","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":168,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"61ed5585-38b2-48cf-ab52-e7c9b63aea32","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":168,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"b9925a1a-fb6b-468d-b0a9-fd9125218b8c","block_type":"box","text":"redemption of such shares.","page_number":168,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"849be33b-a9ae-449c-9bd9-a3de178f1f7c","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":168,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"f8c65f35-b072-432f-a0be-4e6fa38e9739","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":168,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"3e9884be-1bbe-4a0e-9cd7-8810bac44363","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"5175b919-f2eb-4399-996a-c26cc57eec50","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":168,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"863f2c09-23b9-401f-a1ee-18bd4d39b4bc","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":168,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"c6f1aa72-eac1-475b-8a2a-8685740c7fa9","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":168,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"5efe502f-b22c-4689-a5a5-341c1c8fb660","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":168,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"b1abea1c-c133-4178-a62d-392328e687dd","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":168,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"ac35b116-0e18-4c83-b6dd-a54a0fc3e3b7","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":168,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"cf529eaa-e523-423a-8f32-1928b3aef3f0","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":168,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"867edfa3-068b-4168-857d-8a8da4cf0a0d","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":168,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"e4d3ade1-70ca-4c1d-bb43-665b6ac5601d","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":168,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"9b52e21e-0ba4-4846-8e12-81f967808ca0","block_type":"box","text":"II-131","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5793851d-6215-49b1-83a6-e3a9a982cdf5","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1675cdf4-255c-488f-9780-701a23608fac","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":169,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"42fada55-277b-47a7-961b-9e9c76b670bc","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":169,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"8a0edab1-ca5a-47e3-9c0a-ded0a6a8f0f8","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":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5fd6dd31-5387-46a7-a429-5c127886cee9","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":169,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"d83d3ade-6ce4-4234-837e-1d3fba0e2c22","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":169,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"1fca1efe-1d94-4aad-9e9f-a4151f365d93","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":169,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"690a715d-5f2d-4cbb-8a46-46a4e605b8bf","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":169,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"daf1fdb2-2cd1-4fb7-b088-f368e1634249","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":169,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"4b6923b7-3f80-4e39-b141-291b4077c1fa","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":169,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"44b58beb-6be9-48e2-95b7-d8a5e6eaeced","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":169,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"07195d4c-89d0-40fd-9f71-156904350a09","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":169,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"0538327a-0cad-43b4-97f7-06a5e3ce76cb","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":169,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"d16e61be-ae47-4655-9884-0445fa7cd07b","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":169,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"ea38ef8f-c462-4866-9808-827f87534b7b","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":169,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"384330f3-e7d7-4ca1-ae10-db301db438ff","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":169,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"1b7ca611-9e66-4ee5-b862-1eef681d526e","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":169,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"a85f7682-8060-4873-80bb-f376afae930b","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":169,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"2cf86dad-c910-4e0c-8906-4dabd8195824","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":169,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"92503388-5b02-4540-9706-35a08ec25e6b","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":169,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"e2736371-8174-49f4-a463-1fed5d9e6c80","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":169,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"7f0fd8bc-3128-468b-a35e-a4c9035783cb","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":169,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"767e1a4b-1154-4cc3-964d-57439ffb4440","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":169,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"f2325c73-b04d-459e-878e-ca06ef2c4cc2","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":169,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"56f2fea6-9177-47eb-a155-6e9f8202847f","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":169,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"eb06c721-1684-4af1-b426-d3a127b1e234","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":169,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"be2e8bb0-6313-407b-a8fb-96dc5285c83c","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":169,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"e09fc7cb-3f17-4fff-8b32-c4d8c53143ad","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":169,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"09f14f2f-f2a9-4cd1-9804-286494f1a186","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":169,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"ced1f826-22b2-4ec8-a43a-8cb6e8c28c5d","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":169,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"e09e8347-5e01-4ee9-a82d-e0f6d4a8387a","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":169,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"53c0e91a-dc0b-494d-a9e9-64f49ca47b17","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":169,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"38e58258-3352-4761-8c4e-70c2760685d6","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":169,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"95212f82-334b-4555-b451-536b0f7dd5a2","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":169,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"8734cd05-d123-4a83-b2d9-f0c6b09e971a","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":169,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"b2680cbd-4f71-40c0-964f-a80c4f1791b0","block_type":"box","text":"in subsequent taxable years.","page_number":169,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"4c16b1e3-91f7-456f-b7f2-814a9c7a5dba","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":169,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"28c8e1ef-937e-41b8-a025-69f63f06450a","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":169,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"ad8acccc-c659-40c4-8a2b-d8d8b8a7bd76","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":169,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"54da8e0f-ffa0-493f-8470-d495108a3586","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":169,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"461a91c4-8e8c-40cf-8c45-f1c68e766b70","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":169,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"db799527-a2e1-4a50-978e-4e416a267ef0","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":169,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"e0ad3aae-f21b-4087-a197-003d46717573","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":169,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"f3377d1e-73fb-4059-9162-6668edbe893b","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":169,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"2c2037c2-c9ac-412f-a1fe-5355ac702723","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":169,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"71c9f726-2dd0-4f7c-8e30-ee5018f5099c","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":169,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"eb7f2b55-8b89-4502-a2a3-dedaa1611a41","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"63002858-9e1e-4191-9a20-fa2b185b09bf","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":169,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"3669e45e-d1cb-4cb5-80a1-22044cfddb44","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":169,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"9ddace5d-b8d6-4a97-aeb3-1be39a4c90a7","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":169,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"3c312ea0-43e6-4cbd-84c6-5fa411b43334","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":169,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"982068d0-c137-4d98-8c2e-1a6caa31054d","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":169,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"5e709d13-cf5d-4618-94eb-4dea07f8e767","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":169,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"fc263762-791d-4b43-94bb-b3f67e4bb975","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":169,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"000e7a6f-0d92-4f82-8d31-2afc98e6d5ed","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":169,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"dc038fb1-7ddc-4609-89e5-c392e85e0bf6","block_type":"box","text":"dividends under these rules.","page_number":169,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"844aa425-0d78-43da-8e73-af4df860a380","block_type":"box","text":"II-132","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2826360e-d273-4c8f-ba3a-0b68c07f7232","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b014bab-517b-43bb-921b-82e580867527","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":170,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"5aebd5f2-bd5d-4cd8-9184-6f39a9e34f75","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":170,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"516e85ed-1323-491a-9103-36261be5775a","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":170,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"0f129078-48a0-4dd5-bff1-41d6d35d8ac2","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":170,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"3e729623-12a6-40f6-b60e-0c6a6ec42858","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":170,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"88342043-d29d-4785-af9f-102e0c3ea356","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":170,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"2cf95e25-4a05-486a-bddf-4fd9fd942710","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":170,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"f5c8ea01-33cd-426a-ade8-90346defeabb","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":170,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"a37e41da-9a7e-4b88-8f84-5985a2df814b","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":170,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"8cc26b44-0e93-4b5e-8643-2e86c5045db8","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":170,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"4fb93107-395c-49e6-ad8c-a6ca719c68de","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":170,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"b5e63d6d-ecd4-4359-9fa0-e67f9d6646ca","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":170,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"d9202c9c-c2e6-4dd9-a8c3-aae919940eec","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":170,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"8554d8af-4034-475e-8739-621c8f7a4510","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":170,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"73a6613d-6731-41a1-abc4-21e94f4a09b5","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":170,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"cb4ff358-f046-4bb6-987c-517e93182f50","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":170,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"24b7ca28-1559-42c3-8c8e-c132b196bc54","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":170,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"5f850159-f98c-4f74-9263-6d7e4de01a3d","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":170,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"c7ea0712-2ec4-4d62-9780-b63ad0abcd47","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":170,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"05710619-33e6-4d09-952c-cb39119f258e","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":170,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"16af623d-1a08-4b5f-81ac-6bca9da35e19","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":170,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"2882512e-3a09-4877-b946-bc24b703702c","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":170,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"1eed85b7-3e21-401a-995a-5c5eca0aebd6","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":170,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"eb3453f3-668c-4e25-a55e-ff7f2ad8f32c","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":170,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"23f9fa2b-be7b-4c65-8e3c-4911b74cd961","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":170,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"6001b6a0-1fa5-4779-9446-1db4d6a4709f","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":170,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"718cccf2-349a-47f5-aa02-656fe3a2d3fd","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":170,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"1d6cc1eb-7d9a-4aca-8c44-4e66e851b5f9","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":170,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"1f86a208-2ec5-47e7-97d8-a9d9d742f0a0","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":170,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"15d3b272-36ff-47ab-bbe2-313bc2ff19db","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":170,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"fb592ca3-fc45-4a75-afea-0253dca429e4","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":170,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"cb70d0c8-c84d-446a-90a3-09cd050b5ecf","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":170,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"ba7eecec-aa7a-4473-bdbb-2f747d219330","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":170,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"c2287101-d538-4032-84e7-29f71b17d55b","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":170,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"0447a3d2-a068-49d8-b3bf-6d5ea56d8247","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":170,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"ce1e44d5-bcd2-434c-bf0d-14141aef8363","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":170,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"10519f54-a585-4e96-870f-105f99b1872e","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":170,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"3238bc6d-8c05-4c86-9205-7c838b8229e4","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":170,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"84309665-4b92-4f2b-9cac-307c53a8eb00","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":170,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"070a9568-fb66-4b76-859b-d94fd3198505","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":170,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"2d65d20d-c8f3-4aba-bc68-3206270cbeea","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":170,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"01c7e123-4b99-4b44-a845-bfcb53463db0","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":170,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"954f0cd7-058a-4a8d-8b0f-f8c4285a55d2","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":170,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"7e18cde8-0f87-459f-8291-6fc960d190d1","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":170,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"c86320df-f74f-4d09-afd5-ed2bea2effa4","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"83f3904b-d2e0-4781-9f5e-e5efea886a3b","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":170,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"b03bce7e-bb31-4c04-9430-8ce5bc8db9c8","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":170,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"20c1b772-d02e-4bfa-9678-bfb46e5c66b3","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":170,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"352eed77-253a-4e5c-8edc-8ec7d6ccbfa9","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":170,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"d337fcad-f1ec-437c-8158-de66c172bce3","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":170,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"a00d50f6-5737-4fa6-b159-9f6ef4a47560","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":170,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"e2e017d7-819a-41ed-aa32-0567ab2f4f25","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":170,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"e3158c94-a7df-4028-a101-2c70c842d9b1","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":170,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"e3f138c5-b4d1-497f-821a-032b11e3b0fc","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":170,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"71c2bb10-37ea-4c55-8ca2-446492e9646e","block_type":"box","text":"II-133","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aa5ecba2-5721-4657-8874-df01b2998a5b","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6af0a8a9-4dff-4073-b5b9-1ce641e257eb","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":171,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"3fffb868-1c26-4c96-9966-b090ad016c42","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":171,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"2dd976d5-1cbd-4a01-add1-751d16c34948","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":171,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"5fb6d41b-388a-4bbf-bb6c-f1e059a362f1","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":171,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"87c22cfd-feec-46c6-b017-b61766eed584","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":171,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"199883cc-8b03-4beb-ad40-8f5cd071c13e","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":171,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"cd7ab9a0-c278-4b61-8ff6-1a340d38f0a3","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":171,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"e0b3d4c1-0439-4e1f-b5e9-d677e53d1ec2","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":171,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"ffb25973-4a87-46b7-ad3d-9d34924a724e","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":171,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"81e97004-bf02-409f-b13d-b70677a459ef","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":171,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"7a144f91-ad70-406a-8190-948be36eff74","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":171,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"987b68bc-c492-4a2b-a2d5-f2b67f85a62f","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":171,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"7f28ddad-fe61-47d8-83c6-6bd75fea6c81","block_type":"box","text":"investment opportunities.","page_number":171,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"3804ba49-ef6f-4d15-b343-d4827315147b","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":171,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"78bfc540-d398-4160-9838-91c11ce96708","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":171,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"689b09fc-55d0-414e-aec3-862ec4a28485","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":171,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"c7f1165d-3c51-46e9-88c4-80c792924bc4","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":171,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"69966063-d139-4e45-8992-5a1850dcec25","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":171,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"79df4ef9-6f61-4c47-805c-64311d08a86b","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":171,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"28d7c14f-726a-485d-b821-ac1b5f9462b2","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":171,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"d9db133b-f2de-4a7b-8db2-77d7a479a117","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":171,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"faf775d1-ec26-42af-8b96-3a7240953ff8","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":171,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"4c9ab1b3-bab2-419b-90e5-c2ddb582c297","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":171,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"fcffa820-4aa8-43f5-abfa-75e643597afd","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":171,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"ce895310-9d8e-43fc-8af7-527e5c9b48f8","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":171,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"d7408c29-3bc8-4afc-a448-3d19005605f2","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":171,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"3c34ae66-7f8a-4616-ac40-b7b9d607a15d","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":171,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"70955a30-1736-444f-a4cf-7e406bf2b263","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":171,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"7a7a8e63-d19f-44b0-a642-f5ea821deb6d","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":171,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"a635a6ca-7c02-4e2b-8bea-be617e9bf3e3","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":171,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"85ab5e3a-d041-48df-8e7b-41ea6e9eaf56","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":171,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"d8fc07e2-708a-4bef-8a09-3a3acaeef660","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":171,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"21ad2cc8-5e53-4aa9-95ce-56be27cb2acf","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":171,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"5d4b7b38-a569-412c-b76c-437362d8d9da","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":171,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"986c8e53-fb8a-483e-9644-e9cf53fe3f61","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":171,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"3c80eb5d-6309-4f22-91d6-bc6cdb87c14c","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":171,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"1e54763d-30d3-4551-8896-2d7b057a0341","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":171,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"18a01220-4c9b-4abc-94d4-93feae56e476","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":171,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"6d419ffd-d309-421f-88b8-bb960d3bf2d2","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":171,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"8db125eb-4ded-4c48-a705-631f82005bdb","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":171,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"95ad917a-4e24-4d0e-91e4-5554a72d5477","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":171,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"10e89d4c-88d4-48d9-ac32-7dc42806fb15","block_type":"box","text":"positions in its portfolio (","page_number":171,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"dbe69159-6506-4c9d-ae2f-e34261e02a13","block_type":"box","text":"i.e.","page_number":171,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"76ff3f02-f55e-41db-95f0-76a9f00d95e9","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":171,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"9cc7caeb-adcd-41b0-a1b0-b98e470be5c8","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":171,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"1a679c97-4c60-4fbc-b4df-1873f9599e23","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":171,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"ad2d0629-4239-4206-b193-383397b375e5","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":171,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"10233adc-2b22-49e8-b6d4-5e3c6a06f3e3","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":171,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"fd110f6e-3819-48a8-8ae2-d5848eab48d4","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":171,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"f201e759-4ad0-4fc8-904d-c05e1f83bd2d","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":171,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"cb16469c-f6c1-4b7d-a56a-65f8eed1b0f2","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":171,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"ff47796e-ecad-4ada-9b8c-73c35e58cd7e","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":171,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"69d289d7-186d-4c32-b57b-dba01359e255","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":171,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"9ccdef79-c64d-40bb-b7b2-b4f3a7f2bcac","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":171,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"0b5e9d47-eacd-450e-be59-5f0937210215","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":171,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"11f88fd7-3870-437a-a5df-9fb1e56dd894","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":171,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"56da9bdf-7854-4150-b0e8-bdb568871a17","block_type":"box","text":"II-134","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5942bf4a-3990-4b55-917c-be17852f3520","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ca09c27-f4ab-4143-acaa-8ea3f61f6bed","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":172,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"305f0d08-98ac-417b-8738-a5f0dc4e8b21","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":172,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"3f109cdf-9e11-4686-a87e-817f597a5ef4","block_type":"box","text":"capital asset.","page_number":172,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"891f69ef-ea86-4760-a805-db70b07835bd","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":172,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"8978d978-6f5e-4e85-a5b3-d1461b13bd6f","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":172,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"04dd99d8-23cd-4e02-957e-c6845d6cb33f","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":172,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"7bc406e5-86b5-469b-a8e7-86efac820493","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":172,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"66e563d0-bcff-4318-b175-7100dccfc1fa","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":172,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"6420b764-3420-4eab-8878-ef8a7c856c52","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":172,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"22b7992c-a7e6-48a4-a435-3f092adb3e94","block_type":"box","text":"Fund were to invest otherwise.","page_number":172,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"99dd0d7a-e721-4f10-bb0b-af6b1e4aad4c","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":172,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"2a99b657-3dbc-4065-94d1-218c9d9082b2","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":172,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"17c153da-1d89-4f62-9ff6-c09455b667fa","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":172,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"89ea6e47-c291-4529-9d53-34def861fbdf","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":172,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"a880ca4e-4360-4024-b69a-8aa785ba9173","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":172,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"9227b296-2e85-40b8-98a0-f40a86aa3f2b","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":172,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"ed79d7b8-db86-4e1e-a938-bfe599e69e45","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":172,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"5c93be6a-949d-4365-adcf-a259f94d477f","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":172,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"7bd02f72-3e3d-494f-ab92-1bfc648047b2","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":172,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"1e54b500-76d5-4ded-af89-ebe7927427cb","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":172,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"a2901a61-5fca-4f66-a3f3-521f5d0081e1","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":172,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"f5db332e-728a-4747-aff6-e75e4e3260a3","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":172,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"1760bce1-697e-4734-840a-73a70071ae2b","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":172,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"ed6f44e4-60bc-4b3e-8d65-c12f2da2d8aa","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":172,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"92f1a0e4-9474-4d5b-b04f-99efa032b541","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":172,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"4809e875-77b6-42e2-beae-e1c646f554b9","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":172,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"dde15f1a-19d8-43a4-8e44-5dee32902393","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":172,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"ff463e25-3954-470d-91b2-f112ecd788f0","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":172,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"00816f03-74f0-4079-8463-9ca60128af9f","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":172,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"8a6399b3-541a-420a-8d5c-f5e35c375189","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":172,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"c7f7acfd-bf7b-4f45-85c5-b57f04f639ad","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":172,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"f111ad46-f9c3-430e-b0f4-d9ab9089f287","block_type":"box","text":"PFICs.","page_number":172,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"a6a3b47a-7640-416f-8bc5-4e0ba3d2a6ca","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":172,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"4b8f05d2-b7b6-4d72-bd70-0d4039b8833a","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":172,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"7f2a6903-8d0b-4281-822d-d37b8a5128f8","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":172,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"1653d4ac-af6f-4594-88a7-ac3e1eb2b613","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":172,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"486904d8-44e3-490e-b8d1-bfc5cf3fcb82","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":172,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"31aa11e9-4eae-4f30-ab48-cc99ae625a7c","block_type":"box","text":"difficult or impossible to obtain.","page_number":172,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"c36b3ec3-86f0-489e-876b-b0b3d7a53bc7","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":172,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"94619abc-227c-47f5-b047-c0227beaa504","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":172,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"d1061a40-e0d0-436b-a211-47be684ef82f","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":172,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"5d5d367c-db3a-4146-8319-69eb802122ab","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":172,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"b02c41bd-a173-4193-aa60-0dacdd9a59c6","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":172,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"7173a5de-1680-4d91-9af1-105042b307cc","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":172,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"036193b4-71ee-4ad0-b605-9a67dd315c9e","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":172,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"986a471d-d118-4149-8c07-eb2e384a09b0","block_type":"box","text":"Municipal Funds","page_number":172,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"6764218c-238d-48fd-9f8f-0a8013765e5c","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":172,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"b59648df-b03c-46cf-84e7-5fa10f76450d","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":172,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"c133c294-2d04-4085-85fe-cc2cecea5ac3","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":172,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"0b2a4658-ece2-4157-adf2-630bb366865a","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":172,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"6af4a1d9-3c50-4834-9193-d18672adaee8","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":172,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"b8d28fd2-9cee-48b4-8bc3-63e3ebff2bd9","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":172,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"f3537fa2-48f7-48c9-ab0e-748a87b4ddd0","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":172,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"27d7904f-2d0f-4708-ad5f-e345442aa856","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":172,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"be5d6288-3c81-492f-b338-ff1f026a6cd7","block_type":"box","text":"II-135","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5110cf34-bc5e-435b-ad00-ebfe60e2b256","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"654eb8d1-017c-42de-8fdb-191cc7b156bc","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":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"0aba49ef-8f4d-43c8-832e-d39a7aee04b8","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":173,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"697c6a25-01d7-4ee6-a1f1-76f2310447af","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":173,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"332b6464-e67d-4072-8187-7240fbdb9e76","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":173,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"53297f3a-c756-4fc7-969c-fedcdf5eee37","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":173,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"53b5a283-1196-4fea-80ae-8519c5ee1f06","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":173,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"835763e5-f5f0-4712-ac08-31414ace394d","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":173,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"90605b9f-d8ee-4151-992b-50866a1ad656","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":173,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"8990e799-4367-447c-923a-2c1ab611b586","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":173,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"8a8d74f2-4d45-44c2-9044-b702e84f8433","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":173,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"08ad980c-cb25-4833-8c94-3c19b680c7ef","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":173,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"7eede74d-60c3-4411-9b9d-171251387724","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":173,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"4d417fda-4bc4-468f-86ba-953dcd849e40","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":173,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"1d337c63-8c3b-440d-bdfd-35304e90d504","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":173,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"f93e95e9-6d2b-4b8a-a672-1fa065995966","block_type":"box","text":"constitute exempt-interest dividends.","page_number":173,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"69a507f3-a913-40de-8c9d-7089d7b7fe89","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":173,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"2c076326-8e7d-4289-a2ca-972cec58e620","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":173,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"547d3f09-bccf-462f-8887-6f5aa1c8daa3","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":173,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"c9da504c-a92a-45bf-a419-92074da659fa","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":173,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"851f6801-ba1a-46e3-9ff7-b1324b2e0f7e","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":173,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"7b37d781-c5c9-4bca-9db7-9db976d2c694","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"33a25478-0faa-49ff-a9cd-55727e2b9abd","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":173,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"5a16e14c-5ff4-43e9-b05e-e0579bc84186","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":173,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"244fad69-0eb6-4ee5-901f-9ba3b8f47d72","block_type":"box","text":"income dividends received by shareholders.","page_number":173,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"cf855b4d-8c90-414e-8759-ee3f4fd49f32","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":173,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"7b670147-6c4d-4521-8c98-14b342996861","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":173,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"31278d92-33ea-432b-b545-5f642bb976d2","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":173,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"6a4fa169-ee3c-457b-94f3-1acd5097c2bd","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":173,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"6134700a-69ed-4dec-9ae0-318a101600f4","block_type":"box","text":"the accrued market discount.","page_number":173,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"bcc32567-697c-47c4-88de-81aa0614e79e","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":173,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"e7805f1f-2136-4486-a2c8-57ceb35db4db","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":173,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"948485e4-5121-4d27-9a22-d020dd0ce403","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":173,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"6cb3e8dc-4f90-4e63-a759-195f0bfa43a1","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":173,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"4d5bdd7f-236e-401a-b131-11f4848e488b","block_type":"box","text":"e.g.","page_number":173,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"eaff814f-d857-4dc6-8ee9-c202892e0224","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":173,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"ae38865e-a5a9-410e-a86b-e74c4e981beb","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":173,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"40d60cc2-4157-4ea1-afea-96d8e5306ec5","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":173,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"44e6590d-68fe-43e1-9e3f-49f16c6530ea","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":173,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"8b2a60a4-fb40-4117-b574-d65aaed27dff","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":173,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"ae55a3ee-3af0-47b8-bc38-3bd6126e1d11","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":173,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"0bf58e33-5b85-40bf-85f3-f8065cab313b","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":173,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"46f95142-72f8-4acb-b617-f97f23266f54","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":173,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"242b8d73-6870-425d-b325-88592de85040","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":173,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"43804a27-a608-4c61-8828-5bda499f7634","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":173,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"79743583-6771-4df7-85e1-4f4e60706f70","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":173,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"16f36696-c0d4-4d80-b31a-2c3fff0b6e3c","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":173,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"98a85d13-21f5-4c09-a4dd-76217640e15a","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":173,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"a5ecf75f-fbf0-4cc8-95d2-d2df7906bffd","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":173,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"6ad4e190-43d1-4140-b13d-d97d52ff0604","block_type":"box","text":"within each applicable state.","page_number":173,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"15b4467a-0578-4ae4-ba2d-9f3b90292e11","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":173,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"a5a2993b-13e8-4cde-bec2-982214c531f8","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":173,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"77b4e571-11dc-48e0-855e-bbd3cbfcfa5b","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":173,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"f7f67447-1de8-4ef0-ad1b-7f60ac702825","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":173,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"19bfebab-4d1a-4b37-921d-c9d8489c852c","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":173,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"add58097-270b-4f05-af4c-4204b46f06f3","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":173,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"79ef308f-0c1d-4d0f-ae1b-59394fd72a80","block_type":"box","text":"II-136","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"76bb5f72-2ed2-4e6a-a23b-547c8e596f08","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b2c31e5-3310-40ab-9bfd-6a2e49cc2f94","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":174,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"7ce99929-186d-487f-ad6f-d79e61764029","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":174,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"2f3cf2cf-4fd5-41bf-860d-063e06e013c8","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":174,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"d8cac72c-8daf-42a4-b8e4-6ecb4e44399c","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":174,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"12afa566-af18-4aca-9b7e-76d121181e02","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":174,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"c4553c6c-ed5d-4945-960a-0f435f3700b6","block_type":"box","text":"exempt