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BIRIX","page_number":1,"box":{"x":216,"y":605,"width":671,"height":9}},{"id":"d80de2d6-5edc-44c1-a4b4-54cc1d0f1ce5","block_type":"box","text":"Class K Shares . . .","page_number":1,"box":{"x":69,"y":620,"width":140,"height":9}},{"id":"8120ebab-85ee-4a72-b1fd-347e20819df5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BIRKX","page_number":1,"box":{"x":216,"y":620,"width":674,"height":9}},{"id":"55ff0fea-9b89-4b02-8d34-73da0be28d79","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":1,"box":{"x":260,"y":674,"width":460,"height":20}},{"id":"32712516-b196-439c-a42c-b95af45980e9","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":1,"box":{"x":222,"y":697,"width":536,"height":18}},{"id":"f1cf70cf-1bdb-4d33-a1db-097c7fcd6910","block_type":"box","text":"The date of this Statement of Additional Information is September 28, 2026.","page_number":1,"box":{"x":199,"y":757,"width":579,"height":11}},{"id":"f1dcd483-cff2-4f5b-9cad-b28545a01944","block_type":"box","text":"NM1026U-5984554-1/232","page_number":1,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"99bdcec9-a58f-4c77-8b1a-63c81a44fb8d","block_type":"box","text":"TABLE OF CONTENTS","page_number":2,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"37044d61-6c44-41b8-862b-ed889dc1fa48","block_type":"box","text":"Page","page_number":2,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"1f45ba36-c354-407f-a0a2-d4583f6d1967","block_type":"box","text":"PART I","page_number":2,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"3f7914d5-4321-4add-bc70-815c518e29c9","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":2,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"8785d7e3-5479-41d4-a802-432e4ac2f269","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":2,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"5f71ea40-2757-4354-be6e-3c0f24d40170","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-8","page_number":2,"box":{"x":70,"y":141,"width":839,"height":9}},{"id":"f28e9b1b-b2d2-49e0-820e-6ef803c93cbd","block_type":"box","text":"Management, Advisory and Other Service Arrangements . . . . . . . . .","page_number":2,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"d2fd04e3-f878-4193-9bed-730c8c42c30a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":2,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"00b26e56-65e7-4a98-afb2-76702e1769c4","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":2,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"85127fbf-c40b-42de-8232-1802beb61dab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-23","page_number":2,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"04a4a4f4-30fa-4d43-9f9b-7e5989c071ef","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"7705bd6e-ef9f-4426-9690-5b8cd7e6ae48","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":2,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"7f979fed-cb3d-4e16-a615-79b802a3de95","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":2,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"a78a5cd0-c9bb-4378-9e2f-8c211f964284","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":2,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"b8097cda-a37f-4f94-938b-19c3217bd53e","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"568af01b-eeea-48ff-9ae0-f229fdb59729","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":2,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"9f13464a-a034-4d57-9a3f-221cd537cbb8","block_type":"box","text":"Financial Statements","page_number":2,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"b3116a51-0b50-40a0-8616-ede4ac774653","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-28","page_number":2,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"f4c734bb-715d-4d8e-86b7-f6ad18593141","block_type":"box","text":"PART II","page_number":2,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"a86ddfb7-0732-46b5-a013-a133f8c2e9a8","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":2,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"fbeb7b1c-ff8a-49a8-a609-2d2ad48722b7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-84","page_number":2,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"89fe5ea4-aa9e-400c-b72b-9adda43bd819","block_type":"box","text":"Purchase of Shares","page_number":2,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"2e2886d8-fd6b-462f-97ed-e8583d744368","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":2,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"9b2239cb-4453-4cbf-88e7-6a3fa9ce6628","block_type":"box","text":"Redemption of Shares . .","page_number":2,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"c3c0aed6-b5f3-417a-91f9-42e119764f57","block_type":"box","text":"........................................................................... 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I","page_number":2,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"f4c867c8-c8a3-48d9-90b3-1a3bbc8b5214","block_type":"box","text":"I-137","page_number":2,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"b06fa2e7-6978-46bf-8b63-5d847f9abde9","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"d84cc74f-d92c-47c1-9575-edbf7ba0558b","block_type":"box","text":"........................................... I","page_number":2,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"cac8e0af-4351-4931-ae25-8b29a49edbf0","block_type":"box","text":"I-139","page_number":2,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"5a542646-c20c-4069-8534-8d8adf58adee","block_type":"box","text":"General Information","page_number":2,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"6eb73cc0-56cc-4b87-8d26-fb82cd9bf29d","block_type":"box","text":"............................................................................... 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Investment Restrictions","page_number":8,"box":{"x":69,"y":45,"width":194,"height":9}},{"id":"cf40dcc8-21d3-4d39-b69c-116effa8dada","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":8,"box":{"x":101,"y":67,"width":800,"height":12}},{"id":"3e6acdc2-ca18-4377-82c6-000b8a5bfd62","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":8,"box":{"x":69,"y":82,"width":825,"height":12}},{"id":"f4d29260-333b-4b8b-af73-7096049036a2","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":8,"box":{"x":69,"y":98,"width":809,"height":11}},{"id":"7f6f9b7b-06a9-4620-8aab-ad75024e15da","block_type":"box","text":"Company Act means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":8,"box":{"x":69,"y":113,"width":803,"height":11}},{"id":"599c298d-f9d3-4987-8101-f488b5cd4dd2","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares).","page_number":8,"box":{"x":69,"y":128,"width":608,"height":11}},{"id":"bf9e2270-1380-4345-a6e2-3d0e95e6dc63","block_type":"box","text":"Under these fundamental investment restrictions, the Fund may not:","page_number":8,"box":{"x":102,"y":150,"width":485,"height":12}},{"id":"ace6f131-cfaf-461f-99ea-0d9bc4780a64","block_type":"box","text":"1. Concentrate its investments in a par ticular industry, as that term is used in the Investment Company Act.","page_number":8,"box":{"x":135,"y":173,"width":770,"height":11}},{"id":"0c42d5e7-93b6-4f87-82ce-bde7b805ec00","block_type":"box","text":"2. Borrow money, except as permitted under the Investment Company Act.","page_number":8,"box":{"x":134,"y":196,"width":529,"height":11}},{"id":"20e4aa7a-8b13-490e-addb-8e894d195d62","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":8,"box":{"x":134,"y":219,"width":694,"height":11}},{"id":"1464fa6c-23d7-4001-8171-5e1cb35cf7c9","block_type":"box","text":"4. Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that","page_number":8,"box":{"x":134,"y":241,"width":774,"height":11}},{"id":"5f8379d2-b408-4adf-97d8-0ce6b086c774","block_type":"box","text":"are secured by, or linked to, real estate or interests therein, securities of real estate investment trusts,","page_number":8,"box":{"x":102,"y":256,"width":736,"height":11}},{"id":"c377ff75-4af9-4211-afdf-d3dd134d03c2","block_type":"box","text":"mor tgage-related securities and securities of issuers engaged in the real estate business, and the Fund may","page_number":8,"box":{"x":102,"y":271,"width":775,"height":12}},{"id":"f6643ce4-2338-47a0-87b5-c112caeb0e9a","block_type":"box","text":"purchase and hold real estate as a result of the ownership of securities or other instruments.","page_number":8,"box":{"x":102,"y":286,"width":666,"height":11}},{"id":"b8aae595-ea33-44c9-b392-81d8d038c402","block_type":"box","text":"5. Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the","page_number":8,"box":{"x":134,"y":309,"width":746,"height":11}},{"id":"6eac1157-3d0b-4ba0-ae86-36a5f226e02f","block_type":"box","text":"Fund may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":8,"box":{"x":102,"y":325,"width":627,"height":11}},{"id":"ed258fe3-50f5-48d1-9f0a-aad728c7f01e","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company","page_number":8,"box":{"x":134,"y":347,"width":757,"height":11}},{"id":"e1b61d1c-d99e-43a0-aa09-c655f89aa35e","block_type":"box","text":"Act.","page_number":8,"box":{"x":101,"y":362,"width":25,"height":9}},{"id":"ca1d5ffa-c595-4e71-9b6e-477696b2d336","block_type":"box","text":"7. Make loans to the extent prohibited by the Investment Company Act.","page_number":8,"box":{"x":135,"y":385,"width":506,"height":11}},{"id":"fd94a394-6009-41f0-8f2e-f00ad716e0a4","block_type":"box","text":"8. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":8,"box":{"x":134,"y":407,"width":729,"height":12}},{"id":"867290a1-2181-4376-b6cd-53639167b388","block_type":"box","text":"Investment Company Act.","page_number":8,"box":{"x":102,"y":423,"width":179,"height":11}},{"id":"aa870fb7-056a-49e2-8fa6-7e542c8a973e","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":8,"box":{"x":70,"y":453,"width":494,"height":11}},{"id":"5c8ab224-eb5e-4db6-bc82-1db1fa9fb88d","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":8,"box":{"x":101,"y":475,"width":799,"height":12}},{"id":"1193e198-16e1-4299-b105-46e97768896a","block_type":"box","text":"subject to change without shareholder approval.","page_number":8,"box":{"x":69,"y":491,"width":341,"height":11}},{"id":"3298a741-15d0-49d5-8438-415d6dce2179","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":8,"box":{"x":101,"y":513,"width":796,"height":12}},{"id":"149d8a6a-f208-449f-a2cf-00dc5ce4ab39","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":8,"box":{"x":68,"y":528,"width":811,"height":12}},{"id":"ca9a451b-5a23-4ddc-91c6-5d01d80eadb9","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":8,"box":{"x":68,"y":543,"width":833,"height":12}},{"id":"b99b5506-1ecb-4f2a-92bb-074d77bfce14","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":8,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"c81a37f4-bb71-4762-a93a-02c90a370052","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":8,"box":{"x":69,"y":574,"width":815,"height":11}},{"id":"82977080-c69a-4633-a7f9-35f3d6abbeb0","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":8,"box":{"x":70,"y":589,"width":813,"height":11}},{"id":"82349b95-7c3f-4404-95b4-b399b769f512","block_type":"box","text":"securities of the U.S. Government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":8,"box":{"x":69,"y":604,"width":823,"height":11}},{"id":"45d8c74b-2d83-4e1e-acd5-4ff17e4d1b6b","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":8,"box":{"x":69,"y":619,"width":809,"height":11}},{"id":"ad3ce599-1854-47ad-a1d6-4758d50eb5cc","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":8,"box":{"x":69,"y":634,"width":772,"height":12}},{"id":"41d2a647-8f53-49ee-8859-f9da605c8fdf","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":8,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"5a1e4a62-affa-42d6-b6e8-c112f395b11a","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":8,"box":{"x":67,"y":664,"width":829,"height":12}},{"id":"dfcf03b9-8cec-48c4-a38b-157eada153d0","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":8,"box":{"x":69,"y":680,"width":805,"height":11}},{"id":"510aeae9-6abd-419c-ba16-54f2568d907f","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":8,"box":{"x":69,"y":695,"width":840,"height":11}},{"id":"3bded433-0fc5-4f08-a494-0056ccfd1a1c","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":8,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"30a0c0b5-d99f-45ce-a959-f046a42bfc54","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":8,"box":{"x":70,"y":725,"width":807,"height":11}},{"id":"6b86ed4f-542c-40e1-a366-6fd6cfb7d8d2","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":8,"box":{"x":70,"y":740,"width":438,"height":11}},{"id":"a0f5a2e9-81a1-4f51-b3e1-dfda49cd51d0","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th above, the Investment Company Act","page_number":8,"box":{"x":101,"y":763,"width":805,"height":11}},{"id":"4ffde8f8-b5f2-4e3d-8e06-85cf1903bc1d","block_type":"box","text":"permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets from banks for any","page_number":8,"box":{"x":70,"y":778,"width":782,"height":11}},{"id":"c11d3c9d-e9b9-4fc1-a2e6-9ad31270ecb1","block_type":"box","text":"purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary purposes. (The","page_number":8,"box":{"x":70,"y":793,"width":836,"height":11}},{"id":"e9d54f76-0ef0-4622-a094-c0da384b842c","block_type":"box","text":"Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing, the Investment","page_number":8,"box":{"x":70,"y":808,"width":816,"height":11}},{"id":"a6723353-4aa1-4ff0-9910-fa5514bb1272","block_type":"box","text":"Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the amount of its","page_number":8,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"9432c098-f033-467d-8fc0-ec4f95cddf0d","block_type":"box","text":"borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including amounts borrowed),","page_number":8,"box":{"x":69,"y":838,"width":824,"height":12}},{"id":"54be5e23-15d5-4e55-8827-8ba3d2c9aa37","block_type":"box","text":"minus liabilities other than borrowings, bears to the aggregate amount of all borrowings. Borrowing money to","page_number":8,"box":{"x":69,"y":853,"width":775,"height":12}},{"id":"248884b0-4047-4eea-bc49-7f323a98f0cd","block_type":"box","text":"increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments, such as reverse","page_number":8,"box":{"x":70,"y":869,"width":801,"height":11}},{"id":"0532fd4b-2484-495e-b816-1428928f0fc4","block_type":"box","text":"repurchase agreements, may be considered to be borrowings or involve leverage and thus are subject to the","page_number":8,"box":{"x":69,"y":884,"width":772,"height":11}},{"id":"2709dd23-d899-4fe2-ba5d-b9f913257ce5","block_type":"box","text":"Investment Company Act restrictions. In accordance with Rule 18f–4 under the Investment Company Act, when the","page_number":8,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"cfe706ad-ed84-4651-8e6d-1d5b657ead96","block_type":"box","text":"I-6","page_number":8,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"724f780a-cd12-40a1-9e74-2b219cc1b66e","block_type":"box","text":"NM1026U-5984554-8/232","page_number":8,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"11cb0ae4-8f7c-40be-86ae-1bfc184acfbe","block_type":"box","text":"Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may either (i) maintain","page_number":9,"box":{"x":70,"y":45,"width":828,"height":11}},{"id":"79df62ed-0535-4228-af04-8f0a96077090","block_type":"box","text":"asset coverage of at least 300% with respect to such transactions and any other borrowings in the aggregate, or","page_number":9,"box":{"x":69,"y":60,"width":803,"height":11}},{"id":"4e048570-602d-4da1-885d-d4e104c75ee7","block_type":"box","text":"(ii) treat such transactions as “derivatives transactions” and comply with Rule 18f–4 with respect to such","page_number":9,"box":{"x":69,"y":75,"width":751,"height":11}},{"id":"40ffc693-cb56-4b1b-a5c3-98508da37a7b","block_type":"box","text":"transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":9,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"93ab6653-bc15-41eb-a54a-98b74bf5e52a","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":9,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"6761d4ac-642a-4332-8384-e7b89ad90a1e","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":9,"box":{"x":69,"y":120,"width":643,"height":12}},{"id":"c11aba8c-a40e-4cb4-bc35-121d62bdf36a","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":9,"box":{"x":101,"y":143,"width":788,"height":11}},{"id":"9ea39be5-8a0e-4b34-bfed-c73b1e556b98","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":9,"box":{"x":68,"y":158,"width":840,"height":11}},{"id":"6320ae10-9db3-4a77-a955-ffbbfe418b55","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits a fund to have underwriting","page_number":9,"box":{"x":70,"y":173,"width":808,"height":11}},{"id":"142f77a5-452c-478d-9ed7-6141c3653131","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":9,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"3d138667-6ef8-43da-9d47-b250ffbfa9c6","block_type":"box","text":"amount of the fund’s underwriting commitments, when added to the value of the fund’s investments in issuers where","page_number":9,"box":{"x":69,"y":203,"width":838,"height":12}},{"id":"5f781bcc-4026-4519-8927-017c8db34cc8","block_type":"box","text":"the fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25% cap. A","page_number":9,"box":{"x":68,"y":218,"width":818,"height":12}},{"id":"9eea828a-02e1-4c41-b0ab-ecae0d543bdd","block_type":"box","text":"fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered to be","page_number":9,"box":{"x":68,"y":234,"width":826,"height":11}},{"id":"10232af9-0973-4151-b58d-82dcb377be53","block_type":"box","text":"an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed that","page_number":9,"box":{"x":69,"y":249,"width":822,"height":11}},{"id":"518ccc23-c661-4881-881c-527c5d31783c","block_type":"box","text":"the application of the Securities Act provisions described above would cause a fund to be engaged in the business of","page_number":9,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"6d62e04b-0c93-49b4-a305-d3391313d9d0","block_type":"box","text":"underwriting, the policy in (5) above will be interpreted not to prevent a fund from engaging in transactions involving","page_number":9,"box":{"x":69,"y":279,"width":823,"height":11}},{"id":"e82bfdb2-c494-4aec-945c-b67db5186e00","block_type":"box","text":"the acquisition or disposition of por tfolio securities, regardless of whether the fund may be considered to be an","page_number":9,"box":{"x":68,"y":294,"width":796,"height":11}},{"id":"59cd0f80-c1e8-4c01-addb-6e842a459ba7","block_type":"box","text":"underwriter under the Securities Act or is otherwise engaged in the underwriting business to the extent permitted by","page_number":9,"box":{"x":69,"y":309,"width":830,"height":11}},{"id":"e5c331ad-8f92-4a12-9928-42d472562c8a","block_type":"box","text":"applicable law.","page_number":9,"box":{"x":69,"y":325,"width":102,"height":10}},{"id":"e1c1bb6b-bff4-49a4-acc1-68e305f30c72","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":9,"box":{"x":101,"y":347,"width":778,"height":11}},{"id":"254ff858-f55d-44db-983e-3cf42d3980d9","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":9,"box":{"x":69,"y":362,"width":756,"height":11}},{"id":"328184a7-3c3e-4eb8-8583-73d5e7a4b869","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":9,"box":{"x":70,"y":377,"width":807,"height":12}},{"id":"8d089502-ce87-47a5-b615-bf7bb5cf6182","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":9,"box":{"x":69,"y":392,"width":784,"height":12}},{"id":"44bf2b9e-66c4-4f1e-8a57-3d6755918878","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":9,"box":{"x":69,"y":407,"width":791,"height":12}},{"id":"fee165f3-6dee-4d8d-b115-c3dcdddcc19a","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":9,"box":{"x":70,"y":423,"width":803,"height":11}},{"id":"9c4f5cc0-12a3-463a-a17a-06e0a65d33f2","block_type":"box","text":"loans.","page_number":9,"box":{"x":70,"y":438,"width":40,"height":9}},{"id":"542b43a0-f361-4d97-98ba-db71059031c9","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":9,"box":{"x":101,"y":460,"width":777,"height":12}},{"id":"933ba4a1-2cf1-4a44-9f91-a20ff2ef4d20","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":9,"box":{"x":70,"y":475,"width":751,"height":12}},{"id":"433f075a-3e96-4aa5-9f19-e5efc0d8e0e4","block_type":"box","text":"Government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":9,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"d541ebd2-c85c-446d-aaac-d6c2927e55d1","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":9,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"08efce7e-d41c-4d56-81a4-ce4810950356","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":9,"box":{"x":69,"y":521,"width":781,"height":11}},{"id":"e2e20550-4154-4a8c-8dde-de9449298df8","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":9,"box":{"x":69,"y":536,"width":759,"height":11}},{"id":"01f8a524-c11e-4d30-9f04-22deeba0246d","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":9,"box":{"x":70,"y":551,"width":774,"height":11}},{"id":"3934b6ba-59bd-42b7-85ec-5622ba93cf9f","block_type":"box","text":"shareholder approval.","page_number":9,"box":{"x":69,"y":566,"width":153,"height":11}},{"id":"b5c665f8-9c10-4e47-a793-ea31eb01c5b8","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":9,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"1466d925-2062-4737-8579-8a8a81b442a4","block_type":"box","text":"approval, the Fund may not:","page_number":9,"box":{"x":69,"y":604,"width":197,"height":11}},{"id":"9ba33d76-5d2d-4b6e-beac-e60d253865a5","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":9,"box":{"x":134,"y":627,"width":742,"height":11}},{"id":"a8615741-cb98-4c43-8dd2-9e8e0e11c768","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":9,"box":{"x":102,"y":642,"width":759,"height":11}},{"id":"853a65cd-8959-4860-96fa-8f56b494b589","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":9,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"298a8658-0055-4b4f-8b37-253f844a6907","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":9,"box":{"x":101,"y":672,"width":761,"height":11}},{"id":"88f44ac7-451b-4915-9799-60c8cec29ed0","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":9,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"c5628a77-6e7b-4f3b-adbf-75f96006d8fb","block_type":"box","text":"12(d)(1).","page_number":9,"box":{"x":102,"y":702,"width":60,"height":11}},{"id":"0a7624a3-8414-4218-b14b-b96d9def7811","block_type":"box","text":"b. Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":9,"box":{"x":134,"y":725,"width":765,"height":11}},{"id":"c9f8a1f9-6bc7-4a3e-8ec1-cab23a259e11","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":9,"box":{"x":102,"y":740,"width":509,"height":11}},{"id":"ce8458df-fa10-4053-9bef-4ba38e160696","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":9,"box":{"x":102,"y":763,"width":771,"height":11}},{"id":"bf0aa2c5-7f23-421d-ab9a-ec18c3b66156","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":9,"box":{"x":69,"y":778,"width":822,"height":11}},{"id":"42f95d4c-c23b-4503-999f-ac4d762c4e3c","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":9,"box":{"x":68,"y":793,"width":803,"height":11}},{"id":"9732e85b-f167-4784-b79b-2a750d4e41cd","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":9,"box":{"x":69,"y":808,"width":835,"height":11}},{"id":"ce726661-4ecf-466f-a53a-05cdeb080104","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":9,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"d639018e-5bac-4b3b-a318-026759151ada","block_type":"box","text":"investment without undue market or tax consequences.","page_number":9,"box":{"x":70,"y":839,"width":393,"height":10}},{"id":"49d883e4-c42d-45e6-b0f1-facf68e17fa4","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"61da8d60-2eb4-4614-a3c2-662a86b31ddd","block_type":"box","text":"NM1026U-5984554-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"44d1dbe0-f577-4e84-a883-2b073b0ef547","block_type":"box","text":"III. Information on Trustees and Officers","page_number":10,"box":{"x":69,"y":45,"width":290,"height":9}},{"id":"3687344a-bf53-4521-85a0-0c015ed816a6","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":10,"box":{"x":101,"y":67,"width":788,"height":11}},{"id":"efd59dbd-628d-49b8-9ae2-a6fb05a853c6","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":10,"box":{"x":68,"y":82,"width":779,"height":12}},{"id":"f00e7319-4adf-40ed-9539-10eaf9a0c6a7","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":10,"box":{"x":69,"y":98,"width":837,"height":11}},{"id":"a19083e0-276c-47c9-956c-522812321acf","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":10,"box":{"x":70,"y":113,"width":793,"height":11}},{"id":"70246c23-0b66-4e48-bb88-f37cc934d3fd","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"93bf62c4-d029-41cb-895c-4ce24c3b49b6","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":10,"box":{"x":68,"y":143,"width":837,"height":11}},{"id":"a52557f1-d792-4c42-bc5c-2c3bf0af336f","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":70,"y":158,"width":335,"height":11}},{"id":"38c7662f-235c-49d0-937c-3edb5bd8c8ec","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":10,"box":{"x":101,"y":181,"width":769,"height":11}},{"id":"b8adb26c-249a-48a3-9407-868697a86f1e","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":10,"box":{"x":70,"y":196,"width":827,"height":11}},{"id":"c4191860-d301-49ff-92bb-1ccb4f61814a","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":10,"box":{"x":70,"y":211,"width":821,"height":11}},{"id":"f2907e27-d38f-4d6f-96bb-ed422ad5ac1a","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":10,"box":{"x":69,"y":226,"width":835,"height":11}},{"id":"96458b0d-d08e-4a4a-99f7-8531911456e3","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":10,"box":{"x":70,"y":241,"width":830,"height":11}},{"id":"c2c315f8-44c0-46a6-8712-ec6a6578b262","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":10,"box":{"x":68,"y":256,"width":789,"height":12}},{"id":"8267f712-b298-4bf5-bb95-2d4bb810d4c1","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":10,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"353f3cb7-3565-413f-a449-a083c2563e0b","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":10,"box":{"x":69,"y":286,"width":809,"height":12}},{"id":"f9628341-de68-494c-a803-78eb47549a18","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":10,"box":{"x":70,"y":302,"width":794,"height":11}},{"id":"6c084b24-7c6d-4ceb-8212-e1c46a5ca079","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":10,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"93603c65-16a8-4960-8941-0da6fd0ea0bf","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":10,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"c3821eb5-9baf-43b8-9066-d9833de16432","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":10,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"2b46ddee-468a-414d-b094-72f40a764c42","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":10,"box":{"x":68,"y":362,"width":809,"height":11}},{"id":"a2eb3a73-de6c-486e-ac1b-633b42e6b8ee","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":10,"box":{"x":69,"y":377,"width":825,"height":12}},{"id":"5d4786dd-5f61-42af-9f84-8ce010cb6894","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":10,"box":{"x":69,"y":392,"width":441,"height":12}},{"id":"edc8068e-c53f-469f-b840-25ff6debfe1e","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":10,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"f2aafbdc-176a-4a47-a415-06b85d025bf4","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":10,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"f583a99c-9c8c-4e85-afa4-3a0bd98450fe","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":10,"box":{"x":68,"y":445,"width":820,"height":11}},{"id":"0c8afd17-0ae3-43ee-b370-a80ade049719","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":10,"box":{"x":70,"y":460,"width":812,"height":12}},{"id":"7d1b3b42-2983-4256-90ac-c62f6de42f33","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":10,"box":{"x":69,"y":475,"width":819,"height":12}},{"id":"ae5eebb4-04b2-40c2-95ad-f38dd6cc9b67","block_type":"box","text":"the operations of the Fund.","page_number":10,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"2a349f6c-3a44-4a86-b685-a8e6bacb2f7f","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":10,"box":{"x":102,"y":513,"width":785,"height":12}},{"id":"fc55ed71-4ecd-44d1-a915-09e0fa17df9a","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":10,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"c3f8dcf8-2103-4737-8a30-0131fa6fdcb3","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":10,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"8e0f2059-7aba-4af8-ae0e-5c78452fe2e9","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":10,"box":{"x":68,"y":559,"width":820,"height":11}},{"id":"f061a76f-021f-4558-b270-d013cbb41d69","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":10,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"f7cb5a54-6bb2-4235-a19a-a6a42da462c1","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":10,"box":{"x":70,"y":589,"width":767,"height":11}},{"id":"e9631947-99af-43a9-80e5-1dfaa679942d","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":10,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"e88f4ec5-d6c5-445a-b709-92e57955eac5","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":10,"box":{"x":70,"y":619,"width":803,"height":11}},{"id":"d4b89d77-3e3f-4958-929e-622525a18481","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":10,"box":{"x":69,"y":634,"width":840,"height":12}},{"id":"7f7d9b2a-ba66-4708-ba95-e65c4904c3e8","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":10,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"3780dff7-fcc6-4621-a08c-73255d42dedb","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":10,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"7620ce10-b8d2-4bd1-bf80-a09981495fa3","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":10,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"6ed64e03-5108-44f3-b97c-416f34bbaef3","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":10,"box":{"x":68,"y":695,"width":818,"height":11}},{"id":"6acf9df3-416e-4426-895b-d3242047e75d","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":10,"box":{"x":70,"y":710,"width":759,"height":11}},{"id":"34e5f84d-0c94-4f0d-b77f-128b2884ac8f","block_type":"box","text":"per forming their oversight responsibilities.","page_number":10,"box":{"x":70,"y":725,"width":299,"height":11}},{"id":"a7e29b6b-b7dc-4140-802c-e4b928f06196","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"0742cd98-0578-4b02-9ebf-0b53a38dade8","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":748,"width":673,"height":11}},{"id":"d6d7b7a7-d74d-4aa7-9733-34487b0b0b76","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":10,"box":{"x":68,"y":763,"width":831,"height":11}},{"id":"56f43d86-9815-4852-8097-9a6a40f3e1b0","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":10,"box":{"x":68,"y":778,"width":820,"height":11}},{"id":"51ace159-2198-4cd1-9fc3-6fd3cc737eae","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":10,"box":{"x":68,"y":793,"width":823,"height":11}},{"id":"a4164f2c-5d9c-4085-a834-eccb68349836","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"32a3d72b-2691-4b8b-9f01-7c1c6f022a3b","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":10,"box":{"x":70,"y":823,"width":825,"height":11}},{"id":"ccf972d1-7852-4b7a-934a-c252c7596486","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":10,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"a2cfa1c7-9e63-489c-85a3-6fd021f30f03","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":10,"box":{"x":68,"y":853,"width":781,"height":11}},{"id":"b681efd8-5333-4e46-98e2-1427afce49ff","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":10,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"fdcf2cc7-3206-4e96-9f25-068c4496309b","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":10,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"558f30c6-d828-43e0-8de2-0c02c517b44d","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":899,"width":825,"height":11}},{"id":"dac80193-1543-463b-b1fd-e55397cd6ad9","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"7a6d7588-6c74-4cdc-a460-5128ad455ba6","block_type":"box","text":"NM1026U-5984554-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b3678771-7c7e-45c7-8c34-6ec88aebd702","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":11,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"b6bb70ed-eaac-4127-a9b7-a7a76252b435","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":11,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"7c80db5f-30c2-4eb2-a8d9-250b6ca334de","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":11,"box":{"x":69,"y":75,"width":774,"height":11}},{"id":"7fd8980a-5bcc-4138-834d-601080d9b907","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":11,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"0e7d09e0-19df-48f8-9e95-b84a84caa466","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":11,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"b7a789a3-a1fd-48a5-b9e2-f7f1a3ee59ed","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":11,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"a9bd1d1c-bd80-43a3-9b68-273f5f88ecb9","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":11,"box":{"x":70,"y":135,"width":574,"height":12}},{"id":"0edd3aa2-1a95-4dcc-9cdf-677a6f0a2e0e","block_type":"box","text":"Governance and Nominating Committee.","page_number":11,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"7dbfbc05-3e51-475c-a1df-c9ae2d352435","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":11,"box":{"x":394,"y":158,"width":464,"height":11}},{"id":"5e1f6c3d-0a01-4bc1-a34a-9db9ec16cdc0","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":11,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"1d95ad38-fc95-4c8a-b199-bc6d99dcd288","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":11,"box":{"x":70,"y":188,"width":784,"height":11}},{"id":"86d0b6a9-8faf-4331-90f0-d733ef46fa04","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":11,"box":{"x":69,"y":203,"width":803,"height":12}},{"id":"a3fdeebb-e48d-4807-8f6b-cda3490168c1","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":11,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"7f49fbd9-2366-456c-b35b-87137b77c38e","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":11,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"983de799-e3ab-4f96-9ba4-c0df2f62cf0e","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":11,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"ed559eea-9c82-4ab1-a546-d8ac68c2084c","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"748d858a-effc-48c7-a9e2-de6e61ee0e9a","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":11,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"d59c0821-5f17-4950-8b83-fda546a34110","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":11,"box":{"x":70,"y":294,"width":813,"height":11}},{"id":"0e5b6130-50e7-4fc9-baa5-adce2d5f41b0","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":11,"box":{"x":69,"y":309,"width":829,"height":11}},{"id":"a2229bda-b824-4ef8-9aec-fe4c8e713912","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":11,"box":{"x":68,"y":324,"width":804,"height":12}},{"id":"3d08535d-b431-4d1a-8cb2-ab34a5e0e048","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":11,"box":{"x":69,"y":339,"width":832,"height":12}},{"id":"ca47567d-8738-463c-abd9-7f290d2d8563","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":11,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"3731a43c-757f-4f48-9598-de533245567d","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":11,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"90485810-94ee-4ddc-8416-c6b6e65e7b7a","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":11,"box":{"x":70,"y":385,"width":776,"height":11}},{"id":"384c3e32-df9b-46a4-adbd-42aa0946d501","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":11,"box":{"x":69,"y":400,"width":821,"height":11}},{"id":"41a76512-cd9b-4c45-992c-8b6f466445d6","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":11,"box":{"x":68,"y":415,"width":812,"height":11}},{"id":"a6182c5f-1dd6-43ef-9210-8d64b481cc01","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":11,"box":{"x":69,"y":430,"width":823,"height":11}},{"id":"be99458b-5ab7-4327-acd0-0c35c5b1a819","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":11,"box":{"x":70,"y":445,"width":832,"height":12}},{"id":"fd7f8230-d2db-4025-8bd7-875a8dafceeb","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":11,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"a53604e9-ed4d-4656-9be9-ef828d1665a3","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":11,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"d67276d8-b998-48c6-ba43-9a3c78d5d607","block_type":"box","text":"Governance Committee met ten times.","page_number":11,"box":{"x":69,"y":491,"width":274,"height":9}},{"id":"10766b90-e719-4249-9ba5-fe6c75effcee","block_type":"box","text":"Compliance Committee.","page_number":11,"box":{"x":102,"y":513,"width":168,"height":11}},{"id":"01d320e5-0dd9-4873-884e-7ca540e69bfe","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":11,"box":{"x":276,"y":513,"width":629,"height":11}},{"id":"93070a9c-e2de-4ecd-b775-09e1a549aa32","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":11,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"7110b2ce-db0a-4814-a329-96bd5e6bef99","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":11,"box":{"x":68,"y":543,"width":771,"height":12}},{"id":"8fac906e-24b6-4d15-a495-760e7f7c67f9","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":11,"box":{"x":69,"y":559,"width":835,"height":11}},{"id":"526dfd7a-b4ef-447f-bfa8-692f6ebce4d1","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":11,"box":{"x":70,"y":574,"width":754,"height":11}},{"id":"d2160a18-dc4b-42d3-abb4-207b37c046a0","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":11,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"f3533662-ab46-4d77-9044-93c9e4291f60","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":11,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"32ea4c2d-c49b-4ad1-bd25-3c5ea9ac4c17","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":11,"box":{"x":69,"y":619,"width":785,"height":11}},{"id":"4c46fcc0-48bb-47d4-b722-8c2b13292884","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":11,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"90ceb378-2fda-4ddb-970e-cf0416f07616","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":11,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"1671f9a4-0489-4d0d-84f1-56d90e7bedb3","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":11,"box":{"x":69,"y":664,"width":812,"height":12}},{"id":"0313471e-1814-4a85-bb6b-d0968165783d","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":11,"box":{"x":69,"y":680,"width":825,"height":11}},{"id":"51ed4358-e5aa-4371-9f11-c9df926148af","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":11,"box":{"x":69,"y":695,"width":811,"height":11}},{"id":"30fc6ae5-b985-49f9-90fc-09686d20ebce","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":68,"y":710,"width":502,"height":11}},{"id":"4e36743a-28d5-49f8-9729-29b5dac923a7","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":732,"width":248,"height":12}},{"id":"f43fbe37-4e3a-400a-9535-15e099ff3a71","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":11,"box":{"x":356,"y":732,"width":531,"height":12}},{"id":"a3f3ad5e-4ff7-4a86-b099-0719b3f3bdf0","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"8ff466c0-301c-49c2-91c5-d879b58773ef","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"dfa11ac3-1440-4b56-96a9-2d66e06ba2c1","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":11,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"083d77b0-f34c-4faa-be63-a2a3e2e6744a","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":793,"width":816,"height":11}},{"id":"d5424aa4-b0d9-40ef-a8f0-a984774d500b","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":808,"width":782,"height":11}},{"id":"82c83316-1833-4683-ada5-00d2e849553f","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":11,"box":{"x":70,"y":823,"width":829,"height":11}},{"id":"08cfd672-70f7-4a06-a45e-45f7a5b299e0","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":838,"width":816,"height":11}},{"id":"f2f64424-fa91-4f43-956c-d357cb020cc3","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":11,"box":{"x":69,"y":854,"width":803,"height":10}},{"id":"c96d5395-b019-460b-91a1-8b46f313b47c","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":11,"box":{"x":69,"y":869,"width":827,"height":11}},{"id":"9363cc4d-532a-426b-9eb6-c2017fb20607","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":11,"box":{"x":68,"y":884,"width":811,"height":11}},{"id":"37d777a2-3035-4994-bc2a-ae91e5fc1b96","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":11,"box":{"x":69,"y":899,"width":757,"height":11}},{"id":"c81fbbf6-92a8-4154-9a4a-976f014434e0","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"00d038c2-5fd9-4c45-ac0f-67ba91d6ec9e","block_type":"box","text":"NM1026U-5984554-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5fadb01d-d453-4c2d-964b-31ffe32f3391","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":12,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"237224aa-5afe-4d01-a8ee-9d50a034a7b3","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":12,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"be620940-d7ea-4b70-92e7-26be86c84cbe","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":12,"box":{"x":69,"y":75,"width":780,"height":11}},{"id":"b0aa72dc-dc16-484f-96c8-9cfdfd1465e6","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":12,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"c69df28d-5943-4993-9d4e-78f31844a965","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":12,"box":{"x":69,"y":105,"width":544,"height":11}},{"id":"d06cef13-8dee-45e1-976e-7d6e18db8a01","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":12,"box":{"x":101,"y":128,"width":186,"height":11}},{"id":"8e61b886-7063-47b8-9684-8f01b3589fd4","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":12,"box":{"x":293,"y":128,"width":598,"height":11}},{"id":"0008de64-af22-4c28-b6ec-c5b565c5f7fc","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":12,"box":{"x":70,"y":143,"width":817,"height":11}},{"id":"bcd8f988-5499-438e-b718-176aa84dd6a6","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":12,"box":{"x":69,"y":158,"width":795,"height":11}},{"id":"d2901550-d548-4e3b-8777-1b614be2606a","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":12,"box":{"x":69,"y":173,"width":788,"height":11}},{"id":"0ea12058-497d-46a4-b68f-2d27d1435c03","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":12,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"ad3e3ed9-ab67-42d0-bb80-99f17856f456","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":12,"box":{"x":68,"y":203,"width":816,"height":12}},{"id":"22b7adb7-0154-4a28-ba98-456b1438edd7","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":12,"box":{"x":68,"y":218,"width":575,"height":12}},{"id":"74eba420-101b-4b48-8a87-1698bae757e5","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":12,"box":{"x":101,"y":241,"width":771,"height":11}},{"id":"6658ab96-dd33-45d3-b93a-4938ef62442c","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":12,"box":{"x":69,"y":256,"width":827,"height":11}},{"id":"3b25c05c-3c0c-4832-aa18-57cd8261105f","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":12,"box":{"x":69,"y":271,"width":830,"height":12}},{"id":"5062ef05-66da-4a4b-8f4a-21db58ddbb48","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":12,"box":{"x":69,"y":286,"width":825,"height":12}},{"id":"7427475d-b17c-4839-85c3-5fe0a7caf424","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":302,"width":807,"height":11}},{"id":"042c8f87-99e1-4420-98e2-84c09b2c7735","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":12,"box":{"x":70,"y":317,"width":787,"height":11}},{"id":"c14096d4-875d-4522-b3be-013293c07094","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":12,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"fe572828-3f20-4f40-aaa4-d4709ae44740","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":12,"box":{"x":68,"y":347,"width":794,"height":11}},{"id":"4487c0ec-9871-438b-b8ea-eda011a9eddf","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":12,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"46e84b06-c16d-4aec-b9d9-760394cc6745","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":12,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"a48aaca2-c0ee-4f7a-9cc6-e57ab60320b9","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":12,"box":{"x":69,"y":392,"width":771,"height":12}},{"id":"b6e2ddc2-70f9-4517-84e1-00f61932b1a1","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":12,"box":{"x":69,"y":407,"width":473,"height":12}},{"id":"83d8bb3d-7064-4c40-996b-a5658f10f95f","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":12,"box":{"x":102,"y":430,"width":792,"height":11}},{"id":"95b458fb-2c0d-4801-91a2-008297f9fbd2","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":12,"box":{"x":69,"y":445,"width":807,"height":12}},{"id":"dc60cc9b-a452-40d2-9dc4-5c8fe7c7775f","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":12,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"7f86a273-2003-43b9-ba40-f2a99726a359","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":12,"box":{"x":70,"y":475,"width":759,"height":12}},{"id":"082d7fc9-a44b-4bad-9fa3-72a0990aa005","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":12,"box":{"x":70,"y":491,"width":685,"height":11}},{"id":"33d9a233-bb7a-42bd-b82e-3b5127e89509","block_type":"box","text":"ad hoc","page_number":12,"box":{"x":762,"y":491,"width":47,"height":9}},{"id":"a50585fa-78ee-4f7c-8a92-309247333f4a","block_type":"box","text":"committees","page_number":12,"box":{"x":814,"y":491,"width":82,"height":9}},{"id":"f1a384a3-f6e1-496e-a10e-1fa97bdd1e9d","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":12,"box":{"x":68,"y":506,"width":395,"height":11}},{"id":"20bce038-9398-439f-9d8c-28b0229b85e4","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":12,"box":{"x":101,"y":528,"width":751,"height":11}},{"id":"96438443-78a8-47d5-9206-a3a1f6226ff1","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":12,"box":{"x":69,"y":544,"width":492,"height":10}},{"id":"7ca2becf-b500-41ce-ae9a-38bcfcd867d1","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":12,"box":{"x":68,"y":572,"width":409,"height":9}},{"id":"5ffb5dcc-a304-4b0b-b238-d70cae8076f1","block_type":"box","text":"Independent Trustees","page_number":12,"box":{"x":70,"y":588,"width":154,"height":11}},{"id":"e55decaa-1c44-42e1-af20-b6ea1b4d5d0e","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":603,"width":781,"height":12}},{"id":"f7be2125-51f7-4073-9209-10aa1aa68bc7","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":618,"width":604,"height":12}},{"id":"a314717d-b9fc-41b3-ac31-c51dd11b367a","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":634,"width":623,"height":11}},{"id":"c0b49ce3-e6cc-4a11-9b26-d42f1e96666e","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":649,"width":637,"height":11}},{"id":"2e34008a-bdf4-443c-87f3-ca9eecd54864","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":664,"width":631,"height":11}},{"id":"7b79df81-9a22-480d-b143-6dff147b1eae","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":12,"box":{"x":264,"y":679,"width":626,"height":10}},{"id":"ff1b53da-fa9d-4c6c-94a7-6179d1b817e0","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":694,"width":639,"height":11}},{"id":"07183f3b-c004-45f5-a9bb-a1b0d4c28c49","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":709,"width":637,"height":11}},{"id":"e8b29936-73f0-4f9f-91d8-6b2a547134c3","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":725,"width":586,"height":11}},{"id":"6634a77f-1920-4a8e-bc9a-cd4ef809ca75","block_type":"box","text":"markets and the economy. 