from state income tax.","page_number":174,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"3b407259-6d16-4ae0-9554-bb1ef67ab289","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":174,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"5f1fe415-a1f2-42d1-93d5-5c923272d039","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":174,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"6bb998c2-c585-44d3-b7f3-04163e2f9d53","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":174,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"3317cd05-844b-47ca-9360-f9631b2724d3","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":174,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"e2b4c50f-2d7e-4a67-a230-ceef2afc72a2","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":174,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"aa4bb394-faf9-4b46-97a2-ba91f029d604","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":174,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"9479a597-c2ae-44db-824f-ad1b5a31f083","block_type":"box","text":"decisions may have a retroactive effect.","page_number":174,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"6ce26f7e-206a-4019-a7f8-97d16542180c","block_type":"box","text":"PERFORMANCE DATA","page_number":174,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"8fb3bc1a-12c5-4aee-86c2-e3127aa3e6e4","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":174,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"8dcb9a2c-326f-4935-aa4e-2ddbe44c969a","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":174,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"4ad0b6aa-c389-4c6b-99a8-cfa554dd9449","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":174,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"d0586f37-40c0-4e5b-a3e3-f952b6bcc2c3","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":174,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"354444f5-518d-428d-aedb-2b5fd568edf4","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":174,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"ff6e8b57-78dd-4ed9-bb23-62c8e2af45ba","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":174,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"daa0a349-e030-467a-bf63-62da7cbb4a39","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":174,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"4afdc447-2393-4d73-bf24-a79569df0ffa","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":174,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"a422e44f-b8c3-4112-9d76-cecd9679dd36","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":174,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"7228e9cd-9aa1-484c-acb8-554594b4a8d9","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":174,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"6a89106b-e2a4-421c-a5e7-0c4acb97873f","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":174,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"06348936-f73a-4a7a-8745-ffbe6e67cc6e","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":174,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"8d5f4960-609f-4009-8f0a-9fe63ea325e5","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":174,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"f6b26f42-27f2-4f6b-abfb-504fff6e951a","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":174,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"78a9faba-37a4-41f9-985a-e41d4dd26c62","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":174,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"88a0bedb-ec8c-4a39-b670-29cb6b49adb5","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":174,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"00711b75-28d7-44af-ad34-42084430a931","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":174,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"4c95e40d-38ce-434d-a80a-4486b63d841a","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":174,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"4c17e7c6-30f6-42bf-8e8b-f75678d92d87","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":174,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"6f3ab992-1160-46ba-9663-2ee46c67b28e","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":174,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"7a08c1d2-af82-4bf1-b242-4b63bc916718","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":174,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"5ec754c2-2e5f-439d-ae93-fa7e522b67ea","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":174,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"95f53e15-4b63-4eda-9803-9e50d3816bef","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":174,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"b00e9f67-0405-4fb4-b5ec-fa3238a462d0","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":174,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"e0ad2b80-0ac7-47d8-878a-22a6104fcc30","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"093e576e-c48f-40b2-920c-32137c015081","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"63429392-da1f-4b7a-8237-2731ec13d56c","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":174,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"fd37d708-d4c9-4b65-8f5d-f19092d0dcf1","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":174,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"6a3dfff3-3988-40cf-8a25-b1b45e703042","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":174,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"a5b3b69f-a50f-4ad1-9087-c84db8ec6fa5","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":174,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"dcb2d978-27ef-469a-b702-82efab3579c1","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":174,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"b459ccc6-036d-4e86-8d02-47f5ed2afba2","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":174,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"413b61a0-5bb7-4a06-b0a9-afec071085af","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":174,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"3677dfca-bafe-4617-8349-3e65982fe0d4","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":174,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"fda0d3dd-e951-41b3-be80-a5a3a610b838","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":174,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"baa49e42-ee9c-42b7-b41c-8aff507c854f","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":174,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"6a9af065-ccf9-479a-95ae-da8e13c48532","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":174,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"9765449c-f50c-4156-91c0-93c3419215bd","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":174,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"2fd756aa-ea63-4dfd-8ce5-99bf6f59a192","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":174,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"db01a632-7cc6-42ce-8a50-833abac23a18","block_type":"box","text":"II-137","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fdfb07df-9d8d-4005-9d34-4a56f0a00140","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a83ba558-02dd-495c-a621-75c24d2f67cc","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":175,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"08d4194a-61f6-4e9d-960e-b695f25c343a","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":175,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"c836b412-8d9a-464c-9885-fb588661315d","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":175,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"c3c9f92c-683a-47a2-94db-e7201f1a2000","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"aa7c32e9-4e79-4ff6-86e9-8ad859a273ed","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"54019624-7082-4df5-a181-91a49437c4ba","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":175,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"4ea7e5f5-6de6-47f4-97a7-7f2c2da8e773","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":175,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"0fa496d1-e5e3-4e8f-94b9-c1f6651ccaea","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":175,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"3a7a5c6f-25ea-4675-88e6-9cdd7299fa65","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":175,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"f562acdb-d306-4d9d-a1f9-46206cff325d","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":175,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"8f078ffc-65da-491a-b21d-1873affadce5","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":175,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"f9e28870-269d-46f1-b8e2-d99aea7e4d87","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":175,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"4f156283-7c78-419e-8aa0-a7ac2be57779","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":175,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"ccde3509-9c2c-4fe0-8c7e-279073c219d2","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":175,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"cd0f5a98-8390-4413-b94e-c56578ccc571","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":175,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"aa461e5b-3069-4fcd-b04a-29688daeb500","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":175,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"8d398cfa-2cee-438a-af8c-82fcc37b6637","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":175,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"55e720ba-42a1-4bba-8ddc-0c4b2b1a2005","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":175,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"fc2488f5-4c40-445f-b1fd-fbee0f579fd2","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":175,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"a39b7cf5-9ff4-4029-9d64-fb1a738bc261","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":175,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"2ac58d7e-9813-474b-970e-5ed8ca9d98d9","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":175,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"65bf8888-25a5-4944-ad08-8fb998e72ac1","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":175,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"7d93317b-3587-4018-9300-b80a31e3ef17","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":175,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"a60f0977-84dc-4b8a-8210-8eb9b3cfaff5","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":175,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"3bfdcdf2-3dbb-4aa4-939a-93eede03d79e","block_type":"box","text":"less than their original cost.","page_number":175,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"6b10c67a-6e1f-4f66-a1a7-ef49ba1413f3","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":175,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"8f102b11-e1f2-4368-9687-cf498a38a16e","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":175,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"e086136c-4a93-4610-a339-6ce4d49aa941","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":175,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"511b6cc5-0662-488f-8919-30909db52550","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":175,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"083f5bcd-bb1f-4268-ab0f-79a96d87b1a9","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":175,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"1b892e82-09ad-4b8c-9503-e9334d35296f","block_type":"box","text":"lower amount of expenses is deducted.","page_number":175,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"21ea06ad-65f0-40d9-9186-a93543c2fa75","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":175,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"e3999239-0ce4-40fb-a006-3dea0b15862f","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":175,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"e43e565f-f69c-447e-88f4-2ec4e290bae3","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":175,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"93eb3a25-e001-4ebb-8ecf-019c6a0abb03","block_type":"box","text":"Money Magazine, U.S.","page_number":175,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"e5de7517-20bf-4f2f-ab7e-6a1969cb8c4d","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":175,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"7d94d511-ce1b-4117-9adf-0d949a30fec5","block_type":"box","text":"or other industry publications. When","page_number":175,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"9b48d250-d1d9-4dbf-b376-c7ba257e6923","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":175,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"59131818-30ea-48f4-8771-5e2ecb44faac","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":175,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"e875204a-652c-4089-bed9-2b8ec3f49863","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":175,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"093ea3df-9fc0-45bb-a3e9-2774bc008eef","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":175,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"3686770b-50c0-4b7d-a743-8da0e1a15223","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":175,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"4384cd4a-37de-4fce-957e-110a60fcb3d8","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":175,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"afdac254-0318-4380-bfab-0b0ae136d8db","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":175,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"77cb0ce9-cd3a-46f4-acd1-51bc853da398","block_type":"box","text":"developed by Fund management.","page_number":175,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"e3f12706-9c59-4009-9322-22169bd86c8a","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":175,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"43e79177-f7a5-48e9-93d9-94464dfcf8a0","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":175,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"e6308c70-a0f0-4409-ac9a-c56a9f1321d1","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":175,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"4df9ef7b-b9d8-4f1b-bb8a-ebe939d15954","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":175,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"733140d5-c650-430b-b1c5-04ca72c37e31","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":175,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"a8861427-8460-4bfd-9ed3-f9b09bb680c9","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":175,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"cae74a4b-40f9-49e0-b72a-cb34492925ac","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":175,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"a6409ac2-a9dd-452c-971d-fe033f70661e","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":175,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"da7b91c5-fa8a-4829-9891-c6d405ab6c52","block_type":"box","text":"II-138","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6cfc9013-d7fb-44a1-8e6d-2248f7130702","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5dcbf080-e8c5-4109-adbb-020d435f28aa","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":176,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"ffae48c0-9a42-4151-844b-8e1266ef9ece","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":176,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"d353b6ad-a937-4c01-8b19-ddfe12d01565","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":176,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"035e694a-dd86-48e4-a85c-48b4ff39355a","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":176,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"5f988731-a5be-4da3-802b-99801b945563","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":176,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"f0458c71-9024-47d8-9093-550f1cf07b91","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":176,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"16816b29-e473-464c-b870-75a4163445af","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":176,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"9e4bce3c-af98-4526-a806-50bdb49f0f2a","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":176,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"f04f4313-9748-4cf1-b104-f26c6e7ce1f7","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":176,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"c985d458-fe26-4396-9bae-c5381a2915d8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"518449f2-b5c0-46b0-a909-3ee89990b285","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":176,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"ee165738-f3bb-45bc-b0a6-8fddde98b4ab","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":176,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"a211ecb1-112f-4e74-a0e5-ae4d531c32e4","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":176,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"c994e302-02df-4ea8-acf7-461da2d1361e","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":176,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"a2a5bd1b-880a-4a3e-9fb2-9b62a5fa4f0f","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":176,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"318c8a84-9f88-4111-a466-9dcebc60573a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"680ae1f5-1d9e-46a3-ac30-6ddb88211b2f","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":176,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"29bf1052-768c-4f15-85e2-fb76edb5f1d8","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":176,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"1635d555-e81f-4ce1-bb78-80f1f674ad7b","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":176,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"476ac5ad-f0ab-4aa2-91d5-8d375f3c3185","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":176,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"2c6bf812-73ad-4dcd-9c6d-34afb0d7fbeb","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":176,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"a9a4754c-93ae-4b52-8a34-1c43dcb264ae","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":176,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"550e4d48-79c1-4f40-b6a7-f2ba33ac3548","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":176,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"dab8b369-2a56-490d-9f7d-241e19c659e3","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":176,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"d419843e-41c3-4ba6-a802-80e25edf4dc1","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":176,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"ad620449-53b5-45ca-a709-2e84e8cf0043","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":176,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"95d33c22-ffc5-4d42-bc74-22fa59437932","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":176,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"b605bdcb-909d-4e43-b1d5-a21368574d92","block_type":"box","text":"GENERAL INFORMATION","page_number":176,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"dbc2fda9-9d7f-4d06-bd30-17c35f367883","block_type":"box","text":"Description of Shares","page_number":176,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"f24338fa-7a6f-44f2-a915-f542ca6e8131","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":176,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"def0d771-4393-4b52-97c2-be8fa9dba66b","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":176,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"bfaf3549-7a95-49d5-90ab-7010cf13427c","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":176,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"dd208bab-1411-4ba9-8424-69afb765ba70","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":176,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"3f770f35-e2ec-4dee-a95d-73b552902208","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":176,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"b824e3d6-c545-422d-8763-81448b7c5f8c","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":176,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"32bd9971-4b53-46c8-bdbb-d0bfef3f3622","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":176,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"cea16196-2d04-4eba-b221-5c57da915eef","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":176,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"d198ef3f-81f7-4eb1-83cb-aac63379db50","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":176,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"f80c9003-eabe-407e-a9e6-39d70c2dbdf3","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":176,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"c09f6aae-89cb-4dc8-9264-57ff44ae308b","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":176,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"2016ef6b-0e2e-4858-846a-007108c655a5","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":176,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"14cfa198-b130-4599-8e12-d4e9192b092e","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":176,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"239c891f-df4d-4e52-9d43-a099272c3d44","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":176,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"6e7299c2-6b2e-43a5-a5e8-6d32b6119976","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":176,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"3f8be1c0-4458-4146-af1a-72c289688e7c","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":176,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"bcc7cfdd-129a-472c-85a2-a44433fa1b8a","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":176,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"cf742874-2026-40c6-beef-aceec06fddd8","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":176,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"e5a2fc92-8b5b-4439-8d42-930f02b2fe73","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":176,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"40844734-1cee-4e21-90cc-a127be83dfd7","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":176,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"604fc712-1788-4248-bf8e-aa2abfbacd35","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":176,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"13a281f7-27c9-4271-b5e5-d5c991bee071","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":176,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"3367502f-9185-4dd6-bdd4-f072027de19f","block_type":"box","text":"II-139","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6fcae483-892d-4bb4-8ecb-0286443dd8d3","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22170ebc-d4a7-432a-95d3-b0bba04eb644","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":177,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"046697d7-12e8-4950-9240-2b2fc3e018ee","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":177,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"acfbb4b6-a718-46b1-8a0e-b09b5621890d","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":177,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"5217209a-367c-4205-b9e5-614b8143952d","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":177,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"3cc1d6c4-fc61-424f-badb-9f88f0fc5be7","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":177,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"b24b2b23-68dc-402e-88d8-240c1bd6c64c","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":177,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"d768dbef-9f55-40df-aa8b-5fe7afcceb0f","block_type":"box","text":"Additional Information","page_number":177,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"9e368789-c9cd-45d0-8685-6f4e420ad839","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":177,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"d0f05c4c-bc73-46ab-9b77-f91d8fe57f26","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":177,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"4ce3b538-c479-4b41-89a9-02561370a99c","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":177,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"a08e9455-b2b8-4986-bba8-b9d8b127912a","block_type":"box","text":"such name to any other company.","page_number":177,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"f5d4b36b-3bf2-4833-b749-3c55c22153a9","block_type":"box","text":"II-140","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a8e9cc91-9672-4523-b1b0-0f3a926d4962","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24372718-ad95-4b3b-a085-c76e4c1da641","block_type":"box","text":"APPENDIX A","page_number":178,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"03ae695f-89ec-40de-a478-7a631031853b","block_type":"box","text":"Description of Bond Ratings","page_number":178,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"5580f492-9111-422a-8317-f488b3f2e629","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":178,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"56c8e19c-a5a8-4e1f-ad7c-6f76a9a0bd8d","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":178,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"271db34b-19a8-4b19-9195-aa553605f6a5","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":178,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"5fb09b86-e5d0-4ab2-81e3-ce7583100604","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":178,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"7ef51b69-e681-4786-900c-d688c36bd7ad","block_type":"box","text":"securities on a particular subsequent date.","page_number":178,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"881107f6-0c82-4b2a-a83f-98c25479fb8e","block_type":"box","text":"NRSROs may rate specific investments (","page_number":178,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"d1b07017-99d4-4ec4-8d6b-03f1230b5a69","block_type":"box","text":"e.g.","page_number":178,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"24a3e7b7-7a9d-4c5f-9ba5-2d0e5353d4d8","block_type":"box","text":", bonds), issuers (","page_number":178,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"957e9160-6071-414c-9450-3c00c453beb1","block_type":"box","text":"e.g.","page_number":178,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"53fda4e9-7755-42a7-8fb3-da95052c0e24","block_type":"box","text":", corporations, governments and financial","page_number":178,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"08013a0f-8362-4de2-81d8-5687d9325595","block_type":"box","text":"institutions) and/or programs (","page_number":178,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"ac003f93-6549-4c9f-8fef-9fe3366f1e5d","block_type":"box","text":"e.g.","page_number":178,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"83291fb6-63eb-4209-b438-720fb14c074d","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":178,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"f04d9b68-12e0-4bde-a48f-3c048b2e01af","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":178,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"6cc45ca2-a014-429b-8055-4ec12e95137e","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":178,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"bdb51cd9-73bf-4d80-bc50-a9fa32fc04bb","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":178,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"84636828-5087-4210-9c5e-7581c66ed0ff","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"661b17e6-a341-483c-a061-39f138a51724","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":178,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"89e813e6-c6b6-4c4e-992e-98c1c45c4cf5","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"739c346f-3b7d-4005-bb33-5491c9dea973","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":178,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"7726ed55-9521-4e12-a94e-820ba522ec1d","block_type":"box","text":"security (","page_number":178,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"209bbe4d-6c63-4fde-a7a1-a292215ddc0c","block_type":"box","text":"e.g.","page_number":178,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"db16ce11-b4b0-40d8-b5a5-97bde220541f","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":178,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"1a30285a-a7d9-4e4e-a8d2-a8135b9fa046","block_type":"box","text":"highest of the multiple ratings.","page_number":178,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"b23f7d2b-466f-463a-8fa9-3798862bd384","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":178,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"4c9c550d-ed5b-4e73-930b-06529f92c6ed","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":178,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"f4c00c84-a0fa-42f8-a258-096ad75290be","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":178,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"f45b7e0c-ca6a-4ccd-8e98-802268d00d8c","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":178,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"af84b60a-34f1-443b-8e90-ccd9b8f065c9","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":178,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"e48d22f0-d7ec-47a2-884c-b6ef4246a34e","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":178,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"cd7f9e41-5531-49fb-9e7d-b3295bd61964","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":178,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"09c7f490-154b-43cb-8c8e-bfb86149fcc6","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":178,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"214697f2-e806-46a9-9c43-f22b647de01c","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":178,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"fc54087d-b01e-485c-a537-13245e637dbb","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":178,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"576c1999-8deb-4039-8cdb-97352b6e5e89","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":178,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"42ae5cbe-84c8-4e96-960f-1493bbf68075","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":178,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"a753c31b-9ece-4161-af63-1befe7d89b0a","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":178,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"1fc16540-46a2-4b05-a710-56e401d9b381","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":178,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"0ccff860-bf66-4a37-ac98-3c15fd258d5c","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":178,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"fca0d5b1-108b-4475-9c46-2f6f118cee5c","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":178,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"9dfa5bcd-c46c-485d-81b3-8ca018bec7e5","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":178,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"807adac3-51eb-4cda-aa32-c472169d48e2","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":178,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"74b2a82e-da36-46ce-b815-523a7fb93de7","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":178,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"1740c49e-d2b1-4f12-a5d0-e605cd1e82f7","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":178,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"f8105f65-8b4c-41d0-9cc9-0e27fc60d94e","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":178,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"e8f58b39-15aa-41b8-9398-07e49946c979","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":178,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"5ccf7b48-315b-4491-a7f8-1e2d649ffbf4","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":178,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"3ffce7bc-e245-4ad6-8d21-ec9ab7fdde4e","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":178,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"f9617613-3a66-4f90-944f-97ff9b7f1a46","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":178,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"19e5254f-cdb0-4b6b-9e97-2694ec6afa3e","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":178,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"741bb0c9-446d-408b-8171-f333fa451cbe","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":178,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"a1152c67-c3d8-432a-bb9e-93cc81e05c46","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":178,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"3b7b673e-7361-46d1-9593-41d532dd0aab","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":178,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"d14ab776-7b7f-4ca8-acb4-4f0ce167b757","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":178,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"de96f067-3b31-4a20-b0e8-d47e66b4d647","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":178,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"b1c31003-8a63-43c4-acb9-7ae4d1b1d578","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":178,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"83d832f1-2775-4a96-9823-6cd652843286","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":178,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"ae17a94a-6625-4ff9-91b0-68fe390db946","block_type":"box","text":"upon standard sources of variation (","page_number":178,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"594537bc-e72b-4df6-a359-a677b1ef20ca","block_type":"box","text":"e.g.","page_number":178,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"8febc269-3d76-4662-85b6-bd37da8d6bcf","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":178,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"2908ee25-2006-4f99-b64e-e8a25a83c138","block_type":"box","text":"A-1","page_number":178,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"2b0e0c48-f06a-4f8a-9c1f-ab0a05e33848","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f01ad31f-0738-464a-a68e-fe618164cbe3","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":179,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"ea4bfc64-0184-427a-a20a-cccd15bf191c","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":179,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"3d3a503e-f0c2-42c9-93c9-20d281edd9db","block_type":"box","text":"e.g.","page_number":179,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"16cca153-ac6e-417f-a220-12a5737328cf","block_type":"box","text":", equity indexed), absent","page_number":179,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"168693e1-5347-42aa-944e-f664573bdafa","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":179,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"f740015d-1db4-4610-8bb4-e4a7503a31b6","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":179,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"54138bce-f1d6-427a-93f9-7a02b7914e2c","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":179,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"04b47d71-8a71-4119-a945-96f87727fdc1","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":179,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"ac27836b-9366-4092-b840-2768cb3dc91c","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":179,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"77597058-dadb-40e7-b11a-bb8e811df8e8","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":179,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"33753784-7031-434f-96c4-958dce88c823","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":179,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"fe1b9363-000a-4ed2-894d-71cf2899cf26","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":179,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"2acaab86-e410-4ba3-8f59-130555be4dc4","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":179,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"1998a5ac-95fc-41d0-adcd-bdc977b6c4d6","block_type":"box","text":"i.e.","page_number":179,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"b158fba8-f232-415a-872b-04be397ad428","block_type":"box","text":", ratings on nonfinancial","page_number":179,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"66168b54-bad6-448f-81d2-be589a8c9e2e","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":179,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"9c9e46ed-5060-4ab6-b7ac-ea67d6a9e4e1","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":179,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"9d53482a-5f81-41a6-a5f1-0445037e20b9","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":179,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"9207ca73-78da-4c2f-866c-8b251bff36d1","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":179,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"ee8f6b0d-9c3f-4432-a189-c9952213da12","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":179,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"20e18eaf-29ec-4f93-8fdd-d53a321f9f15","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":179,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"e76d619d-500a-4f07-831f-764869b6eda1","block_type":"box","text":"of time.","page_number":179,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"e9d70b72-98cf-4677-875f-1e6286702458","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":179,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"605c4594-db53-4fb9-ad99-aadf13633c7d","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":179,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"0239a179-e3e7-45f1-bb6a-3e27de7feba5","block_type":"box","text":"risk.","page_number":179,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"dff0b205-1970-448a-a4f8-8a8fb271af1e","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":179,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"6fbdedbc-918f-4744-8550-068646507413","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":179,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"94dcefe1-dcb7-48d1-8e7d-1d2909c5dd5e","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":179,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"d3943711-6655-42bf-ad62-842fe93600a7","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":179,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"264d4188-6cac-4355-8bb6-ea2665020060","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":179,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"c304496b-ec96-4424-b85b-b1b3f6f705f7","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":179,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"143f7fb3-0500-4341-92d9-2df6562fba00","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":179,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"ffdcd7b3-f055-4fcb-906a-62e28f47df0f","block_type":"box","text":"credit risk.","page_number":179,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"21e147b8-9ebc-4459-b4c4-f4191b95e95e","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":179,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"366fee21-662a-496d-9378-776f9ec3b3c3","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":179,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"b5495793-095a-45f1-ac7e-528cab431255","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":179,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"bff4a38e-7004-406a-915a-00cd3b96f8b6","block_type":"box","text":"of principal or interest.","page_number":179,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"94d16cb6-9d63-4d48-b2ba-763dacce5124","block_type":"box","text":"Note:","page_number":179,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"cf634580-9248-4731-bf6f-7c49788b1adb","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":179,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"86319f29-0b8f-4a8e-8e0e-6ae22878a4f0","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":179,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"012545ab-998f-45f1-9c92-28585d1c9bef","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":179,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"f071db74-348e-4375-8d5d-2e3dcf752f50","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":179,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"dce0b568-95a3-428e-b037-df9cfaab39e8","block_type":"box","text":"companies, and securities firms.","page_number":179,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"79662599-4b0d-4389-b43a-259f36e23b8e","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":179,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"77e1dd8a-4c19-4f5d-84c4-306d2402a688","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":179,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"391ffefe-e4ce-429c-905a-7afd6bea0995","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":179,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"3b2a0126-0530-4d9c-9595-834c5a8ce12a","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":179,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"f1e67ccd-51c4-45b7-a954-5563a86dc56d","block_type":"box","text":"that security.","page_number":179,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"45e9459a-253e-412a-8e72-b6de9721fa7e","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":179,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"20f901d3-16ee-4752-bdf9-992b7dcab9df","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"6cd16541-23b0-4fdb-81ab-43689d665c3a","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"5f7e93b4-8694-44f5-a515-323533fd8b81","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"1ee5df12-6e60-4cc1-a9ff-a0670a05d380","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":179,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"0f0a2474-0110-4fda-bdb9-717093422a13","block_type":"box","text":"categories.","page_number":179,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"fdffd2da-0fd0-4bd0-b4f3-5b235032d49e","block_type":"box","text":"A-2","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2f815d19-c8fb-4c7b-a43f-f552265aa6cd","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f6556e0-1b92-4c33-ba4e-da0815fa64ca","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":180,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"d3bd2e86-f0eb-40b9-a1ef-74539739fc66","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":180,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"fda41562-4b95-4c8c-805d-c7a8122e6213","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":180,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"e3a720ba-a601-463e-aa5e-c63200c32f7c","block_type":"box","text":"an issuer’s self-liquidity.","page_number":180,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"853e1957-c817-4ce2-9d91-d1bec7c166c7","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":180,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"501ee314-4e1c-4a21-99ea-db684b2fbce3","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":180,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"09c42c76-fc3d-42a0-90ee-4ff7bbdbf49a","block_type":"box","text":"MIG