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These positions have provided her with insight and","page_number":13,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"a0c52bc3-586d-4ca7-924d-1f41a7e29ef0","block_type":"box","text":"perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"14d90e00-d3ca-44e3-aac5-566601e2c257","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"46251db2-87bf-4a90-b602-8a1d94167403","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":13,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"eecef634-385c-459d-8d9b-be5d440d551e","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"ebbee687-a00c-433c-8e51-509072ffcf9b","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"493aff51-28c9-4f6f-aee6-2c861f47ff20","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":13,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"d1117b20-08b6-45ba-aa0a-f1722b7e696c","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":13,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"7c219474-4256-4d46-9c5f-ee56dd73b657","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":13,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"0bfec6d8-c0d6-4eed-ad3a-110a5ee189b4","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":13,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"60a52e49-b0c5-4386-aea2-d608ac678bb7","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":13,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"3df099ee-bf3b-4cc2-99a5-4e58a3f0e83f","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":13,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"18133e4e-ce7b-4b6c-b2ba-20210381872d","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":13,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"b4aee6f2-8161-437b-be3f-d6dc2f1735d7","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":13,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"b5daef95-6abf-42cb-a7be-219ce69dafde","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":13,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"fda8c329-bd15-4d9a-8ef9-e934f0ea7001","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":13,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"926032c1-dbab-4c72-987c-839085b80676","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":13,"box":{"x":265,"y":587,"width":625,"height":11}},{"id":"cdd99f07-5ca9-4d4e-a5a3-dc6743af6346","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":13,"box":{"x":265,"y":602,"width":625,"height":11}},{"id":"c17a65e5-73d7-42c3-b09b-3584bfb3277f","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":13,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"9dc0e352-0e83-4230-836c-8830fe931bee","block_type":"box","text":"rules.","page_number":13,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"5d167f57-d992-485c-b414-0e8648c783af","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":13,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"1c906182-29a9-46a4-97fb-29cc900b138f","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"e0912af7-e6e9-4f76-a7b6-a3e902f9ead9","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":13,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"5a737fb0-5ef3-4687-8491-585f2a67fff1","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"f6de61fa-ec4c-41a7-8e3d-1b27704fa49a","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"723d4c5c-a772-4e72-ab48-eabc75af1531","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"b1f08cab-4df5-4de2-96b2-3ccfaf865382","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"e23a9823-16c5-47b2-86a5-3453133e2f23","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"607666d4-f9c2-417d-b188-6d6f3af33244","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"af6786e1-0cb5-480e-a5b3-e86753ce208a","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"d117dcfe-0327-41ed-8023-dd2ade367e14","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"eb41b2d5-612b-4e0b-b623-fbe0cad0c489","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":13,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"94321e04-cd08-436f-ad6c-346273f76244","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"2b7295a3-d5be-40c1-8f24-c937ba9b37a3","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"11a41af2-7ce9-43a4-a6ab-b152860586ec","block_type":"box","text":"NM1026U-5984554-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"66e90ec7-705f-4c2e-92bf-8014aad55e20","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"8b59fc8b-625b-44de-8c67-aa44c5f2c9fd","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":14,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"50ebf591-e921-4236-9b04-ebbe238924a4","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":14,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"9ca88af7-7452-425f-a366-c52f8e4e881e","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":14,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"7c2069b6-2b7c-4f97-a7ea-433624ccef0e","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":14,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"4d6c54fb-2ef3-4cdc-8c78-45c95fc89a36","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":14,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"7c90f38f-5919-4943-9bcf-557dcea07bfb","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":14,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"0217c738-a475-46ff-b4b3-e9462c06aa21","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":14,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"c9d891d6-749d-498c-b161-3f7532bb9a05","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":14,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"3200e4fa-be10-4fd5-9a7a-2b496347b212","block_type":"box","text":"ar ticles and books on these topics.","page_number":14,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"c48fe878-8ffd-48a9-8352-b83fa49cd1bd","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":14,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"03f71d61-e13d-4b53-a229-7f0716fa566b","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":14,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"94b6e7eb-0649-4e2e-b735-b58228dd7d9c","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":14,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"9b52781e-2576-4036-878d-fbad2662300a","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":14,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"a48edd6b-2d7c-4469-b942-0ad196edb635","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":14,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"6cf6b037-9c3b-497c-88ac-466b4187953b","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":14,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"37673231-8c96-495f-a876-2c258e923b1e","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":14,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"1d9613bf-9109-4023-97dc-0a77a0debccf","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":14,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"7e92a11b-1390-4f93-a337-ce29fa867101","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":14,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"2addbe0f-ad9a-4ac1-8fde-9911177d3aff","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":14,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"835c035b-99d8-45d1-be48-f7ac66947f9f","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":14,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"8ef3d0dc-8514-47d8-a2ef-3ff142780da5","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":14,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"36f3c9f1-9514-44d1-bfd9-ee309b863a0d","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":14,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"ce276ff0-7650-40e8-b387-30e551baccf8","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":14,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"efb77ef2-3b17-457c-8a90-f28318ad6524","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":14,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"e050f2c5-a2c4-45cf-8d0b-962eb8aad2e3","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":14,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"e7542a7e-30c4-48dd-84da-587fe768025c","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":14,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"a9de67a0-cf4f-4d9c-8bd9-b7aaa3373bf6","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":14,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"65448d2c-8f97-416a-a7f3-1e19fd6ecfc2","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":14,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"6d7c5dec-e4e7-4953-b428-ec63da2a694d","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":14,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"9d188c5b-32cd-4f3b-a847-857e1ef699df","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":14,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"a3210243-337a-4056-a21a-609e87a39ca3","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":132,"width":517,"height":9}},{"id":"c160ac05-ad7d-4272-8553-ed232f8f6fec","block_type":"box","text":"None None","page_number":20,"box":{"x":666,"y":132,"width":192,"height":9}},{"id":"a7943967-2be6-438b-ab99-a0196fcf015b","block_type":"box","text":"Kenneth L. Urish .","page_number":20,"box":{"x":79,"y":148,"width":126,"height":8}},{"id":"d28649d2-6d0b-45a1-bcd2-1bb26cbb73d7","block_type":"box","text":"................................................","page_number":20,"box":{"x":211,"y":155,"width":385,"height":1}},{"id":"963b90aa-06ec-40f4-8a6e-15d74502b623","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":666,"y":147,"width":228,"height":11}},{"id":"8456ab0c-be94-4b4d-ba96-96196936c4b7","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":163,"width":517,"height":8}},{"id":"0689bc67-1bb4-40c8-b619-85aeaf87220c","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":666,"y":162,"width":228,"height":11}},{"id":"445086b8-6bb2-4ed4-af49-3353fc89ffc0","block_type":"box","text":"Interested Trustees","page_number":20,"box":{"x":70,"y":178,"width":138,"height":9}},{"id":"fbd5e3ee-ad4a-468d-851e-75e1f5fdb3ab","block_type":"box","text":"Rober t Fairbairn","page_number":20,"box":{"x":79,"y":193,"width":113,"height":9}},{"id":"3b1cb16e-08da-4d5a-b6e0-54043f9280d7","block_type":"box","text":"..................................................","page_number":20,"box":{"x":195,"y":200,"width":401,"height":2}},{"id":"04d1fda1-643a-41f6-94f2-00a680b9695a","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":666,"y":192,"width":228,"height":11}},{"id":"de0b2b6c-554b-4f91-aa92-41123c74fc45","block_type":"box","text":"John M. Perlowski","page_number":20,"box":{"x":78,"y":208,"width":127,"height":9}},{"id":"e77801d7-4252-42e0-8c24-e274d1891804","block_type":"box","text":"................................................","page_number":20,"box":{"x":211,"y":215,"width":385,"height":2}},{"id":"712f0920-50b2-404f-b47a-a548b63eb43d","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":666,"y":207,"width":228,"height":11}},{"id":"2ea0b25f-f638-44a7-af82-bd8c75e61c8a","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":20,"box":{"x":70,"y":232,"width":782,"height":9}},{"id":"bafb42e1-a55a-40fe-83c9-dc2ed5897a42","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":20,"box":{"x":101,"y":253,"width":767,"height":11}},{"id":"07496851-5496-4318-9324-dccda4c474b9","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":20,"box":{"x":69,"y":268,"width":819,"height":12}},{"id":"841dd334-1bdf-4295-8a78-10d1553afe17","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":20,"box":{"x":69,"y":283,"width":839,"height":12}},{"id":"1ba1578c-7cd7-4f12-8faf-d5d10f143f09","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":20,"box":{"x":68,"y":298,"width":798,"height":12}},{"id":"737559a5-fa98-4d6b-bafb-0a4b71f9d2d9","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":20,"box":{"x":70,"y":314,"width":831,"height":11}},{"id":"3bdfe4ac-d333-436d-8915-b5577a46ab36","block_type":"box","text":"entities.","page_number":20,"box":{"x":69,"y":329,"width":56,"height":9}},{"id":"f09cee7d-e495-4ac3-a3ff-8ef1b24aea07","block_type":"box","text":"Compensation of Trustees","page_number":20,"box":{"x":69,"y":359,"width":190,"height":11}},{"id":"7dd9f1f8-9550-415f-aed9-61434b361f88","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":20,"box":{"x":102,"y":381,"width":791,"height":12}},{"id":"ae63acc5-43fd-4a4f-a606-fad3a00890fc","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":20,"box":{"x":68,"y":397,"width":810,"height":11}},{"id":"913a7523-7c10-4adf-a688-3e1cdeca7aef","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":20,"box":{"x":70,"y":411,"width":838,"height":12}},{"id":"984db520-8cee-4ad5-998b-d36a88e52d9a","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":20,"box":{"x":69,"y":427,"width":807,"height":11}},{"id":"5475ed08-e47e-4154-b43d-db086fef799e","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":20,"box":{"x":69,"y":442,"width":791,"height":11}},{"id":"ff9e4528-3c95-4038-8469-c957595a20d8","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":20,"box":{"x":68,"y":457,"width":786,"height":12}},{"id":"328c1e1e-9f5c-41e6-94cd-53992a0a2d4d","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":20,"box":{"x":69,"y":472,"width":769,"height":12}},{"id":"60e5ba15-911b-4afa-86d6-8cd0c738ff7b","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":20,"box":{"x":69,"y":487,"width":778,"height":12}},{"id":"416da237-f4a0-49ec-bc38-4403d2ef941b","block_type":"box","text":"$45,000, respectively. 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,197 None","page_number":20,"box":{"x":79,"y":702,"width":654,"height":11}},{"id":"6ec03aa4-fc45-4b8b-8f12-8f51ea6f3834","block_type":"box","text":"$467,500","page_number":20,"box":{"x":817,"y":702,"width":72,"height":11}},{"id":"1ad4b4ca-0965-4878-a636-af60050e7da7","block_type":"box","text":"Jeffrey Jarczyk","page_number":20,"box":{"x":78,"y":717,"width":103,"height":12}},{"id":"c672ceea-f78c-49ab-b08e-f2416e41b722","block_type":"box","text":"2","page_number":20,"box":{"x":181,"y":718,"width":4,"height":4}},{"id":"b82eacaa-a0f5-444b-8130-624b455220fb","block_type":"box","text":".........................................","page_number":20,"box":{"x":192,"y":725,"width":328,"height":1}},{"id":"bed50b3c-d458-4c8e-82a2-bf35f915148a","block_type":"box","text":"$312 None None","page_number":20,"box":{"x":574,"y":717,"width":297,"height":10}},{"id":"39f36001-6c54-45e3-9419-9caaadbcfeda","block_type":"box","text":"Henry R. 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Management, Advisory and Other Service Arrangements","page_number":21,"box":{"x":69,"y":172,"width":432,"height":11}},{"id":"f6c01b04-d269-49c0-ba9c-a62228d25d80","block_type":"box","text":"Management Agreement","page_number":21,"box":{"x":69,"y":202,"width":180,"height":11}},{"id":"39b730d4-5ba5-4f23-afcd-f09a6e1b8182","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into a management agreement with BlackRock pursuant to which","page_number":21,"box":{"x":101,"y":225,"width":791,"height":11}},{"id":"31dc9b92-b02c-445e-bed2-540596526497","block_type":"box","text":"BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":21,"box":{"x":70,"y":240,"width":689,"height":11}},{"id":"63ba215f-f7f0-48fb-a718-60fad043268c","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":21,"box":{"x":102,"y":263,"width":762,"height":11}},{"id":"5656d80b-1dea-40c9-9929-9d0f8aa6377e","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":21,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"feda2fe0-3c88-4023-a3da-27f333b41156","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":21,"box":{"x":68,"y":293,"width":726,"height":11}},{"id":"7b4206e7-12c9-4f75-97fa-ed725cb5c9de","block_type":"box","text":"June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of","page_number":21,"box":{"x":69,"y":308,"width":799,"height":11}},{"id":"52b97106-f980-4277-9e91-1e034eff8d02","block_type":"box","text":"investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds","page_number":21,"box":{"x":70,"y":323,"width":780,"height":11}},{"id":"719da298-1350-4b61-8981-4b2613107ee5","block_type":"box","text":"managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon","page_number":21,"box":{"x":69,"y":338,"width":835,"height":11}},{"id":"cc62c601-b339-49ed-87ee-ca9ecc983168","block_type":"box","text":"90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting","page_number":21,"box":{"x":69,"y":353,"width":774,"height":12}},{"id":"01f4e881-facf-490d-9998-e20cd44c7923","block_type":"box","text":"securities of the Fund.","page_number":21,"box":{"x":69,"y":368,"width":158,"height":9}},{"id":"08b9d258-0b2b-4869-b98e-362fce9f8d26","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":21,"box":{"x":102,"y":391,"width":773,"height":11}},{"id":"84f433ba-34c6-47cc-b2e8-f42b0a7bcd82","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":21,"box":{"x":68,"y":406,"width":787,"height":11}},{"id":"676e28ee-8527-4088-ab02-85b199d21520","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":21,"box":{"x":70,"y":421,"width":811,"height":11}},{"id":"e842f64f-a045-48d4-9f87-9809adebb33a","block_type":"box","text":"Fund’s Prospectus)) as a percentage of average daily net assets to 0.73% for Investor A Shares, 1.48% for Investor C","page_number":21,"box":{"x":70,"y":436,"width":837,"height":12}},{"id":"63a07ddb-26e0-4f45-994a-4435019e5ecd","block_type":"box","text":"Shares, 0.48% for Institutional Shares, and 0.43% for Class K Shares through June 30, 2028. The contractual","page_number":21,"box":{"x":69,"y":452,"width":787,"height":11}},{"id":"6a786d0a-c220-4b46-bdb8-44484e071ca0","block_type":"box","text":"agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a","page_number":21,"box":{"x":69,"y":467,"width":822,"height":11}},{"id":"af0c2d67-9e2c-4cbe-a006-f512b0de466c","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":21,"box":{"x":68,"y":482,"width":468,"height":11}},{"id":"5058b188-dc9d-4451-b31b-0a2ae6ca20eb","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":21,"box":{"x":102,"y":504,"width":784,"height":12}},{"id":"8aa4c4d3-8e41-4012-b162-c93325e44cf1","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":21,"box":{"x":70,"y":520,"width":838,"height":11}},{"id":"2bedf59c-832a-4e24-b5d2-6cfca5a71a35","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":21,"box":{"x":70,"y":535,"width":810,"height":11}},{"id":"a133e6ac-e411-4ef5-956a-9dd5e6ca3014","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":21,"box":{"x":70,"y":550,"width":779,"height":11}},{"id":"e2bda65b-6ce4-45ef-9179-d30e9703c1ef","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":21,"box":{"x":70,"y":565,"width":827,"height":11}},{"id":"856fe815-9893-4aba-bc35-f1d51672fc3c","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":69,"y":580,"width":486,"height":11}},{"id":"8759cf31-b5a6-48c0-856a-3a5ba6c820a7","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust, on behalf of the Fund,","page_number":21,"box":{"x":101,"y":603,"width":806,"height":11}},{"id":"67a90a67-0dec-4126-8e3f-f8f4e6f42232","block_type":"box","text":"to BlackRock, and the amounts waived and/or reimbursed, for the past three fiscal years.","page_number":21,"box":{"x":68,"y":618,"width":640,"height":11}},{"id":"325fc3f7-7f7a-458f-a405-f4be901067dd","block_type":"box","text":"Fees Paid to","page_number":21,"box":{"x":580,"y":646,"width":72,"height":7}},{"id":"686a3923-6746-40ed-9c8d-e7870a80608b","block_type":"box","text":"BlackRock","page_number":21,"box":{"x":585,"y":656,"width":62,"height":7}},{"id":"20e63182-b301-4f11-af2d-92a1bb135cb2","block_type":"box","text":"Fees Waived by","page_number":21,"box":{"x":690,"y":646,"width":90,"height":9}},{"id":"6602b674-27ac-42b1-951a-05a13e33803a","block_type":"box","text":"BlackRock","page_number":21,"box":{"x":704,"y":656,"width":62,"height":7}},{"id":"6c5730b4-cd71-4c53-9fce-2ef3b8cf7bd2","block_type":"box","text":"Fees Reimbursed","page_number":21,"box":{"x":810,"y":646,"width":99,"height":7}},{"id":"473c629d-3835-4141-8e7c-0fcf788bc111","block_type":"box","text":"by BlackRock","page_number":21,"box":{"x":820,"y":656,"width":80,"height":9}},{"id":"3131f352-ef36-4408-8b41-8f89b335c161","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,991,866 $689,070 $385,848","page_number":21,"box":{"x":70,"y":673,"width":825,"height":12}},{"id":"497a2875-c325-4313-95ab-34c1e51952c8","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,623,084 $545,137 $311,994","page_number":21,"box":{"x":70,"y":688,"width":825,"height":12}},{"id":"074310ca-6732-448d-9c53-a2ba7dee2813","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,712,287 $603,992 $382,785","page_number":21,"box":{"x":70,"y":704,"width":825,"height":11}},{"id":"c4f006aa-87c5-403c-baea-bfa394fec8ec","block_type":"box","text":"Administration Agreement","page_number":21,"box":{"x":68,"y":736,"width":191,"height":11}},{"id":"9d19cc98-941e-4937-afec-ca4c417002e1","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":21,"box":{"x":102,"y":759,"width":711,"height":10}},{"id":"9d08a332-5293-4511-9e96-4024b820574e","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":21,"box":{"x":69,"y":773,"width":838,"height":12}},{"id":"32b7e090-31e4-4550-91d4-96e88a53af62","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":21,"box":{"x":68,"y":789,"width":830,"height":11}},{"id":"44339efe-f0fa-4783-bccd-e68e26151ab2","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":21,"box":{"x":70,"y":804,"width":813,"height":11}},{"id":"1a503133-6dea-4ee6-bb15-7c4c0d6c6f04","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":21,"box":{"x":69,"y":819,"width":837,"height":11}},{"id":"7008216f-db59-4315-8764-d01ef6f03635","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":21,"box":{"x":68,"y":834,"width":836,"height":11}},{"id":"dc3ef08a-70cf-4b21-a523-fbfaa1f57ed2","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":21,"box":{"x":68,"y":849,"width":785,"height":11}},{"id":"e704293a-3abe-4377-a226-80178ca69bca","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":21,"box":{"x":69,"y":864,"width":765,"height":11}},{"id":"cb40323c-b9a6-4ac2-baae-1fdd01b373c9","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":21,"box":{"x":70,"y":879,"width":819,"height":12}},{"id":"f25770fc-dd8d-4f04-93ac-bd9fd9a8d01c","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":21,"box":{"x":69,"y":894,"width":818,"height":12}},{"id":"4b3d136a-7f26-45be-92a0-27f24f7b17fd","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"82a22f1f-7ed7-413f-bcec-5a84846a876d","block_type":"box","text":"NM1026U-5984554-21/232","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6b00a65f-017f-488a-984d-aae6e398347f","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":22,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"126f7bba-dcf1-4b7a-822a-c33995defc91","block_type":"box","text":"reimburse the Fund for expenses.","page_number":22,"box":{"x":69,"y":60,"width":238,"height":11}},{"id":"a7efa8c3-41ee-49bd-bff6-528fa5fecfe0","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":22,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"4c128ade-8c68-4b35-a705-f5bc44061b08","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":22,"box":{"x":69,"y":97,"width":830,"height":12}},{"id":"dc92371a-a126-4ec2-9960-d4d27a723caf","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":22,"box":{"x":69,"y":112,"width":788,"height":12}},{"id":"70f74da5-7e22-4a39-8dfe-17698ceb597e","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":22,"box":{"x":69,"y":127,"width":785,"height":12}},{"id":"76df671f-b626-4c9a-8642-0ff503657b6d","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":22,"box":{"x":69,"y":142,"width":816,"height":12}},{"id":"161def38-d4c1-4aa7-8164-42dc9bdee3ca","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":22,"box":{"x":69,"y":157,"width":805,"height":12}},{"id":"713f4da3-9c9b-4a53-846c-256a73afbc68","block_type":"box","text":"shares of the Fund.","page_number":22,"box":{"x":69,"y":173,"width":137,"height":9}},{"id":"91a4ad3b-529c-4013-82cc-c2b24cb1df55","block_type":"box","text":"The table below sets for th information about the administration fees paid by the Trust, on behalf of the Fund, to","page_number":22,"box":{"x":101,"y":196,"width":798,"height":11}},{"id":"47b06d7d-3ca8-47e6-b810-733d03c18410","block_type":"box","text":"the Administrator and the amounts waived, for the past three fiscal 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the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":22,"box":{"x":68,"y":351,"width":800,"height":12}},{"id":"e1d6ac3e-0580-467a-a960-af91f2031ecc","block_type":"box","text":"shares of the Trust.","page_number":22,"box":{"x":69,"y":366,"width":138,"height":10}},{"id":"f0084fc5-9e26-4a7e-a725-03991b84e42d","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":22,"box":{"x":102,"y":389,"width":740,"height":11}},{"id":"7581cfeb-3601-4e74-9ec2-c6be477944e8","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Fund,","page_number":22,"box":{"x":69,"y":404,"width":824,"height":11}},{"id":"a306708c-aa20-4a86-bdf3-7d5440e3c9c0","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":22,"box":{"x":69,"y":419,"width":787,"height":12}},{"id":"1504b343-59d4-427c-9878-f030634b1541","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":22,"box":{"x":69,"y":435,"width":531,"height":11}},{"id":"835f8352-e4a2-48da-a47b-0cd8658d003a","block_type":"box","text":"For the past three fiscal years, the Trust, on behalf of the Fund, reimbursed to BlackRock fees for shareholder","page_number":22,"box":{"x":102,"y":457,"width":784,"height":11}},{"id":"27b706b5-6314-4988-b33a-f6d873f78314","block_type":"box","text":"liaison services pursuant to such agreement as 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. . . $ 2,666 $ 2,666","page_number":22,"box":{"x":333,"y":528,"width":562,"height":11}},{"id":"b04f92c3-1da8-47fd-8011-04c3645892ad","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":22,"box":{"x":70,"y":544,"width":257,"height":11}},{"id":"53e38548-e166-47b1-b8d0-edf36f301234","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,275 $ 6,275","page_number":22,"box":{"x":333,"y":543,"width":562,"height":11}},{"id":"5e532ec2-dca3-4ee7-8443-d5789d06adab","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":22,"box":{"x":70,"y":559,"width":257,"height":11}},{"id":"d5a5ffe3-6e0f-4c9a-979b-b7602c208899","block_type":"box","text":"............................................","page_number":22,"box":{"x":333,"y":566,"width":353,"height":2}},{"id":"63099251-dfe1-4ab7-99f4-b09b696db051","block_type":"box","text":"$10,840 $10,840","page_number":22,"box":{"x":722,"y":558,"width":173,"height":11}},{"id":"dde27832-84b0-46eb-86dc-21185f4f613a","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":22,"box":{"x":69,"y":590,"width":335,"height":11}},{"id":"eebd444a-6f07-47aa-b6fb-e7ebc83f4b81","block_type":"box","text":"Travis Cooke, CFA, Raffaele Savi, Richard Mathieson and Anna Hawley, CFA, are the por tfolio managers and are","page_number":22,"box":{"x":101,"y":613,"width":797,"height":11}},{"id":"516ed83e-46e5-404a-972c-9d5f6e608228","block_type":"box","text":"jointly and primarily responsible for the day-to-day management of the Fund.","page_number":22,"box":{"x":67,"y":628,"width":540,"height":11}},{"id":"8ed6106b-7bcf-42a6-ac48-27743a0b0fd7","block_type":"box","text":"Other Funds and Accounts Managed","page_number":22,"box":{"x":70,"y":658,"width":265,"height":11}},{"id":"5f3c7e06-41bf-4121-9f84-1f8c696c3895","block_type":"box","text":"The following table sets for th information about funds and accounts other than the Fund for which the Fund’s","page_number":22,"box":{"x":101,"y":681,"width":778,"height":11}},{"id":"dbb47360-fd8c-464b-910e-d372c0f82fb0","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of May 31, 2026.","page_number":22,"box":{"x":70,"y":696,"width":755,"height":11}},{"id":"297f5321-7096-47dd-9e1b-ce647ed65396","block_type":"box","text":"Number of Other Accounts Managed","page_number":22,"box":{"x":365,"y":724,"width":211,"height":9}},{"id":"40b781fe-a2bf-460d-9291-50650149b805","block_type":"box","text":"and Assets by Account Type","page_number":22,"box":{"x":388,"y":734,"width":165,"height":9}},{"id":"0d927e7c-5233-432b-9cb2-5c14eac9a89c","block_type":"box","text":"Number of Other Accounts and Assets","page_number":22,"box":{"x":655,"y":724,"width":222,"height":7}},{"id":"5e2c1765-16ee-4960-b095-6385ed5f629b","block_type":"box","text":"for Which Advisory Fee is 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Pooled","page_number":22,"box":{"x":720,"y":757,"width":75,"height":7}},{"id":"06a2428b-7c19-497d-90a9-e6b204a784ed","block_type":"box","text":"Investment","page_number":22,"box":{"x":726,"y":767,"width":64,"height":7}},{"id":"d43a7e6a-2b2c-478c-b08d-a44ba542c5fa","block_type":"box","text":"Vehicles","page_number":22,"box":{"x":734,"y":777,"width":48,"height":7}},{"id":"0bce5c21-7802-43e0-ae4d-3347560d6189","block_type":"box","text":"Other","page_number":22,"box":{"x":843,"y":767,"width":32,"height":7}},{"id":"d238fd93-c7c0-4921-a94b-517f532a5dde","block_type":"box","text":"Accounts","page_number":22,"box":{"x":832,"y":777,"width":54,"height":7}},{"id":"f138470e-3af5-4c03-9f56-269140b5e9a2","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":22,"box":{"x":73,"y":791,"width":789,"height":8}},{"id":"4be28485-16fa-40dc-95a2-1a122c2fb004","block_type":"box","text":"$31.01 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":22,"box":{"x":329,"y":803,"width":566,"height":8}},{"id":"8876368b-cca0-4665-bfc0-572a01b969ad","block_type":"box","text":"Anna Hawley, CFA 25 424 42 0 5 8","page_number":22,"box":{"x":73,"y":816,"width":789,"height":9}},{"id":"f1e704de-cb8e-4b30-8d98-11c13f6e9346","block_type":"box","text":"$14.54 Billion $43.27 Billion $70.13 Billion $0 $3.46 Billion $15.73 Billion","page_number":22,"box":{"x":329,"y":828,"width":570,"height":9}},{"id":"af9145d2-9d92-4a0c-995d-19f9f0675bfd","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":22,"box":{"x":74,"y":841,"width":788,"height":8}},{"id":"07b5f04e-8d3e-47d7-bc7f-8e2c474b9295","block_type":"box","text":"$43.73 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":22,"box":{"x":329,"y":853,"width":570,"height":9}},{"id":"cd654f17-f62b-4ebe-8174-680ce152bc3b","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":22,"box":{"x":74,"y":867,"width":788,"height":7}},{"id":"d37b85d7-49b0-4cba-b332-0f55a1f0044f","block_type":"box","text":"$54.83 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":22,"box":{"x":329,"y":879,"width":566,"height":8}},{"id":"69d4cad7-b55a-4127-9f10-da1914ac08a7","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4512f304-e2c0-4270-a0b2-50f0aaaf754b","block_type":"box","text":"NM1026U-5984554-22/232","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d173fd9e-5ca4-4a90-b115-0a36b962ffd7","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":23,"box":{"x":69,"y":45,"width":304,"height":11}},{"id":"cf76931c-bc1d-4013-b7e4-ec256d2d35d9","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":23,"box":{"x":101,"y":67,"width":656,"height":12}},{"id":"3253638c-a2d4-412f-9b39-8e7a83fe1896","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":23,"box":{"x":102,"y":90,"width":774,"height":11}},{"id":"20f66562-ecbe-4d33-8a4f-688c17c44768","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":23,"box":{"x":70,"y":105,"width":837,"height":11}},{"id":"15459e0c-c998-48ae-8aca-e1a02b5c2b7e","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":23,"box":{"x":69,"y":120,"width":823,"height":11}},{"id":"141e36cf-ffaf-48de-8f13-27a4c53b66b9","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":23,"box":{"x":69,"y":135,"width":799,"height":11}},{"id":"78f9e928-4c3b-4c72-8d47-744b26cb24fb","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":23,"box":{"x":70,"y":150,"width":670,"height":12}},{"id":"2018565c-4ddb-440e-ae90-2b09b9f6d6aa","block_type":"box","text":"Base Compensation.","page_number":23,"box":{"x":102,"y":173,"width":148,"height":11}},{"id":"191a8c1d-03a5-445c-a804-0e3918b35f3b","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":23,"box":{"x":257,"y":173,"width":640,"height":11}},{"id":"67a18f1f-c283-48c1-847e-652317a96ab6","block_type":"box","text":"firm.","page_number":23,"box":{"x":68,"y":188,"width":32,"height":9}},{"id":"ff2199e7-6da2-43f9-a172-95e10c6568e1","block_type":"box","text":"Discretionary Incentive Compensation","page_number":23,"box":{"x":69,"y":219,"width":277,"height":11}},{"id":"33b22695-e279-4800-9bc2-321aaa5d6692","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":23,"box":{"x":102,"y":241,"width":792,"height":11}},{"id":"54fdf55e-075e-4ecd-952d-a745ce591c43","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":23,"box":{"x":68,"y":256,"width":800,"height":12}},{"id":"e7c6e969-f30d-43b3-ab66-eb23d176181f","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":23,"box":{"x":69,"y":271,"width":777,"height":12}},{"id":"bc395c4f-6b88-4e64-a3e5-8669372b1a92","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":23,"box":{"x":70,"y":286,"width":817,"height":11}},{"id":"581c8de0-72df-4e44-8bcb-38287c9707ae","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":23,"box":{"x":70,"y":302,"width":741,"height":11}},{"id":"0e9cff6d-19a5-4f20-a114-ebe10192f790","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":23,"box":{"x":69,"y":317,"width":818,"height":11}},{"id":"611d0d1f-8591-48ca-997d-ae2f17f317e6","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":23,"box":{"x":69,"y":332,"width":806,"height":11}},{"id":"72aea090-f362-412c-9d1b-cbf759ec696f","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Messrs.","page_number":23,"box":{"x":69,"y":347,"width":796,"height":11}},{"id":"8825f7c2-3cd4-40ff-8203-4f2c9a7c5e61","block_type":"box","text":"Cooke, Savi and Mathieson and Ms. Hawley is not measured against a specific benchmark.","page_number":23,"box":{"x":69,"y":362,"width":651,"height":11}},{"id":"0208bc1a-34e1-4353-a2c0-064fbb8d0a68","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":23,"box":{"x":102,"y":385,"width":389,"height":11}},{"id":"babcabd3-fc93-47ab-b35e-468b671f7064","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":23,"box":{"x":499,"y":385,"width":383,"height":11}},{"id":"f336b692-5c18-4058-831c-51194e296746","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":23,"box":{"x":70,"y":400,"width":815,"height":11}},{"id":"10c01bf5-bc38-4df1-8479-2cc6a29194e7","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":23,"box":{"x":68,"y":415,"width":522,"height":11}},{"id":"7439d0f7-375b-44d3-8aa9-c4619e6746b3","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":23,"box":{"x":102,"y":438,"width":760,"height":11}},{"id":"e8981472-91b5-4fc0-9f63-7fc2140d0559","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":23,"box":{"x":69,"y":453,"width":795,"height":11}},{"id":"3d2b4d40-fbc9-430a-bba8-970f1db90919","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":23,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"05c94dd2-f998-4ac9-b0e1-bee26266e998","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":23,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"33566709-21cd-4ac6-98b5-528886506994","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":23,"box":{"x":68,"y":498,"width":839,"height":11}},{"id":"78e2fd52-8d6d-4047-886e-07bd177d9c6e","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":23,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"aa3f2d92-4475-45f7-ae60-cc5ded3bea2e","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":23,"box":{"x":70,"y":528,"width":820,"height":12}},{"id":"8fa371bd-6103-4342-8a0a-0e013d7a3acc","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":23,"box":{"x":70,"y":543,"width":801,"height":12}},{"id":"8be0c23f-01c3-4afe-a283-6ab1362621f5","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":23,"box":{"x":70,"y":559,"width":831,"height":11}},{"id":"edee24a7-a01f-4924-8193-d36c3e4cb535","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":23,"box":{"x":69,"y":574,"width":479,"height":11}},{"id":"5b5f391f-a7aa-4e53-978c-b5db67a961ae","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":23,"box":{"x":102,"y":596,"width":785,"height":12}},{"id":"1f04ae56-6c66-4e32-ab37-808230f7a830","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":23,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"5c284823-3e9f-481c-b282-9fdffb0718e3","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":23,"box":{"x":68,"y":627,"width":821,"height":11}},{"id":"88fed2e5-ece5-46fd-acbb-6c4758e8720a","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":23,"box":{"x":69,"y":642,"width":829,"height":11}},{"id":"59cae676-e116-4931-92b9-ea1a9ad6c465","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":23,"box":{"x":70,"y":657,"width":835,"height":11}},{"id":"f63504c5-0bd9-4793-aef0-7580252b191f","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":23,"box":{"x":69,"y":672,"width":414,"height":11}},{"id":"2da29b30-3963-449e-8e1f-6551d6b9cad8","block_type":"box","text":"Other Compensation Benefits.","page_number":23,"box":{"x":101,"y":695,"width":218,"height":11}},{"id":"60128313-d68d-4425-a7d2-2a4b7140fb6f","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":23,"box":{"x":327,"y":695,"width":552,"height":11}},{"id":"57e599ac-53c0-4805-85d4-c88e0bd9bc3e","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":23,"box":{"x":69,"y":710,"width":582,"height":11}},{"id":"fa33b30a-8ffd-427b-ab7a-b8bd67954ed3","block_type":"box","text":"Incentive Savings Plans","page_number":23,"box":{"x":102,"y":733,"width":167,"height":11}},{"id":"d3143909-2208-4981-a435-311a1dc51746","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":23,"box":{"x":274,"y":732,"width":614,"height":12}},{"id":"fd27a66e-a11c-44a3-b052-d36995f12a87","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":23,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"f0181524-29de-4a17-b260-6ea3be24df47","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":23,"box":{"x":70,"y":763,"width":785,"height":11}},{"id":"a9b4e5bb-7d02-4ef9-bc16-ba19d86291ee","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":23,"box":{"x":69,"y":777,"width":830,"height":12}},{"id":"fab5d19c-4a89-4d47-ba64-b0019cf2777b","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":23,"box":{"x":69,"y":793,"width":799,"height":11}},{"id":"a4488aa0-a311-4857-81f2-d80ac856581f","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":23,"box":{"x":69,"y":807,"width":831,"height":12}},{"id":"ba126d22-a8bd-4739-b5c2-9e961a095347","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":23,"box":{"x":69,"y":823,"width":798,"height":12}},{"id":"76d51c44-c578-4d68-83c1-4ee138365ee6","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":23,"box":{"x":70,"y":838,"width":809,"height":12}},{"id":"7151b278-4774-44c0-a070-37b7e83e0ac3","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":23,"box":{"x":68,"y":853,"width":793,"height":12}},{"id":"ca93dd9b-1088-479f-b154-7114f238d325","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":23,"box":{"x":70,"y":869,"width":832,"height":11}},{"id":"ddcbb589-6a3a-4b2f-bee5-b4b089bc0daf","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":23,"box":{"x":68,"y":884,"width":805,"height":11}},{"id":"cf8b1d9a-d367-474a-90fa-51a50b2b1d4b","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a84d5962-6f2c-4f91-930d-0e9a4ed05516","block_type":"box","text":"NM1026U-5984554-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e8eea69d-7162-4c67-b3c5-221deb9c14eb","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":24,"box":{"x":69,"y":44,"width":808,"height":12}},{"id":"04ddd770-0e01-4dff-9314-87a38e909e20","block_type":"box","text":"par ticipate in these plans.","page_number":24,"box":{"x":70,"y":60,"width":185,"height":11}},{"id":"c614ef0a-7e29-4f54-94d0-7a13ed75d457","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":24,"box":{"x":69,"y":90,"width":268,"height":11}},{"id":"b19cedee-39b6-4647-a607-bc3c77afc879","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":24,"box":{"x":101,"y":113,"width":731,"height":11}},{"id":"a2faa759-bad1-4ef5-bc72-573c1c6018ae","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":24,"box":{"x":69,"y":128,"width":519,"height":11}},{"id":"49575428-a90b-468c-876a-2dc4dd7f4ca6","block_type":"box","text":"Portfolio Manager","page_number":24,"box":{"x":69,"y":166,"width":105,"height":9}},{"id":"1df7a3d1-f5c9-48de-a33c-876d41aa36d1","block_type":"box","text":"Dollar Range of Equity","page_number":24,"box":{"x":759,"y":156,"width":129,"height":9}},{"id":"aebd212a-0709-453e-a50d-8dc1bf8ebdf0","block_type":"box","text":"Securities Beneficially Owned","page_number":24,"box":{"x":736,"y":166,"width":173,"height":9}},{"id":"aed1901d-19af-4617-a8a4-c5c0fcf9f059","block_type":"box","text":"Travis Cooke, CFA","page_number":24,"box":{"x":68,"y":184,"width":127,"height":10}},{"id":"d3f9247b-cef2-4697-bbec-1b4c206925c3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":24,"box":{"x":206,"y":184,"width":635,"height":9}},{"id":"7cf4ad1d-8f0f-4091-9933-70de73ad28df","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":24,"box":{"x":70,"y":199,"width":771,"height":9}},{"id":"cd555222-8ef6-497b-89bf-16c6cb74751a","block_type":"box","text":"Richard Mathieson .","page_number":24,"box":{"x":70,"y":214,"width":138,"height":9}},{"id":"0670ba4c-c1b0-41ae-847d-de52d6b0f516","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":24,"box":{"x":214,"y":214,"width":627,"height":9}},{"id":"69ba28ac-353e-45a1-a2bf-4c8201da14bb","block_type":"box","text":"Anna Hawley, CFA . . .","page_number":24,"box":{"x":68,"y":229,"width":148,"height":11}},{"id":"a91ab0e0-5625-408a-9faf-a17c5fb2254c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":24,"box":{"x":223,"y":229,"width":618,"height":9}},{"id":"6cebf624-b1f2-4b29-bf79-6eb27a57123a","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":24,"box":{"x":69,"y":261,"width":403,"height":11}},{"id":"3cb2fcbd-59c0-4366-8e64-eca401a3d3e9","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":24,"box":{"x":102,"y":283,"width":727,"height":12}},{"id":"35f5b15f-2d85-471d-b534-dfee0e8e9dd3","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":24,"box":{"x":70,"y":298,"width":814,"height":12}},{"id":"ef6fe45e-ea18-46eb-b56e-b9b0347a44a7","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":24,"box":{"x":70,"y":314,"width":837,"height":11}},{"id":"b1c1393c-a822-4eeb-8817-d7c1b868e1de","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":24,"box":{"x":70,"y":329,"width":810,"height":11}},{"id":"94b206e1-d1c3-4852-b275-c11d35d9b97c","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":24,"box":{"x":69,"y":344,"width":782,"height":11}},{"id":"6261904c-2102-4a75-8da1-16c9a70970dd","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":24,"box":{"x":69,"y":359,"width":830,"height":11}},{"id":"56fa9830-35bf-4968-b893-d2c004127ff5","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":24,"box":{"x":69,"y":374,"width":828,"height":11}},{"id":"0ecd54f4-d217-41bc-947a-7620491eeddd","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":24,"box":{"x":68,"y":389,"width":834,"height":11}},{"id":"d127e40e-cae0-4073-b882-2985a8be6d3d","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":24,"box":{"x":70,"y":404,"width":777,"height":11}},{"id":"a2da36f4-3fdd-43c8-8255-ed69bbff23f0","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":24,"box":{"x":70,"y":419,"width":821,"height":12}},{"id":"3d89ac9e-de5d-4d68-ae91-c9ee63a17dcf","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":24,"box":{"x":69,"y":435,"width":819,"height":11}},{"id":"23d9a372-4e7e-4255-a578-e52bca85d821","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":24,"box":{"x":69,"y":450,"width":832,"height":11}},{"id":"5e221272-aea4-4a04-a840-60470ba2c6ef","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":24,"box":{"x":68,"y":465,"width":804,"height":11}},{"id":"898fc738-faca-4787-a624-39df5ec4cbc2","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":24,"box":{"x":69,"y":480,"width":760,"height":11}},{"id":"e8d6fcd0-22ef-4c9f-b991-29aaedb077de","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":24,"box":{"x":69,"y":495,"width":834,"height":11}},{"id":"d35fbdd7-78a5-4757-8604-17aa159ab290","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":24,"box":{"x":69,"y":510,"width":836,"height":11}},{"id":"c8b68295-9e84-422e-b9ba-ecfda8423830","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":24,"box":{"x":69,"y":525,"width":822,"height":11}},{"id":"693b243e-b380-4829-b4b6-11a38940a2e8","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":24,"box":{"x":70,"y":540,"width":835,"height":12}},{"id":"6b616279-f730-404d-95d6-69376a73c648","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Cooke, Savi and Mathieson and","page_number":24,"box":{"x":69,"y":555,"width":838,"height":12}},{"id":"e58eafd2-5e5b-444d-a2d2-ec21f1967b25","block_type":"box","text":"Ms. Hawley may be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund","page_number":24,"box":{"x":70,"y":571,"width":830,"height":11}},{"id":"4b0f8b61-158e-4c62-aa83-0dba994eed03","block_type":"box","text":"and/or long only accounts, subject to incentive fees. Messrs. Cooke, Savi and Mathieson and Ms. Hawley may","page_number":24,"box":{"x":69,"y":586,"width":789,"height":11}},{"id":"fb1f9560-4277-4232-b0e9-d05018d079f2","block_type":"box","text":"therefore be entitled to receive a por tion of any incentive fees earned on such accounts.","page_number":24,"box":{"x":68,"y":601,"width":631,"height":11}},{"id":"a4f7fb77-c190-4ae9-b5b3-955ddecee048","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":24,"box":{"x":101,"y":623,"width":788,"height":12}},{"id":"2f2d2e9b-b1b1-4114-bf37-feb6ad21d932","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":24,"box":{"x":70,"y":639,"width":839,"height":11}},{"id":"1c799709-aafd-4f27-9e45-37374f4b632b","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":24,"box":{"x":68,"y":654,"width":823,"height":11}},{"id":"61d6a070-4704-4cfc-8c07-fa853faec497","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":24,"box":{"x":68,"y":669,"width":812,"height":11}},{"id":"965061c4-6180-4a2b-a600-0faa4d7fa0f8","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":24,"box":{"x":69,"y":684,"width":777,"height":11}},{"id":"4eea779e-edd1-4788-9b4d-87795ab0848e","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":24,"box":{"x":70,"y":699,"width":826,"height":11}},{"id":"c715c7f9-3ed1-46ca-9458-0b71aedc0208","block_type":"box","text":"Accounting Services","page_number":24,"box":{"x":68,"y":729,"width":150,"height":11}},{"id":"0781ffff-34ee-4328-9d8b-13028c17a8c4","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) serves as the accounting services provider for the Fund.","page_number":24,"box":{"x":102,"y":752,"width":791,"height":11}},{"id":"40e5ae29-d6c5-4e8a-85a0-0035b997200c","block_type":"box","text":"State Street maintains the books of account and other financial records (other than those maintained by the Fund’s","page_number":24,"box":{"x":69,"y":767,"width":824,"height":11}},{"id":"7dab6708-4059-4f82-8383-70e96b90af7f","block_type":"box","text":"custodian); records general ledger entries; calculates daily net income; reconciles activity to the trial balance;","page_number":24,"box":{"x":69,"y":783,"width":779,"height":11}},{"id":"00e12a7b-2020-4971-9fec-ce6200813623","block_type":"box","text":"calculates and publishes daily net asset value; prepares account balances; and provides such other accounting","page_number":24,"box":{"x":69,"y":798,"width":796,"height":11}},{"id":"4fb35672-3457-44d6-a967-1dd3ad176a3a","block_type":"box","text":"services as may be required. In connection with its accounting services, State Street also provides cer tain","page_number":24,"box":{"x":69,"y":813,"width":760,"height":11}},{"id":"aa329274-6a02-4637-ba8c-071ef8f29a4a","block_type":"box","text":"administration services.","page_number":24,"box":{"x":69,"y":828,"width":170,"height":9}},{"id":"21a6d171-d37b-4d7f-a8b1-f38a0a72e083","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6789448e-f11f-47e6-988d-ce4053e3bd71","block_type":"box","text":"NM1026U-5984554-24/232","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"39d378b7-560d-4979-8275-c2ca8abfd9b2","block_type":"box","text":"The table below shows the amounts paid by the Fund to State Street for accounting services for the past three","page_number":25,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"c64c09da-1a88-46af-bd86-45c2c0d043dc","block_type":"box","text":"fiscal years:","page_number":25,"box":{"x":68,"y":60,"width":85,"height":11}},{"id":"6c96439e-5bf2-4e78-b34a-c0efd2bbb696","block_type":"box","text":"Fees Paid to State Street","page_number":25,"box":{"x":761,"y":88,"width":148,"height":7}},{"id":"ac46f34f-64e2-47fc-9e46-eec63a73fa1c","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":106,"width":334,"height":11}},{"id":"ed343b88-0964-4f27-8184-c5ed0bff9b8c","block_type":"box","text":"........................................","page_number":25,"box":{"x":410,"y":113,"width":320,"height":2}},{"id":"70c8c5f0-054f-4c40-b310-2f46f804afdc","block_type":"box","text":"$153,929","page_number":25,"box":{"x":799,"y":105,"width":72,"height":11}},{"id":"dbc6f61b-c56b-4dae-97b3-3999b3c95525","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":121,"width":334,"height":11}},{"id":"4ed338a3-1153-4a84-a893-f4cd27431cfe","block_type":"box","text":"........................................","page_number":25,"box":{"x":410,"y":128,"width":320,"height":2}},{"id":"8eb43cc1-e997-4d36-bbb3-2c1c26823526","block_type":"box","text":"$121,193","page_number":25,"box":{"x":799,"y":120,"width":72,"height":11}},{"id":"354d64ef-173a-4717-a565-49fe8deed6c5","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":136,"width":334,"height":11}},{"id":"02964f3f-b76a-4c72-8196-9194cdf98e04","block_type":"box","text":"........................................","page_number":25,"box":{"x":410,"y":143,"width":320,"height":2}},{"id":"3754872c-7cc1-4b02-8afe-f3425fda0336","block_type":"box","text":"$166,673","page_number":25,"box":{"x":799,"y":135,"width":72,"height":11}},{"id":"e9b5b8a8-0a06-4dd5-8192-4c01fc5c9371","block_type":"box","text":"Custodian","page_number":25,"box":{"x":69,"y":168,"width":72,"height":8}},{"id":"01e7840f-1c6a-4001-83b8-f9fced74a549","block_type":"box","text":"State Street (the “Custodian”), which has its principal place of business at One Congress Street, Suite 1,","page_number":25,"box":{"x":102,"y":190,"width":751,"height":11}},{"id":"3add6f89-e337-4d21-9440-65d07ec845ed","block_type":"box","text":"Boston, Massachusetts 02114-2016, serves as the custodian for the Fund. The Custodian, among other","page_number":25,"box":{"x":70,"y":205,"width":749,"height":12}},{"id":"1a6d3b13-0fb6-44a2-8716-006fedbd6cb9","block_type":"box","text":"responsibilities, maintains a custody account or accounts in the name of the Fund, receives and delivers all assets","page_number":25,"box":{"x":69,"y":220,"width":820,"height":12}},{"id":"1b9a4acb-0cab-4278-90c4-23fb987f0744","block_type":"box","text":"for the Fund upon purchase and upon sale or maturity, and collects and receives all income and other payments and","page_number":25,"box":{"x":68,"y":235,"width":830,"height":12}},{"id":"0f6a1878-af21-4e87-bfb9-a1dbbd19cb41","block_type":"box","text":"distributions on account of the assets of the Fund.","page_number":25,"box":{"x":69,"y":251,"width":359,"height":9}},{"id":"1488bfdb-3610-4390-ba96-01dfb35929b6","block_type":"box","text":"Transfer Agent","page_number":25,"box":{"x":68,"y":281,"width":107,"height":11}},{"id":"9758ff13-af2f-4f97-9b72-3976853c9380","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":25,"box":{"x":102,"y":303,"width":764,"height":12}},{"id":"c267db22-d587-4b54-85a7-5fb1bbcc426a","block_type":"box","text":"Westborough, MA 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":25,"box":{"x":68,"y":319,"width":705,"height":11}},{"id":"d1d3b241-b585-42ef-b900-0d78e2f13c01","block_type":"box","text":"Credit Agreement","page_number":25,"box":{"x":69,"y":349,"width":129,"height":11}},{"id":"1eaa3b69-c1b8-4e1c-a1cf-0d6a7064baf6","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":25,"box":{"x":101,"y":372,"width":757,"height":11}},{"id":"3fa16c4e-6b34-4a16-b6cd-4d64596a5b21","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":25,"box":{"x":69,"y":386,"width":817,"height":12}},{"id":"9b736b1a-238c-4025-a921-404b9a4216f1","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":25,"box":{"x":68,"y":402,"width":743,"height":11}},{"id":"2dfb5c1c-c7d8-4bdd-9540-61b80e35e436","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":25,"box":{"x":69,"y":417,"width":825,"height":11}},{"id":"3a06a5ed-938b-40e2-8137-68b023d97b2b","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":25,"box":{"x":68,"y":431,"width":818,"height":12}},{"id":"f7e32173-b265-44b8-8080-d9cfbfac6226","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":25,"box":{"x":70,"y":447,"width":761,"height":11}},{"id":"065e7261-0919-4352-af29-535641d3bbec","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":25,"box":{"x":69,"y":462,"width":768,"height":11}},{"id":"2f191d40-183d-4520-bcf5-8f38088d2614","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and","page_number":25,"box":{"x":68,"y":477,"width":838,"height":12}},{"id":"e7d2d01b-4658-4398-84f1-b98cad0c4962","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":25,"box":{"x":69,"y":493,"width":816,"height":11}},{"id":"88a1a9eb-92dd-4201-8cc4-f3b314a13ee5","block_type":"box","text":"fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the","page_number":25,"box":{"x":68,"y":508,"width":825,"height":11}},{"id":"9a56bb9e-898f-4825-b816-257f779505c1","block_type":"box","text":"Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":25,"box":{"x":70,"y":523,"width":771,"height":11}},{"id":"a6142542-4102-4c9d-8092-238bd360378a","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":25,"box":{"x":69,"y":538,"width":833,"height":11}},{"id":"6e7e46d6-767d-439f-ad93-75fa64a33b2e","block_type":"box","text":"charged interest at a variable rate.","page_number":25,"box":{"x":69,"y":553,"width":245,"height":11}},{"id":"361ed145-9b49-4195-9f46-2b50f2454eab","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":25,"box":{"x":68,"y":583,"width":491,"height":11}},{"id":"7e0aedb9-cb38-4e68-bdb9-635267f0b2cd","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":25,"box":{"x":102,"y":606,"width":773,"height":11}},{"id":"8e23cb98-076c-4da4-92ed-188a5f23fab0","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the past three fiscal","page_number":25,"box":{"x":69,"y":621,"width":812,"height":11}},{"id":"900d1a3e-d1e5-4ada-bc2c-3d380082598f","block_type":"box","text":"years. BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":25,"box":{"x":68,"y":636,"width":706,"height":11}},{"id":"74ad09f3-8ec0-457e-8e11-8ca5b6b35cca","block_type":"box","text":"Investor A Shares","page_number":25,"box":{"x":667,"y":664,"width":102,"height":8}},{"id":"2d964764-7942-440e-9614-3e0c1e7b550b","block_type":"box","text":"Gross","page_number":25,"box":{"x":546,"y":690,"width":32,"height":7}},{"id":"3e5fcf90-0274-47b9-a046-fc5b7071ebe1","block_type":"box","text":"Sales","page_number":25,"box":{"x":546,"y":700,"width":32,"height":7}},{"id":"2ac3964c-1c31-43e4-bb1d-0a097a6e3f7d","block_type":"box","text":"Charges","page_number":25,"box":{"x":538,"y":710,"width":48,"height":9}},{"id":"e966ef3e-e11f-4c02-aca9-89ab371f53ea","block_type":"box","text":"Collected","page_number":25,"box":{"x":535,"y":721,"width":54,"height":7}},{"id":"ba1ff261-158e-493a-aeb8-6e50e146cc8e","block_type":"box","text":"Sales","page_number":25,"box":{"x":644,"y":690,"width":31,"height":7}},{"id":"15c657e2-592a-45f6-9997-992bae325422","block_type":"box","text":"Charges","page_number":25,"box":{"x":636,"y":700,"width":48,"height":9}},{"id":"94e613cc-64aa-4a14-9241-88a81c90eddd","block_type":"box","text":"Retained","page_number":25,"box":{"x":635,"y":710,"width":50,"height":8}},{"id":"2db08650-cdd0-4420-8ed3-ed3038475f74","block_type":"box","text":"by BRIL","page_number":25,"box":{"x":638,"y":721,"width":44,"height":8}},{"id":"c0f1b9d9-4568-4e81-af53-7d75da29c4dc","block_type":"box","text":"Sales","page_number":25,"box":{"x":739,"y":690,"width":32,"height":7}},{"id":"7bf346f6-5107-4ec9-9cc9-58aa192db6cf","block_type":"box","text":"Charges","page_number":25,"box":{"x":731,"y":700,"width":48,"height":9}},{"id":"95d23a3f-f2ee-4c17-8a1e-1402ce64aef2","block_type":"box","text":"Paid","page_number":25,"box":{"x":743,"y":710,"width":24,"height":8}},{"id":"c4f35ab9-75e4-4a0c-b185-9f555018624c","block_type":"box","text":"to Affiliates","page_number":25,"box":{"x":721,"y":720,"width":68,"height":8}},{"id":"fb2d2c60-4248-4fb6-9c08-028d90c659d3","block_type":"box","text":"CDSCs","page_number":25,"box":{"x":844,"y":680,"width":40,"height":7}},{"id":"e52a9689-6c38-45af-9205-f0ebc6add319","block_type":"box","text":"Received on","page_number":25,"box":{"x":829,"y":690,"width":70,"height":7}},{"id":"a848a7ed-41ea-43ca-b7be-30c63e25d7e9","block_type":"box","text":"Redemption","page_number":25,"box":{"x":830,"y":700,"width":68,"height":9}},{"id":"de542008-a272-434c-8705-6c0fd2465132","block_type":"box","text":"on Load-Waived","page_number":25,"box":{"x":819,"y":710,"width":90,"height":8}},{"id":"5e6da855-bc27-4c67-bc9b-73836a429f2e","block_type":"box","text":"Shares","page_number":25,"box":{"x":844,"y":721,"width":40,"height":7}},{"id":"2a4f436b-fd4a-4ecc-a880-d2ee1d022be5","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . $ 85,302 $ 5,571 $ 5,571 $3,324","page_number":25,"box":{"x":70,"y":738,"width":820,"height":11}},{"id":"6030db78-f663-4a6e-aff2-58b5a805b5c1","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . $134,708 $10,034 $10,034 $ 854","page_number":25,"box":{"x":70,"y":753,"width":820,"height":11}},{"id":"55ecfb12-875b-4027-92a5-a121cec45910","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . $115,586 $ 7,695 $ 7,695 $ 600","page_number":25,"box":{"x":70,"y":768,"width":820,"height":12}},{"id":"b66d22b3-2b88-4eea-bf3a-318181527c9f","block_type":"box","text":"Investor C Shares","page_number":25,"box":{"x":744,"y":798,"width":102,"height":7}},{"id":"d3c78b80-907f-4990-b90c-ac59b4373ba6","block_type":"box","text":"CDSCs","page_number":25,"box":{"x":712,"y":814,"width":39,"height":7}},{"id":"20f8e61c-1773-4ab2-b4b4-9f02c52585f7","block_type":"box","text":"Received by BRIL","page_number":25,"box":{"x":681,"y":824,"width":101,"height":9}},{"id":"57412f66-0306-4897-b681-a6ac2d49afbd","block_type":"box","text":"CDSCs","page_number":25,"box":{"x":841,"y":814,"width":39,"height":7}},{"id":"d382c66a-d20d-424a-8fb1-391aa7e2211d","block_type":"box","text":"Paid to Affiliates","page_number":25,"box":{"x":813,"y":824,"width":96,"height":7}},{"id":"85e01280-b7c9-4783-a0d6-9ce5ccf679bd","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . .","page_number":25,"box":{"x":70,"y":842,"width":278,"height":11}},{"id":"bb88292c-aef6-4bbb-961c-9137d1b0299c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 896 $ 896","page_number":25,"box":{"x":354,"y":841,"width":533,"height":10}},{"id":"5d4248cb-b4f1-41a5-8c1e-c8e96d75e875","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . .","page_number":25,"box":{"x":70,"y":857,"width":278,"height":11}},{"id":"eb1f6c29-4eca-4273-b0be-c29171e7b2b7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 435 $ 435","page_number":25,"box":{"x":354,"y":856,"width":533,"height":10}},{"id":"339e8ef3-b9df-40ba-8ea4-c667e8bb8880","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . .","page_number":25,"box":{"x":70,"y":872,"width":278,"height":11}},{"id":"0be7220d-f2b0-4e7b-93f6-e5c533cc0542","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,939 $1,939","page_number":25,"box":{"x":354,"y":871,"width":533,"height":11}},{"id":"d48e0379-bad2-4609-a9a4-0a28f9e3350d","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":25,"box":{"x":101,"y":896,"width":805,"height":11}},{"id":"1f7f626c-792d-4ede-baf9-cae44d157e34","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":25,"box":{"x":68,"y":911,"width":796,"height":11}},{"id":"095d8ecd-cfc7-462a-bef5-fa513d7e87f1","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"80c55875-e37a-4a68-b10c-f3e46608721b","block_type":"box","text":"NM1026U-5984554-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cbcb2f40-1806-4b6b-a5e3-b35ada3573a5","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":26,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"e0b3bba3-5688-46bf-90a2-54f3936f6caf","block_type":"box","text":"activities and services for Investor C Shares.","page_number":26,"box":{"x":69,"y":60,"width":318,"height":9}},{"id":"a4278dd7-9af0-4d3c-8801-af300c245da9","block_type":"box","text":"Class Name","page_number":26,"box":{"x":69,"y":88,"width":68,"height":7}},{"id":"c26262a8-43a8-4d20-bd01-4083fe24d9fb","block_type":"box","text":"Fees Paid to BRIL","page_number":26,"box":{"x":806,"y":88,"width":103,"height":7}},{"id":"032d21e0-1656-4311-9bd9-777bf14bbeb2","block_type":"box","text":"Investor A Shares .","page_number":26,"box":{"x":70,"y":106,"width":134,"height":9}},{"id":"ecae9cca-5082-459d-9cdb-7bd756559560","block_type":"box","text":"......................................................................","page_number":26,"box":{"x":210,"y":113,"width":564,"height":2}},{"id":"2321a0d2-33e4-4450-8b4f-e28e595f3a06","block_type":"box","text":"$516,753","page_number":26,"box":{"x":822,"y":105,"width":71,"height":11}},{"id":"af223c3f-8102-4435-9667-0006165f612a","block_type":"box","text":"Investor C Shares . . .","page_number":26,"box":{"x":70,"y":121,"width":150,"height":9}},{"id":"dd3cfa31-d3ba-4c8c-9ee1-c1d29a47245b","block_type":"box","text":"....................................................................","page_number":26,"box":{"x":226,"y":128,"width":548,"height":2}},{"id":"ec3cd5ee-dd95-4926-ac95-9d1652ca0fb6","block_type":"box","text":"$163,856","page_number":26,"box":{"x":822,"y":120,"width":71,"height":11}},{"id":"c1029e48-9f3e-44d2-af1f-1e5839d5ef3a","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":26,"box":{"x":68,"y":152,"width":318,"height":11}},{"id":"8453ad3d-c717-4a0a-9ed8-f0a4e7ba924e","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":26,"box":{"x":101,"y":175,"width":805,"height":11}},{"id":"7dd9f4a5-7151-43d9-b151-134d2d8a90c1","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026 is set","page_number":26,"box":{"x":68,"y":190,"width":823,"height":11}},{"id":"8b70b86e-c904-434e-aa75-a605407a2e6c","block_type":"box","text":"for th below.","page_number":26,"box":{"x":68,"y":205,"width":83,"height":9}},{"id":"6958d851-8a6f-4a96-8e76-196f84e64a1b","block_type":"box","text":"Investor A","page_number":26,"box":{"x":827,"y":234,"width":58,"height":7}},{"id":"27d487fb-fd0d-4c1c-92f3-02ea8838914b","block_type":"box","text":"Shares","page_number":26,"box":{"x":836,"y":244,"width":39,"height":7}},{"id":"815c50b2-d8a3-4cb0-af90-93064eacd081","block_type":"box","text":"Net Assets","page_number":26,"box":{"x":70,"y":262,"width":76,"height":8}},{"id":"31691e0a-5203-4b8c-b2c6-5e55867ab7a9","block_type":"box","text":".............................................................................","page_number":26,"box":{"x":150,"y":269,"width":621,"height":1}},{"id":"8ee29bfe-a8ab-4dcb-b06c-678d94a116ce","block_type":"box","text":"$251,524,810","page_number":26,"box":{"x":803,"y":261,"width":106,"height":11}},{"id":"8bcf9a47-9d41-4d3a-97af-49191469e9ae","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":26,"box":{"x":70,"y":276,"width":245,"height":12}},{"id":"2a3a5443-24cd-44a6-b79d-14d52a5c9748","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,","page_number":26,"box":{"x":321,"y":277,"width":524,"height":10}},{"id":"138a5e72-6bad-4af2-81bc-9e8c02b81c48","block_type":"box","text":"552,636","page_number":26,"box":{"x":847,"y":277,"width":62,"height":10}},{"id":"bf866cea-931d-426b-927d-3a1e5f0cd14f","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":26,"box":{"x":70,"y":292,"width":571,"height":11}},{"id":"59ad33c0-456e-4145-a2d1-1b5706d088df","block_type":"box","text":"................","page_number":26,"box":{"x":647,"y":299,"width":124,"height":1}},{"id":"0637c22a-63ed-4474-bb4b-ecc3bf9e8ccd","block_type":"box","text":"$26.33","page_number":26,"box":{"x":857,"y":291,"width":52,"height":10}},{"id":"1b150e60-85d5-43bb-a004-f8906e217ded","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":26,"box":{"x":69,"y":307,"width":534,"height":11}},{"id":"abac7b5c-7a5e-4d83-91da-0e2d17d0258b","block_type":"box","text":"1","page_number":26,"box":{"x":604,"y":307,"width":4,"height":4}},{"id":"87d19908-9b33-41d0-95d4-64d9e43c7bdb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.46","page_number":26,"box":{"x":615,"y":306,"width":294,"height":10}},{"id":"2f2f5a7a-af23-4f37-b3f9-db01833da66e","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":69,"y":326,"width":702,"height":11}},{"id":"834d00b6-8161-4bb0-a51c-83b5ec58f91a","block_type":"box","text":"$27.79","page_number":26,"box":{"x":857,"y":326,"width":52,"height":10}},{"id":"466599dd-136c-439e-8247-28bc308ab985","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":358,"width":3,"height":4}},{"id":"22feefd1-06c2-4f4b-bf24-fd0b113ef105","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":26,"box":{"x":94,"y":358,"width":541,"height":9}},{"id":"6f3efbf4-bc4d-4d91-a94d-a5dcb60eb715","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":26,"box":{"x":101,"y":379,"width":787,"height":11}},{"id":"b9ae9792-c2de-44ff-b76c-33d83b2d152a","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":26,"box":{"x":69,"y":394,"width":833,"height":12}},{"id":"5df1a30b-a882-4718-b7f6-a8a3543f49ec","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":26,"box":{"x":69,"y":409,"width":813,"height":12}},{"id":"eac69249-a090-4d11-9ac9-1e085139995a","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":26,"box":{"x":69,"y":424,"width":377,"height":12}},{"id":"db9c6463-0013-4a54-b62e-1e2b313deaa3","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":26,"box":{"x":68,"y":455,"width":302,"height":11}},{"id":"d0dfa5ee-b123-46cc-8bf6-e66e35d6063b","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":26,"box":{"x":102,"y":477,"width":609,"height":12}},{"id":"4d73650b-b490-45e0-a594-d6b5646696ba","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, is set","page_number":26,"box":{"x":102,"y":500,"width":794,"height":11}},{"id":"35c067cf-83c7-4eb8-ad53-bb5328639350","block_type":"box","text":"for th in the following table:","page_number":26,"box":{"x":68,"y":515,"width":191,"height":11}},{"id":"5b93c283-42ac-4f22-b31f-4527524b3da2","block_type":"box","text":"Aggregate Brokerage","page_number":26,"box":{"x":613,"y":544,"width":125,"height":8}},{"id":"baa27ac1-fedd-425e-96db-7320699a2417","block_type":"box","text":"Commissions Paid","page_number":26,"box":{"x":623,"y":554,"width":106,"height":7}},{"id":"af698756-0b30-48e0-a243-8ae4466bf904","block_type":"box","text":"Brokerage Commissions","page_number":26,"box":{"x":769,"y":544,"width":140,"height":8}},{"id":"1a7c0f37-32a4-43a4-88fe-465fb58f8ab1","block_type":"box","text":"Paid to Affiliates","page_number":26,"box":{"x":791,"y":554,"width":96,"height":7}},{"id":"8ec38dd8-1514-49b3-baed-1f6e48d0b29e","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":26,"box":{"x":70,"y":571,"width":292,"height":11}},{"id":"4483cbd1-015e-444b-9248-2c5b25b9818e","block_type":"box","text":"...........................","page_number":26,"box":{"x":369,"y":579,"width":213,"height":1}},{"id":"48fdd0e9-355e-40c4-b585-b2cda9a082f1","block_type":"box","text":"$140,161 $0","page_number":26,"box":{"x":640,"y":571,"width":208,"height":11}},{"id":"4c5f4883-435b-4cec-9cf9-c7066b057069","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":26,"box":{"x":70,"y":586,"width":230,"height":12}},{"id":"4f47d6ee-aa2d-457c-93d5-31a43edc2c21","block_type":"box","text":"1","page_number":26,"box":{"x":301,"y":587,"width":4,"height":4}},{"id":"fc3a8be5-3df1-4f8a-8f3a-5829756e6e3d","block_type":"box","text":"..................................","page_number":26,"box":{"x":311,"y":594,"width":271,"height":1}},{"id":"cc41bc0f-3556-4266-b42d-9bb91147f46c","block_type":"box","text":"$179,823 $0","page_number":26,"box":{"x":640,"y":586,"width":208,"height":11}},{"id":"98d44655-22dc-401f-83e4-84094df1f9c9","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":26,"box":{"x":70,"y":602,"width":292,"height":11}},{"id":"73dc98c8-7f88-47f3-9419-0e0784d1ee15","block_type":"box","text":"...........................","page_number":26,"box":{"x":369,"y":609,"width":213,"height":1}},{"id":"c4853f49-14bb-4cbe-a1f4-016c7640ddf1","block_type":"box","text":"$613,144 $0","page_number":26,"box":{"x":640,"y":601,"width":208,"height":11}},{"id":"75692135-d497-4dfd-8439-a2f323951bab","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":626,"width":3,"height":4}},{"id":"fab7aa21-21fd-4a7f-a582-571dab9bbdc5","block_type":"box","text":"The decrease in brokerage commissions paid by the Fund as compared to the prior fiscal year was primarily due to a decrease in Fund assets","page_number":26,"box":{"x":93,"y":626,"width":809,"height":9}},{"id":"4bee8211-a88d-48b4-b7d9-7ce157c6d01d","block_type":"box","text":"under management.","page_number":26,"box":{"x":94,"y":636,"width":112,"height":9}},{"id":"2e03d898-3b66-403a-b20d-1936251c410c","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":26,"box":{"x":101,"y":657,"width":770,"height":11}},{"id":"6a4ea0b0-e557-4ad9-948f-cbe634d7dca4","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":26,"box":{"x":69,"y":672,"width":814,"height":11}},{"id":"b885156a-1df8-4555-adf0-fa424633077b","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":26,"box":{"x":68,"y":687,"width":829,"height":11}},{"id":"8d83f0da-fdba-44aa-82b5-9109127f7e67","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":26,"box":{"x":69,"y":702,"width":822,"height":12}},{"id":"87399318-f32c-474e-adc3-853f01715bf8","block_type":"box","text":"with such brokers.","page_number":26,"box":{"x":68,"y":718,"width":130,"height":8}},{"id":"4dded7f6-e774-471c-ae88-c70a64d9ab53","block_type":"box","text":"Amount of Commissions","page_number":26,"box":{"x":318,"y":746,"width":141,"height":7}},{"id":"3b6607c4-bd86-434e-a069-18070dbdb1bc","block_type":"box","text":"Paid to Brokers for","page_number":26,"box":{"x":335,"y":756,"width":109,"height":7}},{"id":"111d3cc5-47da-4a3b-8926-81ab06623c32","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":26,"box":{"x":265,"y":766,"width":248,"height":9}},{"id":"a35f540c-24d4-4952-9d2d-9c77153afda6","block_type":"box","text":"Amount of Brokerage","page_number":26,"box":{"x":588,"y":756,"width":124,"height":9}},{"id":"67b5a635-fcf9-4adf-b401-4464133b1c36","block_type":"box","text":"Transactions Involved","page_number":26,"box":{"x":587,"y":766,"width":126,"height":7}},{"id":"418ea476-4aa0-41f7-9571-87e03ad371a7","block_type":"box","text":"$56,535 $381,654,036","page_number":26,"box":{"x":358,"y":783,"width":346,"height":11}},{"id":"707f2587-20a7-4dd8-ae3c-cf7e9056c574","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":26,"box":{"x":101,"y":807,"width":796,"height":12}},{"id":"fb5b2e42-18a3-49d5-a2af-b13f4f17ae26","block_type":"box","text":"10b-1 of the Investment Company Act) or their parents if any por tion of such holdings were purchased during the","page_number":26,"box":{"x":70,"y":823,"width":802,"height":11}},{"id":"2513d918-e076-4445-ae81-c9db03ccdb30","block_type":"box","text":"fiscal year ended May 31, 2026 is as follows:","page_number":26,"box":{"x":68,"y":838,"width":326,"height":11}},{"id":"d532f5e3-e531-49ca-859f-26919dcbb8dc","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":26,"box":{"x":69,"y":866,"width":840,"height":9}},{"id":"6b88fb21-d2e8-4d5a-8e64-5373f7c912c0","block_type":"box","text":"Citigroup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $6,201","page_number":26,"box":{"x":69,"y":883,"width":785,"height":12}},{"id":"a32500c2-3cf6-4dd0-9bd3-693bb6574203","block_type":"box","text":"Goldman Sachs Group, Imc. . . . .","page_number":26,"box":{"x":69,"y":899,"width":229,"height":11}},{"id":"50ed66df-03e5-4e35-afcc-c0b4b18a40a1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $5,962","page_number":26,"box":{"x":304,"y":898,"width":550,"height":11}},{"id":"a9db51a5-7841-4862-b23f-deee193cff35","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"14f77242-14e3-4200-bd2f-9d1331d922c7","block_type":"box","text":"NM1026U-5984554-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"30999988-c757-4e25-99de-84e95b5d80b6","block_type":"box","text":"Securities Lending","page_number":27,"box":{"x":68,"y":45,"width":135,"height":11}},{"id":"6dc98b77-cf81-45e9-93bd-a937e78338a2","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":27,"box":{"x":101,"y":68,"width":807,"height":11}},{"id":"b470a587-8489-4a06-a7a1-4d0453ccfa32","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":27,"box":{"x":69,"y":82,"width":817,"height":12}},{"id":"f2910865-aa23-416c-8790-37852521095c","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":27,"box":{"x":69,"y":98,"width":813,"height":11}},{"id":"1ff7b1ad-41d7-4d4d-8d7f-ace4b0ace53b","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":27,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"36798ecf-8671-4947-98a8-0f2a689d9a5a","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":27,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"963f4001-eac8-4974-a014-5d9f2d6f4159","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":27,"box":{"x":70,"y":143,"width":646,"height":11}},{"id":"50b6aa9f-d268-45cc-b9af-e497f39ddf34","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":27,"box":{"x":101,"y":166,"width":735,"height":11}},{"id":"41e79357-3459-4464-8366-f28098c627ff","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":27,"box":{"x":69,"y":181,"width":834,"height":11}},{"id":"5e0ad895-8223-4782-b4da-b8efe104fe12","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":27,"box":{"x":70,"y":196,"width":822,"height":11}},{"id":"892262ba-c545-4d68-b3bd-2b62bfde0d69","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":27,"box":{"x":69,"y":211,"width":787,"height":11}},{"id":"d7ac89ad-d169-4f10-b890-e2089e6375b5","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":27,"box":{"x":69,"y":226,"width":783,"height":11}},{"id":"ee9342c6-1df1-475b-882a-32ae3752e0b9","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":27,"box":{"x":70,"y":241,"width":800,"height":11}},{"id":"2bc6866a-e0d3-4adb-9689-7d81417c5a59","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":27,"box":{"x":70,"y":256,"width":813,"height":12}},{"id":"eaf15862-4693-4260-be43-9f83091f5c81","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":27,"box":{"x":70,"y":271,"width":830,"height":12}},{"id":"65dafc5d-6772-4dea-9bc3-0f42d35f8c06","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":27,"box":{"x":69,"y":286,"width":773,"height":12}},{"id":"6ea57611-3540-4eef-8533-04aea5e9b05b","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":27,"box":{"x":101,"y":309,"width":776,"height":11}},{"id":"3b89e33b-f979-42e0-b83e-93da53bfd268","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":27,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"ca3431f3-7e23-4353-9268-a4ee2b1dff2d","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":27,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"350ddd0c-d4ce-4d16-9a71-21dec1e076f6","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":27,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"823934a3-b006-442d-991c-23d80e8c8f92","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":27,"box":{"x":68,"y":370,"width":835,"height":11}},{"id":"09d203cb-db48-41a4-a9a0-90945c49757b","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":27,"box":{"x":69,"y":385,"width":818,"height":11}},{"id":"ec3970c2-aad1-4894-b8a7-ae1d7c14d11b","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":27,"box":{"x":68,"y":400,"width":789,"height":11}},{"id":"8402a58c-4e4c-44b1-aad6-b0f2a1c6b52b","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":27,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"ef4fe995-f008-4f90-8c5e-c93f60b0a6aa","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":27,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"7914ff31-9643-4cd6-85d2-ceca14b34714","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":27,"box":{"x":69,"y":445,"width":802,"height":12}},{"id":"faf9a012-1e8d-4a33-a59e-34568e59a69c","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":27,"box":{"x":70,"y":460,"width":830,"height":12}},{"id":"5e249efe-3db3-438f-9b26-90f8a9271746","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":27,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"6ea86101-d68b-47fb-922b-15ffc261d494","block_type":"box","text":"Fund’s returns on securities lending.","page_number":27,"box":{"x":70,"y":491,"width":258,"height":11}},{"id":"cc82d932-cb7a-424a-9aee-f3fd2058871d","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":27,"box":{"x":102,"y":513,"width":774,"height":12}},{"id":"3d927a4a-49fd-4cdc-9b7d-8670f9dbda69","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":27,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"49f2b916-2443-4bad-827c-1d050c312b04","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":27,"box":{"x":68,"y":543,"width":809,"height":12}},{"id":"d8954f52-758c-49fb-a4ba-81d08de29ca0","block_type":"box","text":"Trust and BIM.","page_number":27,"box":{"x":68,"y":559,"width":103,"height":9}},{"id":"183e91b2-b3d6-4cc8-bc8a-cd7d9abd3fcf","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":27,"box":{"x":102,"y":581,"width":783,"height":12}},{"id":"3d7f22db-5ad6-4eeb-a2b4-b69058bb4504","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":27,"box":{"x":70,"y":596,"width":815,"height":12}},{"id":"a3de60ce-bbcd-448b-8a35-f4acf896adf6","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":27,"box":{"x":69,"y":612,"width":463,"height":11}},{"id":"3a35aec2-beb8-4f7b-a13d-d41252fa4c05","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":27,"box":{"x":102,"y":634,"width":753,"height":12}},{"id":"237700fe-609b-4c06-9ca5-2032e5d4a281","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":27,"box":{"x":69,"y":649,"width":778,"height":12}},{"id":"5b40799c-0ed4-4cff-b40c-e3eeb709f2f3","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":27,"box":{"x":70,"y":664,"width":817,"height":12}},{"id":"f04667d5-2187-4b52-8160-adf56b062ab8","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":27,"box":{"x":70,"y":680,"width":794,"height":11}},{"id":"11a31147-9740-4a15-8ee9-2b1a1140d666","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":27,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"3aca3f65-c8a0-49eb-a1e0-09533b694a21","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":27,"box":{"x":102,"y":717,"width":683,"height":12}},{"id":"8cbfd332-c51a-4c6f-ba15-32c8eef93191","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":27,"box":{"x":101,"y":740,"width":803,"height":11}},{"id":"d4b11922-53d6-44fe-a536-39b46d89932d","block_type":"box","text":"the following:","page_number":27,"box":{"x":68,"y":755,"width":93,"height":11}},{"id":"753a3a58-3e70-488d-9774-01b10696aa3f","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":27,"box":{"x":69,"y":775,"width":818,"height":12}},{"id":"02579d46-eba2-4780-8549-ec77d409e6cc","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":27,"box":{"x":102,"y":790,"width":333,"height":11}},{"id":"7f174867-29e5-4094-8b4f-5aa41fa08884","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":27,"box":{"x":69,"y":811,"width":538,"height":11}},{"id":"d2c43773-7bb8-4f3b-849a-e1820269b392","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":27,"box":{"x":69,"y":831,"width":330,"height":11}},{"id":"8b915d65-1231-4f9f-8d3c-853e65ddeb00","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":27,"box":{"x":69,"y":851,"width":834,"height":11}},{"id":"aa1b49b4-3cf9-4e5f-b5fb-344484ae9024","block_type":"box","text":"of excess collateral, as necessary;","page_number":27,"box":{"x":102,"y":866,"width":246,"height":11}},{"id":"7e72e58a-7954-43dd-a4bf-73cf4a7d8c12","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":27,"box":{"x":69,"y":886,"width":562,"height":12}},{"id":"6e138b8a-1326-4440-8f76-84dc00b3d9c1","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":27,"box":{"x":69,"y":906,"width":665,"height":12}},{"id":"fb95db28-21b4-4fe0-8402-7c4b43c865b4","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f4a1a21e-9dff-4457-942c-f55ee5a74dc0","block_type":"box","text":"NM1026U-5984554-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"123dd59b-5c5d-4ea8-82a6-583c5cea13dc","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":28,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"a4de5f92-311e-46da-802f-db714824cf9f","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":28,"box":{"x":101,"y":60,"width":803,"height":11}},{"id":"f22d6445-cd43-4bee-8501-cfdab4246a59","block_type":"box","text":"of the loaned securities; and","page_number":28,"box":{"x":102,"y":75,"width":203,"height":10}},{"id":"c9d12fff-b393-4aef-a270-9346f07b34aa","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":28,"box":{"x":69,"y":95,"width":808,"height":11}},{"id":"6e529f92-3b98-4c66-8dd8-ab9efd06e6b4","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":28,"box":{"x":101,"y":118,"width":805,"height":11}},{"id":"aa0aade4-be4f-451e-beac-1ee6317a6ab0","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":28,"box":{"x":69,"y":133,"width":546,"height":11}},{"id":"78f54b4f-d1b2-4f4a-808e-8bb7dc93a9f5","block_type":"box","text":"Gross income from securities lending activities","page_number":28,"box":{"x":69,"y":161,"width":343,"height":11}},{"id":"db950283-64ee-4f24-9cb2-596cf6b9a395","block_type":"box","text":"...................................................","page_number":28,"box":{"x":416,"y":168,"width":409,"height":1}},{"id":"0cc78191-ab33-41d5-93e2-b531410559c4","block_type":"box","text":"$10,752","page_number":28,"box":{"x":847,"y":160,"width":62,"height":11}},{"id":"d1f6e30d-0a4b-464a-abd6-1c185d79917c","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":28,"box":{"x":70,"y":180,"width":565,"height":11}},{"id":"01b928fb-d4cd-435e-904a-c9788263fbcb","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":28,"box":{"x":79,"y":195,"width":599,"height":11}},{"id":"d2fcaa93-a5d0-4969-b1cc-571b5f4726aa","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 763","page_number":28,"box":{"x":685,"y":195,"width":224,"height":10}},{"id":"414eb132-2b40-4a27-9151-2e3e7f6c0028","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":28,"box":{"x":79,"y":210,"width":673,"height":12}},{"id":"a57cabc4-86a7-4c84-831a-e8d740dabbcf","block_type":"box","text":". . . . . . . . . $ 84","page_number":28,"box":{"x":758,"y":210,"width":151,"height":10}},{"id":"2598bfcd-00c5-42b9-a6c7-a4e773128f8e","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":28,"box":{"x":78,"y":225,"width":551,"height":12}},{"id":"d6bc25f9-d07a-4fb8-93fa-6b2244b32aec","block_type":"box","text":"........................ $ 0","page_number":28,"box":{"x":636,"y":225,"width":273,"height":10}},{"id":"405bdc06-0b06-43db-a907-ef6e00deb212","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":28,"box":{"x":79,"y":241,"width":567,"height":11}},{"id":"6412ea19-7b4e-41fa-aaa1-96cd2ce0eb95","block_type":"box","text":"...................... $ 0","page_number":28,"box":{"x":652,"y":240,"width":257,"height":10}},{"id":"79d6b3e0-3405-42a9-aa48-a1590bb9e084","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":28,"box":{"x":79,"y":256,"width":289,"height":11}},{"id":"62ef4018-a003-4a6e-8515-08c436d0cb48","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,647","page_number":28,"box":{"x":375,"y":255,"width":533,"height":11}},{"id":"5245d2f5-c4c3-48ef-aa31-69e565a75516","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":28,"box":{"x":79,"y":271,"width":542,"height":11}},{"id":"77514984-d888-46fc-8660-7bdd5b74e3e9","block_type":"box","text":"......................... $ 0","page_number":28,"box":{"x":628,"y":270,"width":281,"height":11}},{"id":"e57ba27f-77de-40a3-826b-d9f21c45c086","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":28,"box":{"x":68,"y":286,"width":455,"height":11}},{"id":"ad0e7f6f-7fd1-4625-a622-ac7460b4796e","block_type":"box","text":".....................................","page_number":28,"box":{"x":530,"y":293,"width":295,"height":2}},{"id":"0fe75c71-8253-4f76-b82a-26fcff137c36","block_type":"box","text":"$ 7,494","page_number":28,"box":{"x":847,"y":285,"width":62,"height":12}},{"id":"2a56b753-a5bf-4772-9abd-dee6df09bd84","block_type":"box","text":"Net income from securities lending activities","page_number":28,"box":{"x":69,"y":305,"width":327,"height":12}},{"id":"8ae72b21-08e0-4586-8b11-bfc98c477d63","block_type":"box","text":".....................................................","page_number":28,"box":{"x":399,"y":313,"width":426,"height":1}},{"id":"c73084dc-aa67-463f-8ff4-6a10bfb5ba03","block_type":"box","text":"$ 3,258","page_number":28,"box":{"x":847,"y":305,"width":62,"height":11}},{"id":"8d80bb6b-e496-4b18-a1bb-3eff4216c3eb","block_type":"box","text":"VIII. Additional Information","page_number":28,"box":{"x":68,"y":341,"width":195,"height":9}},{"id":"d16cff2e-4d94-441a-8d91-bd4c889a8aa7","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":28,"box":{"x":102,"y":364,"width":352,"height":11}},{"id":"9eab6954-04d2-4079-8679-af6d0d579d48","block_type":"box","text":"Deloitte & Touche LLP, with offices at 115 Federal Street,","page_number":28,"box":{"x":461,"y":364,"width":408,"height":10}},{"id":"9de67f61-4091-42e1-88d0-beda8f9c1d9c","block_type":"box","text":"Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":28,"box":{"x":70,"y":379,"width":717,"height":11}},{"id":"e54f6ffb-1089-48ed-8ca5-91b84f8423db","block_type":"box","text":"Counsel.","page_number":28,"box":{"x":101,"y":402,"width":62,"height":9}},{"id":"b5ae92e9-9a33-4f38-a351-92d28462ce48","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":28,"box":{"x":170,"y":402,"width":736,"height":11}},{"id":"2a51bd49-8cae-4deb-a9b6-ffcb646b90bd","block_type":"box","text":"the Fund’s counsel.","page_number":28,"box":{"x":68,"y":417,"width":139,"height":9}},{"id":"dfac5fbe-2a32-49b5-bb61-37009c5cf5f9","block_type":"box","text":"The Trust","page_number":28,"box":{"x":68,"y":447,"width":69,"height":9}},{"id":"aad152de-2038-493d-870d-d48a307ceb42","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":28,"box":{"x":101,"y":470,"width":807,"height":11}},{"id":"02306d33-cf95-44fc-b4e3-6e0caedaa0cd","block_type":"box","text":"Investment Company Act as an open-end, management investment company. The Trust is authorized to issue an","page_number":28,"box":{"x":70,"y":485,"width":799,"height":11}},{"id":"ebf0e620-1604-4a06-9890-a43419be70c1","block_type":"box","text":"unlimited number of shares of beneficial interest with a par value of $0.001 per share, which may be divided into","page_number":28,"box":{"x":69,"y":499,"width":807,"height":12}},{"id":"0cd9bc94-c813-4eb2-a7f3-52b70a9197d5","block_type":"box","text":"different series and classes. The Fund is classified as diversified.","page_number":28,"box":{"x":69,"y":515,"width":467,"height":9}},{"id":"173f1b73-682c-4f08-9e4c-da4040b7db32","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":28,"box":{"x":102,"y":538,"width":734,"height":11}},{"id":"329798f4-4b27-4256-abbe-250762827eda","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. 