Ratings","page_number":180,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"19872ef5-26fc-4300-b80a-dc41ef39f670","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":180,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"80ea102f-685f-4128-b2ab-7cc2cc56f2a2","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":180,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"aa76f0ee-a395-4ac5-bebc-8269a2dbde69","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":180,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"585f5c94-97e3-43a6-865f-b42361ed12d6","block_type":"box","text":"MIG Scale","page_number":180,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"deb54372-e993-4572-b6f6-8ccb7fea9878","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":180,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"6b93b102-84cb-4a7f-8e17-752ad5931b73","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":180,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"150668da-4377-4e4e-a4ea-4624d33b29f6","block_type":"box","text":"refinancing.","page_number":180,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"be495869-3d36-4bfe-aeb6-92a59d3723f3","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":180,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"48e521fc-8753-407d-8532-0067a21b1434","block_type":"box","text":"large as in the preceding group.","page_number":180,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"bb0f146e-8a7d-4efe-a202-0dac21dfb1a8","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":180,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"c10b33de-9d8a-4d8f-9359-c4f8bd434dc8","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":180,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"24b37700-ce69-452a-bb6f-4bd3e6d732be","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":180,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"12290b9c-6a08-453b-aa34-afd4146a4bad","block_type":"box","text":"lack sufficient margins of protection.","page_number":180,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"40e63e56-8be5-4cf1-a9e8-deff99fd4a72","block_type":"box","text":"VMIG Ratings","page_number":180,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"f259c27c-d893-415d-bb53-00496b26100a","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":180,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"9f1294ca-8d8c-40dc-a904-0f02bfe86d60","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":180,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"a52ebacc-7031-41f9-aec9-da17b3e22c72","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":180,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"3b1e5483-c538-4d50-ad79-802a85a360a3","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":180,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"9361fbd1-e5d0-4893-922b-e4bb77edcd58","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":180,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"5ff00d26-b402-417f-93d8-ba6a6b6363cc","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":180,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"2c06a880-65cb-4031-ba88-c87ad1868fea","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":180,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"963735eb-9980-417b-b9e2-5c536203209a","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":180,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"be91d0c2-520c-4b38-8057-90534d2aedb6","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":180,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"1ede3193-0071-43ee-80f4-f794c7888b0f","block_type":"box","text":"grade.","page_number":180,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"aee03989-c0ad-4858-a403-4f3e439236bd","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":180,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"0d59f170-09ed-4ee7-9fc3-f5c8a52e1eea","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":180,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"d0a4b65f-df89-4601-95e0-b5d9c3962ebf","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":180,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"c83aa644-cd8c-4053-adcd-df0eb84d49f2","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":180,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"b0d9e6e4-e359-4153-8420-b2c514b61d2f","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":180,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"c883deb6-285f-4e54-aa42-215db27b272a","block_type":"box","text":"liquidity of the corporate obligor.","page_number":180,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"daa77d83-f020-4365-a0d3-4cdc2245332f","block_type":"box","text":"VMIG Scale","page_number":180,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"354eb882-b61e-4863-8bdf-15cfcd93e2d5","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":180,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"23f4c0e7-17d6-414e-acab-b79d6bc74684","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"269eb52e-47a2-45b3-8c2a-ab338c5af975","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":180,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"3aca3b6e-6c26-4599-a236-5980579031ed","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"50641249-b110-4cca-a94b-4ccfaa9c8149","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":180,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"db273325-e6d7-4bf7-a1fb-13cedb7967e2","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"5a551c27-d7c0-4e38-8a21-27e1308a581e","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":180,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"c9d8d9a2-b35f-466e-a12b-1da98bc6dbdc","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":180,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"cbfd7b87-202f-4a72-8310-30cce338f46a","block_type":"box","text":"may lack the structural or legal protections.","page_number":180,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"9427dc8a-e2a5-4a85-a16a-7ff93f2f387b","block_type":"box","text":"A-3","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"910dc1fd-07d3-4fe3-990f-e0048fece302","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4569b10-962f-4e70-a541-a92a0ff2f9df","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":181,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"63244b99-9ac5-4447-a8a0-e69d591b006d","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":181,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"2dcc0002-f45a-40a6-87f2-9963cb21c64e","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":181,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"24644ee3-455b-459b-841b-239d0bae0ecc","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":181,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"4a0b5158-a0da-4d7e-bd76-bfcfd8668203","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":181,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"117cf695-60e3-4251-9cf5-e388fb51cc9f","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":181,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"44422fdc-1e96-477c-985e-6a948fa6f4eb","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":181,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"c4a3490d-a049-4017-aa86-a6a12c1eaf5a","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":181,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"5df098be-85bd-4fcd-b0f4-d31c7c58bd92","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":181,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"566d7e1f-1b85-47fd-8520-5bfdc3c24848","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":181,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"84f22e79-847d-41e5-adba-105138ca5481","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":181,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"504ab506-8025-415f-808e-01a993c51b23","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":181,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"18e25d31-f333-4fc0-b716-3ca42a29454c","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":181,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"1a4494de-6567-4f0e-9f7b-cb3a148d8f6c","block_type":"box","text":"from these guidelines based on market practices.","page_number":181,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"351a0bc6-9cc6-446b-aef7-57541196cde2","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":181,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"3463b571-7e6f-478a-bd7e-7bc5d18548c1","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"a59eff32-3f63-4019-b1fd-40f05f4f41fb","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":181,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"c2a59f2f-0a3d-47ee-b256-0d710116c6da","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":181,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"8d4ac9de-7e13-443c-9fbc-83ba1ea57007","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"a9837fb2-fb16-4b46-bc1b-9ea43a5ebf75","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":181,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"2d831947-f06f-481e-bf69-2a7fbdca0235","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"989a20d9-ea34-4810-a820-9dd75c18a51f","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":181,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"ce8de3fc-dd22-4572-923a-b8b55a8c407b","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":181,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"a714d5f8-d9cc-49a1-840b-45c3f53ada42","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":181,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"e7737497-540e-48e4-a74a-ca4f7ae156e8","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":181,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"eda47cbd-b36c-4e7e-bb53-a15f14e13f7f","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":181,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"e228251b-7945-41bc-8c8a-1855262085ac","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":181,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"85a1949e-2524-420a-95c6-97d4baf381ed","block_type":"box","text":"obligations.)","page_number":181,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"417ca642-6944-4862-b097-b6bd75461b5a","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":181,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"a54e92e5-77a8-424a-ae3b-9e164c8aa874","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":181,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"014532f6-9edc-47ce-834d-72ee72a27721","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":181,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"7d2bde01-50be-48ec-86ff-8e19c271cce6","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":181,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"24089e37-d9da-4c26-9343-9e52b1b3da6e","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":181,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"d010c96d-1d0b-40d9-86ae-1b4c1b8cc542","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":181,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"f1bfe39f-3489-4419-a088-25aeddc7f46c","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":181,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"991b3cf4-e141-4618-8c6a-dada049c8871","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":181,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"37c959b1-ec7c-4694-bad3-3c3784535e97","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":181,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"1ee30072-90f4-43cb-9882-310b0b310952","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":181,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"73b7edac-9105-48a6-85aa-6526185c1112","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"bc912712-0c76-47c0-a1ba-9f0e54ff9767","block_type":"box","text":"BB,","page_number":181,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"436b7e54-4a3a-4f61-bbc2-81bfd250abc6","block_type":"box","text":"B,","page_number":181,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"e5825855-1ceb-45c0-91bb-a372d7a738b4","block_type":"box","text":"CCC,","page_number":181,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"c92a3156-a9e2-4eae-bcd6-b985f2237314","block_type":"box","text":"CC,","page_number":181,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"c65de33d-71f0-44c3-b806-6cc6eaa72b5b","block_type":"box","text":"and C","page_number":181,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"02dc7e1f-7cbb-4f2b-b18e-a5d182a64d3e","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":181,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"d81929c1-a09c-4773-9b5a-6ea683f5508c","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":181,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"a6eb8bfb-fc09-4f95-90dc-2115c79819f4","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":181,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"fa9d7815-ae88-499b-91af-527b998f4264","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":181,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"55788417-ddb2-4b67-a685-7d0e0b73d8ee","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":181,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"4af0c0db-279a-46cf-8195-45111d0c01a4","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":181,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"8c1df347-7f7f-4518-be73-d664e66061c3","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":181,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"bf634b75-6901-4952-a92a-27ece04ed597","block_type":"box","text":"on the obligation.","page_number":181,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"cb7ac8bc-cb53-4d14-968e-d4dd73a377e8","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":181,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"f0c61a37-4dd9-43c6-a162-68f379d81fb4","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":181,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"73bc1bfc-db3f-42e0-9a35-444728ecfd3a","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":181,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"06d7ea9b-5c2d-4b51-a0c1-1a1637f7bfe5","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"fa78393a-d73e-4dd2-b025-dae12491af96","block_type":"box","text":"A-4","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"897ecd01-2d9b-4573-aa11-2138521fe1c0","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ebe49f16-6b08-4615-939f-57b56f46b183","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":182,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"72c1e9ac-7741-40bb-8149-f3cb5f5fd03d","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":182,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"48541000-fa00-4e76-bbd9-5a0a67c6193d","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":182,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"304f27f8-6896-4b3a-a01e-417e2920725f","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"1b2b864a-5f45-40f6-9f68-a4eed9253d78","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":182,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"ca7b6e59-6e1d-4cff-b2d1-f496fe6cc92f","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":182,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"89557000-b94e-40e1-be6f-4aa59eef69cd","block_type":"box","text":"anticipated time to default.","page_number":182,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"ec1c7266-9432-4eea-8a83-683501a093a6","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":182,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"fb390126-a722-443b-8814-b8c8c097ca0c","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":182,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"5377e24a-7673-4b5f-b3e7-cd3f3d02b43d","block_type":"box","text":"higher.","page_number":182,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"fa201dd4-39f9-4567-a31c-e96762bd3250","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":182,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"bd768aee-eaa4-4248-8148-d2d508a29468","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":182,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"b4cd6043-de1f-4a9f-bd17-314b4b45bdf6","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":182,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"6c5a4ad2-2280-45a1-97bb-a3b20cbf115e","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":182,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"87cbc66b-376b-4d8e-9e42-455e508de510","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":182,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"7c1ff250-2f9d-4a67-96fd-7b632c497630","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":182,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"23c9c48b-4d9b-4836-91b3-e4476d4cddde","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":182,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"7c3766e6-dbd8-44ec-aa4d-bcc016b96db2","block_type":"box","text":"restructuring.","page_number":182,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"32c12188-ea74-4f7d-b566-1a0aabb1b012","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":182,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"6f9386ce-552c-4e36-885a-b931fbed35b5","block_type":"box","text":"standing within the rating categories.","page_number":182,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"884df927-4162-4602-80f4-2beeb49b6d17","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":182,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"582b6260-69af-4379-a3bf-5fa9c3777aee","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":182,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"547d3bf0-0662-4726-bc1f-39b296354afc","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":182,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"4c850bcb-e5f2-406e-be18-2a036d829395","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":182,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"cd1d29d9-8953-4bed-85dc-c4fb68dd28e0","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":182,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"5346f941-ddb7-49f2-9630-8ce44c1c79fc","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":182,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"05a1768c-6f4b-4796-a6ef-65a0a02b548b","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":182,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"065089b3-cf36-4a88-956c-470a9f972cb4","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":182,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"66df0461-7a5d-479d-a9fd-a67c62d91f24","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":182,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"a5d18f3a-d89a-426a-bdbb-01a65f0c74db","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":182,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"f64ca695-0563-4581-a04d-19a49b46c575","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"dc4a845b-0673-4725-b4e9-f55b722412a6","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":182,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"d72a99f8-6940-4e89-b91c-e0074f0c7b51","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":182,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"8d8c7936-e92a-4409-8e73-214522a099e7","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":182,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"7a055ffd-21ba-4592-b8ed-aef4a8792c95","block_type":"box","text":"financial commitments.","page_number":182,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"fe5fa69c-781d-4d05-b376-61fa6f70a0bb","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":182,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"337916d6-baa1-4aff-aecf-6e85e70e2d89","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":182,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"f9028172-a245-4323-bbef-3ae7ba392c2b","block_type":"box","text":"commitments on the obligation.","page_number":182,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"ef10f71c-8b59-40b8-9729-dd906b138c8a","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":182,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"8ce1ff33-c228-4304-b000-8ac645432e0b","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":182,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"21b2c00c-adb3-4955-8b4f-4aa728d8df72","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":182,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"20ee71a4-2f77-4897-9087-bc696e60354a","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":182,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"387fcdce-174a-490e-a298-5a10a0d12eff","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":182,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"e53e0c3b-54fc-4b7e-bfac-faebdbf48b74","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":182,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"a6cb0857-b26c-43a8-a0a1-178e8b73f21a","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":182,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"972bd647-d628-4ae0-9d14-bd65831cf926","block_type":"box","text":"debt restructuring.","page_number":182,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"79821785-e923-45ac-a63a-b4fd11b9283b","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":182,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"3ef3dd00-5be1-49f0-8a62-de5e19294f89","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":182,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"f47cdc32-b63c-402b-aea4-9598833f14a3","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":182,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"100a071a-5393-4163-a7d9-2003c3d4e736","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":182,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"17cfc4ab-033d-460e-b7fb-e83108dd7bf7","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":182,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"b5ebc06f-8122-4fe3-9160-68ad8fd8552c","block_type":"box","text":"A-5","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"8ce4d1b2-2a3c-42da-b0ba-07cc745da97a","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7efc5d31-ce57-4c10-a65a-6413faffa988","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b57fb1b3-6901-4433-8cf6-d8d21380f3d2","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":183,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"87394964-4be3-4bcd-9d53-d0f421add8f5","block_type":"box","text":"as a note; and","page_number":183,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"c2c5a93b-597b-4fa8-b535-f150a1b326f8","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"9be793e5-7cf3-421c-add5-70ef88c01e2f","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":183,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"16674351-0804-4951-ad74-85e4f26979c3","block_type":"box","text":"treated as a note.","page_number":183,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"bf716e7c-1ded-44b2-b6c0-0ef659b195a4","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":183,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"975ffdb8-408f-4cd0-8fac-1788eebf4e44","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":183,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"0d542e3f-7098-4ba1-b747-f0e9e502c5bc","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":183,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"ea3b7f80-e556-4159-aace-e12e1eb60af8","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":183,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"52c9a42c-b276-4a23-966f-5cd74b5f1d9b","block_type":"box","text":"economic changes over the term of the notes.","page_number":183,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"b30f9129-7da7-4b43-992f-d62c4d6fd8e3","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":183,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"a7e15fcf-867d-4512-a4f8-da3b597beb4f","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":183,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"1ae6ff4c-7770-4e48-bfee-32e9d6d9c333","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":183,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"defa0eff-25d9-4403-ba47-b692f9350b0f","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":183,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"f4ef284c-0e9f-4334-b8c1-8d8c4dc64a0f","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":183,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"f6f0488a-3fff-4fa4-9d79-5eb90c90d196","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":183,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"324b00a1-1363-4066-bd00-98f094af6539","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":183,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"3ff1dac4-28bf-4daa-8c87-ed35bced7888","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":183,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"6a04f2a9-68a9-4942-9383-21d12e6fd34a","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":183,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"b8b15df6-b829-4005-b5c2-e174f3f18d08","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":183,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"f24f4920-dd5e-4264-96b7-9c549e54a127","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":183,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"44daf499-44b5-4bed-b3c2-1e915934bbac","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":183,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"5397eac5-4b0b-49b0-a02c-ed9a4f0ba82a","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":183,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"46e19eb7-fcb2-4806-a845-13b9bb8b23ee","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":183,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"33d70e9b-2630-4934-aaa6-9d2d908d5274","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":183,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"66606818-9633-4f30-bac5-8e101ad01d8b","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":183,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"83eb091d-8e34-4c14-aa1c-444be375b2b3","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":183,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"07756b35-6e68-4510-b555-9fbcbcc4a3e5","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":183,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"7945a9f1-089e-4cc1-b6bc-6bad44bf4f25","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":183,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"0bbbec8a-c49d-4f9d-8235-713ff094a160","block_type":"box","text":"receivables or other financial assets.","page_number":183,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"d5579775-ca69-4bf8-906e-e431b1d79e89","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":183,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"f3d7549f-4bcc-4a7b-aa4f-b787471b2c09","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":183,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"85e5fa8f-1bbd-4b92-95f3-a3834e76937e","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":183,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"6f1c1cce-1e37-44c5-bceb-eca4752c84fa","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":183,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"a75c9c31-a24c-4351-b4f2-c7bf27d47274","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":183,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"b8b38bf2-7ade-4bed-afdf-1e6e9906a51f","block_type":"box","text":"occurred.","page_number":183,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"d10c30b4-9026-4aa5-a46f-f94718e6afee","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":183,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"78c6d12f-b2dc-48a4-8a44-55c994f7baea","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":183,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"63046d22-a7d9-45b2-a0df-fb0f0fd1ec80","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":183,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"bab493d0-2c3b-4026-9c11-b5ba29ea944c","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":183,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"db7a60b1-7616-49bb-8b1a-ef81a9cdcadf","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":183,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"77657142-12be-4150-b96e-690249707fab","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":183,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"3195566d-28a3-40ef-b540-d609367a61e9","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":183,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"2db8a881-eabe-403c-ac58-05912615647d","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":183,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"65b336ff-5b3c-4c78-9705-9ac5dcce12ec","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":183,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"78403967-986b-4333-a949-a9d08effe150","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":183,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"8aaf7c33-c90c-4f43-a52a-5a6e994b468a","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":183,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"31d5bd84-737c-4b0c-9ef0-92af711d8a27","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":183,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"96fced75-e49a-472f-8994-cf4a8527ac9c","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":183,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"6532b6cd-0c0b-4f0d-8814-2760bf3646c0","block_type":"box","text":"i.e.","page_number":183,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"a9b59709-a5d3-4a93-b64a-c4c84d798c73","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":183,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"1d2f1847-7205-4143-bacd-250d5229a391","block_type":"box","text":"the obligation’s documentation).","page_number":183,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"09732ba5-77ad-44d2-9869-a5020c520ad0","block_type":"box","text":"A-6","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2a69e9df-6631-4b95-9f05-daf1cb3041c6","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e138d5b-1282-4dba-b300-047c2c09a312","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":184,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"b00be4fd-8d41-47c7-a69f-9b523785410a","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":184,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"6af6b664-9d22-45b8-9b10-22ac5588ea12","block_type":"box","text":"agents in the form of a rating letter.","page_number":184,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"3394395d-9202-4a0b-a8b8-a5be99126942","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":184,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"98f4128a-b589-46d3-8f6c-f10e335b02db","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":184,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"df0af70f-dca4-4b78-ba17-9a6e7fae8350","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":184,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"271f1016-b0e1-4a9c-8314-613cd61f746c","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":184,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"1321dd03-89c0-44c1-a08c-6f3c1cdc586a","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":184,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"689e3551-de97-43b6-832e-902b38542130","block_type":"box","text":"e.g.","page_number":184,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"77c5ee0d-805e-40f0-baa7-6e06bf66aa75","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":184,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"cc17b59b-dada-40c1-a1a2-2fb805d7ef9b","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":184,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"b8c90f80-09f1-4ab3-b66f-a5ac9492c27a","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":184,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"21ee670a-4679-4050-a416-14314d242aee","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":184,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"5c4a6776-a27b-4b2c-a2b2-86a43d76e92c","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":184,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"209012df-d892-4cda-bb58-2b3897b0338d","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":184,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"4a627c24-e2f6-4a13-a0f7-b7180d9b0d87","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":184,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"f422cd83-e36b-4fd9-8e8d-406202d6cbd1","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":184,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"f8bc3b5f-f172-4e23-93dc-95b236d7572d","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":184,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"5765e950-ecf0-4ed9-8ae2-33c0c676ecf4","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":184,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"c92ad80f-aee5-4de7-872a-212f975b9598","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":184,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"c3c65749-978e-4fdf-9ed1-4a5c8cc97fc6","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":184,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"937e09ef-75fc-424d-a461-3e3fb073001d","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":184,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"fe4ce092-2c8f-477f-b3ba-e73cd035342e","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":184,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"26d5dcdc-3d42-4bef-b22e-6624cc4d9a68","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":184,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"2ee00cb6-c523-4b51-854f-b94e24d63b35","block_type":"box","text":"Ratings.","page_number":184,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"4c26af2d-5045-4bee-835f-64f5980d936b","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":184,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"ecbe1f2b-cda6-4e23-b8d8-4553de553108","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":184,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"fe5be0ac-77f3-4bbc-b254-64d6dddde09b","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":184,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"d0fb7643-466d-4a9f-96b0-803a5e390f3e","block_type":"box","text":"obligation ratings.","page_number":184,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"848913d2-ed3b-4eae-9e27-321548be5760","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":184,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"ac6a36a0-5f11-4c2f-a797-779b3ce3cd4d","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":184,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"29416754-bf99-418c-a3c8-2e302d8f76f4","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":184,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"58f3ae28-3fa6-45be-b03c-dffe4728ff92","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":184,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"9becd415-2872-4553-9a8c-6817479de4ce","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":184,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"3622a9fd-38ed-4d03-8f6b-6bf65f45b906","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":184,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"b914a284-7245-45b1-8c22-8236b11f10bd","block_type":"box","text":"to foreseeable events.","page_number":184,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"dc431186-9ad3-44a8-a139-9dad3a4d8549","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":184,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"f2dca348-64aa-494d-a058-f90cb8ccff2f","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":184,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"0727b0b6-684a-4a67-bbe5-39c35fa86943","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":184,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"6a79ef0a-cd1b-40ad-b853-b2f51075623c","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":184,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"b77cfc95-5cd7-4dbc-81ae-799f71a73e25","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":184,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"c870aa7f-525a-4ff7-aec4-91a85b56ae06","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":184,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"342ab955-c4cc-46ae-8733-e356a4f1c740","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":184,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"6b403ff9-5e1d-45ee-908c-3eb948f79832","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":184,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"5f43fb04-d4ea-403a-869d-8b8d3601f4b0","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":184,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"a76c98ab-293c-409f-9abf-ab0de79cdae3","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":184,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"16ca35cd-2882-4c8f-8e81-604772cfd1be","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":184,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"8b623204-73a9-4729-a5fd-e00dba16a212","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":184,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"5e93f144-0b97-4ed2-b21f-92d240b76c20","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":184,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"6978a8e8-279a-4855-a648-f17bccb17a50","block_type":"box","text":"possibility.","page_number":184,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"035447fb-453c-48d2-ace6-e6725955c414","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":184,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"fb13edfe-eb6c-4a4e-ae78-c497b62fa910","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":184,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"b0f06532-1972-4027-8d70-aef1670290d2","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":184,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"be239e91-ebf6-4848-957c-14ac80a16898","block_type":"box","text":"A-7","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"eeeaa2d7-fa96-4a97-965f-a042329652ed","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"303beb36-4a95-4f79-b566-02eb30b0b463","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":185,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"17efb8e6-14e7-46fe-bd44-54506fc05b1b","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":185,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"954efbdf-d119-478d-867d-323a67e686aa","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":185,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"0ff601bf-7d5b-41ed-81fc-e15a4392f174","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":185,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"9c0d694f-fcc4-4730-aff5-3ecbade6aa77","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":185,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"860eaec4-7dff-451e-8b88-22ddbccc7d6a","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":185,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"2cc1113f-54b3-4ea4-85a5-4858fee3628b","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":185,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"c587bd1b-3d8e-4f41-b4cb-ddbfc0998298","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":185,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"a708d63e-7ec6-4886-9225-f26169c294cd","block_type":"box","text":"relative status within major rating categories.","page_number":185,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"73a8c18d-a70c-4c25-87e6-2a727d97aa59","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":185,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"d3b6643b-9e7c-498e-91cb-4623c62ed6ea","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":185,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"57147b96-528b-4d87-9d43-c7128eea4e07","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":185,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"fdb3c7da-06ae-471e-b70f-16d19f61c295","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":185,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"4eb3e730-81f5-414b-86d0-cf52c8af49eb","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":185,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"6371d9d4-cabb-4da2-adb9-732952116d4d","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":185,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"94d052fc-d506-4099-997b-3ff7de9c3463","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":185,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"07497cf7-2de7-4840-a5a8-1d0db884d218","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":185,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"d8e7d9ff-0e34-4091-b467-5355b0383a9d","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":185,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"406d6c31-4e79-49e6-8de3-c5f9a49f3a32","block_type":"box","text":"finance markets.","page_number":185,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"cccca608-6186-4d93-aa72-bc2c20f6837f","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":185,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"d8ca930d-451f-40cd-a1f0-2698423e7de8","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":185,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"a2eccda6-0c52-4d51-8b78-a102362f7331","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":185,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"aa5b671a-c36a-483b-9886-d36e9cde9306","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"4d0feba6-9eb5-4cf2-bb6d-e2526a738e03","block_type":"box","text":"commitments.","page_number":185,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"ab6f4a9b-8fc3-4240-a557-f8a16a0910a9","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":185,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"30a36c18-05a7-46d0-8826-0ea610f82a60","block_type":"box","text":"adequate.","page_number":185,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"af725d90-bcf9-40b7-9fdc-f9b23f8f1fc7","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"392a31f3-0349-4c47-a3b0-9ddecc4e40b6","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":185,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"7143158f-8c69-40c5-8bfe-653549013336","block_type":"box","text":"economic conditions.","page_number":185,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"e03f3ddf-0f53-4a98-a252-77318b3bd988","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":185,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"acce036d-e0fa-4404-9bff-e1e36c448422","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":185,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"fde55b76-64f9-4043-8deb-02d4bbd0c1a1","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":185,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"5462e348-f505-4010-bd56-c3dea621393e","block_type":"box","text":"ratings only.","page_number":185,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"34164735-9c95-426e-a13e-89910036bc31","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":185,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"c5b04f7f-329f-4a15-90ca-6af08e238f8a","block_type":"box","text":"obligation.","page_number":185,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"6b0efdd2-bd9a-4554-bded-f7cb390c455f","block_type":"box","text":"A-8","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"16b148f8-7877-4de5-8b74-a96540c79e08","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e3ed698-ba75-47e4-9210-67f9c911f8ff","block_type":"box","text":"APPENDIX