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The Declaration of Trust","page_number":28,"box":{"x":69,"y":598,"width":824,"height":11}},{"id":"f5b1460e-6ebd-44c0-9529-dd1acf5b63c4","block_type":"box","text":"provides for indemnification out of Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":28,"box":{"x":70,"y":613,"width":804,"height":12}},{"id":"586b1fd8-e42c-4fbe-b470-e5815e129a71","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":28,"box":{"x":69,"y":629,"width":830,"height":11}},{"id":"df463575-6e03-4880-a5a6-e9cb6616fd6a","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":28,"box":{"x":68,"y":644,"width":807,"height":11}},{"id":"52f596e8-4ff9-489d-b466-8d15d7906308","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":28,"box":{"x":69,"y":659,"width":719,"height":11}},{"id":"dc2e40d3-a5a5-4b21-911d-59b74f649fc6","block_type":"box","text":"The Declaration of Trust fur ther provides that all persons having any claim against the Trustees or Trust shall","page_number":28,"box":{"x":101,"y":681,"width":777,"height":12}},{"id":"74b15867-9697-4be4-85fe-6b228ceb328c","block_type":"box","text":"look solely to the Trust proper ty for payment; 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The 2026 Annual Financial Statements have been","page_number":30,"box":{"x":68,"y":219,"width":833,"height":11}},{"id":"183fe25c-23c9-4083-8647-51553345657d","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":30,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"4645588e-3286-4385-8ec8-b2611e68e6f7","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":30,"box":{"x":68,"y":249,"width":790,"height":12}},{"id":"4692f483-a463-429e-bd9c-b8c2aa784a16","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":30,"box":{"x":69,"y":264,"width":815,"height":12}},{"id":"cd892be5-8384-44f6-9e96-112925a46387","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":30,"box":{"x":69,"y":280,"width":785,"height":11}},{"id":"c86c261d-88dc-4327-ae92-ce851dea1c67","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":30,"box":{"x":69,"y":295,"width":836,"height":11}},{"id":"01a8019c-e617-4589-838e-72d4c1fd5556","block_type":"box","text":"I-28","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0b46a009-4248-495b-83dc-d723b5bf0ecc","block_type":"box","text":"NM1026U-5984554-30/232","page_number":30,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7836ee5a-2de2-4841-8a01-604339e1571c","block_type":"box","text":"PART II","page_number":31,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"0fcb9bb4-0283-41b7-a611-3ba0f80de32d","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":31,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"eaec2dd1-6838-49e8-a20b-26a5430d98e1","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":31,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"71ebc7f2-3dbb-4eaf-a467-d3cd8e5a548f","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":31,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"df5efb75-d2bb-46a9-9384-cb2bd0144342","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":31,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"3ec36a84-e8ee-4f9d-b00c-90715be3c1a8","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":31,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"49a47d32-668b-495b-9a77-8c99f4ec698b","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":31,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"43c4e183-0859-461e-b7dc-9a25c64252c0","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":31,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"fd69f294-4b1d-4427-b76c-8548fb3efd4f","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":31,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"f4d9ca27-c000-4d4b-aada-b0df83479c61","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":31,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"def89e97-e4ad-4563-a28c-2368e739a681","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":31,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"11a2152e-22ec-49bb-adfe-69778b4a7238","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":31,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"3bc6a274-8776-4ef6-9287-a07898fbeedb","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":31,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"c3d6234c-4ac2-4dca-94d6-f104868cf5ba","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":31,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"18c94550-dc87-4c31-b905-2945990db10f","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":31,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"92352d6f-bd16-4fd8-b720-67065117ddcd","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":31,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"33fa93fe-c998-4c76-add0-567bf104ac51","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":31,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"ad3deb65-32ea-42b3-a514-878898dda509","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":31,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"fb48b02f-b7b0-4742-9d93-15f9eab4ccb1","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":31,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"8fd706c1-d092-47a8-b88a-674f245a4c3e","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":31,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"99de61f9-ddff-414a-8731-a2ea091e45ce","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":31,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"b813918d-b878-40cf-93fb-7dafd5b4a1c2","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":31,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"7a8cf8ca-1533-4889-951e-b57135c759f3","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":31,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"5a99325a-4fb0-4ad7-95e6-8dab7480efff","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":31,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"979902f7-8927-4859-8e26-89d5f1abbff8","block_type":"box","text":"par ticular Fund.","page_number":31,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"493f4577-ca28-4769-93b5-b30d58aa85f8","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":31,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"e152d9ac-8579-486b-af89-62f7e33706ea","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":31,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"a0fbb043-bbfa-47e4-aaed-eab41b7201c7","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":31,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"49546e4a-f8da-4ef7-8711-9110de87e9e1","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":31,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"42c7ecce-422b-48dc-aa13-db0f88196ea0","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":31,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"7f86fc2d-c949-4e7d-8e2e-63fe380125fc","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":31,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"a9b34bd4-11be-4b4e-906a-49864412e886","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":31,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"e27f77e3-e8ca-43b9-9275-ebfb4a95b8f7","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":31,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"6b3689fe-5f07-44e1-b40c-e64816a565c9","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":31,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"2b1b5d15-f6f9-4bc4-8f96-813df18f0a6b","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":31,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"66465eac-3c1d-4518-8d9c-07cca4380b31","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":31,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"4a2d910f-aa4f-4b3a-abd5-2022dc1c084a","block_type":"box","text":"Asset-Backed Securities.","page_number":31,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"dde9d38e-0868-4efa-b972-d51cb0225c59","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":31,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"31e62c2b-db24-4819-82fd-d20e14f11ef4","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":31,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"ffab2755-c6f7-4954-8018-26b3cc30a9db","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":31,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"06f5b867-da17-42dc-9602-036868e36072","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":31,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"15c07d1c-e739-4e3b-8e04-db05d1e909ca","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":31,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"3a1439d9-c7ad-4fc4-b3d3-dcd36a1504f0","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":31,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"f01511ed-b58e-4f7c-b6e7-7b156e7eefc3","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":31,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"2b717e05-fd9a-43f7-a235-257125727980","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":31,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"aa9fca79-6e1e-4791-9b62-74b0fdacd625","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":31,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"3d0f6c61-49be-4cf4-b75d-71d8542395ba","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":31,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"95449c2a-d8c5-4077-822b-75556f8a5fcd","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":31,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"23bb4e2f-0e83-4078-98c5-2e8cbbfab673","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":31,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"3c93c2eb-5c09-429a-8af2-a1b414f44d3a","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":31,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"cab9c22f-2e40-44aa-8c0a-0fb32890f1ce","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":31,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"025aa22d-3bfa-4263-999d-13cf3073411c","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":31,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"3990e624-c82f-44eb-9f7a-3f632e54a2e5","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":31,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"02dd02dc-111d-437e-8c92-376405af271d","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":31,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"a19212df-c7de-42c1-addf-2eabec46e7e6","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":31,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"943dd831-b0a6-4d1e-bc23-d8d511ec3e31","block_type":"box","text":"II-1","page_number":31,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"416cf7d6-3419-4e7e-a74a-600e26c857d8","block_type":"box","text":"NM1026U-5984554-31/232","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c2408f28-121a-401e-aeaf-fac19ed3f1bc","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":32,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"6cae8c1c-53c7-4ca3-a9f0-fdad8f61615d","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":32,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"40aee897-3877-44a3-8575-e7972cea91c4","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":32,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"43a62edb-5bea-4d68-968d-11e4101df82c","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":32,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"dcbb9496-b107-4e3e-be26-b8d0a8f7915f","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":32,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"609681ea-83fd-41ea-9b35-4f0648144ddf","block_type":"box","text":"Asset-Based Securities.","page_number":32,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"a5bfffe7-8699-453f-9df8-eec4e404b1dd","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":32,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"a069fb7b-21e9-47b7-b5c9-066fd6eac8e8","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":32,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"58577c7e-d641-4da1-b305-2d437e3101cd","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":32,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"eb70e977-58a2-4bd5-8e94-dd04f1e56a34","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":32,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"4058bfe9-b92a-40f1-9d9d-2b3f065aab3c","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":32,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"2a1dce6a-a1cf-403d-8e9b-3f908b1d4ba9","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":32,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"1aea0b6f-3023-4f9b-9716-bae7fe9eabf5","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":32,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"96931fa4-d107-40bb-8ce0-648d00d84d0a","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":32,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"692189e4-7478-4c9a-abaf-ad4c4bd8e9dd","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":32,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"48e2591e-bc0b-477e-867b-414253b2c9ce","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":32,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"162105fb-8890-4216-a1e3-512c97cb20cb","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":32,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"fae709b2-6350-469f-b1c7-d956b2b3a770","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":32,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"8e12892e-9085-4602-9177-576823046501","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":32,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"cbef5916-9fe5-4494-8029-a65ce9162259","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":32,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"5c71b0c9-8299-4136-84fd-340fbd98e55e","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":32,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"f247a4a5-e920-435c-9ba6-d56627dba65d","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":32,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"222c101a-db7c-4650-a9d2-215f16862021","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":32,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"15a9ecca-76aa-4aa9-b624-579fed46f773","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":32,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"a6d25413-b952-4f6b-92f2-e5d7907f3e9d","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":32,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"54e34576-0099-4dd5-96d9-8345b1a33622","block_type":"box","text":"appreciation in the underlying asset.","page_number":32,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"27a1164b-c9c6-44b0-8fff-bd847978330f","block_type":"box","text":"Precious Metal-Related Securities.","page_number":32,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"6e1dd4fb-b4f6-4549-8dc8-1905863568c0","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":32,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"9a024975-0dfa-4b15-a6c6-3eca5e02ec20","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":32,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"8b5bec3c-50d5-4fe8-8b55-dfddf07316ff","block_type":"box","text":"e.g.","page_number":32,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"bb81720f-b416-4605-96a8-c63cba4cc370","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":32,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"fffc3045-dd23-46ae-8f43-5ea5dd493894","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":32,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"3c1ee727-839a-4ac8-a48f-f76e7693eafc","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":32,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"847ec1b5-a045-4dc2-b170-7076bac897d1","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":32,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"6b9d9531-62c1-4c4e-bd70-a959afacaa34","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":32,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"8a4431d2-7471-471a-9068-450ff487c014","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":32,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"c4e2de62-5a0c-49b8-ad65-5cf8df500da2","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":32,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"e145fbcd-cad8-40a4-8ddd-4290421e7505","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":32,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"13be048b-f10e-4378-933a-228e441bd415","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":32,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"0dd966e2-2011-4ee9-abd9-b354c718cd38","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":32,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"c6a5ca39-b3bd-412c-bc30-86a61a3e152a","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":32,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"276b7a6a-01e3-482c-bd35-2566a463fcbf","block_type":"box","text":"South African gold production.","page_number":32,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"3d3c99b6-96b8-43fb-9694-7e86688a1cde","block_type":"box","text":"Borrowing and Leverage.","page_number":32,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"f5bfa8c0-1343-421f-8ba5-1f14d1a0f213","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":32,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"23149774-bf81-49e0-b628-9311518c7172","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":32,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"74b7ada1-5753-488d-bbf9-85ca8b48f8f7","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":32,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"ea73e2c9-93da-4215-81d7-f35ea5d322cc","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":32,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"62bfde47-1297-404d-b4bf-1db5b5d68897","block_type":"box","text":"other securities transactions.","page_number":32,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"a48ed9f9-b50d-49fb-86b8-4ab78f400ff6","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":32,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c523925b-8774-43ed-b064-a9438924a11c","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":32,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"4ed5bdba-57f9-4470-8f3c-6bc8fd0e0b12","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":32,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"421276ad-f975-4d4c-8949-1e30af787e6b","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":32,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"f0643087-cde4-4bf4-a0be-4fea5052fa65","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":32,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"6fff51f7-9195-4f60-921a-bb889fa4401b","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":32,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"8ef8246d-c0b3-43d5-95e7-bd1a856d7e0d","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":32,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"5f5b7e45-e532-4c9a-9a6d-044aefffcc2d","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":32,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"dc5d2ad0-f236-4f22-9b58-110acdd7da03","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":32,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"bcb1ee9b-71d4-4171-8c6e-b5a9eefdb1f5","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":32,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"93d91773-5cdd-4701-b3b3-0772325e1dd6","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":32,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"394be514-52bf-46c9-9d11-616d0bddb3ae","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":32,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"9d0d8390-0852-4c93-921c-46e235be6e71","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":32,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"ae234dfd-50ae-40d6-8827-f751114803e6","block_type":"box","text":"II-2","page_number":32,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"325d9bc9-fdbb-487e-840c-fcc2a1d82199","block_type":"box","text":"NM1026U-5984554-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5f4c6bb2-a804-4799-b31d-78d595904ab0","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":33,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"719f5ec0-7ad6-4894-8b40-04af9771078c","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":33,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"6aaaca67-0af2-46e1-9388-9cde3198763c","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":33,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"8f57901b-b127-4407-8b18-6e682116231f","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":33,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"25609b7a-29df-479d-9d54-d65d3ec89572","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":33,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"033bbca6-efb0-4ff3-8203-cde6e9a36922","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":33,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"991f00e4-0c9a-4cca-96ab-d700a6f27d83","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":33,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"943999c3-5c2b-45fe-8c9f-efbb9673825b","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":33,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"42e4cfda-2cd1-476f-bbf3-40fb735b5912","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":33,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"cd83edc2-6845-497d-afcf-fa866726f508","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":33,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"283bdeb2-868d-4b3d-88a0-25b460572e7d","block_type":"box","text":"Cash Management.","page_number":33,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"4bebb979-c9b4-4bff-905d-b36ce0f5d5ca","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":33,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"983c37fe-8ba2-4a3a-a987-69231d812868","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":33,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"12771b8d-3567-46f4-9b20-615af33559c6","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":33,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"a2491396-2e3c-41bb-afaa-1478c70d92ab","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":33,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"de780f80-2102-4fe3-8060-e3189e3f8351","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":33,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"16122d94-7a0f-4d7d-a920-d5e7e7f182a7","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":33,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"1396647a-a04c-4d67-8cec-7eba39c58c6c","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":33,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"7676e95f-4d8c-4229-badd-893fd7e23cd9","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":33,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"79866888-a0df-4fa7-8032-d9fbbc4cc8ca","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":33,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"efd37a01-0b49-4e82-81ca-f61ecb356870","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":33,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"85bff997-1263-446a-a34b-de09f566cc34","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":33,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"a2c99449-29c9-4e59-9b01-b321b3eb6efb","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":33,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"60430f4a-5621-4bb6-b946-a7257dbae42e","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":33,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"1387ba68-a84a-40c0-a793-23bb3db59cca","block_type":"box","text":"Collateralized Debt Obligations.","page_number":33,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"345df867-49de-4c18-b36d-0a4376ab4c4d","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":33,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"e4b76389-d581-44ee-8e58-f07b91ee9ddd","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":33,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"0b0e628f-8702-4ecf-88a5-dd7c9db7d2ac","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":33,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"15048295-3e92-449d-9735-5fb7358fc1f0","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":33,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"9593477b-1d2f-43b0-aa79-377f2c8dff39","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":33,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"4296186c-8ef5-4f4d-9595-f6d9ea45ab08","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":33,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"e86e2ace-5431-421f-8767-3b03f4dc5fcf","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":33,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"1c1db796-7dab-437e-8a03-b06adb441f63","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":33,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"aa076aa9-1c26-40b6-aab1-02a1781de050","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":33,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"f83c6934-d11e-4d36-a72f-47682ca42e5a","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":33,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"7c30a50f-8d4a-4587-a17b-f1fb9cd6c4d4","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":33,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"c944212d-92f4-46f3-829e-d36cc29583d0","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":33,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"b89642fb-8a31-4f9f-ab35-5e28c882787a","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":33,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"9ed97a27-63de-4551-8906-fb811fbcd2ad","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":33,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"1748e56c-d9b4-4805-9a9d-ad0b1c33e588","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":33,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"f59ff1aa-989e-4686-8b7d-7ec147f9ef8b","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":33,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"8008d243-5246-4ca6-bd8f-79a2e1ea06b4","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":33,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"47407e2b-3411-4371-b3a2-31ec85794ee5","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":33,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"54e8b5e6-044e-4f6b-89aa-f4c8cc54208d","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":33,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"6a154bfa-8fce-4779-845a-1feefc91cc8b","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":33,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"38f67a16-2d4c-4d2f-99ea-e1a45a5eb360","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":33,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"5426631b-3a4a-4ff4-b5c0-94bf371d0c3a","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":33,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"2bdb957b-3941-410b-95de-9bb483a1e67c","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":33,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"b6963bd5-0dcc-43ae-8584-23dc4cb4e70b","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":33,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"9c3ebad5-543e-442d-a1c8-79387c5c4339","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":33,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"6cae101f-1ed7-461e-ac87-9daa1f9f7b52","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":33,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"91a8eec9-4252-4c43-b3f6-7bb3d4301eb8","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":33,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"84faa132-9157-4904-b5d2-1da4376f790c","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":33,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"47f0971e-fa9c-4a9b-894f-526538dd7d9a","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":33,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"51aea1df-b091-4aa5-8474-6bf6c4e94985","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":33,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"b1e37a9b-5c8d-4f31-ab39-977afb5581cc","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":33,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"d123700d-3541-4115-b087-bff9b669eea3","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":33,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"7f92176c-71bc-4b6d-90c2-76218cfd5746","block_type":"box","text":"II-3","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b56098a2-4f99-4198-8954-ac059bcd741b","block_type":"box","text":"NM1026U-5984554-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5634da00-9de4-4381-bc13-cfd0500f5f57","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":34,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"e8282ae9-acf6-4e40-a318-267ce2cf559e","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":34,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"da5638e4-0e33-41a2-972a-32477ffe2aa2","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":34,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"b692fa85-5996-4107-b75a-a7aec4cdb2f0","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":34,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"64fba319-330f-4fe8-9838-2595eb8f21a0","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":34,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"3f74700d-3fa4-409d-bfa1-148f581fa664","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":34,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"348e0483-e919-40b3-81a8-732c912e64f5","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":34,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"ee2e4308-5aee-45fb-9037-dd401cdbf6d5","block_type":"box","text":"Commercial Paper.","page_number":34,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"2d2cc6c5-2a7d-41d9-aa22-826388f0dc69","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":34,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"9dec2c59-6642-4a0b-b009-3b0e85fa1fb3","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":34,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"37b4e606-0e67-4458-99f1-aa0ef9158fd6","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":34,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"de849ac9-1eb4-4a9e-b700-2a3e183cb9bc","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":34,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"aba58c35-645c-43bf-8d14-416253b3bf01","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":34,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"7a698972-82a6-475b-a178-125254fecd09","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":34,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"5d6725ba-ec81-4cde-bf0b-19998ab9a9b9","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":34,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"c14cdf8d-b92e-4514-8445-68dfa2716984","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":34,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"a61d1c5e-255a-41df-8549-990ed110bcde","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":34,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"c55e46f7-199c-437b-a66d-eaad26620b5e","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":34,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"8a5fd69c-1cd4-4a42-8593-c6d07832d5dc","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":34,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"62c4aebc-6a99-4e0e-867f-08275af2eb25","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":34,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"852062e7-d875-433a-a1f2-381174565de8","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":34,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"c4b87164-30f6-4e7b-ac3d-eadf042dc0ef","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":34,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"604378f2-09bc-4150-9f8d-a2c8d6a12393","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":34,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"2af03c86-b4df-4cc9-8687-0f23c59cfa66","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":34,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"d120bb6f-aca1-49ca-855a-bf363395c715","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":34,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"bfa07fa4-6db0-435b-95f4-84075745e90a","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":34,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"5b352f63-f60e-495f-a483-462fe2ef5ded","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":34,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"315f2d4a-198d-4bfa-9372-9915cfb56c98","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":34,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"fd5465e3-cca8-4e6f-b436-cfbdb71ee2c2","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":34,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"8b4471bc-53e0-4a31-8fd6-add446b25e6a","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":34,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"63ee8e46-fa07-4769-bf53-a89444903f52","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":34,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"12226450-7aa3-4f67-ab68-9613854af054","block_type":"box","text":"variable.","page_number":34,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"7041a76f-7d27-4985-ba60-d406030b4ab2","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":34,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"0f2a8be3-4586-49ab-a7a9-d9f48504c0ef","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":34,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"d1cf3346-3522-4ab7-b00f-ac54802e3df5","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":34,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"ccc6082d-577d-47f2-bc5d-06394d5f539c","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":34,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"7833e9b5-34b3-4da7-9e8d-783fad96ce8d","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":34,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"72e9c0aa-96d6-4787-af6f-5cabba5ea157","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":34,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"f9804b3d-c166-4143-ae28-690a8523cbd0","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":34,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"f222c1b2-3fd6-47b0-8bad-1c194e24a138","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":34,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"c0e6d350-3ac4-4b6f-b156-d4edb6f4317b","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":34,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"93695fd7-70db-4b7f-a9fd-c0580bbf6342","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":34,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"ada7c32f-d235-4c17-8827-9018340367b9","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":34,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"8d07f266-b134-4343-bf20-35b5442fd26c","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":34,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"ae99ca4a-d24d-44f5-8e08-20161f9c9af5","block_type":"box","text":"correlation with stocks and bonds.","page_number":34,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"7233ec58-d258-416f-bbce-7ab16ccfc548","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":34,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"bee34a80-e479-4e99-96b4-4f2d0858e8da","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":34,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"4155f53b-a1cf-497d-b8b2-bcd2ecc0906f","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":34,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"26a6ba77-38f8-4fe2-ad01-3147ecc9280b","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":34,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"1749deab-8983-400e-b95f-69697e08a75a","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":34,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"63c7a666-d380-4215-bd96-4a096114ab42","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":34,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"a040ac30-30f2-4e2c-b7c7-459d0ba1f6b2","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":34,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"f93027f9-7bee-4efb-a122-62df92fea1fd","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":34,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"5377d546-0b1b-4377-88db-e9bc78c46040","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":34,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"02ce057f-f8d6-480e-b5f7-3071416ef7bc","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":34,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"6800c06f-098d-4fe3-87a8-5bfc62caf3af","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":34,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"e48d274f-751d-4e05-ae54-4fc02fb8a6be","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":34,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"ce770cd3-8547-419a-bdcc-3528c492a792","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":34,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"2d6f50aa-f601-4198-983a-c66af707f960","block_type":"box","text":"II-4","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"866748ed-126c-4bfb-8f97-80e803e271f2","block_type":"box","text":"NM1026U-5984554-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c765c52a-17df-4391-8b6e-50c2813a9cdd","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":35,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"c1c7db2c-ed9f-4173-b1cc-b8a2efc4bab6","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":35,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"e2af8f2f-5e9b-47f0-a3f6-e89d08d49d5d","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":35,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"7e9dcfb7-cd70-4853-8fff-3336719f9cae","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":35,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"c1dbb9e3-25c2-4392-bf7c-c36c06aa7697","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":35,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"faa6533a-94aa-42d2-9c9b-79b82b017d8a","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":35,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"605b7dcc-7495-44d7-9889-0121bc0b0a28","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":35,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"701c0bc4-312b-4f71-890e-739b3e0b8dab","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":35,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"b70e070d-33de-4b4d-b437-8290dda93691","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":35,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"00dbe423-359f-406a-9185-e273c40d96d7","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":35,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"913b8ed1-e254-4ab3-b284-714047051a22","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":35,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"0e5b056a-aaef-417f-ab3f-84cb4d3faa5a","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":35,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"9d79cf50-d2a9-4321-8d17-5f2a01c67824","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":35,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"578e1a63-9d19-42bb-acd2-f866121aaa70","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":35,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"057b234b-dda0-459f-86a1-0f1801628fe6","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":35,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"93f1e816-9a0e-46a9-9114-f9899471c361","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":35,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"743be592-d79f-42af-9b59-c718482f64c7","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":35,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"078d470b-5f85-48b6-9be1-e228f2041c3f","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":35,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"2da05c85-3bf8-4098-97a2-8f997094efda","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":35,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"f70fc260-299e-4b98-8a8f-7e0c2220d2fc","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":35,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"6d837e3a-f622-4a71-8543-bbf07c3db2d9","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":35,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"61169665-ae2d-466d-b382-7e3b9af5c74e","block_type":"box","text":"the Manager believes are relevant.","page_number":35,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"32c515fc-5f05-4ba8-a5dd-876198042c6e","block_type":"box","text":"Limitations on Leverage.","page_number":35,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"d8881c9f-b2f3-47d0-ac39-817d6c9705b6","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":35,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"17600f9b-6a52-4058-94de-2fc14218d5cc","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":35,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"5e904faa-aa30-4324-b63d-eb7bb4224254","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":35,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"add979d5-e885-4453-94ba-77baad9cb8b3","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":35,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"225114c0-87d2-4219-bef5-297d863e7b70","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":35,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"0812c5a9-f097-457f-8a93-5a84cbc98c53","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":35,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"495805e1-dd66-4f4a-b4fd-970ed8d437d7","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":35,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"0ca7f721-6efa-46c5-9edc-3bfe52bd1137","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":35,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"c2f7c4c2-ccdb-4a6a-9d2c-1c72ff335b36","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":35,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"028db0c3-f391-4cf9-a6b8-1906fa43777a","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":35,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"fd0b8f1f-4895-4f0e-85ec-9be2f87720ee","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":35,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"b0aee6f0-a0ad-4bcb-8da6-9de58831969e","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":35,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"bd32e44d-44ee-4bde-bfdf-e377b6b2e7ea","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":35,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"45d39552-18a0-4ca4-8ede-47edbcd50830","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":35,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"59afd8f1-84a6-4af9-95d6-7a4fac677dc8","block_type":"box","text":"Counterpar ty Risk.","page_number":35,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"0d3eedff-4506-4194-b257-771012743d83","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":35,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"4f0fd096-cf15-4164-b920-a4fcdb475949","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":35,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"83ee0f91-816f-418f-9812-790afba9fa42","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":35,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"749c0360-b65d-4483-8d3d-8b42678eb819","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":35,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"0f7d65c8-7006-4052-a119-87f1ce1d7a96","block_type":"box","text":"e.g.","page_number":35,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"b94e3f0d-5f4a-47cf-b5f8-591c89454a73","block_type":"box","text":",","page_number":35,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"9958eb3a-c0d8-4132-93d9-3360dabb85d9","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":35,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"0673deeb-667f-42aa-a2a2-5f6d36dc4baf","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":35,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"b3520e66-8c8b-4fa8-b175-941307b9c1a8","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":35,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"17312b89-ce34-4818-af8c-4b38b2a571fb","block_type":"box","text":"obligations under the structured note.","page_number":35,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"ecf8cab2-58d3-4cb6-893f-237d3489ee8d","block_type":"box","text":"Convertible Securities.","page_number":35,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"96f9f3cd-c4ec-4629-8541-d7fc31ec965c","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":35,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"53c24416-4f1a-447a-ba11-d8b652ce47ec","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":35,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"1682e5e5-9c60-4401-a078-3aa59daca16b","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":35,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"0e77e67a-c1fa-4f04-9daf-f90606a67102","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":35,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"65387335-45d0-4e02-aa6e-2ac9c9182226","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":35,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"ac8197c4-afe7-4640-a147-552f74bdef78","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":35,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"ad56ca9a-d00c-4e74-b8e5-84238291ff79","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":35,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"5eea926d-7d0e-4954-909d-889bd1b7cb36","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":35,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"730c305e-a196-4b56-b098-bc1d3cdc2118","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":35,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"24c9049a-4be1-4cee-884c-5bd22bb43dec","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":35,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"3ce3bb36-6466-4769-bb61-96dbddecc682","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":35,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"fef51ba8-6666-4d9a-8017-93430358703b","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":35,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"7ed78a42-20b4-4ebc-88f2-f64eae1a3423","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":35,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"c58273ff-fda9-4338-a7fa-66bfd2f69154","block_type":"box","text":"II-5","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9584f53d-9041-4543-8b50-3a967159c8c1","block_type":"box","text":"NM1026U-5984554-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c22a66b2-e3ca-4d38-824b-6c3f9da76904","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":36,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"60de4db5-d185-4f2d-95ce-c28826257078","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":36,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"7e92b11a-963e-4253-96fa-98ffeb830cbc","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":36,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"85a087ce-66e2-4041-af93-eaa263e7aac6","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":36,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"3a4e0b3c-3cb2-4ddc-aab9-d148d1dff2cf","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":36,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"773494b6-cc08-49a5-bf1d-3674eee0f6da","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":36,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"ea959b6f-0669-49e9-8a3b-3c8fdb1a77fb","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":36,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"f23135ba-131c-415f-921e-d327a6991806","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":36,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"62bbdfc6-8ae7-4aee-a94b-794a3497a4be","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":36,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"44273e39-c3e0-4d82-8101-b2852070e66f","block_type":"box","text":"things.","page_number":36,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"622a9f94-716b-40bd-bd42-642de97b3a5f","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":36,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"7d26c4f4-322c-42de-b64a-7c2d83347f06","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":36,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"0523c8c0-d67d-470f-96ad-be050ca2700b","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":36,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"718304e2-700e-4968-af27-a5a9bda54690","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":36,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"b4996a18-9294-4b44-80a9-b35d6d682d57","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":36,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"90db72e2-8137-4c8e-abd5-ec387bc90031","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":36,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"b54a6b7d-b846-4d8c-86d4-a266951c0def","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":36,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"3d4870b9-a5e3-4568-9ee6-70fe6cc39dd7","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":36,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"fa05ee43-ad12-4e80-8760-37b2b3b27727","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":36,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"595b3d1e-e379-4af0-a8ee-06177f1b9817","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":36,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"89d903cd-a95d-4bab-a3f4-db83f1771d29","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":36,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"3c2aa5dd-3069-4f40-b193-256e71fa425a","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":36,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"56dd6cc4-5558-46dd-8ba0-e7b525231fe7","block_type":"box","text":"i.e.","page_number":36,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"d9f31e3a-6073-4335-ba50-3b45937fa326","block_type":"box","text":", strictly on the basis of its yield) is","page_number":36,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"df974773-e4df-40f3-9362-d28cc45e535d","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":36,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"1224d59e-0d04-4165-9f6f-6aef8e6708e9","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":36,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"36e3019c-7726-4e23-8eeb-17d4ce5b620c","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":36,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"a9f126c1-3232-4e1d-8676-182f93b60a58","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":36,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"0fe7ed7e-f838-4ed0-846c-a69b1a4d2714","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":36,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"cc5ca124-df61-4388-8fff-69e4b68ab06b","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":36,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"c0fcdb1d-9045-4a81-81b4-8da861162856","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":36,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"7858f7a5-6300-4cdc-a4c3-aa0672927621","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":36,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"2ec46786-1924-4932-a997-55904436daea","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":36,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"05919234-ca83-4749-8015-0d40879c28d4","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":36,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"d634ea9d-5823-4daa-a1bc-bf7d3adf84f8","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":36,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"0ea1ac25-435f-49ea-80dd-4cbb6a88dc48","block_type":"box","text":"than the securities’ investment value.","page_number":36,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"2770bc4b-f7ff-4cd3-a12b-d13757ebf540","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":36,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"6fbc64d6-0aa5-4644-9541-f413601f7c6a","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":36,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"7b0b38f0-5247-4b46-91a0-ada0857ecd56","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":36,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"f91293c7-91bd-4aad-9e90-f5695423fdca","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":36,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"953f931e-ed6d-4047-b032-b73d8a63ebf3","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":36,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"fc596dca-0928-458b-b72b-82e9c1357ea7","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":36,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"6c18d38f-0c73-4176-b6c9-d265cd4dae61","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":36,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"a842b687-051b-45c5-8db5-387313f12481","block_type":"box","text":"security under cer tain circumstances.","page_number":36,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"96288d11-a844-4848-b01e-e5735f8482dd","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":36,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"f053aa09-4ac0-40a5-8da4-6ec72056e192","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":36,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"9531c164-252a-4bcf-b9be-b16daa9d0d44","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":36,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"e5e4f474-94c0-4f79-b61c-5ab2a587e65c","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":36,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"0f42e001-2322-4367-a680-60f504204a9d","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":36,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"ccc18306-b149-481f-8ffc-ab47aecf7372","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":36,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"676fa5d8-d0ed-449a-8a9a-dc196e990f0e","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":36,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"c6c9bdfc-140e-42dd-8918-bf027ee30402","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":36,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"720d24d7-9f74-425c-9958-5aee3fd21818","block_type":"box","text":"i.e.","page_number":36,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"710a2f4d-d57a-44c7-85b9-1423d3aeed4a","block_type":"box","text":", fixed-income (“fixed","page_number":36,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"5f69429f-7417-44d3-9967-670920b176a9","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":36,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"2a9c1efc-306f-43b9-9915-a0a661ac6ec8","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":36,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"db57c7e5-4d82-45ee-8f1f-0ca32b796203","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":36,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"7e1722f3-5a38-46cb-a966-af6cebaa1ea1","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":36,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"79924b95-8f42-40e5-b2de-0ae247609877","block_type":"box","text":"II-6","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ab8f39c7-34af-4190-a934-f091facee5e3","block_type":"box","text":"NM1026U-5984554-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0e667d3f-d0d2-46fe-8aa3-e80813c7eb13","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":37,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"83ee4d05-7ef7-46f5-adbd-8f391b783fd6","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":37,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"1c5a7b5a-5ae2-4cb9-b653-a1fa602a2833","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":37,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"4979370a-91ea-49d7-903c-603d437aed42","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":37,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"d75cadd3-b58f-42b6-b824-95e3dafab4f3","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":37,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"ad28afe4-c172-43dc-8aeb-28d1271e8e55","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":37,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"616263ad-c1a1-467d-9a88-b7e6a17d2450","block_type":"box","text":"component.","page_number":37,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"5d36086f-47c0-4efc-bbec-68551c55a240","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":37,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"12f4dd9a-516d-4195-aacf-38cca36fb32b","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":37,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"e041ecb9-c53b-4511-b36a-6563c96a0827","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":37,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"3aaff956-946c-4d20-8797-b442553b1ceb","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":37,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"d6823f44-83fd-470e-9c36-f26de9a2aa00","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":37,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"ce9cdc64-0644-46db-9a3b-db9956e1aea6","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":37,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"7d7ecff5-a109-4858-b98e-9be510fe8100","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":37,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"f172bf3e-cf30-4417-9603-1a02ba3c9a50","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":37,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"83c1cf12-6109-4332-8149-cf2d3060df67","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":37,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"11a8694e-ad50-4c0d-90e5-887dde448ca7","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":37,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"cdec92f1-3a5a-48f7-bf31-824cfb9c8f59","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":37,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"ba24985f-958f-42b4-8f80-ae7cf8aab946","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":37,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"8e6a9c0b-03ce-4e2b-b1e5-ba3691bae851","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":37,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"3cfaa076-1ded-4815-b8b4-9be8c6aa9b20","block_type":"box","text":"favorable market conditions.","page_number":37,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"b803d695-b6a6-4ef7-a566-e257a6f72f2e","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":37,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"8e6d8370-9f27-43a8-a300-c9e43f8a076f","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":37,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"27b680ca-d262-4b70-9f75-0d96e6da6f8d","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":37,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"56cefa0b-c3c7-4373-b8a8-863041ba5e6c","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":37,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"9a6e4447-3330-4067-81b5-be7cf5e16b7d","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":37,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"3fa16311-59e1-4dbe-a0b8-741bd09b71d0","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":37,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"2d7bbcb4-5fea-43f6-96a2-99f65cafdc34","block_type":"box","text":"Corporate Loans.","page_number":37,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"daa31d7d-a970-456a-ac33-b3e427eb4759","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":37,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"67e31ad8-8b98-4130-afc4-5d8b75d72472","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":37,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"37499696-c920-42c7-9b6b-92e90c75bb7c","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":37,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"3487dfed-f11e-4646-b0e4-c1bf4d5d30f9","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":37,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"cfdf1a62-3d6b-4033-986d-3711f1268d0b","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":37,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"bbc9d458-c033-4b95-a548-3715af517aea","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":37,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"a46a94bb-d1ed-40e6-8240-e824fbb94ac9","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":37,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"7ceec223-a666-4c67-977f-b899b5c3c331","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":37,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"7251638e-b5be-4006-b223-2c880b3f3f26","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":37,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ed48615e-a162-4491-a7ff-26e52b4eea84","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":37,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"979f220b-a817-4313-b16b-5568fdfeced2","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":37,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"ba012a94-68a2-42d3-a3d5-8dc505df6439","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":37,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"a943dc56-0946-4925-9697-ba77b8e8e83f","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":37,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"fcc64ba9-93d6-49f2-991d-7e6c57b3ad46","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":37,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"374392c4-09c3-46a6-85c3-4aac0b1704ed","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":37,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"eee08fa3-dc17-47f4-904f-ff16fadce4d4","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":37,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"976424ec-2891-44b8-b818-2a03d15ed8b7","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":37,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"1205ac41-463d-49b5-8877-a61df112af6e","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":37,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"31ba972a-ed6f-4ce7-8d32-2a43a3b17588","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":37,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"45a79a80-cfe3-4ed9-984e-79ec81cba5bd","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":37,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"a1d63ddb-bc03-4ae2-b5c8-02c8424b7596","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":37,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"017806e6-66e1-482b-8a99-7c547c62b39f","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":37,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"067cb4b8-4805-496e-88bd-40acf6d9da1a","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":37,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"9cbcabd4-c41f-44e7-8330-88151d8a84bd","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":37,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"f41f46ca-0d85-49b1-b0ae-95a3730b7c86","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":37,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"3eddec17-68e1-45a6-94a6-8d5bc832c2d8","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":37,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"8b0a374e-8835-4d09-8d65-89c4181d468e","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":37,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"4c4da9da-11db-413f-9132-efa7ed4c5cce","block_type":"box","text":"of the borrower.","page_number":37,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"66e801d7-631b-407b-828f-ebbf8a148088","block_type":"box","text":"II-7","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f0cf0060-bbbd-4e46-92f5-876b6ed6304c","block_type":"box","text":"NM1026U-5984554-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d8027ab2-e2a5-4c54-ba71-e56cc7f32008","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":38,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"1c64c1b9-5e21-4837-83f3-ff8b32ad2316","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":38,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"86e7aabe-e0c0-4de1-a233-21713fbaa3ca","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":38,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"026b0b4e-1d77-49d9-bc76-7dec249ee46e","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":38,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"d35298fc-6585-4ebd-a557-dde2608cbabb","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":38,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"ba009656-43ee-47d1-b009-0941c62145dc","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":38,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"873b8437-5198-4440-8580-842da524f646","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":38,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"3d12cdb8-6638-4ba4-875e-1dc40d8e88b2","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":38,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"014cefdb-6227-410a-bb7b-68653bd0aad7","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":38,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"9a2f5099-93d7-4c7f-a434-a1fdae5f4d93","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":38,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"af2d5fbf-2a0f-486a-acd4-99cc75b8c9f8","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":38,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"46e26df4-576b-4429-a65d-519f8192cac1","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":38,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"12a59c2b-04b5-40f2-ab6f-74651bd6225e","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":38,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"74449d8b-cb4a-4cce-af33-ae9720354af4","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":38,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"4cd5b6b4-aa01-4f27-85bc-832865607ff0","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":38,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"a7f20683-2f1f-41c1-a9a0-2fddd89517a2","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":38,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"41276594-6491-4090-8c95-de03c6165955","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":38,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"d6eb536f-6365-4ee1-b7b7-a139bbfe2d69","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":38,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"7e7e8334-33ed-4215-9e02-326a46dfa6f8","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":38,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"5ce626f5-c003-4235-af87-d915e7401f67","block_type":"box","text":"state law.","page_number":38,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"08d1a9f5-bfe2-452a-8dff-be910347bb5e","block_type":"box","text":"Direct Lending.","page_number":38,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"67649f92-ee80-4154-b7f5-93ea929bacb8","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":38,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"52437a3e-9ea6-4e9c-9b99-72b1c901d914","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":38,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"00716fc8-479f-49dd-8638-e381aebbd8c5","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":38,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"e50bd1a0-ec86-40ab-b216-03a364b90a6e","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":38,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"cf43f535-615b-46c0-bbea-7d1e79987ef8","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":38,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"402deb99-3c49-475f-a756-ae37c5de38a9","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":38,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"31c3e422-53b2-4420-93e7-fe365d88dc0a","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":38,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"acf640a0-aec1-41b3-9f70-a1e8488e7a64","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":38,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"9052e91c-92c6-4f07-ae7c-6731feb0ecdd","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":38,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"1e0a4fbc-2ed0-45dc-8d48-c44504d12824","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":38,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"1b4a8db7-3a9b-4eff-be07-1ff945c91aa8","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":38,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"ed484018-99f3-490c-b336-828b3d786fb8","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":38,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"fae2e05d-8c79-4106-b02e-a127f20d27e0","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":38,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"e350901f-04b3-49e9-9b1b-b81e9b711886","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":38,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"615d9209-8812-40ff-8630-f9a614dd890d","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":38,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"be6f65d7-88e8-4904-ad4e-3f09dc72499d","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":38,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"2ee95b3e-7803-42e7-a8e1-39859f7f4747","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":38,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"8482969b-e908-426b-8bd9-834c89705752","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":38,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"b45dc8a8-043e-46eb-8c85-361527ba3198","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":38,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"dcbd9356-399a-4f66-be0e-55ef608b0374","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":38,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"00ce810a-8618-4575-a755-d3d70f22503d","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":38,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"078c9698-0c0a-4e02-a3a2-7ab99f1fc246","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":38,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"5e74ccd0-24b0-4b9b-8d65-ca45e12771cc","block_type":"box","text":"Credit Linked Securities.","page_number":38,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"af76e8c1-3e80-44ad-b2fa-b503622de242","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":38,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"c32eafbb-f51a-4f25-9e95-8d2fa20367cf","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":38,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"57d5c406-17cc-47e7-b896-048b3853385e","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":38,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"6999fef9-6dba-4ab3-83b9-c7ed49e2b2db","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":38,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"a4fa9ce9-8820-401c-950c-f0213cec0244","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":38,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a477cf21-4c06-4941-a0cc-61163ba56d77","block_type":"box","text":"traditional income producing securities are not available.","page_number":38,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"f0c7fe00-a338-4fe8-8edc-7f14f09bf37c","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":38,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"5e3f8774-d666-417c-b896-f5b0d3fce151","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":38,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"8466d92c-0b2b-4dd7-8bd0-8a81898eec4f","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":38,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"60794026-27a6-48c7-96af-ae9ba90def04","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":38,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"4b19ff4d-7541-4f8f-95ee-17f68d67bb4a","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":38,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"2d6fd6f0-43a7-4305-88bb-782b6cd973ed","block_type":"box","text":"II-8","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"865032fd-eae0-4462-b14c-4c0df4d57fb9","block_type":"box","text":"NM1026U-5984554-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"efbf79f6-bfe3-4a3c-b97f-2305a4d641b6","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":39,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"8ca7e679-66da-4be6-a98a-ccfe5895cb5a","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":39,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"79146656-e9ad-477e-9b64-f70fd165b908","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":39,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"f7f9f475-14ef-478e-b970-26495d97c127","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":39,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"e09fae33-92f6-4592-9966-d006810bb58f","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":39,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"489e9ca5-f7fa-4e3a-8181-f34c192c5c6e","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":39,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"8637802e-5ff3-4821-9651-9e9220b40a80","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":39,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"fdd1f843-8a25-438f-9622-52cbe69dc025","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":39,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"3979677d-13da-413f-8191-e11928e2bcb9","block_type":"box","text":"investments.","page_number":39,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"34ad9f0a-96ed-4ef8-a914-92c92df34e07","block_type":"box","text":"Debt Securities.","page_number":39,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"07efdfe0-6715-46da-b793-c57034ad94f4","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":39,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"200347e7-51f5-417d-b6e4-f8ae974182d8","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":39,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"eaabfb5b-204c-4673-ac42-1058d5206124","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":39,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"da950f4c-f919-4f1e-aa35-7775bae47cbc","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":39,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"b12ccb26-d6a6-4c30-9b9c-ab18db94510e","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":39,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"a0937e67-d9e6-4f00-be55-310de017da0a","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":39,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"6a1ed50d-dd01-440a-85b1-5c672ea7ef13","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":39,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"e2d7aed4-e63a-40fa-95ea-2f3ddec44566","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":39,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"a38bf24f-0740-4f1d-8a1f-4aa5872efdb0","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":39,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"1750530e-cedd-4a07-8bf5-26d162e227cc","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":39,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"25b0e785-5c03-4958-8e60-0f7e4dbd8d54","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":39,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"ba64e6d8-390c-49b5-b7be-10fa8593f906","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":39,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"e5aed129-67cc-47b8-8220-2526bcad3c5c","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":39,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"044ee8b1-d819-4033-b6e6-93d1efef78e4","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":39,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"9f91c032-c65b-4d63-97d1-53ca56a9c5bd","block_type":"box","text":"lose value. This is known as extension risk.","page_number":39,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"5e80de96-b555-4310-b147-2a25fdcb5915","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":39,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"08475f91-fd33-4927-8758-c802028358a6","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":39,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"857dd19e-78d8-480d-b1c0-c800c214852a","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":39,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"08206311-943c-4673-b22f-0d678da80713","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":39,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"33dfed22-f872-4111-80fb-27745a48f845","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":39,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"37d4f3ab-637f-4daa-bc0b-9c7b986c604b","block_type":"box","text":"Floating and Variable Rate Securities","page_number":39,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"b2ef1c02-f64b-48df-9a60-76825b70b69f","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":39,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"5b81f8df-d0fe-4022-ac02-b6f22f562b9a","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":39,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"bbf6d870-1ec8-416a-9adb-aa93f8136377","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":39,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"08c57e36-cf5c-4aa0-b939-5f388acbf0b6","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":39,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"84b9b028-5454-4f8d-a30b-551e3139a3f4","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":39,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"4633769e-7268-4069-b88d-8582a19539ce","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":39,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"0dcb1ea2-643f-4ef0-85f8-345a9f55a926","block_type":"box","text":"market interest rates.","page_number":39,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"c1cfade5-4ab2-47a0-a138-6877f782c8db","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":39,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"f631e45f-2a39-4b81-82bd-acb1073da6d1","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":39,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"56a1e456-c9dd-41cf-aa4f-23795b13846c","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":39,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"6778610f-81ac-411b-ac17-e034a3c25966","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":39,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"1799ad3a-91d2-4abd-ba22-226c9160284c","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":39,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"fd8d17e2-bdf7-45c4-a584-5ccdad724bb7","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":39,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"72973e51-ea80-4a14-87ea-3096f28ce887","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":39,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"0af75a4b-cc5d-438b-bee8-93c03072e0d3","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":39,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5e227cd2-9f63-454f-93dc-6fc1ff82aa8a","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":39,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"5afc88cd-1a95-47db-a503-5e7478b2d614","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":39,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"03006b45-5bec-4616-b565-a18f64932d04","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":39,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"10ed37e6-f28f-4094-a47e-f848c583c168","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":39,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"d2a0bd0d-8d9e-406e-aad0-b080bb21daa7","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":39,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"4da6c1e3-9724-4a6e-8852-4b040eff63f9","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":39,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"59db334f-617b-4bc6-b694-247c96e75b9a","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":39,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"15b1ee0a-13ef-4dc0-b371-cd4b46c4c601","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":39,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"78d9f2b8-29d3-426b-8ab0-755fad928c40","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":39,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"eab2b488-6db4-47ff-a2b4-c31fb85c94b2","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":39,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"312f5bfd-8adb-4eae-9172-0299c14277b1","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":39,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"6b8fe523-522c-4e05-a5c7-bae8d8a7930c","block_type":"box","text":"II-9","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9a746b70-1229-4bf9-9564-9455e3e8d4c2","block_type":"box","text":"NM1026U-5984554-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f99a809a-9f80-4c20-ae7c-424892a91de3","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":40,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"1d9cf473-bbf9-461d-bcd8-fcebbcb13ab2","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":40,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"9f9e813f-1e0f-4f20-84ab-168a80b74a22","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":40,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"7ec34eb9-84c3-442e-b8e1-c9a197b79e8f","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":40,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"1f59f7e2-fae3-46c3-9426-a48a4c52b04c","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":40,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"5c9fca76-d71d-428e-a0a4-d643b0b24ea0","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":40,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"6d5f010f-5116-4674-befb-c664766d13ce","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":40,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"3d8693c7-eec7-4271-aa63-75dafbfc84c5","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":40,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"a6491328-f7ef-4b6c-adf8-0c1e4795bd71","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":40,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"1eec09ef-7601-4363-9ee0-5a05d5b42980","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":40,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"94a5a800-1a52-4371-bdfd-006546802500","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":40,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"e2be0be2-7471-4291-88f5-d4c670b59d34","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":40,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"67d6c9cf-10de-4651-8ff6-90884dfba671","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":40,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"dcf44347-ff77-40f9-8c6c-c10af087d2b4","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":40,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"cdf1819a-932f-4c56-863e-c45a7b1cdf75","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":40,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"15a1c1bf-4678-4632-9914-ec6e0d9a5399","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":40,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"fbc633fe-ab4a-4d88-a4bf-dbfd38d8ad9c","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":40,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"7407b6f4-098f-48ff-a5f3-808b08944ab5","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":40,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"32b25d24-e614-4f40-a23f-800f0ba09708","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":40,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"9f969f2f-03bf-4b53-8c63-62f08fbef777","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":40,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"65c0838b-3912-4571-bd7d-37ed4f9fa351","block_type":"box","text":"United States.","page_number":40,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"51548484-29a2-452a-b57c-08f34757ff5a","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":40,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"a24f6131-0edc-426f-830d-6e033559adba","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":40,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"cb87f6ac-edd3-48ed-9107-1630ce4473b4","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":40,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"4b61ee62-e8cf-47d1-82e9-bdeb9a3bf2e3","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":40,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"a0595160-31e1-414f-a41d-d798ea342aa4","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":40,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"b0012f06-4cb7-4cc3-b762-f818f3e4563e","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":40,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"0e045770-8154-4065-926d-664238c89959","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":40,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"55b79f07-5ddf-41f9-aa19-21429dae8aa5","block_type":"box","text":"i.e.","page_number":40,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"74361b66-db80-4548-858e-bb9f31589b4b","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":40,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"0fcbacdb-7c2d-4ce8-a93d-dc6a464eb6d0","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":40,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"f5c66c41-93a0-4e5d-8870-fb579a687538","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":40,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"ef41ada2-2c06-4a38-9605-bf4e0c03610a","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":40,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"f91e3c1a-0eb4-4063-89f0-39aba2f165cb","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":40,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"64aea750-78ac-44d4-9c02-8dc97129c06c","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":40,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"0c9fbc19-5006-40d0-b87a-97ab48976e2d","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":40,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"81178026-82f4-476b-b1dc-0f5e9ee25c31","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":40,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"75e030aa-7d43-4982-a761-37670fcd069f","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":40,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"289cf7e6-94d1-4092-9cfd-27cd92f60010","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":40,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"eef12a33-6673-4422-9e28-304a12f25899","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":40,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"78ba115f-3b0a-4adb-b6c3-a2b653176d0d","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":40,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"edd6627d-33e4-43ea-81ea-289de9829182","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":40,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"5f911457-fe3e-49f2-9f10-8af071ac828e","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":40,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"facb23bc-ac5c-45ed-964e-ce0a808ebfd3","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":40,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"9a82a700-7f4f-4c51-8131-304cf031dd0a","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":40,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"cc56fed6-c5b7-4ef5-b311-119686f5669c","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":40,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"c5cdf611-b99e-4fd6-9dde-ed693f38723a","block_type":"box","text":"risk than higher rated securities.","page_number":40,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"1a5661ac-da68-4a05-8171-f681c992676a","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":40,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"aa3f1eda-c9e1-4d82-8ff5-311999a3b9fc","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"1ab7702c-6707-467b-b8ea-f9ab7ccaf4ba","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":40,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"6afb8183-2331-4cf5-b94b-6222f9b2c985","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":40,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"2ff55aed-cbfb-46f0-83ee-d04ad3ad7d81","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":40,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"6a0f701e-ff84-4901-bec7-4341be717749","block_type":"box","text":"unavailability of additional financing.","page_number":40,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"a2df261b-4461-49e6-95d2-eab2b01cbd29","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"05ae16fc-6906-4224-a035-4c5f61743dd4","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":40,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"f20223df-d6bd-41f1-890d-90c078dbf0c8","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":40,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"bcd12960-ef67-409a-bdb4-d85d4e8ca2e4","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":40,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"798a744b-ee9c-412a-89d8-f609bf5393dd","block_type":"box","text":"II-10","page_number":40,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6fee35e4-749b-4613-99d8-d923f123e2cb","block_type":"box","text":"NM1026U-5984554-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f4c8ca39-dc4c-440d-88f0-075deec47d44","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":41,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"e36918e5-adff-45e1-8cdb-95697263c9c2","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":41,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"e9a45829-a6c2-4d5c-a442-6a6fd49ba8ee","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"145ab711-677d-41e1-a5cf-0eba4743f5ca","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":41,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"71ef1851-89d9-4c9e-9ded-0b5677a1d91a","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":41,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"f704d84d-31c0-40d8-a8e6-bb6fc8faa47b","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":41,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"dc301d0d-c7bf-42e4-a277-23cd1d2d603d","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":41,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"becfde6d-d65b-461a-a9eb-c776f3aa3a34","block_type":"box","text":"investors in higher rated securities.","page_number":41,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"cc19a6c3-839d-449b-ac75-406edaa881f5","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"5ea0518a-ad81-47b1-8cbc-53cbc837acd2","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":41,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"2d352d09-8b2e-404a-84de-a16cab062c70","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":41,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"a18edda5-ba1c-4d65-993e-d25821f6e228","block_type":"box","text":"lower yields and may lose