B","page_number":186,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"43ec97a6-9642-4764-834e-9866cc176398","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":190,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"9e3ec6cb-c2e8-4ffd-a921-095a2b13cf75","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":190,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"89a198bd-841c-43b2-b079-0047d820f0f2","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":190,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"1adcf80a-1e89-43e2-bc0a-113760117c67","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":190,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"d6f437e2-3307-4484-b4a4-f9fe84c4ef43","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":190,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"82b7876b-51c4-4a3f-a67c-f23dd7467356","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":190,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"056bf5d6-0dc3-47f7-ae9f-726066ec8119","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":190,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"8dd71d57-79ec-4b71-9827-40f1c191a7d3","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":190,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"97cefc7b-72bb-476e-8e39-8405a078c0eb","block_type":"box","text":"1","page_number":190,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"d3245002-0693-49ad-87df-7c2916123e4c","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":190,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"ed9975a9-1307-4c6c-a4e4-6a0d75db21c5","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":190,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"0d2c7f3c-e002-4bd6-bdb4-ee77d344bc1d","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":190,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"fdd574ef-1659-439b-8cf3-b3196364fb48","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":190,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"b394a229-24cf-43a5-880e-9b68386c9fc8","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":190,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"a6e2323b-cc03-40d4-a2b6-5a62fc8639b1","block_type":"box","text":"2","page_number":190,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"3c820ea1-144d-4eb1-b80d-88017f601d07","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":190,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"73bfff4d-a0c0-4c53-8b16-6c6b970fa9a9","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":190,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"a7c5206b-d03f-4209-995a-d6668decbc74","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":190,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"293ca9b1-6cdd-4837-9070-b7c4a3842930","block_type":"box","text":"policies.","page_number":190,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"005a1f92-a3f1-4f9d-b7e7-da8bc9f24248","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"df36e5b8-a97c-4235-9712-da8c6046e57b","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"3111e2fb-1efb-4a11-bd0d-e54f656a57c0","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86cbe559-205f-4cf5-a24a-e9130f2848d3","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":191,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"2d8c6f50-ac9e-41e5-bd8f-0e74c279f42f","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":191,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"f1f99c32-0c51-457b-9a3e-04a53e063b1b","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":191,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"ebdb9ce8-ea95-4c5d-abc0-fa02a07114ef","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":191,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"18478cc4-2b5f-47b4-bb70-11816052835a","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":191,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"690a9ded-de8a-4724-a76a-39c99db39fab","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":191,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"e3b10b6d-c183-4191-80be-295cbf30cef6","block_type":"box","text":"this work with research, data and analytics.","page_number":191,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"4cc8802b-9e66-4d08-ba82-08a63648c349","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":191,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"11d93a52-d281-4d6a-bd19-c0b74525d534","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":191,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"a4d3e550-2524-497e-8b6e-14a14a6a4742","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":191,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"90641361-a5ed-48ed-8c4e-8261eff5d7f5","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":191,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"7102ca42-7eb2-41a9-a0bf-10d12d61f34d","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":191,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"a6148021-c4f0-4fce-8588-8d934f45a051","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":191,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"1945ffc5-3827-4f01-9db3-23cfe8b901ae","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":191,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"d82355be-f994-4e7b-8ce7-5a43aa772668","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":191,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"4c9f6063-8a01-434e-b23c-588ad44fa12c","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":191,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"503ae458-b6da-452d-9690-d96bafbac49e","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":191,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"c2f6b31e-a065-476d-83ab-5651ad46bb02","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":191,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"5466c3ab-dfa6-4acc-9ebf-0d8a1062e270","block_type":"box","text":"shareholder meetings.","page_number":191,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"02ff9e80-7fe2-4f16-86c8-e9e5ac6a35a8","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":191,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"1c84b8df-45fe-49a5-be3b-718ad0ff027c","block_type":"box","text":"investing.","page_number":191,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"2fec26f8-e4e9-4eda-905a-3745ab3349e9","block_type":"box","text":"3","page_number":191,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"21086a63-4657-4ad1-a664-07713b5ef930","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":191,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"fdf98d90-2b6b-40c4-b896-547e7a6a0b6d","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":191,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"f0fd6bed-461f-4f7d-afe1-4e1959446082","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":191,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"2323fbdc-2292-41a0-ae90-5821eac58f2f","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":191,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"7e321c98-1536-4e54-98ed-405ea7a15ac4","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":191,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"0f11d921-ce0c-47b9-9891-a888f0d5c6cd","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":191,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"ae92096b-ca19-4414-b843-355c0c8bae6c","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":191,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"7d40cf2b-829b-4f45-bd84-65edfec30704","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":191,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"0c9b3efb-2cb1-493f-bc97-a2b068942161","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":191,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"a88c8498-f97a-4b7d-b622-f59a70ff2032","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":191,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"f9b1aa8a-e871-4bd1-8043-bf4e98bc3cbe","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":191,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"9c21a718-b16d-47f0-8c80-952948ca9672","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":191,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"7fb93cfa-a2f8-420b-88e5-01f6e496f64c","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":191,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"b2d334c5-fe6f-4377-8ade-61d0cf6f37da","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":191,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"950034ee-da1a-4278-849e-f3345e8be1c5","block_type":"box","text":"management teams and board directors","page_number":191,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"2de73327-b674-480c-a4c7-36d78e7184c7","block_type":"box","text":"4","page_number":191,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"9800bac7-7d4d-442e-b237-6c419a0226d6","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":191,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"7ef60b6c-5bb2-4d15-bc00-f108c8a688c1","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":191,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"49dc05a6-86da-4b8d-ab66-29a0215cb04b","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":191,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"69c5a656-fd46-4e57-9aaf-c00df4fab58e","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":191,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"1407e83e-be50-4d16-97b1-ad763cf15312","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":191,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"5b725be7-97e5-418c-aea1-1d2bab2af5cf","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":191,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"41d474e9-fc81-4807-b493-08edd4bf40c2","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":191,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"fbd842f3-d2bb-4e7a-8f20-87deadaa591c","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":191,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"670fd225-3ad8-4fdb-af41-b91dcc39eb48","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":191,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"eca6c258-2c40-4074-b52f-08eb1ae68698","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":191,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"8dbbe2e5-70cb-4e1b-80ae-b3d0da4a018a","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":191,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"91c8f399-d108-4009-8499-7d9b69c6cc49","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":191,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"9a4c1501-3ab5-448c-b6f2-58c62fcf8d7c","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":191,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"55b23362-b44a-4184-b3d2-87f7a1a06c68","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":191,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"04480f3f-4681-4117-9d20-c34cc999cf23","block_type":"box","text":"3","page_number":191,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"da7da801-ed47-4929-a3db-550895412201","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":191,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"301a231e-cc2e-4087-9a55-de8ad34c46bd","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":191,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"92a209b3-32cb-4b03-b925-0ec3b44596d4","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":191,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"b9d9d439-d4b8-45be-9230-46c208fea85f","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":191,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"7e972adc-3f3e-4a68-bfb7-128a611d781f","block_type":"box","text":"4","page_number":191,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"32f9299e-2539-4a4d-8aaf-ae7b97553af5","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":191,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"0b4b0b1b-7326-49cc-ab08-bc06f966afa2","block_type":"box","text":"boards and their members, where relevant.","page_number":191,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"b432a16b-58ee-44a2-a3d0-0ba049a59733","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1c8ae0d4-bb48-454e-9f2f-caefcf262f22","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"4d24d27d-37bc-4859-8a66-2766c6caf359","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"996cb64c-f9b4-4e2b-89ec-18a620e85f9e","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":192,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"4714e646-ae10-45c5-b54b-25e07c56bfdb","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":192,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"84b1fb26-cc63-4224-aac1-7e0e29786582","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":192,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"0ed9f140-807d-4d23-920c-c2a565a495e1","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":192,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"1eb44fdf-d160-4251-9825-f217993b8c1d","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":192,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"de996b72-c6d6-4849-91bc-111234ba5914","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":192,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"d3f91124-f4f9-49dc-93fd-2fc4927490c4","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":192,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"5304ce47-f3a4-4cff-a775-e147070bc9bc","block_type":"box","text":"5","page_number":192,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"07587330-c05a-4182-8ebc-8b34dfb38962","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":192,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"e71a8f5c-ffa4-4e22-85ab-530ccfb68305","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":192,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"5f75a2ef-198b-4e7e-9d9d-4e84a4dc3550","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":192,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"e68813c2-48d4-4a0c-bef5-4eb434aad0df","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":192,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"10ac38bc-2961-4528-a6e7-80aa7a4242c0","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":192,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"ad948efa-e524-48f6-b68c-a94da4628e1a","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":192,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"3c101309-0882-4821-b38c-adfcae8e4aef","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":192,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"ff821444-158d-46b3-a1ba-d6bcfc3792c1","block_type":"box","text":"5","page_number":192,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"dde25512-132e-4611-8cec-9dea9efa6b1d","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":192,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"5d7a276a-4e08-428b-83a8-1b358629fcdb","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":192,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"036f14a5-0b1a-4a16-9ada-d18de307a9e1","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":192,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"9721766b-f31f-4cda-9caf-f4babcc30587","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"db8ae8f1-607e-4bdd-8bcf-0e3d3a60f8a7","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f6ca98b6-0017-4fc6-80e1-37a3fc112825","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5bbae0ee-5411-4bc6-89c2-ef9c3440b0c9","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":193,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"acbf4c1a-e78f-40e7-819d-78d4c0a6cd0b","block_type":"box","text":"Roles and responsibilities","page_number":193,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"295ba730-4fc1-45b4-b89b-35844fd19b1c","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":193,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"8dfc3bd6-d557-4140-ac08-f2ce186a8194","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":193,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"690d0bc6-ab18-4419-90b0-d4a09070ffbf","block_type":"box","text":"6","page_number":193,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"4df924a8-acc1-4101-a203-f209513e05be","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":193,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"a48e6467-ce2c-4c19-831a-44b33b8a3301","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":193,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"d5afa398-7c0b-4ea5-847b-f794329bbb4a","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":193,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"1ff0533a-65ac-459e-b2f0-50155f400bc7","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":193,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"c81748d2-9b67-40b9-914f-cb54c03a76ca","block_type":"box","text":"performance over time.","page_number":193,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"be24b0fc-522b-40d3-81ab-93a4350d1379","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":193,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"2cbc7894-4467-426e-b44e-73f9dcdae021","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":193,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"1388316f-7cc4-4c68-ac5b-0b7fec169835","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":193,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"e32919b2-ba3e-4f8a-b5ab-8abe642f027a","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":193,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"8a2cd7dc-7db3-45f8-86ec-bcb043e2aaff","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":193,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"2bca81b0-bd3f-4114-9e3d-aa12943ae420","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":193,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"a6518591-bd82-4905-a6be-b596d43803c8","block_type":"box","text":"Composition and effectiveness","page_number":193,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"27281069-17bd-4301-ad0e-99509f52c01c","block_type":"box","text":"Appointment process","page_number":193,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"d1e677f3-dc67-4ac4-8e9a-3b6fc8fcaa55","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":193,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"040b621d-b7fc-4cc5-8cba-c5d8bd655065","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":193,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"3928c18c-6daf-490e-8f32-15f26e1ebcc7","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":193,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"5cdb4b48-d77f-41cb-8745-1e798638fc20","block_type":"box","text":"e.g.","page_number":193,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"a0ad3f6b-8dcf-445b-be28-adcbdb84cf24","block_type":"box","text":", sector, maturity, geographic","page_number":193,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"2ff12b97-b693-41c1-a9cf-9bd95a5bf90f","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":193,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"5c6be0cb-8361-4e25-bca2-cd25cf3caaa3","block_type":"box","text":"e.g.","page_number":193,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"3c38fbf9-838d-4030-a97f-9d65644cc2ac","block_type":"box","text":", financial expertise, industry track record). To","page_number":193,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"8b4476ed-e349-4c83-b30d-22e422fa2ed8","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":193,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"198ab09a-0b1c-4eef-9046-0b46b2d98413","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":193,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"b95b86af-f9c4-46fa-8e71-c2fdda612d43","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":193,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"ba49f581-9be7-4dce-8b2e-ebd7633f2c22","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":193,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"fa9fbd63-b1ba-4848-a8fa-7b53da1dc11d","block_type":"box","text":"and local market requirements.","page_number":193,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"44a83e5a-fdb4-460f-8688-73407aa03dc2","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":193,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"a2a16151-a96b-435f-afab-03065f05866e","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":193,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"e84f56c6-9b41-4ba9-89a1-da388d3af59a","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":193,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"ccfb3ce4-aa7c-4f5c-98fd-d81bbdea1667","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":193,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"923eadfe-d95f-47da-9f4f-33fe207a6c26","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":193,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"0883335b-f2cc-459c-9d2e-f552fb867b96","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":193,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"28e8da4d-e29e-4917-be52-23aeff3c15da","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":193,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"2de4a309-ac27-41cc-8f60-37741233ddb5","block_type":"box","text":"Independence","page_number":193,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"e9a25f81-d81f-49b9-b9aa-9ffd47a2ff6c","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":193,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"73468eb0-c392-4421-a58f-88e244a3f125","block_type":"box","text":"e.g.","page_number":193,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"4dfdac89-7ef6-4a71-8e92-8e6e111dd5b2","block_type":"box","text":", government or","page_number":193,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"a37cd0c9-afbd-492b-a12a-4a815e3d03d9","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":193,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"772fa3b0-df15-4fc2-8fb4-6d692c535ba6","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":193,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"c5c408ab-242e-43e6-9686-81ba4a97b572","block_type":"box","text":"conflicts of interest or undue influence.","page_number":193,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"736f0c0a-0a71-4823-a563-278b1e93fc1e","block_type":"box","text":"7","page_number":193,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"f3c54430-df3e-4bd0-b739-0f9f87fbc90b","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":193,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"b9ddcb1e-fa34-449b-9b74-7b074b5433e3","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":193,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"e0fd09ac-7f8e-4303-a467-91e611a54752","block_type":"box","text":"independence should meet those local requirements.","page_number":193,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"51fc3900-ab15-4d53-8337-1ef52e697257","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":193,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"5f1bb7bb-9b86-4b69-ac33-419f31860300","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":193,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"d86765b2-3a91-4652-87ff-12faa92665a0","block_type":"box","text":"composition if this is a perennial issue.","page_number":193,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"db95535a-43c7-4874-85d0-f7cd36e6f015","block_type":"box","text":"6","page_number":193,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"9c21ca43-0bcb-41bf-9d02-91e5aec8ff86","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":193,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"74b50943-dc41-4e35-a4fa-d1a9639340fd","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":193,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"a91efff7-d189-4716-8a33-5aa596cf51e6","block_type":"box","text":"7","page_number":193,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"832b496c-fc7d-4c29-8f3e-9917a8b37f78","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":193,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"de85c888-fe31-467e-ab40-0b440d35ce4b","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":193,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"fa3b870d-ceb2-43ea-b1b6-69901145b4fd","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":193,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"92a79b2c-edde-4bb2-90da-603e340c3b4b","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":193,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"872e5b7b-f558-4536-9bec-4eea74856dc5","block_type":"box","text":"of the company and shareholders.","page_number":193,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"32613037-550b-46ae-a501-ab2a5efdbbcc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aaca2269-a7b1-469c-a26e-22580f6cf29e","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9f319179-656f-40fc-a28a-77423e7902ff","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6149e385-093b-4c22-aa8e-a74fe230bf68","block_type":"box","text":"Independent board leadership","page_number":194,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"4f08e966-0a44-44b0-8bfd-f925262fe4e3","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":194,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"7a33a3c7-ab6d-4a7a-8e8d-5014648afb37","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":194,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"707f290b-6f43-431d-847b-c82c3937b759","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":194,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"8db0468c-c2bd-43ba-bce7-38224173653a","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":194,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"50892c13-175d-426b-bb00-6f45a986bad8","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":194,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"73651e0c-6ae5-46a7-aa20-51df67c14dae","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":194,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"fec0c663-e8da-43df-be69-6e580336d6be","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":194,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"075d67a3-60a6-4e10-8e75-09a397bc29a4","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":194,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"0e9b70a5-f83b-4380-b991-3c94cad1dc8f","block_type":"box","text":"how it serves the interests of shareholders.","page_number":194,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"255c5119-a36a-4617-adbe-98256850ee1c","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":194,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"3af2b66d-5698-4f73-bfd2-56f74850ff46","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":194,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"2fea0f52-9cb1-4f1a-8459-9d91a88c3f69","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":194,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"156acd04-d387-4a19-ac18-5b5de2823981","block_type":"box","text":"Tenure and succession","page_number":194,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"bd2c5e16-5bb6-402c-85e7-cf01fa3176bd","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":194,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"440ebe85-b551-4439-836c-3e39eac3e00f","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":194,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"9ce48058-c1fe-4f3c-95b6-f1de63706566","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":194,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"9d02f5aa-4e1f-4550-8f1b-64b342530b30","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":194,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"24d98f7f-809e-4c9c-a086-fdd57bd87cac","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":194,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"b38158cf-839e-4987-a569-8a8b66c32431","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":194,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"4e68924c-cd5f-4470-8287-8d9bf6c6a1b3","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":194,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"9b31a53e-2616-466a-b71b-02fb57e12bd5","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":194,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"9b7a9a7e-7569-4a05-89c3-2eca491464b4","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":194,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"82f62e4d-181c-4d62-9dba-2360b979fa5c","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":194,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"e2f9022d-415d-4803-a800-bcec2ce00b4f","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":194,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"d445a922-8fa9-4e29-b2b0-3ee057481204","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":194,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"f7632e9e-cb9a-4275-b276-b7e7ce872460","block_type":"box","text":"for their continued service is not evident.","page_number":194,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"f658e7aa-cd4a-410b-beb5-497887b29278","block_type":"box","text":"Capacity","page_number":194,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"c6db8664-1de5-4a02-a92d-e84854ca4fd7","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":194,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"52e12fb2-afa2-44a0-b5cd-0e3d9902d439","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":194,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"d0a2716a-cec0-4901-939f-37f29e4183c8","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":194,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"ea7d238f-0f27-4fa9-9b8b-9b28aefc77bf","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":194,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"b8ea0d80-f04c-43b1-856d-7bc4ad303658","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":194,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"e8551835-67c7-4ce8-b8e8-300a2fb5055c","block_type":"box","text":"determinations across markets.","page_number":194,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"13a5ec58-de55-4ddb-996c-3ac69ee470a9","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":194,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"0177e449-1eb3-49a6-ac54-54bd8e07cf31","block_type":"box","text":"their duties to the board and company.","page_number":194,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"df26ef05-dd9d-4196-9a84-f67a7f1ec958","block_type":"box","text":"Director elections","page_number":194,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"056fab23-faeb-4d0c-897e-86a8aaa6d557","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":194,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"035da364-7ddc-4336-8fe6-03715bd5e21f","block_type":"box","text":"structure","page_number":194,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"d437a64f-4a73-4f91-8c5d-bd99b69c68a1","block_type":"box","text":"8","page_number":194,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"98fc2c39-4cb2-4734-9c87-3e61ef9148b5","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":194,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"c146a676-76af-48c6-bbd6-c2fee6500a86","block_type":"box","text":"basis of its business model (","page_number":194,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"764cc1c2-95f0-4380-afd9-d0962774f1cf","block_type":"box","text":"e.g.","page_number":194,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"45294346-7ff5-478f-96df-12db4b4831e9","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":194,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"1a4606eb-f704-482d-9817-8b774f6bf303","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":194,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"b3fdbe6f-ef0e-42cc-a10b-6c0ce73ce895","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":194,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"ca2ad970-1913-4e71-a400-970a6dcfba30","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":194,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"6a3144b8-993b-4d9e-b4e8-b2d1c9a3ed96","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":194,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"b4f8cc6d-8de4-4232-a9b6-75b8de7fbc38","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":194,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"22107ce1-e991-4eb0-b9c2-12c91ac2026e","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":194,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"c568b4d4-86eb-4a1a-bef2-cff8f0f71f88","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":194,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"920f6cbd-236a-4d42-8043-6fddcc005ab2","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":194,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"d18cd37b-cbcc-4800-b44b-82e7068c5ed6","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":194,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"cc75f770-f036-419f-853c-b324a243dc45","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":194,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"af44add8-6f2d-46c7-883f-1be766419c18","block_type":"box","text":"8","page_number":194,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"3efbc719-3485-48bc-a60a-88b9216453bf","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":194,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"eea13be5-487e-4668-828b-d214d03c30c9","block_type":"box","text":"directors stands for election in any one year.","page_number":194,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"fcf7fd49-6d6c-4768-9ab7-bcb905fa48a2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f4fa52a1-2f5f-4aed-a61e-e05b5f0576ff","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b5b97905-9734-4ecd-b61f-bf29559873ac","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74789dce-4675-4f2d-b756-7181fa1b663e","block_type":"box","text":"Committees","page_number":195,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"327856fc-3657-4754-b945-9271a0036de1","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":195,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"aef3ab4d-5389-4ec1-a4b3-8d16eeb8852c","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":195,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"41079b19-982a-402b-8208-d9a314bbedb4","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":195,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"e63531a7-dc89-42dd-8013-1989749c1c37","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":195,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"93841059-baca-4a89-a52d-e05e47758587","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":195,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"153af7a5-43e7-446e-b965-8a0daf5b4530","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":195,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"5a1ecc95-0c4d-4122-868e-781f2f7f1c7c","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":195,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"2504a9a8-920e-4c65-bd6b-cde838d7acf1","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":195,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"c560b3f5-abb0-449e-b7b2-94c2171ec684","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"ca71b4f3-191a-4b55-96c6-182a410aec6f","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":195,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"189cc266-fb78-4112-88a1-1d9be5ea4da5","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":195,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"16b2886a-3057-476a-9480-7e48bf99eabe","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":195,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"3f6e9b10-fa27-40b5-aa68-611da30b9461","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"a8f8fa54-fa66-4b65-a11a-40d2dbe91df8","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":195,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"a8454407-c5da-41d8-916e-5d7520125699","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":195,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"04353c52-bd1e-41b4-808d-7afb99aa447e","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":195,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"c5d47515-0723-454c-97a8-b581a3323392","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":195,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"32f86f6f-f3cb-4540-8224-68ccd7a2a86d","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"9d35794e-1932-40ef-a293-8e783440ca03","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":195,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"92fb6f0c-2696-4461-bc03-e81ffa66a458","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":195,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"caf3abce-be7c-43ec-8942-607a7563e142","block_type":"box","text":"firm-wide compensation policies.","page_number":195,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"4e19750f-3f43-4505-a2e7-f09202b12ab6","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":195,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"44a76279-cf5c-4a9a-9f7b-8259a6794972","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":195,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"a115f9a7-bf50-4bf4-abdb-349502505e3b","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":195,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"e67538ef-b127-4751-aed4-584557903525","block_type":"box","text":"Board and director evaluation","page_number":195,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"bfdce290-7fdd-43c7-a86a-c418c8069c73","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":195,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"faa9c6bb-44eb-4b17-a9d0-0bf30e486c92","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":195,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"f974295f-7da2-4265-a78a-e591aa5feba0","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":195,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"3806d6a5-d55e-4d82-b432-023967d8e54d","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":195,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"7fc015d9-ade9-4fe1-b2bc-77654af689c3","block_type":"box","text":"a result.","page_number":195,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"de98be8e-b63f-4dc1-b47a-4049b17d68fb","block_type":"box","text":"Access to independent advice","page_number":195,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"ecb0e766-cadb-41ef-9ccb-f6f40c566561","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":195,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"3e7257da-90c3-4413-bf72-7160adc41730","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":195,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"ce73f7a2-504b-4800-a334-e429b75d08db","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":195,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"aad4e263-fa98-421f-8c69-48a11084d649","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":195,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"bba265c0-cd73-485f-ae83-4c863f3345ff","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":195,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"26044094-44c0-48dc-8f4c-89c772317e4e","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":195,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"12a04d44-afa5-46fe-bcd9-e444b198aa1f","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":195,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"ff4c45cf-27f3-4d44-ba4c-b0cf83d75ab4","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":195,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"f6f8270a-6464-4fe1-acc0-fb517e5cd744","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":195,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"8ddbbe3e-2385-4094-8e36-53f33442c911","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":195,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"d8e3de00-1388-413d-912a-e1677c0a19fd","block_type":"box","text":"performance.","page_number":195,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"f2a36759-942e-4578-85a1-252d01e6eedb","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":195,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"037958b8-f859-49e0-9708-bde8cd6172cf","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":195,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"d2f64aaa-f504-41bc-8382-775b418fc311","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":195,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"c6524c8f-2ec5-47b1-8d4b-7394e35f1c76","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":195,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"f1575c7e-f512-4fe7-98d1-c87dc8f401d5","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":195,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"df536ea8-744c-4e4d-a37b-7c23b96e931d","block_type":"box","text":"recruit and motivate.","page_number":195,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"fda0046a-3758-4f60-966a-90a729c5c83e","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":195,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"396958b1-9458-49f1-a1eb-24485b7f9839","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":195,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"18d93fde-870e-4106-8327-c828c4d55664","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":195,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"364b1858-7ba6-417b-86b2-0514437bf051","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":195,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"51cb0f0f-e181-4558-8b48-6977eda0ea82","block_type":"box","text":"arrangements include:","page_number":195,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"4f13d3b5-774b-4865-aba8-1fb6ce2eef3f","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"54319674-effb-4957-a4c6-d2a4f968c8f2","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":195,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"9a5f711d-d053-451a-952d-5ea4cc674b9d","block_type":"box","text":"the company’s size, sector and market.","page_number":195,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"8fe6605c-f681-4a1e-9fad-1499bc4d06dc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"052fbff2-a19e-46e5-9ee6-bcd17436485a","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"50fa1e8b-3023-4cd5-ab91-7d1b28433798","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c830999-fc66-4d66-a737-351748dd8a8b","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"f9c17458-c0e7-4c8e-985d-c46cab24f62a","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":196,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"b293bbaa-5942-4428-86e9-05a49ae268a4","block_type":"box","text":"strategic objectives.","page_number":196,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"7c8ccbca-9eda-42b4-b50b-c10c6ac58ae3","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"11f320b2-30a7-4421-abc7-6657338ce0f9","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":196,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"be24f45d-4d65-4e68-8df8-49a957dbe493","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"280fee40-a5b2-4ec1-b874-90f6cd72c310","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":196,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"a2225edd-cfc9-485f-99de-d58362561514","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":196,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"38c289ba-6432-4737-a9bc-391781f44779","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"6e6b9d18-70f6-4207-93d4-349525260c8c","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":196,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"156b900c-e3ab-452d-bc63-f5aaa218321e","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"55e797d8-ea27-46e6-b064-e1713f0854fc","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":196,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"86537417-fc00-4b92-9a28-c95e6f2937cc","block_type":"box","text":"transparently.","page_number":196,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"6f368aa9-fb44-4b3d-9fc2-cb2cbbe93816","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"8c6f66e3-aa6d-4415-8c2d-210c7b9fdf7d","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":196,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"bee0a0cb-fe04-43af-ba6b-2a9bef473eed","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":196,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"d8a40de8-706b-4e7c-81a6-bf898111508f","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"d21aa622-6d74-4392-888e-04e5b815fad1","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":196,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"d2e233f8-5a77-49ec-afc7-b6ad1c548dc3","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"fa959d3e-caa3-4cf0-ba4a-fa250531e099","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":196,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"9570352b-c540-49a4-9015-beb61d7835b5","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":196,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"6632aaf7-cc2b-4c44-af15-4a5eb3be3458","block_type":"box","text":"misconduct.","page_number":196,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"f59e1b11-b721-44d1-9f91-5b2091d84893","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"e3c3afbb-ca74-462c-83ea-3150cd771cfa","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":196,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"92bb1b2e-7e95-43a4-a1e7-c210c63abc6e","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":196,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"98c84192-c74b-4f64-aee6-760e1721a2e4","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":196,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"837b7bca-be16-404d-8e2f-d202c033cdd1","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":196,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"6809175a-9269-4ce6-9eb7-2b8d158fb843","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":196,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"393d4210-9256-4675-8583-9a61db2ecf6a","block_type":"box","text":"committee, or