income.","page_number":41,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"8ea2799a-80b2-4ab7-9c46-437f6719ecc2","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"75242327-109a-4c5e-9e74-9da3d6d3b5b3","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":41,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"7ec65d86-897b-48fe-b44c-6f18a339992c","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":41,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"ec1b8661-d107-42c3-856e-0c8a520e8456","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"3798d01c-7446-4384-90db-b8a2ae7fc16c","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":41,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"5030139a-82aa-4886-912c-6468a5a5f46d","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":41,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"956ec913-ed6e-4c05-a1ed-2fb82087d056","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":41,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"6bb9704c-f4d1-4d4a-badf-5ca99bd58e20","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":41,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"3e07ca09-4759-4233-8402-031931e2dc96","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":41,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"e4fc4bd3-4589-44b3-851d-82740e22c2d5","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":41,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"e898df25-9c34-4093-ba58-3b5ff23617a4","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":41,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"16c5ab09-ddf9-4b53-91ac-74fa575c1951","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"a2a4810a-7c8c-40b3-9533-cb5c643b8da5","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":41,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"113de6cd-c159-46b0-aa9b-31297fc4efc5","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":41,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"a356c8b8-9ea9-4a3b-b765-acb111dc2380","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":41,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"8e555a5d-2f15-412d-b89c-40c317fa26a7","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":41,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"9ffec3a6-30df-4a71-b5f5-4733d187bb8b","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":41,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"ab84dd0d-5a71-4adb-a11c-d7ea49be6fb5","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":41,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"01344046-de56-460b-9331-5dcac721cf4a","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":41,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"88423921-846e-425e-8f14-3267f97bb759","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":41,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"172843dc-8d9e-497b-8627-b2aeed48fa96","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":41,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"9a75bd5e-7f71-4eba-b31e-17c3bd2b3a5b","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":41,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"3ca2dd33-34f0-4fee-b421-232939ed8b28","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":41,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"594bc214-f06d-4b5f-8810-b506d85bd01a","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":41,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"bed288c9-c88c-4386-9fb3-8b352a31a7bb","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":41,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"39acece0-f0c4-412b-a2e9-ccbd672ff958","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":41,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"5c0c76d3-5789-4e8b-9bde-06690649b0b9","block_type":"box","text":"role in determining such valuations.","page_number":41,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"417bfe77-d1ee-49fc-9f13-3b869cd81844","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"699c679d-2312-4f59-87a7-285929136c1b","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":41,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"082efe4b-e9a4-4159-8096-ceaacc348348","block_type":"box","text":"a defaulting issuer.","page_number":41,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"d22133b9-8496-427f-a7b3-3fdf81cf263b","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"ab54b26c-5e92-48a6-b41f-164996def1b7","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":41,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"ee8d1a98-c8b3-4d49-86cf-86b2abf5fa0a","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":41,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"f60a32a7-ea6d-46ad-8bb9-76a2a22cc027","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":41,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"0374e450-a008-4e60-bcae-253b33875b6a","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":41,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"84a98c8a-1122-4315-a1e8-850e5d5f65d7","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":41,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"095e6ca2-6f2c-45b3-8fc0-cc67df720fdf","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":41,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"03a374db-0cea-4ed2-8ecb-fc1e996d6614","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":41,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"d061a350-02dc-460e-b684-2113d21a01df","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":41,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"45cd41c1-b72c-4df1-9c66-b9aa0577b7a0","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"868318d1-f3a1-407e-b9c6-6b0dd10cf3f2","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":41,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"9f1183ba-5f64-4d2e-9bb3-9473554be2da","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":41,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"2b5f1374-6a67-4f43-bb42-d405efc759d4","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":41,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3c6b68da-5173-4488-aaaf-6c6bb465fc86","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":41,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"90b19187-762e-4934-8821-b2bb4bd08038","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":41,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"e7d076d7-f7bd-4557-a227-02ceddea8381","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":41,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"3fa4b7d7-f8ae-4bdc-a09d-ac1cd5e10b41","block_type":"box","text":"higher-rated securities.","page_number":41,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"8150940c-bb1c-4854-abb2-92ff50ec9eea","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":41,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"fc07f9dd-e2ea-41b6-be1a-573869afdcf1","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":41,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"f44fc43c-b9e5-4e57-bbb3-f088fe46b2a7","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":41,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"7a8d8d5c-1190-4c2e-aabd-a2b4734f7db2","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":41,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"091eb007-9c6f-470f-8035-fd8ea53d9a7f","block_type":"box","text":"II-11","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a0a153e2-9bff-4ea6-ac54-cff0bd6f6242","block_type":"box","text":"NM1026U-5984554-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b783955e-c6f2-48b6-8d1c-82f66b7f0677","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":42,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"2cfb21c2-40d4-4fec-acf8-46b00c598696","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":42,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"8a3b1714-75b7-433e-a271-0a15b84e7aa5","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":42,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"0f4471ea-ea34-4102-83a8-9a77c464ef45","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":42,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"748f6199-fd1f-4f7e-82fa-ef6ebc13a50e","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":42,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"169408d6-3d0b-47df-b3b4-872fde075557","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":42,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"720a068b-3d84-4252-a1e4-bc943df7dd85","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":42,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"fa989765-6315-4684-8d69-4c4d2f5b0cae","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":42,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"9160f8f6-97b2-49be-b8b4-4b8d0de58f74","block_type":"box","text":"Mezzanine Investments.","page_number":42,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"48d78a77-c414-43ed-9851-b0b9745c13cf","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":42,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"1b7644cc-9f14-4c69-9170-9df3cf683cd4","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":42,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"c72bb766-c81d-47fe-a0e1-0f1c065f8ffb","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":42,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"2a858f10-3d21-46d9-9849-dfe5f7b282b8","block_type":"box","text":"e.g.","page_number":42,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"861e5c8a-69cb-457e-b3ce-cd74476f6f90","block_type":"box","text":", with","page_number":42,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"fdb08683-c819-4541-9466-a0341faa35c5","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":42,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"346ee1d2-27da-4270-971d-8b4baac65a83","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":42,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"3b618caa-ecf1-4774-9a29-05c8d1b32a8f","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":42,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"3e8b1dd8-880d-4e46-a40c-f90c9b14f097","block_type":"box","text":"other obligations of the issuer.","page_number":42,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"5ca7055a-5f9a-48bb-9ea1-82a378df0b76","block_type":"box","text":"Pay-in-kind Bonds.","page_number":42,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"0a5f04e4-55ed-4bb8-a070-36a36156787c","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":42,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"11ff0b06-530d-4e31-865a-e5f26070be82","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":42,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"773a29e8-e688-4c77-97b7-386d98facbca","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":42,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"1366e31c-7476-48e7-bb72-c2952382114f","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":42,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"bf6a31d4-1e87-41c4-83d0-721b8700c05e","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":42,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"3348f46f-47e0-4785-9b5d-4ffc6656f530","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":42,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"495437a4-d7e3-4c7c-b169-d8427f87225f","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":42,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"f4f65b02-4eac-4d3b-8d2f-5cfe6575ae18","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":42,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"cca7a686-d648-49e5-b6a4-be007dad2a1c","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":42,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"1051567b-346e-4285-b7a8-20866ae47810","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":42,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"90cdaf85-1eb5-480a-a43c-99307ba7c66d","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":42,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"4274f90f-76c0-4dcf-aa94-917b03bc3a40","block_type":"box","text":"Supranational Entities.","page_number":42,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"4e554cbe-5328-47b2-992c-d66690bbbaa8","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":42,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"02530c03-cde4-4881-ac01-62a9e01bf507","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":42,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"bae9a731-a0ea-4ebe-a11b-0b459fd96a7e","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":42,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"f2d84792-1f29-4be3-b2a2-29de0f12c878","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":42,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"e9aeb7d0-6b0c-4c00-9060-22e1d35d908c","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":42,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"18c3e7e0-be65-445e-8e06-269ec86bfb63","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":42,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"9b0a7775-730c-4843-99f0-431779d2a74a","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":42,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"f08d76e2-b481-4c93-9ee3-379b9d003cf9","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":42,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"1cf5e6dc-5206-4979-bf79-579d715ba036","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":42,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"07efd5e5-13a4-411f-a6ac-990170bec174","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":42,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"6f987eb6-616a-433d-9f19-7707bdcf12f5","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":42,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"72e4a2f7-5d39-459b-b090-e7a276f2d1cc","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":42,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"0304b958-0118-4233-8bc8-da4dec43b9ba","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":42,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"12f4c11e-1cb1-4008-a96c-9d9b2657be39","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":42,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"0f07345a-8adc-4066-816e-bbccf29429ad","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":42,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"3c758c76-21cb-471b-9d49-ca6d00120f02","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":42,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"e2719555-77fa-44c1-a235-53d1663c3211","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":42,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"68afcb2c-f56e-47b1-9ceb-bbc746d18e9d","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":42,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"195521ab-eae2-4932-99bf-3769302b0e29","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":42,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"d12074e5-e3b2-4ba5-9737-85f37f7cb291","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":42,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"d160e65d-dda2-4334-94ba-234025a49d64","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":42,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"07f1c90d-7e38-4a49-a080-927c2e09d261","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":42,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"41fbe57b-ac51-4e4d-9d1b-1c6e165add83","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":42,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"fbe0d6ec-9eb7-4c2b-a6b3-b874c428aab0","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":42,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"a3148ea1-a7e7-4f24-b026-47634db76a73","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":42,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"58ed5aa2-185c-46fa-90cb-d2abc18c6412","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":42,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"23092920-1721-4556-95be-9265a6d4d78c","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":42,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"fd78e0ba-8894-484b-a76c-71c01f71de36","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":42,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"af1be7da-0350-4a3f-990e-30c666495b95","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":42,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"f2c9eec1-a6d5-44be-b773-dc2a9d3e2980","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":42,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"31ed8bb0-6823-4e90-9d8d-1546cc498bcb","block_type":"box","text":"II-12","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c8ce1160-c70d-4c64-aa32-f113a22a86a5","block_type":"box","text":"NM1026U-5984554-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"77d22205-07e4-4f82-bcf1-27ad83c93155","block_type":"box","text":"Derivatives.","page_number":43,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"1fec5b6e-0a57-434b-b301-0bbfb47de4a1","block_type":"box","text":"General.","page_number":43,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"3a33b2cb-332b-428b-b23f-44243ad9b9e3","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":43,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"997ca5fd-a2e2-4e16-ae27-a2a7913433e9","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":43,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"15957638-b80e-460d-9707-bdbd53f31d5d","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":43,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"292f9008-2eb7-4906-b27d-be1bdcf4c44e","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":43,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"77d4de28-6a68-4928-88a1-86e977c916a8","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":43,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"c3688d90-7ce9-4c46-b180-7440fa55cf6b","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":43,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"7e48bd32-3b38-487c-9063-e4058041f0e6","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":43,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"e67a17f8-fea6-490d-94b1-0436c62e7e34","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":43,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"e3321e3d-2146-40da-a9dd-89c562046a8d","block_type":"box","text":"i.e.","page_number":43,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"0f8b5779-ad82-4e5e-8e52-c408565deafd","block_type":"box","text":", the payment","page_number":43,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"8e2ebc39-4efe-4aa6-a50e-1388b3c8ad58","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":43,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"39aba5b2-4253-4033-a7d5-6e779b0963c1","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":43,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"063d5c9c-a219-49d9-b65e-5b514189587a","block_type":"box","text":"Hedging.","page_number":43,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"5877363c-0882-4e04-b90f-758042e27350","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":43,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"1b524369-68d6-44f6-95d0-13ab5c1921f1","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":43,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"258ed536-fe5e-4752-9752-da516e4792b5","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":43,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"39731e01-a0f8-4a8f-a8d0-92c4c98d55dd","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":43,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"76945b0a-cbae-44b7-b9c7-2061491aefbe","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":43,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"2dcbad1b-4489-44bb-a15f-0630f73d8f1c","block_type":"box","text":"correlation risk,","page_number":43,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"f0078726-30b9-4eba-88bd-2823dd3a1de2","block_type":"box","text":"i.e.","page_number":43,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"f2b8526d-19c0-4487-9d0d-1f84cdae1dc2","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":43,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"c68a3cfa-e7ea-4435-b0fe-015c56bbeb0d","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":43,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"4728bea1-edf7-4664-b1af-11450c2b923b","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":43,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"8429001e-e7c2-4bad-b49c-bdf1857f23ef","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":43,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"05d413f4-7c7f-4b30-a6bf-d273c6afc11d","block_type":"box","text":"Speculation.","page_number":43,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"05d037cf-ecc0-4dee-a97c-d64125ae87fa","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":43,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"519cac94-f205-4665-aa31-151f282f2bb8","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":43,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"ca69e8d0-97e5-4dae-b0a9-fbd565801547","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":43,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"9b6931ee-dd71-4c3a-9e47-eff4035f1493","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":43,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"c19892fa-0871-4d74-b97e-7fa822fbb66f","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":43,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"57bb1372-1b5c-43a6-b042-230a75c00662","block_type":"box","text":"Regulation of Derivatives.","page_number":43,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"00ec30b7-2a40-4f88-a292-3bb25e168a3a","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":43,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"928b7110-e98a-44b1-9e27-2b8af1b1fff4","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":43,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"48d4cf73-d43a-4f07-a3d5-d6abeec3d649","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":43,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"715623ac-4e07-428d-9790-cc5c6e58902f","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":43,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"27c19692-7695-4ef5-903d-35926b6dd14c","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":43,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"df0fe05f-3481-46f3-a384-3131bd7087d7","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":43,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"bb813eee-3f32-4391-80de-28884bd364a7","block_type":"box","text":"coverage”).","page_number":43,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"bdd46ee5-d226-4bdc-9fd6-b32526cc0b0f","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":43,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"8fb01e63-1b4f-43e4-8095-8dbc78d2449c","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":43,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"d0f80e1f-08fc-44e3-a46c-efabafa964a3","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":43,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"9dc83958-fb7c-4084-82e6-090cf2ceb1b4","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":43,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"9afe7682-b9b5-4f34-8e5b-7b667d21cec5","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":43,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"491d8812-7754-4f42-84f0-5974def9941b","block_type":"box","text":"financing transactions (","page_number":43,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"f601874a-9f0d-4cbc-9682-62fb61b66a9f","block_type":"box","text":"e.g.","page_number":43,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"709bbcfc-0040-4398-9ffd-631f962d4072","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":43,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"31fad369-da1b-4dee-89d2-d621af00b7ac","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":43,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"68cfb5bc-de21-465e-a8d8-dc651e097022","block_type":"box","text":"securities (","page_number":43,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"e05d558c-d9f2-44ce-a9c9-33a9004a65d5","block_type":"box","text":"e.g.","page_number":43,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"d1440886-5882-4b2a-9cad-f7174ef3ffa7","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":43,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"a92c936f-e7ce-4f70-a375-74ba0a32205b","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":43,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"ce0a9ce0-30d4-4d37-ae9a-f33e3620248b","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":43,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"bf89935f-5068-47fa-8c4f-c5e71b1fc7b1","block_type":"box","text":"Commitments”).","page_number":43,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"fa177b0c-a571-413a-9798-220e69c38dd5","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":43,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"67336b0a-3efb-4014-9f38-1d9d31bb5ddb","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":43,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"fd129b53-215d-4387-8874-85b6808b84f0","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":43,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"e929c201-36f3-4c82-93c0-9490182d0862","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":43,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"0520d514-214f-4a64-bdc5-6d284303223b","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":43,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"726fca72-f5c1-4abe-a8b8-a4317dc93bce","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":43,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"02f1834e-5f02-448f-b303-0611e103c851","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":43,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"8a228b4f-d3c8-4fa5-8d4e-7798c4801d68","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":43,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"a415ac94-facc-4473-bf3f-9b489515226d","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":43,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"28cad7ca-5e46-465b-ae1b-1735ead655cb","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":43,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"2f9a7abb-a9b7-4873-8c22-8c0969e10949","block_type":"box","text":"II-13","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f946f29-a9ea-446c-ad8f-d1cd028e34f1","block_type":"box","text":"NM1026U-5984554-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fb8908d4-a25d-4480-8e31-f85c93b0a133","block_type":"box","text":"Dodd-Frank Regulations.","page_number":44,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"8a75710d-6261-42ad-ad1a-e451a5876678","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":44,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"677d83d2-e21c-4a4a-8947-e7d9262db6ce","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":44,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"0a4a3cce-1ca9-4a8f-9623-25e7b1d286b8","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":44,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"d3f6b8d3-0f58-44a1-aceb-dfa07a981aaa","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":44,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"ae8129c3-ccc0-4dd2-9b66-549acba43426","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":44,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"32b265c4-f558-47c5-b87c-39b5c84c01db","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":44,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"df7c4cc3-5b2a-43ee-a0da-3ff5d80c57cb","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":44,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"78d6f353-4c31-4992-80ba-13d8eecec37f","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":44,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"14c8ff88-8918-4bd7-9e52-ce934bf0fde7","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":44,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"73d021d2-bca8-4ee2-b893-9dce38bad0e4","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":44,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"1e7de6c5-e865-4b3f-879a-7e47ec3ce687","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":44,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"f9f67624-8c87-47d2-8b6c-dcf74c53f0e5","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":44,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"f20ef937-a4d8-452e-896b-e8738ac9ab22","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":44,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"8d068c7d-ef58-4e5e-88c2-0d27dcf61e96","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":44,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"f30df984-050e-4a24-b9d5-e34406d45f09","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":44,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"b2874c57-46c5-4fd2-931a-9f485795421f","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":44,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"52c84f26-1b0e-4163-842a-52a86279c2a0","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":44,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"9a4165a3-cb7e-4df9-ac5b-c63faf6d45fc","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":44,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"739403dd-b40b-46b9-a32c-5a0fc69de58b","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":44,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"a8b4a300-6a98-4c4f-9698-bd17f995258a","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":44,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"4d498f85-3fbd-4dc3-bf6c-e1bcae19f08d","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":44,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"2d3fa08f-526e-4a2b-8b15-48ce71fb8000","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":44,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"be6a26f3-1d95-417c-b0fa-7aa02ee2e9f1","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":44,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"218c8441-635e-4a16-a900-6f62a6d3f71e","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":44,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"892c22c1-7fe5-4672-b17c-64500b6c0935","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":44,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"8d0507ce-daa4-42e1-8147-d60567cb900c","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":44,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"a31d2fac-913b-4ad0-a33a-81dc705e02b9","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":44,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"22a39af0-2f13-4d7c-98d9-4168af8b8d07","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":44,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"aefc748b-efe6-4e8b-9d16-bfbdd280f1dc","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":44,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"66d2f992-6732-47bb-b227-8e35955f66aa","block_type":"box","text":"member.","page_number":44,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"48978cbf-716b-49eb-b763-17faa33a2010","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":44,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"278f7006-c2e4-4464-bfee-6f16c8774b69","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":44,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"02d60a1c-b5e5-47c9-8d55-352e6197c743","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":44,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"ddc40340-ca6a-422d-b11e-c94315cad3a4","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":44,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"1b43806f-9fef-4e42-a1f7-8ba1ee542500","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":44,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"bb369ad6-e6b9-4f72-83ed-06179eae5bcc","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":44,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"9b1ffe9d-2c50-441a-a79c-26b145a146a7","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":44,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"d1b683f7-7f7b-41a4-9500-4da4d2c500ad","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":44,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"aeb6d530-12c1-4d4a-810b-e734652a1424","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":44,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"719fddd1-9c17-46ce-9edb-71d475091a0a","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":44,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"996549fe-07a8-452a-825c-9dc73018cb75","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":44,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"837a5557-a810-43b1-aa89-7ac766c5eff5","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":44,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"6c41ae62-3b0f-425c-bb2e-f4ed2f11193e","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":44,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"89a29f68-52c8-4a87-ab59-e5b70363b924","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":44,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"f887f245-86e2-4162-93d3-c9208ed40a10","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":44,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"7723c67a-5586-498d-bee6-443640f5960e","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":44,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"7220e821-984e-42a2-bc72-456c2adc5524","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":44,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"8f937073-80d5-4176-971f-2c48608b03ab","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":44,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"07630395-f6fa-4f2c-8bd7-9737d7e5e701","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":44,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"d33754db-ced8-4cb2-bb14-0e376528f04d","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":44,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"0286df53-e9a8-403d-bc8d-d701baa1b8cc","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":44,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"8ba185c7-e523-4c83-b58f-27f7980adb5d","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":44,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"26477af5-f848-42b4-8aae-c2eebd9f9550","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":44,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"92104ed7-4a90-4353-a23c-1e4303af970b","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":44,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"6c6259aa-86e0-46c8-8db5-86fa7efa6292","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":44,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"01f4c00c-2e6e-49d4-a034-b691e0a4dc86","block_type":"box","text":"II-14","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c675d49-821f-47ba-bf5b-6a7fbc726595","block_type":"box","text":"NM1026U-5984554-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"33530af1-8f3c-4459-8b92-db3d3c060ba0","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":45,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"2feedc76-e686-4e89-8530-cec6910ad9d1","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":45,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"69266400-f05f-4b98-b330-33da69ce2bb5","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":45,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"601095fc-25cc-4ca3-b181-03a2bfa4d8e1","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":45,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"554c983d-caf8-4432-a311-417532533eda","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":45,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"b91ac9c1-925e-44e7-818e-3067966af50a","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":45,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"f3664736-34a4-452c-b850-2e69273c3c26","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":45,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"6ed17239-4b02-49ca-b250-ebbcd48ddcc5","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":45,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f1b0b592-536d-4801-bc7c-eb86e175d440","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":45,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"bf5e31c1-2a9f-4aca-8956-eb5d5cc533d4","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":45,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"85ea2395-cf24-4b94-9239-f09728eab708","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":45,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"1750f0ab-aedd-42f9-821a-a7a1814881e5","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":45,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"9de5ea36-ba9b-4d67-81f2-e2a1fcb9e416","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":45,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"f568cd26-ab5e-48af-89a3-1f1f3a34b9da","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":45,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"e0e338db-7146-4a90-b3ec-db17dc5207da","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":45,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"1500d680-0b0e-422f-832f-f78da92ad443","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":45,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"51061aac-edb3-45e1-a0f7-a73bb6d48a55","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":45,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"01025819-05f8-4bc7-a5c7-df220f5212f4","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":45,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"446ceceb-c1f1-4ed1-b3d1-7fb2384c9046","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":45,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"789ce761-a913-4c79-a5ba-41318d220221","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":45,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"439b7877-c1cf-495a-9b4a-cf9421085dfb","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":45,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"0866fce8-6c2e-4ab0-ada3-4c732933d094","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":45,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"dedd93b0-1117-4d05-929a-0dba4f637fb3","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":45,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"f2b22300-406b-4e78-b44d-6aad353d117b","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":45,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"e5be0864-eec1-4177-9905-7148fc07c37b","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":45,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"57223d44-2554-4a40-b046-6226be85bd8d","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":45,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"39677150-1d19-49c4-9ed7-872c75fa8178","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":45,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"4edc9223-f35b-4196-80ec-67e422f0c66b","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":45,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"9b0f9338-5609-4f86-9bff-a85f4bf86f8f","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":45,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"e236cad9-739f-4f56-907f-aae246a662f6","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":45,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"913ebe6c-a584-4e98-943b-acbf9c8e9d57","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":45,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"42062133-addd-47ab-8c54-0716a8ccb876","block_type":"box","text":"collateral received under such contracts.","page_number":45,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"6590a614-4e5f-4de6-98cb-f40d7f7764e3","block_type":"box","text":"Risk Factors in Derivatives.","page_number":45,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"61748768-9138-479e-9622-17467d5f3dca","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":45,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"5efbcac0-2596-4252-bb38-9c9b13792835","block_type":"box","text":"Correlation Risk","page_number":45,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"1be5ad01-a055-460a-ae9d-bbe2404d8a36","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":45,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"54fc0a5e-fff1-4e2c-bf00-dff4e4c0c672","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":45,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"8dfe16c4-e3d9-41cb-bc1d-9f8fe084339c","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":45,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"3ac4e622-80c8-4a8d-a6af-d4cdb3410878","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":45,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"ef6ee2e8-680e-4db1-adeb-626d385ffd20","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":45,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"4409d7ed-62c8-4aa0-b733-c5c632079fae","block_type":"box","text":"Counterpar ty Risk","page_number":45,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"3983f8a4-4298-4cad-a9f1-7940760e33ef","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":45,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"78a06df9-0edb-4ccd-bb26-b907189c216b","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":45,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"886df368-b5e9-4a8d-af71-c9170b713d05","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":45,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"e99d32ef-709b-4eeb-bdb1-34380649375e","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":45,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"916492ea-a373-40ad-9ef3-d4ff0d6ea8ea","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":45,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"9404c450-af20-4def-9a32-bcddf7ca76fb","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":45,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"1c8b7408-1ee0-46a5-bf0b-39870724061e","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":45,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"7ff40745-bbfb-497f-9acc-156560f46626","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":45,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"c42208bb-512a-48f9-b464-4f57c62f496a","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":45,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"d9705472-b8ca-4fbc-9733-a122b3406db9","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":45,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"0fc9738a-14ce-41ad-8bf7-4f5d6aa24f36","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":45,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"202dd1a7-6f35-4c8d-bd8d-a03e4ca9f42a","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":45,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"826817ca-949e-4545-a10f-c717cde2d602","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":45,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"8eb1b402-a55e-4d27-8494-cb514cecfe1b","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":45,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"15b4dcd2-7953-429a-b2ae-d19d36e55ecd","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":45,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"217ba526-4358-41dc-b4f0-bc7bde20dd5f","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":45,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"6aef4a8b-edb2-4dc4-b9e1-913985c4c670","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":45,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"ef3c1cea-5b98-4de5-a22b-22e58263c8c9","block_type":"box","text":"II-15","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86a75d11-3a48-4d5a-a3e8-420588998377","block_type":"box","text":"NM1026U-5984554-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f56f603c-c569-4fdc-a674-7cd6f1efb12f","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":46,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"ee9c5a1a-5859-4aa8-8e8b-9bb47a6216fb","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":46,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"299d7c0a-3385-44b0-8403-5e99a9e1e2ad","block_type":"box","text":"by the clearing member.","page_number":46,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"149bc8b7-f7ab-4ed5-b7fb-4672ad369304","block_type":"box","text":"Credit Risk","page_number":46,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"3d989fe0-dd9b-4908-b211-0ad440703f84","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":46,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"33952299-5a24-460c-b1cc-0c10285e905a","block_type":"box","text":"honor its financial obligations.","page_number":46,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"498f98b2-422b-4ef7-b3eb-f0a6a34c8b8e","block_type":"box","text":"Currency Risk","page_number":46,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"7104ea3b-dbfe-400b-9b3a-ab3a00d0deb3","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":46,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"3796c8b6-bc6c-4937-a1a1-fcb257a1d76a","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":46,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"e904dd02-4646-4901-932e-ceab6c409060","block_type":"box","text":"Illiquidity