the most senior independent director.","page_number":196,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"2043d7a1-f37e-4e77-9e96-e28c1fc13ab2","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":196,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"9e1caee7-58c2-47b1-be9b-176dc506d7d5","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":196,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"0b5105cd-7e35-480c-a0b1-c518651d0852","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":196,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"24fd83d9-6e44-4aa6-aec4-84207ac3adfe","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":196,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"d7d8343b-38f9-4496-94d3-f9e3bf3f400d","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":196,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"bbb39fbf-32c3-4098-9b6e-2e480434e878","block_type":"box","text":"CAPITAL STRUCTURE","page_number":196,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"c53f790c-e467-45dc-b146-dac65f1708c8","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":196,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"6ae04dee-c8d7-4c54-b38b-ea956b6f2b8a","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":196,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"b0f06125-25c9-4079-beca-cfe6425fdd3a","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":196,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"617fdfdc-c201-49ea-b96a-b9f8b7616ace","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":196,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"a21ef74b-4b0a-4f95-b0aa-c7f30d30430a","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":196,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"302b9744-9cf2-4cfd-a3f3-8e09aed4148c","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":196,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"bb5551a4-3269-44b3-9fe4-ef548512274f","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":196,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"e6fc4905-ba3e-4f1f-afd9-55be2ebd5b2b","block_type":"box","text":"Share issuance","page_number":196,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"b6f4703f-3290-4836-bcc1-9f0d43f30eaf","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":196,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"ee63b829-805d-4bd5-8803-cc5c57ffb59c","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":196,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"f6f66b30-aa7a-476e-82f2-ddfbf485b68f","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":196,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"6fc294dd-89ef-4d9e-a3d1-8dfb46d26d44","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":196,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"a25bcc84-8139-401c-a34a-e4bb4a33a99c","block_type":"box","text":"market environment.","page_number":196,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"d82ce148-570c-4481-a102-8cc59786fa41","block_type":"box","text":"Share buybacks","page_number":196,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"56b4bd06-f051-4bf3-86f9-5b7862ec2f92","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":196,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"9a0a2cda-f472-4105-b3b8-c1a494f81b4a","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":196,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"669186a8-3a63-4160-9fa4-ddb80195ffe0","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":196,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"3cb3df8b-a871-4724-9c10-9ad4a3b33b07","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":196,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"07b55b8f-46c8-4035-a2c3-a9c7e49551e9","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":196,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"9da5bae5-118c-4fe7-96fa-331fae59cacd","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":196,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"40f84c32-61dd-489a-a305-596bb46c2894","block_type":"box","text":"of the company and the market environment.","page_number":196,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"bba6e379-1908-4070-9b5e-0215eb40f9bd","block_type":"box","text":"Dividends","page_number":196,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"5c850337-844a-4434-8b60-4f1f5453170f","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":196,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"45076b17-cf0a-4d22-8ad5-29db28d6b013","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":196,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"5680acfe-f263-49ec-a6f3-18fe9efbbfbb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3735768a-347d-42ae-8463-6e42b2403de9","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2ecd91cd-7bd5-4dbc-8797-ff121c56a20e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"073c2b6b-a00e-43e7-9665-acfdb372acd8","block_type":"box","text":"Differentiated voting rights","page_number":197,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"ab19b143-2a28-4452-9aa3-86ba737235f2","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":197,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"7d595662-5713-45c1-8056-3d84913abbca","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":197,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"2e566bbb-706a-4ee4-bf2c-d0ff2e4cfd70","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":197,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"b55814e9-1fe2-479e-9e92-f29d24d6ad0c","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":197,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"7c4b0bff-d419-4498-aa85-e62392998c32","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":197,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"e85f5935-d539-411d-bb0a-c6d53b1f0982","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":197,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"fba58860-20e9-4c57-b906-671a3d71515f","block_type":"box","text":"analyses of proposals.","page_number":197,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"9067b58c-b73d-46c1-9b4a-ae056f0e562c","block_type":"box","text":"Mergers and acquisitions","page_number":197,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"7ec76904-08b2-414a-ae20-a7f7cc076672","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":197,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"94accff2-ac95-43d3-9562-b01096df3957","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":197,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"d9ccf2e0-7fdf-4def-b299-f502aaa9a9f9","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":197,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"334c0557-076e-4914-b15f-5d987f934017","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":197,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"8804f394-4521-4bd9-b060-50691febcf0a","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":197,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"11fc26c8-0067-4705-80a6-ecc59013e73c","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":197,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"5efff37b-13e3-44d8-90ea-65779329a15b","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":197,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"0e83757c-5743-4c5a-aa85-cfadb60efaf9","block_type":"box","text":"Anti-takeover defenses","page_number":197,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"3697b684-d771-436b-8c3b-24d2720d61c1","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":197,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"12a6aa46-6a07-4773-9379-82d2becb3d01","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":197,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"8a5cf73a-d6f7-4367-acc7-7c420789773e","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":197,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"7ac316ab-f2e7-4977-89e2-5a49691e4887","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":197,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"ddcdfbf1-19ce-4eca-9f1e-b207f16edaed","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":197,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"648dd4a0-2782-4800-b056-a9aacbde7c44","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":197,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"63208220-13ab-4ae7-a708-b9f4ee443320","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":197,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"477e4f19-ddd6-4728-ae3a-450b4ec95925","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":197,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"7d3649c4-08a1-4fb6-ba39-b77b127055e9","block_type":"box","text":"Shareholder activism","page_number":197,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"29f4def2-a05c-4f82-be4d-d6e1568b6b25","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":197,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"0b9e9e90-1356-4403-9bae-3bad81e69752","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":197,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"425ef270-f85f-45e1-8c9c-e001d4eb66f6","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":197,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"c2e9b6c5-0346-44ba-baff-1d976624b777","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":197,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"44b6b489-5d0f-4d50-bdb0-43e427a376ce","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":197,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"e452d0dc-a60a-4750-a5b2-3e8ceff79bb3","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":197,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"168a69fd-f05b-4967-94ba-e6d26b178d5b","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":197,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"1fc915d7-c3a1-4695-9458-ef4b33e7cac0","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":197,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"723689a6-624d-45f2-a0c2-8a64c0d0b9bc","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":197,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"b1657b73-4308-4be3-b50f-b9a21758bbd6","block_type":"box","text":"protecting shareholders’ interests.","page_number":197,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"7c210ff2-87bc-42ad-a89c-f1feb08cbbd9","block_type":"box","text":"Significant shareholders and related party transactions","page_number":197,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"cd07025a-df38-443a-a8bb-c395c8e720c7","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":197,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"cc6e1d58-67cb-4c9c-99d1-9233307d3d71","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":197,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"42754eb7-1999-4ae3-ad53-9d6a1f0705c2","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":197,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"1aa27c3f-9f0d-4623-af07-7ef2537fd65e","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":197,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"b739092c-88c3-4548-827a-aa4a776a33a2","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":197,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"a0b4f921-b9ea-43be-8970-e26b4144c436","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":197,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"70332510-7e6f-4629-839a-e269a32f46e8","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":197,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"c00b6c24-d57d-4cca-ab2c-81462726f37f","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":197,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"fe7c7492-0640-479c-811b-c578a278a9de","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":197,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"ffacc1dd-b7da-4be3-9a4f-31d714e61755","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":197,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"f2b9f317-fec3-478c-bfa1-458daf03289a","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":197,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"951f7d94-c205-456f-9ccb-1b2fb5d8f23b","block_type":"box","text":"audit.","page_number":197,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"f14d14ba-49d4-428f-b57b-31a3afa4dc6d","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":197,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"9a6fcf40-e258-4f2f-8e5c-15952c5bb2e9","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":197,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"64a889c9-da35-41f1-b897-1cda63142b30","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":197,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"72c738d7-5091-4220-853b-5602376255e1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fb809336-ee93-474a-ae40-f3bee1ff2315","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"417b4e39-98bb-4b8d-b58f-b71c147bc9bd","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"443f8025-c43c-4729-a08b-9c2fc38191de","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":198,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"f81b083f-c775-4b0c-abab-a6f2299c2eed","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":198,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"0c84a9e8-6083-411c-9b4a-f8d99160b42d","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":198,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"cc36d56a-f2ef-4744-87f4-2de60645e414","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":198,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"1e231c00-f26b-462d-bd3f-2bacd772466f","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":198,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"81cd6e1e-8677-4d1b-9119-1e7b2d2e2778","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":198,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"9b8d374b-33cd-4212-9f5a-74fab4d72f7f","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":198,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"007d4aea-efd8-426f-8169-6d9ca36357a3","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":198,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"568b3945-11f1-411c-b10e-2a96cb41a85f","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":198,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"a44e5ead-a866-4594-a249-5ed1578e3531","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":198,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"40c58868-3ae4-4564-aba0-22bff6110791","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":198,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"6b819aa7-df97-47ae-8ac6-88c55a8ab183","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":198,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"51b15dd7-9482-406f-a2f6-cc8f7d62276c","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":198,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"2d21adfd-dfe0-475b-b987-b538714b6a55","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":198,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"2e57fc0c-ee2d-490b-976f-37475007839e","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":198,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"b99a9a3f-68af-4b67-8546-d579c60af560","block_type":"box","text":"9","page_number":198,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"e0330395-069b-4323-8e3a-59765759fe7b","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":198,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"d2585033-a472-4b43-ad6c-ab644c5768c0","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":198,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"b0339617-2aaa-401c-ae0f-a34724c9e90e","block_type":"box","text":"standards specified by policy makers.","page_number":198,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"c0753921-9663-47b7-9998-a6705ffe38fe","block_type":"box","text":"10","page_number":198,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"6ce6ceae-3206-4f76-909c-c0360c0f7583","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":198,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"5055d610-8d30-494d-82e4-ce85bd194d17","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":198,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"61f48d22-7135-4c98-923f-ed222fde4da8","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":198,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"b5c39cd3-db17-498b-bedd-066fe9e875c6","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":198,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"f58e589f-e891-47ea-94fa-db91578dd15f","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":198,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"89be349a-99cb-46c1-bb15-2a2fd3820d51","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":198,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"13d2ed20-7e0a-4012-a9cc-c96f197e40cd","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":198,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"03cc4893-34c2-4ee2-baee-8d0bc75eb4f3","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":198,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"d429a788-d855-4424-9ca0-0c733cf3d53c","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":198,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"861f3f09-803b-4a8d-97fb-b6e257332c7d","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":198,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"fa4661f9-a6b9-4591-8bb5-0ffe6c049a78","block_type":"box","text":"remained independent.","page_number":198,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"b4d934ff-a2c9-42b4-baa1-5eab671ca5ab","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":198,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"c5a6fb9a-4cbe-48d0-a162-3dea00e0a8cd","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":198,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"a3758ad8-eb93-4661-b777-57a34eeccf56","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":198,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"4d7278fe-9c81-4a7f-af2a-36b20390edd8","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":198,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"f36a2196-19d0-4c06-8a6a-1dd7a7a6bd9b","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":198,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"d062e1b7-d568-4aed-a52d-bfc11fc78663","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":198,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"ee9c458a-c6a1-45ea-9177-3c512a573423","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":198,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"8db339e9-af97-4e80-8783-2112a0216747","block_type":"box","text":"General shareholder meetings","page_number":198,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"a600bb54-ec2a-454a-bfc6-e615543a4352","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":198,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"e66da41d-e313-4721-ad01-54fb8bc73855","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":198,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"95edc86e-af8f-4ca3-a1eb-51d7b75f62ec","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":198,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"68dad598-5413-4eef-9890-93ae11bf399e","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":198,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"06e8a06f-afbe-49b3-b610-1919b3dd5c51","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":198,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"d2cafc2a-f076-4f05-a333-45ca1fc4e818","block_type":"box","text":"an in-person meeting.","page_number":198,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"39fdceb3-5d7c-4c35-aac3-b837b4a856a9","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":198,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"12451bf9-5851-4341-9c2e-4add0bd05fda","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":198,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"4619a2e1-6c0c-404d-b8e0-758b077994f1","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":198,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"10fa209a-790a-43b8-94de-f34a6f317362","block_type":"box","text":"participation.","page_number":198,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"8f0567f1-4d47-4999-993d-ee24afaf60e3","block_type":"box","text":"9","page_number":198,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"48c081b7-389f-46c6-9eee-b10f2187281f","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":198,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"29742dea-4670-456a-9fd3-7e1fece1a317","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":198,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"f9e51579-a33c-41a5-8e99-fdf177f42cb9","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":198,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"e0a1c45f-eb43-4ea6-90be-de07ecaa77ba","block_type":"box","text":"Disclosures.”","page_number":198,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"1fd021d2-4374-4c58-bed2-fa1cac42ee18","block_type":"box","text":"10","page_number":198,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"12d972b6-9860-417c-b86a-79f7b7c423e5","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":198,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"5a5e2f6f-4390-4303-a24d-523e44eb1c1a","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":198,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"dbc7d02f-0b55-4d34-bfd0-88e15383201d","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":198,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"8a2a7590-4a9f-4c3c-9677-a00e9c514cdb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7560f9f7-15ed-480d-8016-071fd8347ea7","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1c6b2835-3063-45db-a8e5-ebc6f22826cf","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20b8a5c5-ebd3-4539-81fb-231db5cef927","block_type":"box","text":"Bylaw amendments","page_number":199,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"27d4f384-aa55-4de1-a4fe-d42d24abb8e9","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":199,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"f73c16f8-a417-47c2-a08e-9c5778d70ae4","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":199,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"3b743ce1-830d-4f45-a280-ab9131ed3b7f","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":199,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"81e64c75-4098-46c3-a6b0-d600b596e515","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":199,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"9083e24f-3143-40fb-b5ae-65d9d4a034fe","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":199,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"d5afb971-2aed-44c8-a39a-1cc5f390d088","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"961a9512-4b4d-4b87-be57-0cf2e067c594","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":199,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"dd005ad5-afc3-4fbd-88c0-024799698033","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":199,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"37e5d1f5-5120-4175-91e0-bc5e3c163863","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"e13a0cf1-6766-40b3-b45b-51ac7ab581b5","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":199,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"9bd50fe7-38ab-4250-b1db-ddbaa510373c","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":199,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"c6c4a9f9-bcb7-466a-b0b7-04698ba940b4","block_type":"box","text":"nomination process.","page_number":199,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"3680b9b2-4f45-4aa7-a50a-0f3ed1b5e8cf","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":199,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"9baaf766-a6a9-441b-ba3c-52d13092a813","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":199,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"b0dc3b38-8727-4256-85d0-57e1200de7d0","block_type":"box","text":"Change of domicile","page_number":199,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"c463f052-1166-4dce-a9e4-c3a11979086b","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":199,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"a34827bf-642e-4ad7-b454-4a5c699ff127","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":199,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"6e8596c6-da60-4c97-ac15-3871695ccc89","block_type":"box","text":"immaterial.","page_number":199,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"0d7577a8-3b9f-4054-b15a-76173b8e9ce7","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":199,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"71ca4279-6aef-46aa-867c-4b2b7da26257","block_type":"box","text":"with our clients’ financial interests.","page_number":199,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"6ed94c57-0334-4959-8288-7864ccdce431","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":199,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"81644c87-3812-496a-ae81-ca4471fd0dc4","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":199,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"b39e297a-7e05-4814-9fab-9641c8b5b293","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":199,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"9d8b7699-4646-44be-a2d3-961a414b1f1b","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":199,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"3f7df214-6ad0-4d0b-bc33-a451998ebd18","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":199,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"98a5b398-6faf-415d-9b4c-f7a87acd2859","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":199,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"5410d161-7ff7-4fbd-9f83-796072c02fa4","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":199,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"dea8f4e7-4477-4c35-94ab-ff5104209b70","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":199,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"d9afe6d1-a0e0-4138-81b2-872576e5dcd4","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":199,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"e570909e-8a5d-4e5a-b6a2-c4a1c2f18a4c","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":199,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"3ba32cdf-f75f-4701-b8cc-a24a456858ec","block_type":"box","text":"relevant to a company’s business.","page_number":199,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"a40ec635-34f7-443f-903d-c8271267fd43","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":199,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"c2a50709-79e7-4a63-af38-225478ca1971","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":199,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"760b12f0-2ef8-486b-af52-0f57984fed7e","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":199,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"44827267-a187-476f-960e-164f58bddd9f","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":199,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"687b0101-5c3c-4c8f-942a-4039a8793bf9","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":199,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"fd2ee846-4a00-4c68-bd06-3209da1b7168","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":199,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"f95cb6e9-9266-451a-aafc-c461e377cba0","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":199,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"430ec15e-47f0-4786-9151-e7cbd2351439","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":199,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"fad55f5f-5fb6-4586-b6a6-0d2e2529098c","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":199,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"f2b451b5-589b-4a45-89f4-2de24dd8abde","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":199,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"af13f2a7-0ec8-479d-934d-92e72dbb2f2b","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":199,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"4e1e0041-a2ee-4fc5-b9f3-e4ed392a603b","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":199,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"ada94b82-a351-4485-a21e-2ace31b5ec64","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":199,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"90392371-0c9c-4e86-9c18-4536a25ed7de","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":199,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"c1dd3d60-99e6-4ed5-9450-d0b5cb121d11","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":199,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"5ba7f00a-3a48-46d3-be3f-2d3e5b46f82d","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":199,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"972ba79a-e48b-426c-a1fd-d2a1a3622595","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":199,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"e27b0114-901e-4ec7-871b-19e883612f0f","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":199,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"6cbc1b82-1550-4a8f-93a1-c5a0b7c00a47","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":199,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"0ab9d9ea-2331-467b-bfe1-4b25146064ea","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":199,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"82f0d9f5-1481-44be-8aec-719c8a11fde9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f8b09573-a738-4154-b181-c25fb469b44e","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"435f27d4-105e-4397-9b82-6284d7b70e4e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"21d373d2-b79b-4917-a169-3d03935a63aa","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":200,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"63c3156d-ca50-434b-b6c5-0ec96cdd32fc","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":200,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c145d768-af64-4975-8c2d-a55600da8bf8","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":200,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"85f889c6-47f5-4870-9376-e0a83c6e652a","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":200,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"c8252b93-b450-4139-9df6-54bc0dd9a890","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":200,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"f724c159-fbdc-4b9e-a101-af2687fb7f5f","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":200,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"c2e4051a-8360-4dca-9f60-103db8db2fab","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":200,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"f96275f6-617c-40c4-9644-91a3eb988e09","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":200,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"76046bc3-c8b5-4c40-af40-8e499dbac936","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a928ffda-d899-444d-a6c5-e4db916acd9c","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0028ce57-d22a-41dc-91f6-cd50d405619e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05dcbc4a-2691-42a9-b889-2fc789c4a9d6","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":201,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"6feabb7d-5c99-43bd-979c-2985143805f5","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":201,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"b4e138ff-8068-4497-b087-a707725fede8","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":201,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"57bbca29-19aa-45b1-a7d4-2264ac803f18","block_type":"box","text":"11","page_number":201,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"fe932d2b-fd41-435e-8f1b-867ba5b0502f","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":201,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"c1f90a34-e225-4ee8-ae1a-841589e570a4","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":201,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"1c096742-d38c-44b9-bb1f-53852477a546","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":201,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"65353d4b-465f-4134-861f-afbeb35c1c29","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":201,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"ab01985c-7ca9-49a5-98c8-bf30eb6d8c19","block_type":"box","text":"regulatory requirements.","page_number":201,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"45f97085-ab89-471c-8a17-6a1a542e61ba","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":201,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"7cf5ccf8-8ca9-4400-af6f-3d4be9936e3e","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":201,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"ff36bf59-4f19-49a0-a099-6391c1ab3296","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":201,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"180eb7a4-2338-42ab-a520-2e79750af05e","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":201,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"560d5b80-75ed-4139-a450-9ccd6b8aa751","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":201,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"b420a354-88ed-410f-bf03-6f7ae563d0b3","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":201,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"d13450ca-f2b2-4b5a-83ee-b25495d8cacd","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":201,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"6cc2bb82-6942-480c-8a5c-9b626c122379","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":201,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"4e6a4e1d-46f6-46eb-b70d-4a3bdd0f95c9","block_type":"box","text":"returns.","page_number":201,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"d2b538f6-ee5e-43b9-b564-beaec86e0624","block_type":"box","text":"KEY STAKEHOLDERS","page_number":201,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"45e8727b-6ba9-443a-b7cb-54d38c572439","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":201,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"557645f2-87ed-45be-b235-96c0f737dbb9","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":201,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"49c7a60e-676e-4ebc-a008-81cd40a10703","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":201,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"3fd16da7-eb54-4264-9bbb-b5c152ccd438","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":201,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"30bc432d-2b0a-4b66-97a7-a6c019c55d71","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":201,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"bf3774a9-4230-4a73-b24a-b9b0cb6bed09","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":201,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"b18c12a3-d778-406d-8f38-39b7df0a6326","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":201,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"09837bfb-f65e-4fca-b321-ca290bfe6ebe","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":201,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"2f9a908c-421e-490d-bc35-b715e1f5bb48","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":201,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"059f07a3-6c5b-4e63-99bc-773e6f2123aa","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":201,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"de5b0f6c-1b21-41fe-b457-ba0581720416","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":201,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"d4561449-940b-40dc-ae7a-fbc993040809","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":201,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"6e4f4e21-36ef-4188-8dd8-d1b047428d8e","block_type":"box","text":"i.e.","page_number":201,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"5182a17d-4c4c-4e17-9435-84544f651526","block_type":"box","text":", one in which global","page_number":201,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e4dea5a1-472a-4291-946a-8093062cb0af","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":201,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"a8dc9964-36a9-4ab7-a67e-47313b872232","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":201,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"7036af05-1ef9-4f1b-82e3-30efb1277ed2","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":201,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"859b479f-7089-45cf-b3e1-8dd8e157c053","block_type":"box","text":"client.","page_number":201,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"79b495de-5eea-4def-80e3-dce951353939","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":201,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"ca4c0c23-c201-4980-ad3b-49be4655a145","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":201,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"951b4185-12c6-4420-8dd5-365391f25797","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":201,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"a4bf28cc-1ac5-4e70-8023-c4d3a8c4630a","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":201,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"bfc5f118-71d4-4634-9bc9-375794abecd7","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":201,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"4d63fe4e-13d3-43da-970c-6231f59ca58a","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":201,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"a9fb7aca-5e12-44ab-983a-a442ae388f08","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":201,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"5ac26694-f7af-4e58-ba2a-5cf4074ca57d","block_type":"box","text":"1 and 2 emissions.","page_number":201,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"074fc5b7-5f2b-4587-8805-05cc61ab01ce","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":201,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"c72a2825-1ca3-4277-a001-daa4c8fad88f","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":201,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"4d3b461d-09b7-458a-8803-c526deee074a","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":201,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"602811c2-b75e-42bc-bdc6-c31942035735","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":201,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"3a07d414-61b2-47d5-9134-e4760aedc384","block_type":"box","text":"11","page_number":201,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"a98a6f86-c7b8-491d-bc16-4e64f923a6d0","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":201,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"1bc009b1-1960-4233-b511-d0e31e176f7b","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":201,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"91af834b-2ada-433c-9855-8791100889a2","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":201,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"617c32a5-1e2e-435b-9007-05ca28aa6c60","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":201,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"ad334387-f393-4ce9-9982-6bbcf9a231c5","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":201,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"e8e6fdbe-6eb0-4cd0-81de-0e0de1766255","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":201,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"aec37bd8-1851-461a-810b-439312132e32","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":201,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"72526c5a-2e04-48b9-9af2-be9c1937aa3e","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":201,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"13d814d9-03e8-4a65-9937-4fdf6b1111dd","block_type":"box","text":"sound governance framework.","page_number":201,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"c835058b-a3cb-4a3e-94f6-ff7c6eb606fd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9c0ba34f-d164-49ac-b2f8-e6cea2f8e762","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6273a780-4ad8-4773-a26f-2a9467aeb007","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63b724bd-8c0a-47d2-a18e-37ca0bd94ba3","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":202,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"98b7e2c4-949a-446a-be42-db0ccfdc5b78","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":202,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"cb908596-1be6-4216-981e-b26cfcce30b5","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":202,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"9651ee61-e6b4-4cb2-a9d6-46d225d3bf01","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":202,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"c9138337-4c27-4062-8fa5-29a3d627c030","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":202,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"d59caa07-43ee-4a5d-a44d-1ed532a160f9","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":202,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"19ae2ba8-25ff-411d-a49a-a8a1d01c0957","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b8f1156e-9387-4339-9dea-9c23773500d0","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8b87f376-ac69-4e58-ac0e-908289ae181b","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07087352-cae4-49bf-94bb-2d601cc094b3","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":203,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"5de97fd2-4ce1-4d04-92f9-0a4a2e5a0778","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":203,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"266eb249-1f11-46af-a747-4a28f4fbc6b4","block_type":"box","text":"Oversight","page_number":203,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"f1972043-e875-498d-8a24-3543cf406725","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":203,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"077ea164-8feb-461d-a472-4ce866887384","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":203,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"6bb8a712-735f-4d1c-801a-76f860e9b550","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":203,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"c9148abf-dae8-4f09-899c-e638941dfaec","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":203,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"94c9e764-72d0-48be-bf9e-5ca5c41cf7d8","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":203,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"717807b5-0c7d-45fb-9150-ed6dc38e74a3","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":203,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"914fdfd1-bf32-4405-8837-637ee425304b","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":203,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"b5bacfb4-267a-41d0-8545-72fcbd7e0e12","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":203,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"1bad1fff-b947-4103-ad34-20be17c32348","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":203,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"89fdc7f7-efd0-4d1c-8cb1-ab77d2feb5c2","block_type":"box","text":"relevant