Risk","page_number":46,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"dfb23ef6-049d-4e3c-b6e7-0e7ba8100f3e","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":46,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"022323b7-386e-43fd-b4ed-1b6f618df6b0","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":46,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"006e75af-b420-4866-b778-ef9147656e00","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":46,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"66856927-de7b-4737-bd01-98301891a63c","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":46,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"818ab5ac-28c7-4f89-93e8-81e908c1e851","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":46,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"3c12dbb8-e68d-4f2e-821b-9d437bdd23e1","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":46,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"5dae2c94-1f50-4319-8a54-031c6dacf794","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":46,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"bbba379a-d579-49a1-a1c3-b2029435645c","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":46,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"92d9229c-7a75-4bbe-92bd-ca4b59959ab4","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":46,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"26634c04-75a4-4617-9842-cf50e214bf60","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":46,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"1ae1e139-6a5c-4759-9c96-9ea61aec0c27","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":46,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"8c87c6d7-6bbd-4f23-8a3d-326f0d3d8421","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":46,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"76757c08-0d99-4bfe-a387-c9ca4f540a7b","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":46,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"f24ae46f-99fa-45f3-b359-1ceac0f5e084","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":46,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"6680c79d-197a-4376-b111-1acf3d29a710","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":46,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"82bf3916-06b1-46d8-a587-9a81e4fcdaf4","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":46,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c7406661-aca5-4f8f-9da9-126fcf2427a1","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":46,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"a30022ff-f01c-47f7-ba0d-44197da80fd1","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":46,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"ae2c269d-26bd-44d0-bc7d-eeedef4a53f2","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":46,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"1eab2512-e233-4cf0-9a0f-029155e47773","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":46,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"4059852b-47f0-43dd-b967-eef3ed6baec8","block_type":"box","text":"may be disadvantageous to do so.","page_number":46,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"54cbaca7-2053-4f32-8014-6ded90934dc1","block_type":"box","text":"Index Risk","page_number":46,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"396f7567-317c-44b1-9281-d05f7f8b9825","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":46,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"c333ac26-3091-4544-890b-f64fe33c58a7","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":46,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"18262416-8d6d-4c70-ae00-6ba77020f48b","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":46,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"21cb947b-adac-4175-8223-67bdf570aeed","block_type":"box","text":"Legal Risk","page_number":46,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"80478463-a9a8-4f3f-a209-ec96dccfbb2f","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":46,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"d6f55458-dbfd-467b-a96b-f49551bcecf7","block_type":"box","text":"or enforceability of a contract.","page_number":46,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"37584468-0d0e-4e1a-8508-25fb000b1b15","block_type":"box","text":"Leverage Risk","page_number":46,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"07bc4805-2b76-4297-bd31-1347ce15dc4f","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":46,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"52e02eef-410e-454c-ac5c-90918b41461f","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":46,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"b47b2a8e-2157-4227-aee1-0370ba73c912","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":46,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"d4a6286b-7bb5-48f4-91bd-3f9b4ef24dfb","block_type":"box","text":"Market Risk","page_number":46,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"2e33b3c0-aba3-43ce-92c5-2cf7844afa5f","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":46,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"ce8f5389-a229-4b2e-ae64-543742b7316e","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":46,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"ca52a6d8-f545-4c53-abcf-4466db7a26da","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":46,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"a06bc7af-6b98-4c40-8f5e-0bcb542ceb83","block_type":"box","text":"affected.","page_number":46,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"b866bb4f-1e82-45a6-8284-aabdf1aab48f","block_type":"box","text":"Operational Risk","page_number":46,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"b846d265-425c-4158-b840-13180ad4ac65","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":46,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"5704d091-99fc-4fec-9762-6e4806adb8b9","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":46,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"59e73333-dc59-4c05-8028-48790d501f9b","block_type":"box","text":"Valuation Risk","page_number":46,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"a300f79e-7c51-42ae-9be7-60e622db728e","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":46,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"95f7ddbc-4a97-49bd-8581-989b4017b708","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":46,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"be4ed628-2753-4237-81e0-51c1f9702124","block_type":"box","text":"complex instruments or quote prices for them.","page_number":46,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"02705720-a49d-43ec-8e48-33b3f86b5dd6","block_type":"box","text":"Volatility Risk","page_number":46,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"0d88e90f-9012-4091-b325-726090ed1e92","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":46,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"d515c36b-6b61-4006-adbc-782fce25360f","block_type":"box","text":"Types of Derivatives Transactions.","page_number":46,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"968d5cc8-b8ef-4a17-8a22-f704a31c31f9","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":46,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"fd4b6b0d-56f5-45a8-87cb-e50c851b567a","block_type":"box","text":"including the following:","page_number":46,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"45f8b368-16a9-42cf-a2a9-9f47c7554df8","block_type":"box","text":"Futures.","page_number":46,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"9a69aa14-6e69-408e-b735-578222214239","block_type":"box","text":"II-16","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff3e799d-d4ba-4cc6-93ec-fecc7da5b094","block_type":"box","text":"NM1026U-5984554-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fe99fcef-e976-477c-9060-e906ac33fbe3","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":47,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"dce1f1ff-f230-4707-94d6-e5e6b845250d","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":47,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"135003ef-62ba-4336-8b30-60930ed3752d","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":47,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"b6297c32-39b7-45a0-864f-a85f8d38c9d6","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":47,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"9fdc60db-ba68-42c2-933e-da727403884f","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":47,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"42611d2c-f2f2-471b-823c-f9c8c70e289e","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":47,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"75ac255f-c87a-48ac-ac80-46dc190fd44d","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":47,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"16c192b6-420e-439c-b4d2-3775637bf7c5","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":47,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"55737c92-1b15-4f98-a6aa-a9e2df6668d7","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":47,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"83e458f8-607e-4011-82de-98e46dfa91c3","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":47,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"f2eb863e-fa9d-451e-b072-89f089fd1b01","block_type":"box","text":"of the futures contract.","page_number":47,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"0a7faad0-390b-40b3-a95f-f77166c78648","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":47,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"0ff351e9-8749-463e-a0c3-af8735fd7a18","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":47,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"a9b10dfa-9c5c-4afc-aa2c-a3a3510db42f","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":47,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"4f207a98-539f-4ff1-954a-5c7640a13fdd","block_type":"box","text":"relating to the futures position.","page_number":47,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"fb2a3079-5181-4ed0-b346-abc78c110a05","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":47,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"adf977c6-e409-48fb-9c56-3fb8963db617","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":47,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"6ba2ca9f-aa21-42b8-b28c-dc941099f6e8","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":47,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"58c9efaa-7b2f-47f0-b328-b71e9962aa81","block_type":"box","text":"Regulations” above.","page_number":47,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"1132f160-4929-4164-998c-1c6a41daf53f","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":47,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"58e8a654-8d5a-4c78-b98e-022c04ad57c7","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":47,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"67c84c13-8d3d-4845-9167-1246d2a1b7b3","block_type":"box","text":"(","page_number":47,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"ad9e92a4-991a-40a4-9ac1-a2dee133b89a","block_type":"box","text":"i.e.","page_number":47,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"c8eb51f3-3baf-4b16-acf2-5ff7b6bc8745","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":47,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"46a6e230-f4f7-447a-b263-6ef85566b2f0","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":47,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"e98974d0-ac76-4e3b-a16e-2425e4993009","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":47,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"e5de0133-109a-4a1f-a106-d4f0429350d3","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":47,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"9e130a12-5b6d-498e-915d-dcf1a7e31567","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":47,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3275360e-dd56-491c-a1f5-5d06b4a5aa35","block_type":"box","text":"Fund intends to purchase.","page_number":47,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"14aa567f-3017-4728-a1c5-8677fcd2fd4e","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":47,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"c252ef9d-570b-4299-b1a4-2de9a4e6a919","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":47,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"2f826111-bea9-4a88-af7e-0b89621a139a","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":47,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"5550962c-19ec-4de7-b42c-db93683bb3bd","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":47,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"2ec2e536-139d-472b-9b0b-e5e0fd58b8eb","block_type":"box","text":"illiquidity.","page_number":47,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"d4fd196e-48e5-4d5b-9eaf-bfea7e8c82e2","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":47,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"679c36fa-2db2-47bc-a20b-31e8e927ef3d","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":47,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"23927fc2-51e8-4317-a3ab-ec2cd1f9f239","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":47,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"0a4fd8f7-6261-4c86-8755-275f51be46ab","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":47,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"6332b57e-5876-42fb-bef4-3258dd86652c","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":47,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"1837c50e-367a-411a-84c8-3507e74f6e1f","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":47,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"f3687c6f-4cf4-4f13-8dc2-46dd18853887","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":47,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"9345fa8e-0ee7-4811-ba22-aeab78014753","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":47,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"b6d44a2d-af76-4455-b143-d292af0888b6","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":47,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"b52ee75d-b079-4415-b216-58839b680456","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":47,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"b5b1131a-b254-4117-8c8e-3aa74d94ac9b","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":47,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"ae1620ca-af0b-4783-b643-e4f149c1d7c0","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":47,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"1ee3ca65-cd89-46ef-b5a1-bb9914dcada6","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":47,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"83ab4d87-60d7-4ede-9ccb-ba8506d72db3","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":47,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"8419c9cf-9d97-4ccf-bcba-ea7c4f64914e","block_type":"box","text":"Swap Agreements.","page_number":47,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"ea2cdd0b-fb43-4312-a78e-7ed308240f69","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":47,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"d37630bf-3331-4565-be4b-39bed946ca37","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":47,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"c95d0681-c30f-4320-94fc-527e402307da","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":47,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"d0528524-a195-442f-b555-ed9955233369","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":47,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"5b0f7501-bcaa-4e34-ac9a-a6a8fe9cee7c","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":47,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"d23e7a4e-9b6f-46bd-aeef-0bf56595abd6","block_type":"box","text":"a “notional amount,”","page_number":47,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"aec760a3-ef3c-4549-a921-ecf310978091","block_type":"box","text":"e.g.","page_number":47,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"8e6744cf-6a57-4f0a-9828-b9aea422eac5","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":47,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"15617531-1a7c-450a-b49e-e1d4db084342","block_type":"box","text":"II-17","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9cbabb11-b922-4be0-bcb4-fb94d0bddca1","block_type":"box","text":"NM1026U-5984554-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dda228d3-c116-435b-86bc-20dbc17692f9","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":48,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"615d29c2-57c0-40eb-a3c7-340df432a84a","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":48,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"84a8e5ee-581c-4414-add8-fc8ddc8f0902","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":48,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"ba57fdad-29d9-4ac4-ab00-5bc3ed3b47ad","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":48,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"3c425548-60ed-4867-a5bd-0fba1b88b191","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":48,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"e2a79603-e398-48f2-8897-3ca1e612c4a8","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":48,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"1c214a53-7b85-4106-9c87-bd8be4e7ba81","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":48,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"1b9bb6ef-d8ad-441c-9be0-d9e7bf000672","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":48,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"2f3e3551-e862-4b4d-a6c6-c98f95913d13","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":48,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"ec341928-eadd-4424-9166-300abb391edc","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":48,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"ff9dee31-4a5c-4365-9997-e28ae3813c1e","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":48,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"0b50d126-33d1-4c10-8a96-1ab5d959e66d","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":48,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"038476c1-aa1f-4bab-9947-ad6a9b0b9f8d","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":48,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"b61677f2-2f78-44de-ab71-d78aa5f182f6","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":48,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"4e03b5fb-9538-4a67-b147-6e3eba6b3ace","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":48,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"b517c84a-2412-45fe-8910-22e851942906","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":48,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"94190365-7812-4d5d-8f94-d0a6a7e51e3b","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":48,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"7bb0d4bb-f3a5-4760-8877-6447d6623a23","block_type":"box","text":"index CDS.","page_number":48,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"98fae6b7-9322-4427-b749-2490884ab700","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":48,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"6e95e540-c433-4fdb-a9fc-86148585ba75","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":48,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"0a09b7bd-286c-41fe-a063-06628a319f2d","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":48,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"fc49d715-86cb-47d8-a015-e076a752218c","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":48,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"d07b2518-078b-4c65-a20a-2d75ba3c585e","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":48,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"7430f6c6-1638-4cf9-aad2-5d3610b8545c","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":48,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"15d1bd83-b048-4de3-b921-099c78ce172f","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":48,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"a991c656-9e0b-459c-a39d-e0d7bead35d8","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":48,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"a21d7040-ff56-44f7-9c65-40fa77805227","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":48,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"343f0baa-ef8f-4a8f-bdf7-497797485169","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":48,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"d827faf9-d557-43c9-9a51-3dc4bafa66d1","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":48,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"1ee8dd50-9c8b-479e-9444-a4b5d8908b88","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":48,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"69c46610-5260-49a3-ac77-7966dbb01315","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":48,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"453fa620-3728-48d0-bbd5-65546db6e32c","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":48,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"a7311969-41d2-4ce8-9369-34012c077bea","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":48,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"f660954f-c2d7-4abd-87d4-8e32175a1e62","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":48,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"4f87eaea-d136-4f63-b340-b423e7985c2f","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":48,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"30e6f695-5443-4c4c-9e5d-e3d438069916","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":48,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"d77de8e7-a59b-4e72-8f44-3a935e0f9733","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":48,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"125d184a-9467-4c4e-9e40-d21b4e529886","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":48,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"c2dd55a2-df02-402a-8293-bb53763178d5","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":48,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"03e991ee-592c-4cef-bfbf-880b09646ceb","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":48,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"8979b5a8-befd-4ef5-8759-36b859096f54","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":48,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"d4644d34-561a-43cb-9cc3-38e722d739d4","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":48,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"14416ba2-ca18-4b8b-975a-322af4406f79","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":48,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"6fa1b633-de3c-42d0-8f41-f6a4f7c0da02","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":48,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"11067d08-da75-438a-8645-15a81247adc4","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":48,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"e663f5f7-b2fa-47db-b756-1d93a6b709f5","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":48,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"58b19c78-d94d-4731-8b62-77cfa1694d7b","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":48,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"ab51bb35-5574-4118-863b-da2d26bd9d23","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":48,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"61e19e39-ec4f-4721-854d-63753afb851e","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":48,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"90339f97-05c9-406b-84fe-d741a178c1e2","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":48,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"8d67b54d-96bd-4451-8ade-f0f7db6be39f","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":48,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"6d0a4ff0-9d02-4ae1-94d4-c4b7e2fa0a10","block_type":"box","text":"conditions.","page_number":48,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"b338f9e7-e0dd-4b6e-ba5c-e82467a4121a","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":48,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"f0db5de4-2f02-4452-bc69-6dd107283fbe","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":48,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"1a236222-0e4e-4bf6-b1d5-5f971ca1f89d","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":48,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"18aedc6b-6d1a-4cfb-8d54-accb33258787","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":48,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"f64b9b3e-9603-4612-b895-3884f36ae7b2","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":48,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"7e166643-8d6d-4a39-beb2-2acac37e62c3","block_type":"box","text":"II-18","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"07f3e614-b627-4b63-bcd6-8c460ee012fa","block_type":"box","text":"NM1026U-5984554-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f213de8c-b339-4f8f-a390-dc8d9b96e4b5","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"4b395349-8ba1-4622-8bdf-69e64cc8dc93","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":49,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"6f5e0cb8-1e7d-4f34-9c58-73573b78fd94","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":49,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"36a8ec87-2d45-4427-87b3-e45d1e82c1c6","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":49,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"3b173567-1a04-42bd-ad01-3dd729a2f5a0","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":49,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"f8e51b65-297a-4adc-9643-86dff506fd29","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":49,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"323e336a-8e5f-4739-946f-f4b75de6717b","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":49,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"58a8ad3b-4047-43b3-b76e-8288c5511759","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":49,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"44989eb6-2e5b-4f81-bb91-fefb7ac4d63e","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":49,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"faf489a1-60e2-498a-802a-6940f7128b40","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":49,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"bd2eda12-9219-460e-9e87-e72297f60c59","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":49,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"14b4f671-1d04-4d36-abfc-0bca6e379475","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":49,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"515f4664-2ad6-402f-ba79-4d65b15497e9","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":49,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"915e393f-5991-4f93-8cee-b966c6a822eb","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":49,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"e13b252a-239e-48cb-a064-5d8c20997a4b","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"bb52529c-6bca-4b6b-acd6-ca44757accef","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":49,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"3f67e59d-5547-44f1-8065-e95515371009","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":49,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"d52c827c-c933-4c1b-baeb-895b77f9d6e5","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":49,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"9f4631e2-0511-4265-8cd4-340e35901daf","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":49,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1f88f50a-a4c6-4657-ac7a-9fd29faa5e6f","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":49,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"c53c8873-5503-45e9-a4fb-53015c01c77c","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":49,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"573dca10-6671-4c84-9810-1a0d973810de","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":49,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"86464f02-e3de-4d7e-a168-7e32b9ecebca","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":49,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"77226333-ad8b-44b9-afe9-781b6d96b151","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":49,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"2dec1600-89fb-41a7-8018-8eb10b8ad904","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":49,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"27f91f1a-ca7c-4250-b7fa-2c8b823d942a","block_type":"box","text":"cleared interest rate swaps.","page_number":49,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"a7d9b887-635b-4fc6-86d4-f41f58af0c5e","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":49,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"2549dff6-399b-4b78-9f8a-025d2014b165","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":49,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"ff68fafb-3fc0-4c25-8f11-3e7f425a95aa","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":49,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"1006112d-ce70-43e9-a286-2eaa03e13546","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":49,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"f2d1d51c-4192-401b-963b-309ec4f8e860","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":49,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"0dc0b80e-872f-4e71-8eaf-ceb3bd1068a5","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":49,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"ef8f9afc-97f9-472a-b278-3d622734ae61","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":49,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"fa7122af-dada-4522-bd63-08e67ed11e34","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":49,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"c6aa3482-b3af-416d-ab3a-a1b4b8e393ca","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":49,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"6f66bbda-9e28-4402-b61c-d0eee8e19c5c","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":49,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"48eef8e2-3965-414a-beee-adde38c3bd05","block_type":"box","text":"or variable interest rate, index or asset.","page_number":49,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"a27a8ac3-1e5a-45f8-8760-de41f8f7b11a","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":49,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"c2a7992e-a023-4e4a-9e71-1062a879fdc9","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":49,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"9fb82346-d971-45c4-b451-281451516ad7","block_type":"box","text":"such interest rate floor.","page_number":49,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"61bb9d66-87cb-4d55-8024-55d832490506","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":49,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"1bad2cf5-4d0f-4657-a6b2-12bd3d3ffb6b","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":49,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"7782b192-1f7a-4ac8-8342-468abb67cbee","block_type":"box","text":"such interest rate cap.","page_number":49,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"e1c83fad-9d54-452b-9b79-b9b561e61901","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":49,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"fb666503-dd5b-44fb-adb9-4dced9bec9ad","block_type":"box","text":"commitments to pay or receive interest,","page_number":49,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"6a83ee1d-eec8-4014-aa37-b9c71e992b29","block_type":"box","text":"e.g.","page_number":49,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"0bd24eda-0169-4609-8a55-1e09438e4df6","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":49,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"4a315b8d-eeb6-4dc7-b306-fb3e8bc9fec3","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":49,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c95fc9fe-3aa5-4516-8b0e-b247d63657b5","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":49,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"991171cd-283d-4bfd-88ac-857fe6744c5a","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":49,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"34d0bc84-a1bc-419b-917a-c186d76c82cf","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":49,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"74bf7f5b-c4b1-48e2-aca6-80628a01a5ca","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":49,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"b40e1a29-9ef0-4b47-b55a-a1601c7f9729","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":49,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"cfb61bbd-0d65-4355-a85f-57a574e20c50","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":49,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"309f0027-ada5-41a0-8710-68f700417fd6","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":49,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"5dbf07b9-b7a0-46fb-85e6-5ee652089bdf","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":49,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"702e7e41-06b8-49a5-a3bc-8b380775dcfd","block_type":"box","text":"II-19","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d76c02e7-519f-43d0-aeff-37ebbc6ede60","block_type":"box","text":"NM1026U-5984554-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d208de5a-b16f-4046-8d50-580c302f1a4e","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":50,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"4d1aeb0e-d944-4e1e-9875-59215699aaaf","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":50,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"7c851a72-000f-4c00-9011-d1a8e53a226d","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":50,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"f1259fa2-401e-4200-a9e0-21b4dae0f88b","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"3e2908f8-3fde-4480-a262-fffa0e30da17","block_type":"box","text":"Total Return Swaps.","page_number":50,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"c80cf74c-cb54-4148-a784-99e31d309c28","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":50,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"63c7ddde-57db-4a4b-8ea4-00439bec7713","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":50,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"919e2350-58ab-4f59-9fe5-0037334cb959","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":50,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"f0721fb9-5a41-41f5-b2b8-bfe8fdfa302d","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":50,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"f32cab09-9a21-4ff6-b591-3a812615c5e5","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":50,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"50843ca1-4e8f-4fcc-9245-5e4c7a317c24","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":50,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"8007d8c9-442d-409d-a530-817b9451aeac","block_type":"box","text":"“contracts for difference.”","page_number":50,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"cc7f77e8-c383-405a-96bd-b21cdde151d7","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":50,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"3d905827-9fea-4859-90e8-cf27744c5496","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":50,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"276f1864-b126-4aed-95ec-46ed443f630a","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":50,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"9c8ac9dc-f931-4680-af4c-2527416caa82","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":50,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"b54c507f-e4a2-47be-bb7f-497aac648484","block_type":"box","text":"the notional amount of the swap.","page_number":50,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"dd35a827-55c9-44f5-bb67-2281f0e33a92","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":50,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"0d9bc9ac-8fb5-4303-a13a-a03c9a622021","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"308e870f-3ee4-4236-803d-ecdd3d7413a9","block_type":"box","text":"Options.","page_number":50,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"ee9a1d63-749f-4cd5-b3a2-b743adbacf28","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":50,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"b7a066f0-f4e8-4b48-8bb6-bf4ff21d250a","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":50,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"f958d2df-d3c8-4690-bfed-f75bef0fcca4","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":50,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"c0ce1ee8-edcc-4710-a9de-5b2cfc7e7838","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":50,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"da25420c-456b-400e-b786-1a178adde8b4","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":50,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"d6c96e2c-56c2-4e4f-8025-fc42d505a8df","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":50,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"1ba8c46b-e3d2-4897-b367-c5693c3591f9","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":50,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"3fbe9ffc-ed05-439c-bcc5-dbed91bee34f","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":50,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"5a003995-f98f-437b-bea2-8a471f1cc495","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":50,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"77ee3181-3951-437f-810c-36be0985298b","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":50,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"92f59d7d-f935-4c78-be31-479a4351f606","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":50,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"cabc41a6-dd08-4d57-9491-95363ea92f17","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":50,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"49cca95e-f2ba-433f-ba2b-bf87a49e0769","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":50,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"549cd143-20bd-4708-b8c8-744e7f1e3222","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":50,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"16abbfde-1d93-4250-acc1-74a44ea0cdda","block_type":"box","text":"OTC markets.","page_number":50,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"80567c8b-0e48-448b-a917-c99d544f2063","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":50,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"4717e3e2-45cf-4d92-ac52-39b79d804ef3","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":50,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"87573bce-ec79-4e83-aedd-052f9dd0164e","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":50,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"dbcc9dfa-3338-414b-8ea2-ee827e354c0b","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":50,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"cd1c6ccd-5da1-4401-8385-0d002f71066f","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":50,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"b31076fd-6b03-402c-9914-796b58a83945","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":50,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"ce6fc844-0e04-4733-b74a-b59ce4dbbc54","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":50,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"30ce5f4e-2721-4286-a832-558b68a617cf","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":50,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"730698af-235e-4a45-b669-0a84e927341b","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":50,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"e9b00c86-f8d8-4c10-adac-93ab1c365391","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":50,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"b5cef822-0ca4-4489-93a3-8e7958ddabb2","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":50,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"bacad3b9-daab-47db-b4e3-ebe93db52232","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":50,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"6d09336a-9408-482e-9380-80e75f660856","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":50,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"57a9603a-8fb8-491a-a68d-0ad3fbf11501","block_type":"box","text":"terms.","page_number":50,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"bab14c2b-0f23-4cce-a2d5-7b9989f0b986","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":50,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"f4d3c9fe-a44f-4ab2-b184-d1771ee5aeb2","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":50,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"fa47a3f8-ea31-4590-8986-20e189c70e03","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":50,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"69f8b48a-0fbf-450d-b4ff-7bd367c0fc2b","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":50,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"591f0b7f-cca2-4163-b087-09170557390a","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":50,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"8239f89b-c095-4f07-81b4-31a3a8f43d9a","block_type":"box","text":"II-20","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a24064d-0b67-42ab-b53d-c0a7340eb584","block_type":"box","text":"NM1026U-5984554-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f4176e94-e4dc-4a87-ba5f-c694ac887f6c","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":51,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"784ef1ef-9ab3-4604-ae70-8af5ce4339b1","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":51,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"a218357f-730a-41f6-91bd-a33fe8f3ada3","block_type":"box","text":"Call Options.","page_number":51,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"3a5eb808-a58a-4db8-a87b-80705c004757","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":51,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"2b9d998f-f045-4661-822f-60c0b732592f","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":51,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"b4521de9-a4b0-41da-a21e-9d15a9575845","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":51,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"474485f2-c346-4e3e-8c8c-59696786e227","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":51,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"c148e04f-0971-4657-a2a8-45a0e91b125f","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":51,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"89e24bc1-1236-4794-b06c-aa541a6c625f","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":51,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"923b0e79-475e-4bdc-bb19-fd1fa6f49aed","block_type":"box","text":"of the option.","page_number":51,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"5ac1a3ed-748e-4fe8-9d7e-30624624c179","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":51,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"716cf5f5-f80d-444c-9c09-eeea51fe5081","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":51,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"4f4ce70c-a2b9-4774-be9e-5650f4b9773b","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":51,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"3d70bc70-2e8b-4378-b143-ba35bf3aebb5","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":51,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"209510f8-e4a7-481f-832d-656dc3e68a23","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":51,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"32ac503d-af42-4f65-91c7-ded32cc2fcfd","block_type":"box","text":"A Fund may write (","page_number":51,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"04298700-e1ba-41f0-8e56-987c2bcaf6a2","block_type":"box","text":"i.e.","page_number":51,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"3a977d7f-5760-4c29-84fb-63fc82b8e1bf","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":51,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"f06d3688-496b-42d3-863f-5f3d01e1a160","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":51,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"903947e7-3be3-4489-bf02-e149334d3b3e","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":51,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"73e69976-f825-4af4-ae64-7a722862feb5","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":51,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f3c41c7e-691e-40bf-8536-900b2b124f7f","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":51,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"cc2ee804-a5cc-4ff8-9dba-8bf69862785d","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":51,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"ef393abc-70ab-45aa-afa0-a876e8732913","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":51,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"ff8f1cee-604e-48d6-af4c-47fcf7eae20e","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":51,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"d39dd23e-4496-4340-a099-93a07e33011a","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":51,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"8e862883-76ff-4577-849c-aee1f99ec749","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":51,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"0dc67ac1-240b-42ce-a094-ac5484865111","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":51,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"c14a509d-580e-412c-8d2a-5527df0a782b","block_type":"box","text":"A Fund may