active equity investors.","page_number":203,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"f888faa5-cf17-41ec-877d-03465c963bfe","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":203,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"9835b706-e4ef-4d6b-867d-e42c0afd4d2e","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":203,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"e60f372a-32da-4c70-9d66-536f727d6fb4","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":203,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"557583cb-7612-4088-96ad-9a96d12857c5","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":203,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"8ddab781-b55e-485b-b075-adbf713beac6","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":203,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"5a7cc9c9-ec80-4fcb-ba19-fad59a7f103c","block_type":"box","text":"third-party vote services providers” below).","page_number":203,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"3a5babe9-c851-4777-89ad-2c1632da5425","block_type":"box","text":"Voting guidelines and vote execution","page_number":203,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"f90fff2c-4394-44eb-aa41-4766dbdf950e","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":203,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"5798f665-8a94-4f68-9bbb-faf7ade9c513","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":203,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"bc572136-bbc1-40c8-b190-22e54e913a74","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":203,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"a0a10034-1489-4966-a8df-1a1ce4f99dd1","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":203,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"d453c434-7809-4050-9344-6a85456e6442","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":203,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"fdb46a04-10e5-4243-ab51-66e219903eee","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":203,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"9d0368e5-e238-47ab-9795-ec070961d584","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":203,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"fbd651da-0cca-4f74-9c3f-85e49d2b925f","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":203,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"a18790e7-80f1-4a28-8938-f695cc47f8a3","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":203,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"bc0a330b-6986-48e2-bbd7-168be81606a2","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":203,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"4d8c2ca4-a9c4-42d2-bdfb-ce25619ca320","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":203,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"e7c6f1bd-718e-4647-ba1e-b04ff6d2d918","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":203,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"4e001423-3342-4c0e-bd40-3359b5e4c175","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":203,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"0e14db00-5421-4cdd-af6f-402b31f2f9bb","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":203,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"02f4739d-3569-4268-ac06-2104476cc2ba","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":203,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"cb636e17-99aa-403f-94ad-385f37fd4aee","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":203,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"ebedb133-2b91-4bfa-aafa-cbe262609638","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":203,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"b4443e75-fd9f-46ef-aef6-4dc261d28617","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":203,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"27cf639e-30c1-46a3-9bd5-e0dcb4a2536b","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":203,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"30b2754e-fdce-4f0b-8d68-190cdbcb66db","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":203,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"df3c2c5a-f05f-4b99-9be1-53aba3d33cd0","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":203,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"b9b1b612-fd00-415c-b3cc-2e8cd966e720","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":203,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"f3a21a28-4381-4709-b638-d73b4acdb8ca","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":203,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"2d847cbe-504a-4f70-8f49-c10aa451b33f","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":203,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"1b89c8b1-3000-4ebb-8a99-ffcfff46feb8","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":203,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"d97d9ff3-11fb-40dc-927f-aac37747ef44","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":203,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"2105c924-d8a1-4dca-8b8f-55782fed9856","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":203,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"8ce1748e-2fb7-426c-9b01-f33a894ad77e","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":203,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"32a0aa8b-de48-4327-8ff4-e9afe2db2ed6","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":203,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"84b22b48-724b-4223-8da6-35842f1183a0","block_type":"box","text":"Voting Choice","page_number":203,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"7352b1a3-68df-41e1-a2c3-437f42c1fd4d","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":203,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"7ec425ee-5aaf-40f5-902c-f72ae9245546","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":203,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"b04e2b30-3674-4ade-b077-a84b27b2c4cd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"49df5675-6d10-4289-b001-75e0ee521fdc","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"43da44c6-4992-41ca-86aa-71f2e1f4cbe2","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61744a3b-f8df-483f-8f44-cceaee63c421","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":204,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"160acaf4-290b-4580-a0c0-72f517cc5bcf","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":204,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"0c6b50aa-9a53-4f88-9e4b-ed106bcfac4a","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":204,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"4f7cc169-45df-47a3-b394-ee57dfd46bd3","block_type":"box","text":"strategies.","page_number":204,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"57d0aa96-6c0e-4b52-8283-cc1ce09e80f5","block_type":"box","text":"12","page_number":204,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"d637e260-6305-4c39-a722-40b254bd9088","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":204,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"cd7db5fb-ce3d-47f0-a85c-5eabcdfec7cc","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":204,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"2c673daf-d995-4025-b3d1-b4f02859d1e2","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":206,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"705500c7-d021-463c-a7b1-e1cbeed80d86","block_type":"box","text":"at the sole discretion of the reader.","page_number":206,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"86c18f5b-2b30-4183-b802-ea0a19a93654","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":206,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"831cc9a1-4140-485b-be4c-dd318faa25be","block_type":"box","text":"©","page_number":206,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"b363aa9b-ce2b-4c1a-b845-057d711aacc1","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":206,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"30d5d83c-0b96-40c3-be34-fd837799cea3","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":206,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"bee6a138-38af-4131-b908-084f7abee75d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e6ee90c1-35c5-4212-8fee-181f6956fa0d","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"30803ab9-786f-441b-b138-acf1c524eed2","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3ecce98-09cd-4b1f-9e48-72a2399ad059","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":207,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"65261902-398c-4014-97b1-91b3f03bd2a9","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":207,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"387e9e0c-7a9b-4d97-ac0b-1ba4dd23a138","block_type":"box","text":"□","page_number":207,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"a70831fd-15b7-4e41-9c8c-69ded534a228","block_type":"box","text":"Money Market Funds","page_number":207,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"9ff37358-4581-49d3-a9de-9ff9304cca10","block_type":"box","text":"□","page_number":207,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"b33d68c3-8236-435a-a4c5-4dfbf62eae06","block_type":"box","text":"Closed-End Funds","page_number":207,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"9bf6506f-cd27-4e43-a5cb-4786a6bd79c7","block_type":"box","text":"□","page_number":207,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"9b4dc9d6-ded8-4eab-abe2-8cc7b3e2f838","block_type":"box","text":"Other","page_number":207,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"9e5b9a26-477b-4716-95b2-17b1aa65c2bc","block_type":"box","text":"Objective and Scope","page_number":207,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"8a131513-41a5-462c-b649-a7f7ef3608e2","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":207,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"8451d7d5-a112-4ef3-8bb0-365ef77f7360","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":207,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"26f60ec0-6d67-4ce9-a4b5-f21a64d8a62b","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":207,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"2e60ebff-c226-485c-a833-47b4d0978e31","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":207,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"ab599f01-caff-4c3c-bf21-6cff20dd663d","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":207,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"91bb5a96-e635-4f73-83a1-0eb9171e69cf","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":207,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"7edc8abb-0415-451f-89ca-422a6251114c","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":207,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"b5d88a1d-d181-42a6-8f53-3d7f76ca862b","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":207,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"73f19351-a2f5-4457-a947-94f00315e487","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":207,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"4187cf5a-f452-4bcc-bdd6-1600e4244ca2","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":207,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"dc63c34c-1ccf-4478-a04a-2530041da6c5","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":207,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"48f2fef3-1d9f-4795-9361-0fe2f0198c78","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":207,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"09407836-740a-4f4c-9c15-ccb02150f5e9","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":207,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"de9a3095-d76a-495a-bb2d-04b7edc27d04","block_type":"box","text":"Appendix A.","page_number":207,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"62e14b05-2353-4145-bb93-c1005a77619d","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":207,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"cb628b08-56c1-4b4e-a65d-6584ee855c38","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":207,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"2b524f41-3f00-4ba8-9df8-454a013c954c","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":207,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"7628c2dc-3178-41c4-8881-397f874ea9d8","block_type":"box","text":"Conflicts Management","page_number":207,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"73e2da4c-1046-4837-8815-b9220ddfde2e","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":207,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"f1c5c8bd-9fa3-41a0-9bee-a6b31ec167de","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":207,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"997538c2-e291-4739-a84d-cb2c5e6e107a","block_type":"box","text":"proxy voting responsibilities. 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In mitigating conflicts,","page_number":207,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"4c4ad969-2e7b-4214-9b8e-16b08598f3d0","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":207,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"3b231bd5-6d41-425e-8e19-e4dcdba9ca7a","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":207,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"1875121b-b3c9-4e8a-86e8-72d4ec1d1efa","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":207,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"051de542-a5c7-481f-bf6a-4bb02c9b312a","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":207,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"4dea6c0d-7f30-4e2d-bbbd-582ca641c819","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":207,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"32d63199-7046-4716-bef5-c92a546b58e2","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":207,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"990da61d-ad57-45bc-8426-189fe7b6eb85","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":207,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"0797e5ad-8c14-4a95-9b15-9e6a80d0d2a6","block_type":"box","text":"connection with proxy voting.","page_number":207,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"8ee8991b-c751-40ec-8e1f-227938e6334f","block_type":"box","text":"Reports to the Board","page_number":207,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"11621545-4162-4290-b372-1288ec74cac3","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":207,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"08b4deb1-f63d-4cd6-a639-5e8e54f0fc54","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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Through stewardship, we assess how companies are creating long-term financial","page_number":211,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"d6fc7f5d-9b1e-4a2f-a386-4d5e1df6cfa5","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":212,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"a788365b-540d-46bd-ad7f-bd2f5bb9dc75","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":212,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"b1cffd3b-929e-49fe-9753-6b9de02bc057","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":212,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"172d72d3-2806-4a8f-9de1-732e9154cebc","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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Our regional voting guidelines explain how the BIS Global","page_number":212,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"479ba307-3b16-456c-ba1c-98ccf3c9e298","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":212,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"bc5014a7-3f62-4c61-91f9-4685eb60704a","block_type":"box","text":"4","page_number":212,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"58676765-1586-43e8-8575-214e7a869d09","block_type":"box","text":"3","page_number":212,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"01803c3c-bb9c-4885-ad52-11a97b4f45fc","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":212,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"bd221b85-dfa1-4eb4-82ae-cac54bb730b9","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":212,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"1cea74cb-79c7-46d0-bce4-085da86ba732","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":212,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"83501716-2801-4996-8177-d399cc6226b7","block_type":"box","text":"4","page_number":212,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"4aaa63b2-10f5-488c-8120-f2bafef7dbb0","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":212,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"1f2938fd-998f-4e33-ac4c-c7474abbc74a","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":212,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"6e6dcc17-c935-410a-a6e6-402c5feb04ed","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":212,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"53d904f5-321d-4232-80fa-c35668a19b82","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":212,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"9ff4c826-0da9-403f-83f1-0b91eb9ae98d","block_type":"box","text":"guidelines.","page_number":212,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"0db40385-e982-4425-84da-fa0787ee5ef4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c6aff66e-8c9d-4307-8347-7b4c61949c96","block_type":"box","text":"Global Principles | 4","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9dc7091e-7092-4b73-8b2c-4d7bd2869af6","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5eb6ad6-5e03-485d-b8c5-2328899465ce","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":213,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"41ddd577-12a1-43a0-a8ae-c3fd214774a3","block_type":"box","text":"Oversight role of the board","page_number":213,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"287e9d91-229b-4537-9e06-80103431dde7","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":213,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"e9beed9e-9d90-44f2-b724-8ee92785f52a","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":213,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"cb1a390e-d982-4f21-a378-963f2100e117","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":213,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"b3aad0b2-28de-43c8-88e0-61bb03312139","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":213,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"1a8c0aa7-6fbd-42d1-ac42-9714d00e9078","block_type":"box","text":"long-term financial performance.","page_number":213,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"f69f7b05-2ee8-444c-a0e7-95110e5f7019","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":213,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"433476ef-f85b-462f-ae24-0389adea243e","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":213,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"e25bfe22-fe1a-47b5-83af-5a0e663f069f","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":213,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"c41bb825-52a9-4878-a46f-d031765419a1","block_type":"box","text":"the business environment in which a company is operating.","page_number":213,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"65e419d4-917f-4628-90a4-bf87a5b7ab49","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":213,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"a6f06f41-edd0-4c28-8101-8683ebe95b43","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":213,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"74aa95c0-34f0-4d7c-8c9a-fd0896310041","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":213,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"53cde3dc-e1ee-4bf7-9e49-90ea73ac81ac","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":213,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"e349827a-d36b-47f2-8799-20efbfba5cb7","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":213,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"ec6539ca-fa93-44f3-8841-91b6c968af9c","block_type":"box","text":"mitigating such risks.","page_number":213,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"82a6af41-c553-4a4a-b251-5fc5612d767e","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":213,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"e6c3646c-4fbe-4f1d-9ceb-33b7a926b650","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":213,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3f8d9755-62f9-4d0b-a21d-f4c02a35f3c1","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":213,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"fdee991e-9f75-404c-b0de-b47342bccfa9","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":213,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"42150db2-2cb5-44b1-8f2a-a65a4ae3af43","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":213,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"8930cc3f-2e11-4cd7-85f9-7057e9186602","block_type":"box","text":"strategy.","page_number":213,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"0e9dddca-f7dc-4d58-b413-cf6a7287f0ec","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":213,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"36f64ae7-4ed1-49be-a7c3-cadcb1586e6a","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":213,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"fbf2cabc-cb6c-46f7-83b0-fd3a3e9e1845","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":213,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"f44f014b-f280-4db6-96b4-544cd6c48966","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":213,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"51972f7f-b3d5-4819-8198-f741449edd6c","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":213,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"009f2b48-64c0-41f0-8805-a25945a62eff","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":213,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"d0e369ec-e3b5-45c2-b3e0-7c6d1b3a04f0","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":213,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"a039b131-2921-47f2-ac29-cdbac5fa8fa6","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":213,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"b2ab4504-c6ba-40e8-ae8e-3406c6f0caf4","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":213,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"62469b98-cb47-422e-93e0-18b18c7cc257","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":213,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"bf1fd876-93fd-41e1-ba8e-485c42c2108c","block_type":"box","text":"Regular accountability through director elections","page_number":213,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"640d3871-bcc6-48b7-aeaf-bba7a665441c","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":213,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"eddf81fe-f3f3-4b86-991e-2dafdb8875e7","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":213,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"0d0b3d9d-ddc0-495d-b7a7-f6ce7b2e671c","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":213,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"4f0fd458-44f8-402a-b959-c614e09f38a1","block_type":"box","text":"5","page_number":213,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"ebfe7c07-d84c-443e-907f-a77a311d5061","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":213,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"132db675-2650-47c1-940b-b5c100b98c18","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":213,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"dbf20ab3-5aa3-4375-a9e0-ba3d37047f09","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":213,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"c6653155-c609-412d-b108-a23eb73fd8d5","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":213,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"788c0f46-d6b6-4fbc-81f4-393b59a13c6c","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":213,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"e59e3032-74af-4985-9d86-0eb7ca6055c1","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":213,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"9bba4a1e-4afc-4046-84ff-4850d35a48e2","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":213,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"66cd2e87-f1ea-467f-aca9-3b71333c1a2f","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":213,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"d17ec899-8ece-430b-b420-457a4c572096","block_type":"box","text":"5","page_number":213,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"a571551c-0777-4554-bd41-34ef747195a3","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":213,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"0c414449-0ac0-4747-adfb-e0b48fc2e0ad","block_type":"box","text":"market regulation or voluntary best practice.","page_number":213,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"a689eca2-7334-489e-ba29-deb3ed6c7699","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ba2fb998-5c53-458f-b157-2282072bd87f","block_type":"box","text":"Global Principles | 5","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"da05b1e1-6e67-4494-aa2d-89582dfe8fc7","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"62497131-d8e2-4868-8bb6-90c910dc2de5","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":214,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"0325ba4a-f2a5-4dd5-941f-460a9a3d4665","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":214,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"2c3b1da5-f170-4ed7-9b06-307da23a8024","block_type":"box","text":"recently.","page_number":214,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"e82849c2-68fa-4c52-b566-62445fd56bd9","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":214,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"c7ba83f3-ba54-4677-8a03-6644d8aba7f3","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":214,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"a861cd40-0b59-4c5e-9bdf-50090ce87f08","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":214,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"37aba029-2200-4f52-9b02-fad3dcbe2a3c","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":214,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"d0bb9066-fcd7-4537-9006-95eef8e2738a","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":214,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"c52272b8-fd5e-44ec-aa8e-82eefb4eb114","block_type":"box","text":"Director independence","page_number":214,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"124bdc9e-c3d6-4e49-bf03-122b64121e97","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":214,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"74c8a5c3-7021-4d9f-85a0-b323b9906e75","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":214,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"7910fa3c-cf00-40af-b7fc-a81759b89048","block_type":"box","text":"6","page_number":214,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"e902fabc-0b9c-43a3-90c8-9cafadbcd95f","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":214,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"b8282edd-ae96-4cf8-a221-8af899f13dd4","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":214,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"e1e8b5a7-6fbb-4742-a470-34764f07bd64","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":214,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"a9f024f8-a958-416a-a02e-b37c942ebbcf","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":214,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"0dd8b47b-14a4-46b8-bd38-ea43cd51712f","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":214,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"b30fd627-2d8a-4f15-89f2-e0be363f6067","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"95866f80-db9c-4246-b04f-e6fa59583542","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":214,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"967f3a14-4514-4c9c-8cd5-b90c6b5eaada","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"9bc497e1-0d6b-4fde-b89d-9dd3e2c5f83b","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":214,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"c34c10e5-68f4-4878-a959-c9ca97f732b5","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"be53ad53-6c5d-4b92-9f73-1b338ac42478","block_type":"box","text":"Interlocking directorates","page_number":214,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"d3c09f11-b6f9-46fe-975e-5d88a689336a","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"b83c2dd4-1259-4a8a-a2b0-a1f8dd9e2ecb","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":214,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"9f0f1852-bcfd-4758-b7b7-3f2d4e72d2d0","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":214,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"0916a07d-0575-4fa0-833b-1623d4b408c6","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":214,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"b3f76eb4-ad8d-4561-a89d-35a516a2dae3","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":214,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"a75a33cb-8e43-4cd1-a5fb-5d1fa774087d","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":214,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"ba313058-778a-4065-aeb8-966eaeb737ed","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":214,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"8b507e94-9754-4fc9-bba3-aeea9b904643","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":214,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"677c81f6-97b3-4517-ac94-8960b76e01e7","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":214,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"9f8f0177-e609-4185-9a19-f94cf2ef5085","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":214,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"cecb19f1-1c44-4044-b2a6-f93491952c4e","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":214,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"947b7016-edf3-4b52-89e5-177fdaad2c3a","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":214,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"32da49d0-e767-42d1-b56b-4ccb06449383","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":214,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"acfb8b15-dd9f-4411-9fd7-4f5949df303e","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":214,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"03468809-6a62-4af5-b002-fd62e2586773","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":214,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"0957126d-d202-41df-a8e9-3b52c10e2e4c","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":214,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"c91e0f0e-9998-4d72-8c37-ac8d0082052d","block_type":"box","text":"Sufficient capacity","page_number":214,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"a27c3752-3c0a-4cfd-a331-2393152425da","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":214,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"267c4153-53ab-4834-ad13-aa44917a00c2","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":214,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"98c84686-41e6-4f3a-952a-8878f5df15df","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":214,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"06e5f832-7942-421c-b944-2e1f1eaa509b","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":214,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"7ffe8b90-6790-4b0a-b69b-c7095806e38c","block_type":"box","text":"Board composition","page_number":214,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"085a1842-d90f-4a1d-9c6d-f13396d34df7","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":214,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"1224b205-d522-4e60-a389-984baa5b18a9","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":214,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"cd705ce1-04b4-4f04-b5a7-d77511382e94","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":214,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"41ce75bd-ef26-4936-94ce-95f0b142eb3e","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":214,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"9357e026-72e4-4c2e-9922-8c2784caac03","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":214,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"3a7c8e5b-ffc6-4ff1-8847-00ad6a948651","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":214,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"284f97fa-82f3-4ae8-a208-562f62389a27","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":214,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"cfc459f0-987e-48c4-86b4-edd555b9b826","block_type":"box","text":"6","page_number":214,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"d752e64e-52c1-4948-a1b0-3b7c6eb6e775","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":214,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"89b85751-2a05-4cd8-91c8-5bbc84c0b3dc","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":214,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"2bf95c15-247a-4599-bb53-70cb86647c44","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f53e958b-e1ff-4625-b353-5f3bf94ee1f8","block_type":"box","text":"Global Principles | 6","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"99efc3b8-64c9-4c1b-87a0-4186fdb51491","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a463036c-bae0-4edb-a367-aed4e26e597e","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":215,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"1fb1d254-f53d-42c5-be52-70b48e05df3f","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":215,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"05f63fba-7df0-4c60-a980-353c335973e0","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":215,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"85b46c0c-df67-4432-8387-6ea20acdac40","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":215,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"0ed205ff-2239-4820-8f67-9ef76f3725f3","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":215,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"6f5c0a63-edb2-47a9-a3a5-7a4769812991","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":215,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"6d38be69-133d-4820-92ab-2a20de47835a","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":215,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"726275a0-b990-4ae0-92ed-93d871256983","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":215,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"df7d4ccb-fe0a-4eaa-9a5e-a7fdccd188e8","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":215,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"908436c3-0992-4748-85ad-d0dee3f5262b","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":215,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"eea99d94-acb5-4359-a87f-045cd42682d1","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":215,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"2dc0d691-a7a4-4047-9309-e0a86caecb18","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":215,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"0d766637-652c-4639-99d7-54d2328b7267","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":215,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"301b2a1c-0c82-4453-a631-d2e89cf82ac9","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":215,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"ace60a73-5e6f-4523-a522-6739963efd44","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":215,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"33e468ea-6e11-41d2-945c-885417754d71","block_type":"box","text":"systems.","page_number":215,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"0090af38-e0f3-418f-9c5b-0fb90889b0f3","block_type":"box","text":"7","page_number":215,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"e4dd04b2-a11f-4635-adf0-43baa1cca33a","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":215,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"c9bb089d-e411-4f2e-9f2d-63898b2086f3","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":215,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"0864f678-7267-4d82-92e0-21aa5aa585e9","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":215,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"da178d69-0ad7-4a09-9150-11da285446d7","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":215,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"df756354-20f2-4167-8b64-674aac09fb74","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":215,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"730948c1-6b70-4842-bf8c-b5aae18c3abd","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":215,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"43e00bfb-8c8c-4c46-aad2-0c42899a2da5","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":215,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"7e2f7006-deb6-4b69-b7a1-fed66483f751","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":215,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"7b26b2d3-9eb2-427a-8ec4-2225c4c0ffde","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":215,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"e530047f-2f0a-4e5f-a10f-2c92772160f2","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":215,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"50f2dc88-847c-40d2-bc4a-22db3802e098","block_type":"box","text":"or internal audit function.","page_number":215,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"98db043e-c083-4f06-a40b-18e8f55ba46c","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":215,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"01315fb9-4abb-4d1b-a7c1-cae5634cfe8b","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":215,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"7d0a5957-3a94-45ee-b9ff-21d3be93ccd6","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":215,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"5ff84188-ec43-4999-a1db-37f3bfae39d1","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":215,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"29b4be9d-67c2-4e49-9318-c943b111b3b1","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":215,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"5fca238d-5509-45e0-a6c5-fdceaf4ce4ab","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":215,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"dcc2631a-1ad8-4cfa-8b6b-6fa9872410da","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":215,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"2d9c3424-4412-432e-8c23-1398306c0874","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":215,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"61e2d57b-d130-4898-ada1-4e94dd3f4580","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":215,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"6fd4cf4d-96f2-41ff-97f7-2338e11efe9d","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":215,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"490dce98-7b8c-4a1c-9339-7705494aaddb","block_type":"box","text":"risk.","page_number":215,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"fc1dac82-2c0c-4b01-9f65-d82ca3602fad","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":215,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"301956bb-dc5a-470f-bf52-acc05a658883","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":215,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"0fb7db9e-8027-4e81-bd50-a25096cca610","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":215,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"c5b4f3ae-7e26-4948-9089-0a2d12daa662","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":215,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"38ac573b-1505-4f30-b770-0820249aac01","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":215,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"1a4ef919-a562-4d17-988b-eedac70cb832","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":215,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"4ad22465-d10d-4c52-b49d-413211bacd32","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":215,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"d175d5a5-4f03-4af9-bb34-4dda83c20a46","block_type":"box","text":"7","page_number":215,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"0b22a339-0d32-4945-9ebe-464ffbd44877","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":215,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"41d2739e-ad3c-4596-9fb3-a0552c02c9d1","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":215,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"0846e504-d899-4400-9635-69c5626a358c","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":215,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"a61107ac-45bd-475f-8ce1-2dbf4f043685","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":215,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"762ceeab-9d09-4438-aa0e-b2305571c8a8","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":215,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"386fb85a-5a78-4e7b-aa81-fdc9011356a0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"422c6306-8506-4c0c-ae6e-8ec13d49aa9b","block_type":"box","text":"Global Principles | 7","page_number":215,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"5e5378ac-c638-4641-b497-315fd26f4a2f","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7e15136-4370-4285-89bc-5e26c98b5f95","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":216,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"7d9f905b-bc6b-4d62-89ce-21ae82aab055","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":216,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"e744a195-de3f-4b7e-954d-7f0b1f8f2283","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":216,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"1b502b64-fc71-4e37-bf33-f142428fa76d","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":216,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"15f433f0-eb0b-4ab3-9ba7-f58d555bffdf","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":216,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"01dd156b-6d4d-4eb7-885e-603b58ec40dc","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":216,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"5e78b9e6-cacb-4518-a1a7-81c1c8c02319","block_type":"box","text":"minimizing costs to shareholders.","page_number":216,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"2746c2a2-ac7f-49f2-ad68-ad8827fe8d24","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":216,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"465a628f-f780-4f90-a439-4bf94c9a2a4d","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":216,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"a9e5e50a-6f58-49f5-ba2e-ba6ea13dc74e","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":216,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"4d16d78a-b5c4-48ab-8160-2780b03d5572","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":216,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"9fe92bca-093f-4032-9be4-005d9392298b","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":216,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"0339d653-35fa-43ad-bea3-e2e9325edb09","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":216,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"6961d281-22c2-4696-b999-2b20bb98d74a","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":216,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"7fa73fae-6c5b-43da-a100-247cc2385a84","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":216,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"1c381b51-7bd1-4f2c-b0b9-4650bcbbda9b","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":216,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"efc9df18-efed-4598-a58c-41b159c124bd","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":216,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"b5646e76-68ef-49c3-bd63-b41656dcac62","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":216,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"1967b016-b3f0-400d-a9cb-5e63c086a7bb","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":216,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"1c4d52b2-7c0c-4cef-8acb-671162302f37","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":216,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"27efb2c1-278e-4896-b88a-275a3cd33ba3","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":216,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"12ac676c-6fa1-479a-8476-b0fa964c7e4d","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":216,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"db1de9e6-50cc-4424-90ce-7cdebe9d9285","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":216,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"e19ba00f-f843-41e3-b55d-48cfc5bace6d","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":216,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"a5488bcd-c0c2-4b24-be5a-3e6890a40871","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":216,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"7dc3fe48-7c53-4ce6-ba61-b5795368597e","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"82f727f0-365e-46c3-bb46-e9edb2ab7e7b","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":216,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"73b62a00-5eb6-4f89-b721-c86b82439773","block_type":"box","text":"ownership.","page_number":216,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"26dea120-3b23-4aac-9fa6-e99c2b1e82ff","block_type":"box","text":"8","page_number":216,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"86fc44a7-ee13-475a-908a-a1408d2bb77e","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":216,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"351ec6cb-1f1f-415a-a444-4fe259dcfaf8","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":216,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"802ebd08-664c-4e1e-b8a4-37fd9aedb3f5","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":216,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"979be60e-79d4-497d-b22e-21af4e067903","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":216,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"7135f553-3da1-46ce-be65-ec90abea0500","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":216,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"9b49484b-0b51-4a0b-9b17-06cd0543cf13","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":216,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"60d16965-3710-4892-8e90-686dfae8dd3f","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":216,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"f94a97b9-2aef-4a94-9817-aa3f185296ac","block_type":"box","text":"results over a period of years.","page_number":216,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"0272631f-d24b-4aff-894e-c6abf9a0d495","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":216,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"83694d7c-f173-415f-82b4-20ae1efea297","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":216,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"44b78cd6-80c8-4e0f-bedf-0bdba091d695","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":216,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"5015a367-8ed0-48b3-a439-a1b77193b612","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":216,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"abb8f72e-b3f2-4395-992e-8575ad0c5421","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":216,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"4260a496-b38e-46d1-ad03-2547be0754ca","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":216,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"44437cf9-baf7-4c7c-a4ff-bfe0c73997b4","block_type":"box","text":"executive compensation strategies.","page_number":216,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"876a70b5-60ce-4840-95fc-98cfd8e59974","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":216,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"7cccb53d-f9ac-459e-adea-7cec96c598eb","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":216,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"495a5c4a-5a56-4465-888e-3198963f11d8","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":216,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"8cadff61-6877-4a62-bd36-80ea4f7d8e4a","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":216,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"dbac1d24-401e-4c33-9dbd-24dbb213df66","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":216,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"f5590d86-b385-4245-b248-cbef04d3758f","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":216,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"34392af1-1ab6-4c23-b801-ae48913ab798","block_type":"box","text":"8","page_number":216,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"f4210aa4-9884-4366-bac8-a2d9637e2b8a","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":216,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"27c36a37-767f-47a0-8587-71484981efd5","block_type":"box","text":"different markets.","page_number":216,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"6f0a776c-1242-432f-847f-741662d1d39f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d573d3e1-7fb3-4372-911b-d7da21147a2d","block_type":"box","text":"Global Principles | 8","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4b389d03-a0a2-40da-a8e7-4c3f040c996a","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e62074ea-fdb1-49f0-a2d3-0f63750ba2f8","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":217,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"30e84405-5f2f-4c92-8358-c400ffd5d60b","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":217,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"b3494bb4-da3a-48c4-887d-3dcfc28c3866","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":217,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"10b3c436-630c-490e-9f64-4b6cd2b48e8a","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":217,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"e2106a21-c3e4-4fb6-82eb-97dbe8693edc","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":217,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"e58b5b16-10fa-4874-b597-be430e364464","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":217,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"64487b63-29b0-42cb-92ea-38d5265023e3","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":217,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"19572623-173e-469e-86cb-e1d4dd8ae107","block_type":"box","text":"whom they are charged with overseeing.","page_number":217,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"d291f19c-37bd-40af-9c0e-8e525ba8d145","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":217,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"81ab3b3b-54be-4082-9142-83f09bbd8c08","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":217,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"f3e24d6b-1129-4f8f-a1cd-0e74810478e1","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":217,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"36d13906-87c1-4c07-99ae-f40bdac291ee","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":217,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"d99724f4-cdb3-4676-9535-5242d9984d85","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":217,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"4978c851-a2cb-4b29-ac28-f3116ee7d91b","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":217,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"1178f275-4719-42ef-b472-259aaa6ab9ee","block_type":"box","text":"structures.","page_number":217,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"1ac777ee-187c-493b-a50c-0210449fcbbb","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":217,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"3935ef7f-aa24-4182-9f26-722b8a4039ef","block_type":"box","text":"Corporate form","page_number":217,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"52d0bc8d-4f86-4d74-8d62-23a2e63075e5","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":217,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"39e1da28-37a2-49ae-aa20-c5766db91674","block_type":"box","text":"the company’s purpose and business model.","page_number":217,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"7180a14e-5715-4ebc-a74e-8e09f9e513e6","block_type":"box","text":"9","page_number":217,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"9ce26fb1-0e07-473c-acfb-c94b8c816baa","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":217,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"d42a6a37-5ece-456f-b725-e9041c7e5138","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":217,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"5c346802-333d-4afc-b15a-b8845358899d","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":217,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"6ec3e240-4750-4fe6-940b-f86d8a68a9d5","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":217,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"b162ea04-30eb-41f5-b2cc-147806763ced","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":217,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"83b27a5f-223e-4706-ae93-ca61629bd59c","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":217,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"d6f09180-43ed-4093-81f7-4f4e33308ac3","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":217,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"baa8aff3-b9d3-47cb-b6e8-e5600c6efcb5","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":217,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"118656f5-c7e1-4ba9-b184-684a23b93832","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":217,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"19489684-f583-4295-b1f1-24bd4e91f4ab","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":217,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"bc32b79d-7293-4fb4-ae75-716a7ddef674","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":217,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"22483a72-9edc-4274-bf3a-d68a5620f652","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":217,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"d61edb89-605c-4f43-87ee-d009fabd1298","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":217,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"335eec75-e603-4a30-a4f1-6c7e7ec61bbe","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":217,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"6cd16480-8486-4f22-ba02-424cedb59c73","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":217,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"f04d834e-18bd-4130-8580-bd5b960b1a51","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":217,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"4d02c1ba-e790-4712-b305-035ad40f6aef","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":217,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"067b3b55-2e5c-4b12-b862-a6abc8aca203","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":217,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"e87fbb64-6e7c-4d39-8a61-43df0af60edd","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":217,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"88281baf-2490-48cb-93ae-5f39ce9452d5","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":217,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"ce341e88-398e-4979-b49a-86bc6a8be0a0","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":217,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"461426b2-e7af-4a84-96e4-9b9e38624fea","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":217,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"c370c851-bd86-4dd8-bee4-c88dda6fed69","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":217,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"b596fe03-d93b-4a8d-a4c5-afa5472de55b","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":217,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"c11d050d-cfec-4bb1-9d3d-3e7f1285bbc8","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":217,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"8afa24ae-1b83-4c59-8f4a-106989c04e03","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":217,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"53736f84-9072-485a-b337-9a8c85972461","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":217,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"d9e39217-7ce8-495b-8f09-aeb230db3d79","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":217,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"51966088-aa15-452a-8942-89a780205186","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":217,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"0999193a-d535-49b0-893f-f676ffe94f81","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":217,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"42b875b6-688f-44d8-8f9d-33199d982031","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":217,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"200584aa-4ced-400d-8f29-791cf1c80865","block_type":"box","text":"9","page_number":217,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"e0dfdaf4-ca5b-498c-938c-561c64445a3c","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":217,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"3be1ec52-c701-4662-9a93-537a8d7ec208","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"56c406bf-a682-4a55-ab93-f5ffb5bdef3d","block_type":"box","text":"Global Principles | 9","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"d4d4198c-9eba-4819-9a47-8a33fdd2ee97","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b436476c-5eab-4936-bb8f-1d7431f9f374","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":218,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"7c8221dd-9271-4ab7-853b-adda01b1c3cc","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":218,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"5ca5fda2-da91-456d-a0b8-0efd8a7075c4","block_type":"box","text":"long-term financial interests.","page_number":218,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"1483b0f8-4c32-4f58-a7ca-7ab3533a7a12","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":218,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"b4ddb555-93fe-4004-a3a7-4568da82745c","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":218,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"0009aa17-c70d-4642-bec0-3895843e92e3","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":218,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"d4dde97d-4d6d-434b-8e3c-884d2fcce6de","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":218,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"ba4bc0cc-f068-4b48-98ca-5a72c45ed07e","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":218,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"00a80f5d-a1f5-42f9-8a34-cb8327839e3e","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":218,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"3880e163-b334-4e9a-bba2-6f8cfc0e018d","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":218,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"547fba56-0450-4304-97a3-3b24a7b540f6","block_type":"box","text":"term financial value creation.","page_number":218,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"fa89d78e-1fed-495d-a8c8-812aa21f6537","block_type":"box","text":"10","page_number":218,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"6288ada3-b46e-4043-8c41-70c6033ae66d","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":218,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"d4affb25-db0a-448d-9ca7-0a9a51084c65","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":218,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"36fc4351-c556-4b50-9814-45f899dee423","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":218,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"8453093d-a14f-4311-9909-637bf1292f16","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":218,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"4aa3738d-0cff-4161-b0b2-cdced8847a7d","block_type":"box","text":"industry-specific metrics.","page_number":218,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"4c143377-6a3d-4115-916b-228931937cb9","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":218,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"91f1ba7d-25e0-4252-aa72-53f9630b6a1f","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":218,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"f9577361-ba96-4ebb-92f1-23a4d24e34dd","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":218,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"ffb328f9-f020-4f72-a884-3721ca16a1de","block_type":"box","text":"11","page_number":218,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"302ebfdd-8a9a-4fe9-b3ec-2298b608295e","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":218,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"1076050f-54e3-4cc7-93bd-7545aec9d8c8","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":218,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"0ca57163-b24e-494e-bd17-798fdbeb4d32","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":218,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"2c2d5dee-5a41-4f84-a497-edff5ac43720","block_type":"box","text":"specific.","page_number":218,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"461f4deb-a950-4352-937a-90e47227e642","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":218,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"5cfbcdff-a1bd-4e24-92df-629afe3f398a","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":218,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"c510857f-8e79-4b31-8b00-9f29579590b9","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":218,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"f99e92f0-50de-463b-a55e-3bf9a2e422fa","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":218,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"4b9466f1-5643-4c6e-af5a-8622df4ee93a","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":218,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"49966b87-67fe-4ad4-874e-197850e34dac","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":218,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"f47b12f6-bc75-476f-8e01-770f4f9416d2","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":218,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"3fc57e2f-2c15-4f21-86e2-9b66543d62af","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":218,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"b614b7ec-c27f-4cb8-afaa-fc9cc024d665","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":218,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"01a19bad-e766-4af3-b828-fa76184986f2","block_type":"box","text":"10","page_number":218,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"1ca89621-c369-4bf3-9274-5117c86e8864","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":218,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"cb332452-b5f2-4f6e-b0d5-d130e9fa20df","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":218,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"8f39a7ed-1a30-49d8-bec0-33f1959c3519","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":218,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"fba7a11f-3307-45a4-977a-0f13700b2304","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":218,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"fdb65d2e-5bc7-4820-8b8a-b5bb0ffeecfd","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":218,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"a99e2ce2-2cc8-45e0-912b-3e94f6c35b82","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":218,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"097d4311-889c-40a0-9e62-5021468df97e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"34b27b18-cb06-46cd-b4ec-b70cad426fb6","block_type":"box","text":"Global Principles | 10","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"342a8a43-c1bf-4bee-8a60-ad3ef0799315","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83b1506b-2a2f-4fde-bf69-d702d2f6d1b8","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":219,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"919dff1b-0bd2-41bc-b285-c7aa07eb1d45","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":219,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"518a857f-15e4-4e61-b1da-88ce7d2a3c57","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":219,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"aa09abe7-7e78-411d-bc11-e1290c113a04","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":219,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"0de2b369-170e-45fb-ab9d-d881c2463bca","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":219,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"ba922a2b-8a0b-493b-a541-3239ee47a6a8","block_type":"box","text":"12, 13","page_number":219,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"1ba63ebb-9757-4660-9aea-588687fc28b4","block_type":"box","text":"From company disclosures and","page_number":219,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"ec8a2954-1901-4afc-92c1-60b0644322ba","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":219,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"b072b846-905f-489d-9bb7-19dc500ba7ec","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":219,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"457846c5-60d4-485d-902a-6cf0f9d84a23","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":219,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"63b15e53-7708-49f4-9862-36f1282d1f45","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":219,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"c820c0e3-1b28-43d0-86e4-d630e253283f","block_type":"box","text":"viewed as best practice in the market.","page_number":219,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"6b346ade-d6f2-4755-89f5-2063bbcd8cc8","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":219,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"0264cb39-3309-4bbe-9a83-d2d5e3efb9a5","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":219,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"1d458292-0b02-4a6a-8db9-728f2d560a8a","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":219,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"d43691a4-77da-47ab-a07a-18a280e40d05","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":219,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"8158f1ed-3e76-4c14-a04e-ce2d2e2136a0","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":219,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"5fbc9175-8b9c-4f41-8887-655a45c3ed71","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":219,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"bd234c56-1d38-4dfd-9a06-bc043c7e7a3b","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":219,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"1de91936-1185-4d7d-a9ec-01f0f22a3883","block_type":"box","text":"interests of their investors.","page_number":219,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"a3e3a00f-f0df-485c-9a1b-96387aef872d","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":219,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"7756dcb3-77ea-4387-bf3a-ac98b300dc97","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":219,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"4e51f506-c694-44ad-bee4-7864fa2b9654","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":219,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"a0bdf93c-ae62-4c19-8d65-b7e315d81746","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":219,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"24333860-0cca-41e5-8a63-d9c1d595be15","block_type":"box","text":"good-faith basis as methodology develops.","page_number":219,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"0cd19d0b-bed9-4fd2-85c4-7aeff51459bf","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":219,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"c467595d-5941-480d-ac00-3c0e7fc47f73","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":219,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"9e604cda-2b9f-4d1e-b60a-8ab9f4c0b904","block_type":"box","text":"generate long-term financial returns.","page_number":219,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"da459531-f0f3-483f-b51c-1d9282867717","block_type":"box","text":"14","page_number":219,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"0e71a7a9-0623-427a-b445-6ee7a4ad36a1","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":219,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"abafa344-c7bc-4c42-8131-0860d720d601","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":219,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"dd2934fc-5889-45e9-98eb-f25e1ddb0865","block_type":"box","text":"15","page_number":219,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"047e2e18-5372-42f7-9194-21c5f403bb93","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":219,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"41f7d8f1-0a8d-4ae1-bff5-e89db08c3d3a","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":219,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"41aa9ea7-6637-4b73-bf99-3ac7a9ffa6fb","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":219,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"c7b60870-f58a-449a-9fd5-31e392b515b4","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":219,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"768b659b-7b9d-491b-9a9b-838883bc2f20","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":219,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"3923fa66-9a89-426c-a8cb-93ad90fd66d1","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":219,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"a4e3b197-1b9c-4a15-990b-46ba436c5bbb","block_type":"box","text":"12","page_number":219,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"1b64ff11-e061-42fd-aa2f-900136265d41","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":219,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"3e0191e9-daef-45ce-a8ce-6b1b5e700e20","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":219,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"69491e34-9d3c-4534-9c87-f5d878e6590c","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":219,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"ae77f34a-0e28-40c4-90e2-1532768f6251","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":219,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"b95be53d-102d-401d-8053-d536f7325dc7","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":219,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"5c40784c-8d4b-4cf5-aace-ff784a810f5b","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":219,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"b25aa051-15fb-4130-acf8-162d0c722e0c","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":219,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"5b401b5b-37b4-4d23-aca9-cfe2ce8ac52d","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":219,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"915f00cb-50b7-4963-b917-72e04c7b98ea","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"cf1fc370-f5c9-4ed7-9afd-08af86fcd1d2","block_type":"box","text":"13","page_number":219,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"2930a5b0-b791-40b5-bf47-42818db0c6e9","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":219,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"cf6adc4b-53f3-4d03-929a-06ea9b48ac44","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"8c818e3a-9d8b-44a4-bdd0-5cf7fe010458","block_type":"box","text":"14","page_number":219,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"492b78c8-a727-4941-bd63-b377cfce6ae6","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":219,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"5d3ff244-ac80-41fd-98d3-dddd3b3a3fbe","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"3fea7229-e7d7-4026-8839-df9b8dd7d1dc","block_type":"box","text":"15","page_number":219,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"b02969be-74ef-43b3-947f-4ee8e4bfc3f8","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":219,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"e2a7ebcb-86f9-420f-8e4d-98df82aafcc9","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":219,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"ca8a157a-b2c5-499d-9226-d77626d8dd17","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":219,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"0b9f0135-a1f2-48be-ba4c-e3dd1b7f0f72","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":219,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"22cf10c2-ea66-48da-9513-b5e3e6509a04","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"bf8ce391-05ca-4362-b0b5-c522b9fb10f3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c8ea24f2-e709-42fd-9fcb-fd5a7bbb2455","block_type":"box","text":"Global Principles | 11","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"7906741e-02e7-4716-b058-0074838adea4","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"086ef38b-6bf9-4120-87b6-5b854ec05da0","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":220,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"574723c5-7026-4017-81aa-10eaf16d9af1","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":220,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"704551cb-94dc-4f84-969e-c9f58456e4df","block_type":"box","text":"16","page_number":220,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"af0f7eb4-733f-441d-a01a-1d39cf99c767","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":220,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"39ff228f-ef20-4acd-a5e7-02ec1ff40789","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":220,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"001d26f6-18b4-4412-ae0e-915b788b22b7","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":220,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"97bf4372-431f-453a-8c9c-920b623b97ad","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":220,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"18568ae6-15bf-47e2-b03d-c2483a20c6a9","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":220,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"67ba85f9-950b-4457-917a-1e38838ea6c9","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":220,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"f3cbcc55-1849-4b30-ae34-78e8cdb8a568","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":220,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"fae8337d-8208-43cd-9c4d-c0f7add42aa6","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":220,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"c321951c-8667-4a01-bb36-98210247cbf3","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":220,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"a947421c-4188-40a9-8fe4-520a3871c222","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":220,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"9a3eeffe-37d9-40c6-8f08-e397c8754fc3","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":220,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"07797319-abd4-4f05-8269-a0aba598aed3","block_type":"box","text":"impacts.","page_number":220,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"73c60b3b-a75d-4feb-ad0d-e4be2abc5b8a","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":220,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"2e7b0153-1aa6-47ed-bae6-03714d3d6200","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":220,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"295fd169-4b0b-452f-bc6f-0b52d178074e","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":220,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"38dda7ec-cee9-4a3b-a6f7-a56e2967642a","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":220,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"dbda3cd0-1227-46f7-af11-d40049861ace","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":220,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"b40dc66a-175b-45ad-bc27-b323b185af07","block_type":"box","text":"clients at the global and regional level.","page_number":220,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"d93e9fd5-a192-44e5-8c95-491a719b9a57","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":220,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"53472f8c-bd87-4dfb-8a94-640d3cfb558e","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":220,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"6a56d0fb-35d5-4831-af89-5c50d01ffd1c","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":220,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"5eb4b053-cc5d-4e7e-98c8-a4e0cc62a24a","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":220,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"8f3d79c8-a965-4901-8a26-7f32c8c47529","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":220,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"ce236af9-1907-496b-8f01-92462e33a48f","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":220,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"eb2d6ecd-67b7-4caa-a69a-b076f300c0d8","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":220,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"5363a709-30e3-4a0d-98f0-0a8071fe39d5","block_type":"box","text":"are independent from the investment stewardship function.","page_number":220,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"bc6a4768-4e4b-42c5-9dfd-168021d3334a","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":220,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"04dd77cc-d19b-4ef2-8216-1aa1c5140581","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":220,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"be733360-9e87-4194-a252-75583ccaa6e3","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":220,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"3e0d0809-c6be-4c81-8753-c5b3f9f43bd6","block_type":"box","text":"VOTE EXECUTION","page_number":220,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"73149c0a-aaf2-4c29-830c-e7c65f056a33","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":220,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"cffd7e58-0430-4c01-af22-fe1ad7cf0fc6","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":220,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"2c4bc385-dcbe-4a5c-b322-5ecff35bf45d","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":220,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"b29f9a23-90b8-4773-b3c5-3d1ffd3da661","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":220,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"b6bc2e2a-a17b-4e44-a2e2-7dcd047ea3ef","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":220,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"344ec6b7-0377-4cf9-a8b3-6c1096bd4e87","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":220,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"3a5410d4-bee5-45e5-b635-13c83decbf3b","block_type":"box","text":"management policies and procedures,” below).","page_number":220,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"c9329eb3-73bc-4394-ba2f-98855d5b75e7","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":220,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"55b9b39e-e506-4ae3-91f3-06d190933dc7","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":220,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"044af493-501e-4c17-88d4-5e9c4e3b6c86","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":220,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"51edeed4-2a44-421d-9939-2c10617f631f","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":220,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"a3ef5cc3-3623-4db5-aa1d-88eb9761337e","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":220,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"69aff459-4ec4-486e-bd8b-091dade206c4","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":220,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"df5d3b9c-997d-4a21-8228-7d455ac99aea","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":220,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"2c6ec484-a523-4193-85c9-516276442055","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":220,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"b6fbe4bd-a8c1-49e7-aea5-da283368c54f","block_type":"box","text":"16","page_number":220,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"5afb8da2-d254-41ed-af7b-ef14247a3537","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":220,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"e7d68e8b-5421-4572-b7b1-0d640a53be9c","block_type":"box","text":"December 2025.","page_number":220,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"3d4c1534-1524-49d3-bc4f-f1be511f0ed3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6d34b2b1-16bc-4088-850e-66667aa7224b","block_type":"box","text":"Global Principles | 12","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0de65a08-4e11-4f2f-b4c7-65d15c9710f8","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"adf69ba4-7ac0-4233-bb66-8935fa184fd5","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":221,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"6157d8b4-ed33-4ac5-840a-88971061ef94","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":221,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"16603799-888b-467c-8c70-00f175fbb30b","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":221,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"c8b52e3e-278a-4bb1-9284-368e3d7473ec","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":221,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"c6b76a88-baf9-4054-900c-2c5fabaa6a70","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":221,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"397589ac-8d71-4ab7-bdcf-b24bd47724d2","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":221,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"cc8fc19d-9a26-445c-b35c-70f3c1dd18af","block_type":"box","text":"enterprise-level vendor management activities.","page_number":221,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"e5a45967-33b6-4bc6-b63b-1272f6dffec8","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":221,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"86e31b8d-735a-4398-a96a-831ad5da7440","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":221,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"d5499b6f-5f8f-46c9-972a-4101960a9b46","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":221,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"d1299f11-f02c-460a-950d-6ba00280ed02","block_type":"box","text":"BlackRock employees.","page_number":221,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"ff534d40-7752-471d-8943-5fc065df7ab8","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":221,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"023d84d6-0ba0-4428-b01e-f7b1bb72dd52","block_type":"box","text":"SECURITIES LENDING","page_number":221,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"eb5300aa-cfd2-41c0-99b8-09ae70815cac","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":221,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"8d2a5d5b-3230-4f34-b9ea-8562e34ac782","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":221,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"d1a08d79-392b-412d-85e3-2d3fb8953609","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":221,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"bb3bf004-2792-4b72-a9ae-70e6d1b22350","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":221,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"befd4ac0-cf1e-45e2-92dc-447599ab5ecc","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":221,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"171e6f5b-a159-4820-b655-581a07b8f798","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":221,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"f700a462-92f7-4327-aca1-ba9eaf2466dc","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":221,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"d6832ab8-f765-42fa-8a6a-d82640ddd3bb","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":221,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"9fe239c3-d420-464f-89ba-ff49c8a5709c","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":221,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"f9589992-14c7-4f48-8bf7-7cd0b2892011","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":221,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"6964cf1b-21cf-4d2f-969d-9d3cb79b5331","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":221,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"0e300df9-f8f4-490c-ae2d-02dc8d5e2705","block_type":"box","text":"of recall consideration).","page_number":221,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"c4716043-e236-411d-991f-06b07a63b696","block_type":"box","text":"17","page_number":221,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"355954e3-9620-48f8-9a16-59fe113f35b2","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":221,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"b336f114-faf1-4f5b-8b15-68c506dd810a","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":221,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"3c4324be-75e7-4311-b18c-ad55bebd78ce","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":221,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"68a02d7f-f9c2-46fc-9953-e0481bb8eee8","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":221,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"61e847d0-43fc-45e5-88e2-6b7588da57da","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":221,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"e2630238-93a7-4c3f-97a2-c9dfdfebc9a3","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":221,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"c1047b5a-f356-4edd-9edc-2fbc8258344a","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":221,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"622f6101-d78a-41bb-a021-892b0b1ebdd9","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":221,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"2c8be746-06ab-4469-aace-e37fbbb64ecc","block_type":"box","text":"and may modify it as necessary.","page_number":221,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"a8b5257c-2d4a-4c33-a25e-cdff02a2139c","block_type":"box","text":"VOTING CHOICE","page_number":221,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"feea6a9e-ffe7-437f-920c-0a6bd0e4aef6","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":221,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"1af8ccd0-3e33-4fc7-b2b9-278cff53dad5","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":221,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"00802283-e81b-4685-8d59-af83b2e33586","block_type":"box","text":"18","page_number":221,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"79ce11ec-c062-4634-bd59-b80d7931de44","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":221,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"7f3786b2-111c-4977-84f0-3f02fd9ae699","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":221,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"a837eeae-b0e4-4ce2-a083-76d7b770b9f0","block_type":"box","text":"17","page_number":221,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"b1e9af53-a6df-4788-80ae-b49063e62034","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":221,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"aec59734-8ae4-4063-aa5f-1d2f1e6e57fa","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":221,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"f45a91d5-d3cc-4763-9544-2b817fb2bd08","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":221,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"0c98fd8d-ca8c-4eab-9118-f7892dc7acb7","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":221,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"2f333ef6-417b-4ea6-a33d-568903ea4cf8","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":221,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"1638cbca-ee95-4e76-a0cd-51299ed09ea1","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":221,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"4ed2188e-f649-4705-b600-d3a24a99f8cf","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":221,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"c91696f0-f69b-44c3-aa8d-9bdc9b2d03b0","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":221,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"50b258fe-292e-44df-a03b-2eb19b1e520c","block_type":"box","text":"18","page_number":221,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"cd843e10-bdcd-431f-9ef2-9621113c5f6c","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":221,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"c4e5e72d-073a-4d0c-a8a0-fc38576b691a","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":221,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"7939079b-9481-42cb-8ca7-45eca4bc0861","block_type":"box","text":"including the decision to lend securities.","page_number":221,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"4a9a375e-5c59-4be9-a8a3-53ed47f1c40a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"11e44c32-739e-416b-987f-60be949f4415","block_type":"box","text":"Global Principles | 13","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"85382e11-f6ef-4679-aeff-25f0ae8a71f4","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f20bf450-0296-45ec-89d2-9033be1b2bf0","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":222,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"3425ed5b-3fcb-4fdf-9846-7bd905fe0e5f","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":222,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"b7067d1d-7311-41d0-bb9a-03f1efa7451f","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":222,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"0eee8b5c-f47c-4cf1-a7ac-6f5835688026","block_type":"box","text":"19","page_number":222,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"880925ed-94c9-4475-86c2-f63d9a218bd8","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":222,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"54fc8c92-f474-4128-87fd-0c803c0152aa","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":222,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"ddec4e51-b7f2-4518-a0c2-8b8ff1bd35e9","block_type":"box","text":"20","page_number":222,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"4f33b79b-24f2-42a5-ac6d-e9aaed7bacd6","block_type":"box","text":"As a result, the shares attributed to BlackRock portfolios in company share registers may be voted differently","page_number":222,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"8a7383fb-cb1d-46f8-8c10-e12b6e191620","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":222,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"1cc96e31-0917-4597-805c-0cc0bb6ac40e","block_type":"box","text":"accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":222,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"ca448f41-8a3f-426d-a101-21ebfc62269d","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":222,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"02db0840-7c0b-4dd4-b7ea-e5f09869eed5","block_type":"box","text":"21","page_number":222,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"d404ab5c-d8ae-4462-84dc-ac974a1ed73c","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":222,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"7af74b3b-2986-4a83-b708-8f98e513763f","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":222,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"def16314-c9fe-44b7-966e-bd9d198b8bab","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":222,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"685161af-2717-4215-ab22-2ec7bda46f50","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":222,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"cab8eed1-82cf-4a4a-b3b0-827e0a4467a4","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":222,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"07faf4e2-8651-4157-96bb-c294cdb157ed","block_type":"box","text":"priorities, as well as quarterly reports detailing our proxy voting and engagement activities.","page_number":222,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"fe03f084-a583-4a1b-97a9-521ed4556350","block_type":"box","text":"19","page_number":222,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"d9094b90-23a2-40b0-bb86-773cc104df61","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":222,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"9d345be2-c347-42ea-ac4d-25c545ad241c","block_type":"box","text":"preferences from a set of voting policies from third-party proxy advisers. BlackRock can then use its proxy voting","page_number":222,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"1da2703e-62b4-4da7-8efc-179c87511e5c","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":222,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"779fea9e-9b19-4426-bbe2-dae9fb85bca2","block_type":"box","text":"20","page_number":222,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"4efa024b-1f3b-4f18-bd4e-e3dc590bb3d5","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":222,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"88179e0e-1209-4f1a-9add-d1835d845cc3","block_type":"box","text":"21","page_number":222,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"cc4b66ef-2d2f-4cb6-b12f-fcf06608624b","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":222,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"819113e5-a137-4b47-8949-f049e4288a7c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3849259e-0d2f-4916-ae9f-1caeaa6e5ac4","block_type":"box","text":"Global Principles | 14","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"25660a99-9564-47df-8592-0b61a482109e","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a14f8eb-1582-43fc-a7f3-5d5f4746a32a","block_type":"box","text":"Want to know more?","page_number":223,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"027788b5-b949-43cb-ac6c-3ad9e59d920e","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":223,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"af811067-811a-4b58-8521-fdc5453c868e","block_type":"box","text":"This document is provided for information and educational purposes only. 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related to climate","page_number":226,"box":{"x":101,"y":526,"width":784,"height":11}},{"id":"1afec196-91b5-4174-ae34-bb7e8deb3cb8","block_type":"box","text":"risks and the transition to a low-carbon economy at companies that are held by in-scope funds and accounts that","page_number":226,"box":{"x":69,"y":541,"width":806,"height":11}},{"id":"e97f979d-f640-4837-9d1a-bcc39f6c7a3d","block_type":"box","text":"apply these Guidelines.","page_number":226,"box":{"x":69,"y":556,"width":165,"height":11}},{"id":"ba21d15f-fa09-4483-9e15-15e756d8f04c","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial objectives,","page_number":226,"box":{"x":101,"y":579,"width":755,"height":11}},{"id":"d2bcedc4-3ca4-44e2-b4c9-ea5c1bfcf62c","block_type":"box","text":"companies’ strategies to align with the transition to a low-carbon economy. They also incorporate the more ambitious","page_number":226,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"96ecb9f0-392a-4a5f-a89c-24feed6a1252","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":226,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"b662855c-1faa-4d7b-beba-0666ddb3f7e4","block_type":"box","text":"6","page_number":226,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"02e242ca-6874-4f14-ae49-b206f5d47ec1","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an important role in the transition to a low","page_number":226,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"83515514-0326-435b-aa36-34f7a8faf642","block_type":"box","text":"carbon economy. 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Further, the Guidelines consider the","page_number":228,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"55ffe8b0-0405-4ea0-a618-1007d7eb711f","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":228,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"9635edce-e34d-4ea1-b624-cae9559ce2cc","block_type":"box","text":"does not.","page_number":228,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"7aaedfb9-d829-41dd-a936-33777d025ba7","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"4f3bb8d4-bfb8-46b8-9c40-25991903594e","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":228,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"4fda223d-0002-4665-82a7-aa3856926dd6","block_type":"box","text":"limitations:","page_number":228,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"d1acc0e3-7006-4d31-9550-3cdc37e8472c","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":228,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"84eba530-7f51-455e-8e32-98d0ad54f09c","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":228,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"12b1888e-86c3-4c31-8f4a-96c75ce5981a","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":228,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"520620bd-f491-426c-be08-f6e4cdb61d70","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"bc85f550-4c8e-4de7-ae5b-c61f1081d989","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":228,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"79d6ca4d-b92c-4f36-8a19-ad3e71fd0352","block_type":"box","text":"The boards and executive leadership","page_number":228,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"b12a77b6-a733-4c23-a0a6-2243cd4379f0","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":228,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"8f6e567b-f25c-4441-ab32-8c91afaf94c1","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":228,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"d52e8ad2-8fe9-456d-881c-fc200fb3e6a8","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":228,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"f9c2f8ef-d004-43f3-b8a9-80027b5a6e73","block_type":"box","text":"Voting approach under the Guidelines","page_number":228,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"1f2a51f1-5514-4931-bae1-03c5dd048f43","block_type":"box","text":"12","page_number":228,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"115572d2-95e8-4de3-8147-443625ef020a","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":228,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"f7c33054-e85c-4650-a1bd-f0281b293f56","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":228,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"5469e660-54de-426d-85f4-994b28319061","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":228,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"ac4c8687-7866-4e2c-978c-577af281b10d","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":228,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"1de18098-a0ce-4f42-888d-55c332af86fc","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":228,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"36d391e0-2068-40bb-99c9-05c7b22838a3","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":228,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"942bdaa1-e05d-46e9-b4e8-7986e8c724b9","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":228,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"b785c90f-6eec-41f1-96f9-9407161701cf","block_type":"box","text":"Corporate Disclosures","page_number":228,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"840e71ec-3249-4307-8cc3-77af29d5905c","block_type":"box","text":"13","page_number":228,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"1a1f1e9d-0c02-4480-95f4-feba0277d1ad","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":228,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"b48b29f7-ee4a-4220-937b-c415a801f03c","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":228,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"e68c4e82-d6f6-45d8-adcc-4a55de013f25","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":228,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"0f489c05-a041-4a9d-87b4-9a72a7d8b163","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":228,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"96cb29cd-bff5-4d14-add6-4393612949bc","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":228,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"736abd81-45ea-4389-b3d7-a04b0f4faa3c","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":228,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"43ffde35-42fa-465e-86d1-e3793768264a","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":228,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"1eab7af2-534b-4edb-8f67-7ab5d1aad83a","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":228,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"6c5254f7-1c56-4ed4-81ba-3f868c66b82b","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":228,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"e0a5095c-0d42-49c8-9e42-15e546e9edb4","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":228,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"92ad4380-555d-4f6a-adf6-2f6dd227f640","block_type":"box","text":"14, 15","page_number":228,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"8316412b-b88d-4bb4-8ebf-9810110c8145","block_type":"box","text":"IFRS","page_number":228,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"3e04c11e-409a-4434-a8c6-92bdcea54b54","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":228,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"34aa7a7d-e8b1-447b-aa84-84e7ad27f5d3","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":228,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"d5ae4d90-0f09-4af4-9a61-b9eb85cd2049","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":228,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"e3c53993-f737-4d06-a9f9-cd215f3f351d","block_type":"box","text":"and assurance standards are developed.","page_number":228,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"f04659f3-6267-4487-a14b-18e790f597ad","block_type":"box","text":"12","page_number":228,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"de59e6ec-5e72-41be-9085-5bd10a2ea0ac","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":228,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"88e8211a-a8f0-4e16-a358-427b209d353b","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":228,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"cb39387e-4115-4c5e-8627-0f5cf6e45d34","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":228,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"ac81ac18-a24c-40d0-811c-8022bdbf11ca","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":228,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"10838501-b90f-4a5a-b2c8-801f9b0f019b","block_type":"box","text":"13","page_number":228,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"475eb226-d746-4f0f-9ba2-89e0284bbd8e","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":228,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"509b890d-8224-4776-92ae-846feff38c24","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":228,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"f7591057-e2c4-4894-bd90-242d1e017830","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":228,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"1c4cb639-58d9-4c7a-8de1-15d5e87d948d","block_type":"box","text":"14","page_number":228,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"715cb740-7b48-4ed5-bed3-6ad80583c8a4","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":228,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"6bddb35d-9680-44e7-a604-a53e04d93138","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":228,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"efd35952-853b-48c4-bc1c-e03194dfb62f","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":228,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"1a10ca6a-ffd8-4267-b533-890db1d1982f","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":228,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"6617adee-2318-4231-bd5c-8ada911c1b27","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":228,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"7ede5d87-59f2-4d42-ae20-ba2185c07c7c","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":228,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"97905f33-a5ed-430a-9a10-12689070a419","block_type":"box","text":"15","page_number":228,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"b3ff62e4-f4ac-4757-9f30-1d8d11a2895e","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":228,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"90e4918b-97f2-4db6-a7f6-cf8b5e606658","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":228,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"68230c0b-f857-455b-bf35-6c36f212ac46","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":228,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"69170c27-125a-4c83-8d49-4c9618005da9","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":228,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"43183258-f557-4328-9f39-deafdcf08cf4","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":228,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"6e6aa4b6-f481-440c-a8c5-f6d9d3fda36f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8e304737-0acd-4f1a-9ef3-20072899a4b1","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"e859aede-60cf-434b-ba14-bff7a148a5c5","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c12994af-d158-4f98-bab8-a292484f485a","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":229,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"910bf775-9ba6-4250-b5b2-cf307c37a8f1","block_type":"box","text":"16, 17","page_number":229,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"2aeb827a-baed-42ec-9886-d5479bace115","block_type":"box","text":"In addition, the dedicated team looks to","page_number":229,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"9006e2fb-34c8-4dfc-9b87-b285a8f606fb","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":229,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"939346a8-5136-41cd-b684-a0166b77c06b","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":229,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"cedf978c-1197-4b20-b228-edf81e4cec7e","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an important role in the low-carbon transition, scope","page_number":229,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"8bcc5810-fa3d-48a6-bc25-e748aacc8204","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":229,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"53a13d77-2689-43d0-8c80-99c82d004ad8","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":229,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"8cbd1b0e-7b76-46e9-a713-4adf9a1ee34b","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":229,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"91dfc00a-d5f8-4960-b5f8-cdd591dd95f6","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":229,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"643751c3-9cc2-4992-876d-6e05efb1ca8a","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":229,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"fffa43b5-b836-4920-9829-89917086abee","block_type":"box","text":"transition risks.","page_number":229,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"b4a27191-c022-4b9b-a0bb-3fed3bac5110","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":229,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"1d93ba24-4676-4619-8c16-3b3c866836c2","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":229,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"1b480e7e-e3d9-4cd9-b7b1-48b707960fb5","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":229,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"b37de23b-950f-4972-89e1-5d499ee831dd","block_type":"box","text":"Transition plans","page_number":229,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"b71391be-f7fe-4e09-9623-c7116f058bdb","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":229,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"04c29d03-48b8-4c6a-8540-cf93df9049da","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":229,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"8ac9124f-224e-426e-b053-94c65e309c4f","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":229,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"fc1618c3-8796-404b-b2bf-7eb8bf8d5a30","block_type":"box","text":"(see Appendix 1).","page_number":229,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"5fcba1ff-8d96-43de-b946-9e5045fd81e0","block_type":"box","text":"19","page_number":229,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"8fc8ff7b-334c-4a82-81c2-6f0486bc731c","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":229,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"1a731473-b9ab-4bd5-a5bd-88c8b39e2b74","block_type":"box","text":"transition plans.","page_number":229,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"5580da93-858f-48b6-8a7f-30d6c8aa1463","block_type":"box","text":"20","page_number":229,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"70286373-15fa-417c-b8ef-07435c90b8f4","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":229,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"b5436b73-76a5-4228-b3d4-0868910dc0a9","block_type":"box","text":"reporting approaches.","page_number":229,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"3a694df1-42e0-4e1e-8ced-e8a838f745de","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":229,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"c1bd2728-52d4-424b-9ee9-6de0490c1f2b","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":229,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"1f33303a-a48d-4cc1-922d-40b838dca050","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":229,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"e8e14c47-362e-47b8-a668-b67c70d4b9ed","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":229,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"14c9fc99-8242-418c-97b4-9b815159d243","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":229,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"357d990c-38c2-4edc-92a1-e938897959f7","block_type":"box","text":"informed voting decisions.","page_number":229,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"0c960945-c101-4602-9845-575f7011bdfc","block_type":"box","text":"16","page_number":229,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"bb9744c2-9f85-4982-9aa0-d32446bd139c","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":229,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"c3599159-5ae4-4712-b3c0-d083233853f1","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":229,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"35987362-e8f8-4044-ba18-d2c515927b13","block_type":"box","text":"December 2025.","page_number":229,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"bcdfa023-55a0-46c7-b6e1-b4826acf2957","block_type":"box","text":"17","page_number":229,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"bab5b171-9694-4658-9da3-871c44c452a7","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":229,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"60970d8b-f2c2-416c-9f7f-42c8179468aa","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":229,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"092d6f03-cf40-42e8-88d8-674ec9e22960","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":229,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"be9dc2fe-321c-4e01-8ff5-8acc51269fb5","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":229,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"d3cd5da0-0122-4f0c-a81e-7d31d8e7b307","block_type":"box","text":"18","page_number":229,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"a2a5241d-b121-4e73-bddb-b5accb658601","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":229,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"7ffb7fde-5410-4c64-a26d-b3c0a5417cda","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":229,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"fc798b2f-d4c8-4134-89d5-67de741bfb43","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":229,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"e40e8e33-1b32-4b33-85ff-e99490b1027a","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":229,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"2dbf9083-f076-4c42-8cdd-60cdd773d7e0","block_type":"box","text":"material to their business models.","page_number":229,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"2818f72c-cbed-4165-b021-be7b842139df","block_type":"box","text":"19","page_number":229,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"3a162652-4717-4332-ae1f-de9179fc484e","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":229,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"bbb39daa-1478-458f-9c33-efc6c2c00f91","block_type":"box","text":"December 2025.","page_number":229,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"6eb3d062-86b5-4154-9f5e-8633d1c64f6a","block_type":"box","text":"20","page_number":229,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"2279a6a7-2ca0-4cea-b150-62b1c1d7d026","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":229,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"5bdaf645-b61a-4912-893f-ad135183bb72","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":229,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"ce239460-f4f6-4c52-966e-7aa53c7b9e61","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":229,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"737a1eee-7bdf-48e0-81e4-68e1633a1c7c","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":229,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"0702fea1-8449-4a4d-ab28-f8c1b97d06eb","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":229,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"32670abc-cca7-442b-9d5d-782ee2e97b64","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Where the dedicated team","page_number":230,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"29eb85a1-3e71-4a4e-934f-b8c8e398e072","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":230,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"f687d23e-59af-4c01-9eb6-c82927d2b390","block_type":"box","text":"having the most responsibility for the issue. 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Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":231,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"af5af2fe-8e2e-44fa-9206-3de848e6a47f","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":231,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"2abd5091-e262-4903-a00c-9842973a2496","block_type":"box","text":"transition plan and targets.","page_number":231,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"3f267491-d728-4f6a-8301-2bf0958d2e43","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":231,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"79b600d1-dbff-49f6-ab1f-ee775f856232","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":231,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"9564ab37-229a-4232-984c-4aa371adab55","block_type":"box","text":"long as certain requirements are met. 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Under the Guidelines, the team may support","page_number":231,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"ce006a29-6769-478c-80d1-ac9311f8b9fe","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":231,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"2fea147d-963e-4565-8262-366dc5b99bfb","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"7942afab-0c2e-4672-a723-6a1c3d56d3b8","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":231,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"554d3026-81f4-429a-8475-9a762ad532c5","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":231,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"ee26bef8-3f6e-4803-b4ee-ec6708ee3c31","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"c8ad84a3-82e4-4c7d-a92d-003dfa65158f","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":231,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"7783c1e2-ff02-46f4-a380-16627ad6e830","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":231,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"e0d17137-4590-497c-8712-b17883c4073b","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"e540bedc-7157-43b3-8d53-bd566694daf1","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":231,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"0cc259f3-8277-4e51-bea2-e7eddf3eebf1","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"6b0b953c-cc1e-4c87-bf71-d474d3c36a77","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":231,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"8c67b4e7-2d09-4f21-a38e-ae1e4e6140e2","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":231,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"70adc076-9b57-4743-ad1b-27fdb6354f1f","block_type":"box","text":"25","page_number":231,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"75ac5b3d-9e9e-4700-b668-20445055eeba","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":231,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"e5812af2-1784-4f05-bf1b-a3887ca8a0be","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":231,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"0778f9f6-34ef-4e9e-bafd-a3484c453a95","block_type":"box","text":"RELATED MATTERS","page_number":231,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"7f31b6f6-103f-4d88-a4a9-1b45c82883de","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":231,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"7fa69b57-c9bb-47a2-b635-092e4ed10c04","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":231,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"4180708c-5b21-428b-80cc-cfc2b089be73","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":232,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"17b3fb7d-cfd3-400b-bacf-2754a3f1899e","block_type":"box","text":"strategy and risk management.","page_number":232,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"8c8259d2-1c0f-4fc1-9e48-c066af2435da","block_type":"box","text":"Auditors and audit-related issues","page_number":232,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"b0329c29-b3eb-4bbb-bd6a-42b327a0a35c","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":232,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"8d83dafa-6779-498c-8dd4-6bd53a091a88","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":232,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"d0f913a8-90b6-4d29-b4d9-abd3d3dc34f7","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":232,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"5662c916-2604-4e87-8aa3-628875cc8ee0","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":232,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"efcd7ac8-48e4-4893-9998-5c1a190f1ad3","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":232,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"4e6567bb-f50f-4de8-8ed4-a46b6d49da0d","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":232,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"b36fda53-5089-42b7-a545-d38c5f3f5ed5","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":232,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"a103a47e-0f2e-45fb-b6b5-be507146ed7f","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":232,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"3882f30e-c86d-407f-a04e-f315c45f036f","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":232,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"a2643c9d-7e32-4588-a092-186ff0e8018f","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":232,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"615f567c-4806-4369-9f47-10f6c35dcc56","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":232,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"1d866548-6c72-49da-9121-b6effd47b060","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":232,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"c45f0606-b703-4385-be10-75f4d51957be","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":232,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"f7ebdbaf-076e-4600-9a0c-f81381715399","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":232,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"dec06feb-6ea6-4889-ad3c-712657c75983","block_type":"box","text":"stakeholders.","page_number":232,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"7b98dc78-1b1a-4b03-b579-c20ebb35bab4","block_type":"box","text":"26","page_number":232,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"864031c0-359c-4a14-9920-d29b9e0c7132","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":232,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ee6df032-7a02-4524-b592-fe40038d1151","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":232,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"1802a04c-27f6-4d14-b1a0-1835c0a95d13","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":232,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"939290bd-e7e4-400f-b6f7-0ea01835b584","block_type":"box","text":"team may engage companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":232,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"c4e902da-20eb-49a1-9472-5c308c8ab31c","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":232,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"b2d94c43-6a1a-4495-ad54-0f200dea20c5","block_type":"box","text":"26","page_number":232,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"48c8ee5f-7a0f-49eb-aad9-13f3ad29b320","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":232,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"e020d7a5-4560-41f5-989e-2150fa6a5cc9","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":232,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"124bde9a-03f7-4b37-99c8-01299bff9f0a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"815486d2-0df1-45c9-af9d-566c9d3ba624","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"babac985-f9fc-4148-b645-91e9c46f1d52","block_type":"box","text":"BNM1026U-6032633-19203490","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f5a14e0-86bd-4856-9ca8-ce425373d782","block_type":"box","text":"Appendix 1","page_number":233,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"0553062f-8c06-458c-9fb9-0ffaf6d15c1d","block_type":"box","text":"Terminology","page_number":233,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"7f6478cf-6028-4c1f-8ac3-f705e8a25fc8","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":233,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"6c893415-6146-4b7e-8a05-f9a44e18a964","block_type":"box","text":"Climate risk:","page_number":233,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"6037a386-a8b5-47ac-8917-f1ed1da7a5f3","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":233,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"db2fcb55-bd3d-4326-9f07-8fb4ca4635a6","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":233,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"88b2decd-31ca-46d0-9e10-4e82abf000e2","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":233,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"295b87d5-31ec-43b2-806a-652ae350928a","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":233,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"616e58b4-c574-4845-89ba-813a0421d07f","block_type":"box","text":"The global economic shift toward lower","page_number":233,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"2995e03e-224f-4cdc-80c0-12e68195b0b8","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":233,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"37c01185-3ed1-44c0-a2ee-d2368438806c","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":233,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"3c613e28-ef8e-4315-8f61-e3f92beabdfe","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":233,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"fafef431-b930-4209-bcdf-12c54a9be1c1","block_type":"box","text":"Decarbonization:","page_number":233,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"749ea356-521a-4b1a-85e0-d84a49921f7f","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":233,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"0226cf72-f472-4ff8-aee0-1afc1492fc89","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":233,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"1a741474-e013-40d6-9489-d53d77baf125","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":233,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"2e124f16-e4b4-473a-8179-4ca3cb772c91","block_type":"box","text":"e.g., methane.","page_number":233,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"854c9a7d-3be1-4017-aa7c-92a4b9c0ba4b","block_type":"box","text":"Climate-related risks and opportunities:","page_number":233,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"23a366e5-c4dc-4b76-bc99-f4f5cb111aa5","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":233,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"be9d333e-5fc5-4a12-a27d-d5b29cf0991c","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":233,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"0ca4b641-39e4-42a8-bc0b-4a74e0e51963","block_type":"box","text":"to physical climate change.","page_number":233,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"c50c56ee-234d-4386-a476-0c74d34383ca","block_type":"box","text":"Climate-related transition plan:","page_number":233,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"b880f0ed-d1c4-44a6-93de-19fce472f54f","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":233,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"2afa3958-603b-47d5-93bc-3935c00b5583","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":233,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"24198ce7-31af-4507-a3a8-4b08bf008a5c","block_type":"box","text":"greenhouse gas emissions.”","page_number":233,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"a9c4ffcb-4510-4df9-96ac-868709ee6a3c","block_type":"box","text":"27","page_number":233,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"6c94b6f5-ea77-4c9e-b65c-1d2a0a67850e","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":233,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"6a2086a0-e5c1-4632-85d1-d1731c9791ff","block_type":"box","text":"Targets that “","page_number":233,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"818c2db0-05e8-46bc-9b31-0c5567fb927c","block_type":"box","text":"are in line with what the latest climate science","page_number":233,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"9aa42d22-7fbf-4097-8c79-91c58ad86d3e","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":233,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"28fbba6b-3011-44ad-92a2-d356fdc486ed","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":233,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"f1b5d0b3-fb56-420f-8e7c-90496c171248","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":233,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"c153f77a-5039-4e02-a8fc-91973d116e8a","block_type":"box","text":"with the Paris Agreement goals.”","page_number":233,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"a01dfd3c-534b-48b0-b441-c6949cb318e7","block_type":"box","text":"28","page_number":233,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"329a02d1-b127-4f6d-a6cd-430161cf5d0c","block_type":"box","text":"Scope 1:","page_number":233,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"73fd69b9-e450-4b6d-8c90-03737c58f975","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":233,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"61dda906-c519-4a5b-833b-17627fec153d","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":233,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"edc3d866-f3c3-4a25-a9aa-7fced8062822","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":233,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"cb3ee646-81aa-439a-bcc8-63efc25b664e","block_type":"box","text":"29","page_number":233,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"0b277ce6-ecb3-4d20-bb77-f6ac6c884b14","block_type":"box","text":"Scope 2","page_number":233,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"14b4ff6e-53b0-4215-be50-748a16b76942","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":233,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"a1d99ee0-28f4-404d-9057-90f9f24e0a7a","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":233,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"d66099df-7947-4bef-9238-cfbc11731dc3","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":233,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"6c0f14e3-a1e4-40e6-8849-9091c5fed65d","block_type":"box","text":"30","page_number":233,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"64135208-3bee-42fe-a95e-a968ee6c9b89","block_type":"box","text":"Scope 3:","page_number":233,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"99dd60d6-1b13-49fb-91c8-a6731843d8eb","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":233,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"5af6d9e5-59e8-4d94-8d55-bd0ff7b12bde","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":233,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"873f9f08-8d08-44ff-baa8-d97c64f22ea4","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":233,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"642ba9f0-626c-45f5-97e1-dc757f15bedb","block_type":"box","text":"31","page_number":233,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"02244804-4b5e-44d3-b182-b0bd741938ef","block_type":"box","text":"27","page_number":233,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"ff387e1f-9f7f-471f-abba-f284c74b7589","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":233,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"35fa0e2f-80ea-47cf-8c51-8fe7094312c0","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":233,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"6ca146ba-e5d4-4c2e-9981-d6b666a6a064","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":233,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"36622771-f2e1-48a8-b6d6-4268a2f49d58","block_type":"box","text":"28","page_number":233,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"79fb27ac-7e6a-41d5-8be4-cc982139a6a4","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":233,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"9b60936a-172a-48f3-9af4-818fa5b984a1","block_type":"box","text":"enables companies and financial institutions worldwide to play their part in combating the climate crisis. We develop","page_number":233,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"9dd1431a-27b0-4ddb-8507-3efe5fb86d65","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":233,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"0e6098fa-00b2-4d41-9e00-359393504dbd","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":233,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"9bc5c622-657a-4dbc-9fae-6f608b4c57fc","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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