write","page_number":51,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"c8adcc90-c6f9-49e8-9ab2-4a790a5552c8","block_type":"box","text":"(i.e.","page_number":51,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"7fc84284-0b5e-46ba-8538-f0ec4b772953","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":51,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"9a1fb890-2a39-421e-b2d9-9416604e5174","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":51,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"4a86b1fa-24bd-4c57-bb7f-78d19ccc8e1d","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":51,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"7397a933-4141-4d47-a3f4-be24d517741a","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":51,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"c33289a2-62bc-46d4-8817-2900169bf731","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":51,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"fe15c1de-6937-4089-97d2-22887a5b0feb","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":51,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"1246abda-dd56-4fcc-9eb7-67353ea04658","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":51,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"2122c670-3786-4ad9-8bc5-f16f836fb4d5","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":51,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"1595cfc6-aa4d-4296-9cab-631718aeab25","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":51,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"b000b1f6-ab4f-4669-9747-d5b37870cd59","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":51,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"c9c4d644-5aa0-436c-a766-306cdbcfef2e","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":51,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"1507129a-2232-48cc-9bcd-32b441474967","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":51,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"0c4c9665-c0c1-44f9-a901-6ad0bdf7ea48","block_type":"box","text":"Put Options.","page_number":51,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"d51ff73d-cde3-4ab8-ad3b-ac3286e17150","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":51,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"2e22f142-cefd-4b77-95af-aa616bf92c3a","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":51,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"8c466908-f53c-4c31-8a08-b77d081d6fef","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":51,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"08053880-4158-4654-a4a8-f41686bcda8e","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":51,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"4dec3e66-0572-46ab-806a-7efc9f570af5","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":51,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"36dad629-0304-4068-b517-028cdf05b042","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":51,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"2e6861e3-a07a-450a-95e3-3e9a4add60e5","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":51,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"8a086153-0655-4bf3-8187-30228707434d","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":51,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"c60bf844-8dee-4e63-89b4-0045e1479bca","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":51,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"18748d78-682a-4f79-8620-1335c77f11b7","block_type":"box","text":"purchase uncovered put options.","page_number":51,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"8905955f-7007-4b06-b039-47f1240f84ef","block_type":"box","text":"A Fund also may write (","page_number":51,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"d4e59df6-568a-4fb0-876d-e86fa794b6fc","block_type":"box","text":"i.e.","page_number":51,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"3414660e-a0c5-43bd-b829-a7b17051d5e7","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":51,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"95fbced7-14a5-4b83-9b29-d0f9474092cb","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":51,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"af5ad146-c0a4-4279-8013-6bd962b42aa3","block_type":"box","text":"A Fund also may write (","page_number":51,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"1ec7ca52-0792-4fae-a7a4-f51ba99b6963","block_type":"box","text":"i.e.","page_number":51,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"284f16e8-ea07-4e88-bae4-46b1eedc8f34","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":51,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"598bce95-a457-4e6e-9a17-2e89888f901d","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":51,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"558ddab5-dbcb-43e7-9901-b5010d587440","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":51,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"a88b3bf2-dda3-454d-ae60-e9e2d3f099c6","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":51,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"67aae9ed-d962-4c85-a7ac-76a9b7eb7dd3","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":51,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"82f7530d-9445-4643-b59d-df511559a0bf","block_type":"box","text":"II-21","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ae0ec2cc-0110-4de9-8c2b-935ab9fc07a2","block_type":"box","text":"NM1026U-5984554-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2dad9f55-64a0-4fb6-864d-3ddff845cc56","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":52,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"ce7280be-1072-48ee-8f6e-836d80b76213","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":52,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"2bc47708-9030-421b-a456-7319016fa393","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":52,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"c493ce7c-abca-4cf4-bc19-31c1fa6af9cf","block_type":"box","text":"the exercise price.","page_number":52,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"9d1edd47-d04c-48e9-a0eb-3fdc1f221f0c","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":52,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"4696f2d9-7ca6-4aba-88ad-9cf40076314f","block_type":"box","text":"The following information relates","page_number":52,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"c588da17-95da-4f0d-8f1b-8cce3964a894","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":52,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"403aa49b-02de-4a54-94a9-514df7e07f14","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":52,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"fb44a4ba-c955-40e9-8db7-1366908053c2","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":52,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"9936204b-1acc-43e8-9ecb-3738c7b12590","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":52,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"eec6ba16-d2b9-4f1a-9266-8d529b2a3dc3","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":52,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"5e8bd8ac-0c40-44f3-9a8e-1bff6dc68d08","block_type":"box","text":"market in order to maintain its “cover.”","page_number":52,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"43c76dbc-e560-4fb0-8743-3a85f19437af","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":52,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"1a49b221-d213-4f33-96a1-82eda984e57b","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":52,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"c6c42e51-f7cd-4710-9da1-1cfe5f9a237c","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":52,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"62510552-ae0a-47c5-a2b3-bedc3da9e733","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":52,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"b35d8d9a-8ec7-4703-b7a1-8f3bc21d1a7d","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":52,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"bd59662b-6422-42ab-9fce-c382a6070f0c","block_type":"box","text":"and incur transaction costs.","page_number":52,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"6dc64e6b-9f02-4914-807c-28dac1dcbde4","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":52,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"414636f9-aa56-4fd9-b50a-fb037f5b9575","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":52,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"e9bbfbab-ee23-49cc-9ead-1faafc222c51","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":52,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"7d4c8168-b600-4aba-9bb6-a3454593300a","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":52,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"d366191b-c4ea-4c2e-80b4-398169c4256c","block_type":"box","text":"i.e.","page_number":52,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"4dac2948-ddf0-46d2-a7bc-6008e7cda75d","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":52,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"9e02077d-56e3-4e7d-849c-6906115acaee","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":52,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"67a471c3-e498-4f4b-a88f-62a3d5551872","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":52,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"8404ef45-0f43-416c-8bfc-070675d9fc1a","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":52,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"a1664fcf-72e2-4471-a482-0ad8acbce084","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":52,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"98e45f93-24c8-49be-bbb6-9bf2290be060","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":52,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"6b8c22c7-e535-4e1a-9772-d4c14fe8e11c","block_type":"box","text":"required, to be cleared.","page_number":52,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"6d115469-bf58-4848-9440-82ce03748b2d","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":52,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"24883c0e-f831-4834-9039-dd8e46a4d95c","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":52,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"48760974-0e4a-42f0-a357-74401c0b8c8e","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":52,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"49a0ebbc-9d24-4644-8daf-680a50c85c8a","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":52,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"eb0b1bdb-8ef4-41fd-ba9c-16226dc1182a","block_type":"box","text":"Derivatives” above.","page_number":52,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"1437596b-855a-46af-8d8a-94baffaa789e","block_type":"box","text":"FLEX Options.","page_number":52,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"9508980f-a6dc-4108-9950-b1f03576b86c","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":52,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"370b736f-39b3-451a-8541-39d159b67b71","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":52,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"6d1e98dc-939b-4c14-9352-1daaacb43c6a","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":52,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"077b9b09-45bc-48ec-8065-97be6f008258","block_type":"box","text":"exercise prices, exercise styles (","page_number":52,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"f92e7b8b-fca7-40a5-8aa8-060ea107ec5e","block_type":"box","text":"i.e.","page_number":52,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"04e61c85-74db-4e1d-90ca-cdb01dc55cb4","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":52,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"41545d99-9de3-4f3b-a8db-5cdba1644968","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":52,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"3cf8d993-6978-40b8-8629-ab269aa0f158","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":52,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"9d7e562b-7b30-4e2b-81b9-025050c1ebd4","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":52,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"927f742e-746b-4b40-88ad-d35b9f8b16a1","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":52,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"14b6239c-08d0-4847-bc5a-d8fee77576fe","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":52,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"0cf3299d-0174-456e-82f6-a0b246c556ac","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":52,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"fa7e394d-715b-4a5d-8b6c-42d60f7af45c","block_type":"box","text":"FLEX Option’s expiration date.","page_number":52,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"eaae70e5-4b3d-41e2-b15d-996c4480a4b7","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":52,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"9fd11457-97c4-4603-b948-8ee92929fc97","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":52,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"a0e0f14d-9fe9-4226-9702-d63e8888f34f","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":52,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"a94c288d-3d5c-4467-9049-07ef2cb72b5b","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":52,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"8f39ff89-7894-40bd-82aa-e1fefb4f9afe","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":52,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"4eadb853-5b6d-4a0c-8b21-cf43e7e202ec","block_type":"box","text":"FLEX Options contracts.","page_number":52,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"e3468eaa-6001-4a98-9a73-60c9b98d0751","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":52,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"826e98b4-e4c7-4748-8c73-0cdb146273db","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":52,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"d5656c54-8ef0-4348-8926-527f389f7efb","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":52,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"49129caf-ae4b-468a-ac12-13607fdd3c72","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":52,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"757e2aab-1541-450b-a2be-c0218f70f01c","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":52,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"c0cbddbe-b37f-499a-845b-debfc1b8d269","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":52,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"6f283ba9-a718-4bf9-b876-9e9576af8bf2","block_type":"box","text":"II-22","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e8b34b6c-50b1-42ad-b850-2247c7e3a3b8","block_type":"box","text":"NM1026U-5984554-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7e599bde-4661-4e72-a59e-e030980c0bc6","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":53,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"6f28afc2-c935-49b2-8537-8c43cee72fab","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":53,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"4085977e-184d-4cd0-9ce3-0be4ce025142","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":53,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"d532934f-a4d9-49a5-8720-2d72b4e6b68b","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":53,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"3aa0a3c5-c1a8-4b91-a180-6b5bb78196c7","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":53,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"e8f5a2ed-7e38-46c1-af30-d31ee80429d6","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":53,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"2fe47922-d155-4592-ba0f-bb2c3103a730","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":53,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"c9afec5d-7e3a-454d-8e62-1a221cab31c5","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":53,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"3e0ab19d-aa0e-495c-9fb2-1b0789d23ea9","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":53,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"de47e836-f7fd-4c57-abb0-c745b1fe0440","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":53,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"821e2cbb-1c5c-46c6-bbf9-f323d44f5ae8","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":53,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"729cae92-7c50-4b17-a3f7-7de5acb4fc24","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":53,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"7d965900-9042-47c5-859a-f7fa430312ed","block_type":"box","text":"expire unexercised have no value.","page_number":53,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"bbe9fcf2-a60e-4e9c-988e-2d016a2a9a82","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":53,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"cadb6be4-cd10-44ae-9d20-8575a8829f42","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":53,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"0b630408-c9fc-4521-b813-1393931c16f2","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":53,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"5c9e491c-01bc-418d-8aec-190eb9fab97c","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":53,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"ca562f73-9d5c-43c5-b1f4-d5d27186fec1","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":53,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"936d44a0-6789-468e-998d-cab0ca7dc121","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":53,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"5cb72a58-79c8-43aa-b869-12aa47c0f761","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":53,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"989dcd60-f912-436f-9169-a8b766aeb895","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":53,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"99b00399-9c22-4075-a09e-dddea7848c7b","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":53,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"c75b4af2-085c-463d-95e8-74b071fa3092","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":53,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"e39983fa-b8f0-425c-b373-50bb6f128bbf","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":53,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"8e4932a7-801c-4389-820d-a747944b19f5","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":53,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"08130258-2286-451d-a86e-a9a23eefbe3a","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":53,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"bfb2035f-abc4-44b7-b6ac-4b42f71709fd","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":53,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"e9bc4d66-ae9f-45f4-92c1-e2e59bd410ff","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":53,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"9d4b3613-2ffe-4739-895f-9cc66b651634","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":53,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"cdf2b2b0-ed0a-458e-91d8-4a3da992337d","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":53,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"32e4654d-7735-4532-8029-8b876431cb27","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":53,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"30e3c9b7-b497-4263-8e1e-e4f718c34f58","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":53,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"70a523c5-d11b-4754-915e-3b859c65d1cb","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":53,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"b9cbe5c6-f66c-4e58-bb1c-1f2d7c962598","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":53,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"d1f3485e-491b-4dd5-a438-08c4c6db687a","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":53,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"1611289d-a241-4adc-98c9-b4b78e49f0af","block_type":"box","text":"Foreign Exchange Transactions.","page_number":53,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"f63a722e-b2ce-4bd9-8dec-6b90111dec5e","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":53,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"8ae6c080-dab0-4b6e-b407-ccdb01f27d30","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":53,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"3224e0fd-ccf7-492a-bf42-0ecf9c281e54","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":53,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"ed6f453e-8136-44fd-ad99-8a1a580ef544","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":53,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"071bf1a2-5c4d-45a4-99a3-71cc3958db33","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":53,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"a4031c24-050a-4fff-9c3f-6fa61619ce63","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":53,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"a4702638-8f1b-4565-8bca-fe3fbe0368b1","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":53,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"b43012eb-ed51-406a-b375-d3d7b528c2a0","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":53,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"5df4155e-00be-429e-be5a-eea8d852334b","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":53,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"ef3da77e-a5f6-4ee9-a60d-b83ed53a18fa","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":53,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"57dd8469-c309-4a76-830e-d93929fc926c","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":53,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"2a66ff43-b50e-4b6d-a325-8a52a9307ac7","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":53,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"ff07174e-156a-4b39-a639-356cdcd2d003","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":53,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"9842cc9c-d3eb-4261-9de0-27bddc9e3265","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":53,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"fb18542c-62ea-4e8d-b792-476c1ed260fc","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":53,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"33fe7ee7-884b-45ab-9f90-bf8347c3021e","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":53,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"823456e8-f57a-42a2-9fdb-22c9d67b32ea","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":53,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"2bc4217b-c031-489b-829e-f6d53e514a51","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":53,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"66f3f0a0-01dc-4dde-8cbe-c14ac64dc3cd","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":53,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"a70c697c-4ef9-4ec5-b596-bb7f2dfcc3c2","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":53,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6cc6be37-8b48-4fc3-8826-08fdaa532ac9","block_type":"box","text":"II-23","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16769d27-dada-4495-8d7d-15e289258b92","block_type":"box","text":"NM1026U-5984554-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"276b1264-6d15-41e8-89b5-60cfe7dcde24","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":54,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"63a8e3d7-02e1-46cb-9b8e-b1f82be3cb68","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":54,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"763bab71-e624-484a-968b-f5a2cca5d527","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":54,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"3d5634cf-c60b-4af8-ab32-78a83da35058","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":54,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"7e7691db-9e0f-4ee4-9832-bfa6cf98b162","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":54,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"6f49f7fe-6510-4ff6-9121-c155b19564f3","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":54,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"cb46e695-4f41-4fb3-9b55-a34b42b57829","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":54,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"e889d428-4157-48cd-add5-be25ad58f3fb","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":54,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"643f5494-e33f-4d88-95d0-93cf925e7c18","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":54,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"d79536e6-eba7-4881-9549-49fc95a3530d","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":54,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"d1a6fa51-b480-4319-ba22-1ff72c808ad8","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":54,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"9c5f411b-74ea-4ac9-a3a9-760bba4f89e8","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":54,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"b50db36b-1d22-4a39-a763-4176edf3dacd","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":54,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"14ce5c1d-b9c2-4c8a-b180-7d860ffe4755","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":54,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"6fb4c3f5-7aef-4e29-a9cf-3e7517afe443","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":54,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"e16ece24-9d69-4315-8472-5818a1fa19fb","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":54,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"2383e384-f75d-4edd-a5b9-bc6689dc2062","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":54,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"7a09eb3f-1ebc-47aa-9171-beac6471034f","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":54,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"415649d9-d6d6-46aa-8ba5-f11166310992","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":54,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"1f0cb80d-218e-46c0-a738-e38b32866c07","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":54,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"341971d9-7d5e-4fad-90cb-4464411f974f","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":54,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"57d52ccd-c0db-4d31-9c79-c30586db3b1d","block_type":"box","text":"involved.","page_number":54,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"54090fa7-9de1-48cc-bc87-48b761c39ed3","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":54,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"5b3b68a4-f314-40f7-ae9b-03f672125720","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":54,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"14d37ee8-6825-44c5-bf85-870090a039b6","block_type":"box","text":"denominated in such currency.","page_number":54,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"66670c10-41ec-4484-b7a0-f6eafe799649","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":54,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"da70f80e-d88b-46fe-a75a-d6896394bcfa","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":54,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"d05e962e-96f5-47da-a0ff-5bf24ed45911","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":54,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"5c99011f-641e-452b-ac30-e04879340b61","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":54,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"e3c7c886-89a4-4d9f-beea-184f6e0ef58a","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":54,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"5c717e77-564d-434f-865b-40df0eb668e4","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":54,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"fe793895-bd3d-47fe-89f3-02ca3df526d1","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":54,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"a1470e1e-760e-49fb-b375-2a21ef052652","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":54,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"f01d4d9b-ff7a-494c-bbeb-3a8c710fa65f","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":54,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"53ff63d1-91b5-4425-8a57-718adb8d11cb","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":54,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"a6dd25ff-a8a4-44a2-9dec-42bc9116e1cf","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":54,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"8f7aef90-be43-4b9c-a885-26bd7e5ed715","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":54,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"14b1a047-cbc3-4757-8b86-2ea14454d512","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":54,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"5eca8061-edc8-4590-9d52-7f530e8bf276","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":54,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"18efc541-abef-4963-b08c-6c4e00ab65ba","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":54,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"ead0745f-2f23-41bc-9a64-6895d626c0a8","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":54,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"72c70af8-a101-440f-b310-33056d3a380f","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":54,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"208bb023-f9f0-4077-9454-e85184ec5ea7","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":54,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"398f7e6a-3d5b-4ee1-9d65-a753febde16c","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":54,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"784dc9ff-c768-4594-bfc2-445e7cbddf4c","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":54,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"ca2e3a32-460b-4909-ab4b-407032288164","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":54,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"9bd2f9d9-1ba1-4858-bc2a-87fa9a8f722d","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":54,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"e69ec7ef-f050-4f30-b0b7-c035c5212924","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":54,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"59f7c0e2-f380-481c-baaf-4e9b2884efab","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":54,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"679c6535-4f3b-4dee-a899-ee430a837fa6","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":54,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"5c20ed0d-8e02-4db7-969e-ab2192c97494","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":54,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"9eb33652-fd16-49c2-ab1a-9c99c83cccbf","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":54,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"dde0ab5f-acec-4fac-bc44-bb39d748fb88","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":54,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"109cd3ea-c3bb-438d-bfa1-5c5707640451","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":54,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"6400aa54-2328-41de-a8e1-eb660d5e2974","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":54,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"17251e31-8faf-4d45-877e-62e9da795d67","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":54,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"7145b0f1-6854-4bfc-81bf-0ef65ac79113","block_type":"box","text":"II-24","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8a853882-10b9-4405-8f25-21a75a700c77","block_type":"box","text":"NM1026U-5984554-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9e07a679-5293-40e0-9482-0a8f52f0538a","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":55,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"6a1cad0b-0d01-41f7-b3bb-7dbc83faa495","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":55,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"2daf3684-905d-477b-8a51-7c083a75cac4","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":55,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"fbaa3499-352d-4d0e-8e27-7adc9052af6a","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":55,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"58c3464f-4e73-4e93-a4e2-8d13efbf563b","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":55,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"e5e4d092-971f-4508-bcc5-ffa0daaeaf08","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":55,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"24c99ab3-01b5-41c6-b632-51cdc01c124e","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":55,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"30263026-559f-4ca0-862c-ac6d79b62671","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":55,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"ee0a6a7d-c2e1-48ae-b99b-f84004e08a31","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":55,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"43a2d254-e20e-48a0-8774-53dccb2c96fb","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":55,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"deb62ea7-ae01-4353-bdcc-10ec6267890b","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":55,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"724a1b62-81cc-46ac-8691-f7a309878ba6","block_type":"box","text":"traded.","page_number":55,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"4eb906b3-fb5b-4548-aa6c-ca01a35055d7","block_type":"box","text":"Currency Futures.","page_number":55,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"5e018a63-876a-4ade-8776-630e62c9fc25","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":55,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"a9ce79e6-2253-4e92-b4c3-bb34b8f55188","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":55,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"3baaa87c-eec7-481d-a30b-dd3ea3493a62","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":55,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"bb1d86d7-15c0-430f-ad29-638e82470386","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":55,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"80bfd719-b94a-4621-8935-fb88d9ac0fc3","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":55,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"0091ace9-9326-472c-8ffd-fad36189798c","block_type":"box","text":"Currency Options.","page_number":55,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"f74b32bd-c571-496d-9691-7aa3a6d6435b","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":55,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"aca6d4ff-72ad-47e1-99af-d4ee1019d966","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":55,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"6db48d54-5d92-44f0-8169-caa06df73bdd","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":55,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"031e0242-7855-479e-867e-a59dc4f34c88","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":55,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"d47b0adb-2be7-4c07-ac17-02ff608ab671","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":55,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"f82730c7-133d-4052-adc5-4e3b8673d040","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":55,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"333c7205-4803-4712-9e76-548c538e7ffd","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":55,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"cac3e2c4-bdd2-4a7f-b273-d1bbb54208fe","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":55,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"6c3a0898-7133-4b51-beae-b2b27c603e00","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":55,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"aa0ea308-f3d5-48e9-b567-b1c34e974a55","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":55,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"d1d3fe23-4da8-41c8-86f6-9f415569629e","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":55,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"537744ba-8f34-436d-ba3a-cc91fa679501","block_type":"box","text":"Currency Swaps.","page_number":55,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"0cf925c0-5362-4a6f-910c-05eac2298773","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":55,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"cfce63cb-1b57-42df-9360-b1580fb4175b","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":55,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"8e73c0a7-e4af-4702-9c27-8b253fbc42a0","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":55,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"8ef36589-a2b9-48d3-9509-38b215febeb6","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":55,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"2e54f3f7-9b25-479c-84e2-c899ce568029","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":55,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"17c5010c-81ac-4204-8bf3-3b14f0ebf6b6","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":55,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"a5d0a744-4eb2-438d-929c-8ce7a7e9b285","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":55,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"73e875e1-2be9-48be-aa2e-fbafa20fca30","block_type":"box","text":"Distressed Securities.","page_number":55,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"1bd9c45f-8250-4d8b-a18d-01732424fce8","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":55,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"861c9ac7-12dd-40b4-841a-5ef0ae4e26ee","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":55,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"8554f6f8-611e-4f2c-b5ec-d2ab141b5f27","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":55,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"0de0fc4a-22fc-4bf0-b43c-fadefa54260a","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":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"4ed8c24e-fe74-42f4-990e-0493a64b6096","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":55,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"901a753f-bdbd-4c59-aa30-206ed2b85d30","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":55,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"ffe62666-a79d-4f37-940e-c0b349c23ee2","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":55,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"3c4bea0b-d302-451c-9a7b-4f3064f5d0eb","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":55,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"dda6a10d-e980-4287-ba69-85f788989bf0","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":55,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"057676f0-5012-48c5-9f91-ee7abdf50094","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":55,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"495621e8-b715-48f6-a0f7-ffae15132868","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":55,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"f0af9387-4244-4146-91f5-07b035121261","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":55,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"66701fe2-05a3-4a2f-9809-06b8521d5af2","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":55,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"b547b1d0-92aa-4ff7-ae26-85b4a5cfe42b","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":55,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"03303752-13ef-437e-853a-aeea3a8249fc","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":55,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"686b2a1e-5f08-42ea-9102-f4940195d346","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":55,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"e94841f6-5964-4320-bcee-c02d9f38fd6e","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":55,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"7fd900b7-f73d-44c3-a107-8e5ce27b521d","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":55,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"de7c654e-442d-4821-b4e6-861918436784","block_type":"box","text":"satisfied (","page_number":55,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"1db68357-fdf1-4064-9732-ab66a11cd3ee","block_type":"box","text":"e.g.","page_number":55,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"11ee51e9-eee8-4d9b-884f-bd7da4c71b5f","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":55,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"64a38d33-cbcf-4e5a-90a9-e1103d010617","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":55,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"5a939120-8405-460a-8be7-bd2eff36787b","block_type":"box","text":"II-25","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b3416c10-4f79-42c7-8c10-b33f0ec257eb","block_type":"box","text":"NM1026U-5984554-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6a2bcc36-cae1-4e71-a1ce-ea369d082b8d","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":56,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d596eb68-55d6-45b5-b3f2-d18bd574a91e","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":56,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"0a0f0900-562c-4fce-862b-ad3b8b977d33","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":56,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"f697f499-f4fa-4472-be4c-daa815db1490","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":56,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"3e011d39-06c1-4167-b02f-a29d46867d24","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":56,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"06c4473f-b24c-4644-bbf9-74629bd39f54","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":56,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"dd5a4b15-75e2-4536-b746-959592c74a50","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":56,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"b6c2acd2-3424-4bb1-9c69-6ca28b6c0d2e","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":56,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"cb27ec5d-e03e-420d-b129-19e8509bd3f8","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":56,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"1b026ee9-394a-4675-9fee-5d00f61bc3eb","block_type":"box","text":"affairs.","page_number":56,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"7c87d402-9779-4676-85a1-569ce03eff99","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":56,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"4f28851a-90a7-4441-adaf-f6a2d0e716f0","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":56,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"65264bef-6571-4551-b440-3ed50196fa10","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":56,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"875fa8c4-0e18-489f-8179-dfd3eac73b28","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":56,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"84f9c3bf-8f47-4287-b108-b12cebeee18e","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":56,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"c290b27a-28e4-4d17-b11e-602e0988d231","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":56,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"82bee7d4-321e-4426-aab9-26b947af1a02","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":56,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"c91603a5-6f56-46ba-9090-91ca46eaf733","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":56,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"a4e8f96b-c51a-4c26-96fa-c9aa022b1c23","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":56,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"bc8a34e5-9d30-4b00-97eb-e8a4c3eee9d6","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":56,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"1aa608c9-a6f5-4dea-8de7-0cf7bc6da3b5","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":56,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"44820be1-a029-4e96-98e9-6bd40bd5c7cc","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":56,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"bddb89db-611f-476a-986a-0eb05455e8b1","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":56,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"3cd6ffc9-3f99-4646-81a8-25606b1e0db6","block_type":"box","text":"Equity Securities.","page_number":56,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"fe8ae425-50da-4a9b-b7fe-397dbdffd409","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":56,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"e0788202-9653-47fe-a577-4af94fbc55f6","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":56,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"8fcb7f38-1c16-43f1-a0fa-6144e9b5864d","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":56,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"1ed0e64d-2f87-46ca-873c-12a7445bb364","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":56,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"b9858056-da4a-4f7a-b1c6-1d04fa98362b","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":56,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"19bf2266-d8f3-42c6-8369-0b650dce14aa","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":56,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"11ddaee0-aace-4f16-a5ed-71c934d35092","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":56,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"3d631525-a4ae-4e07-afe8-3b9bc3c122c8","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":56,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"35b31a2c-06bd-4395-b4a3-ccaaab185f84","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":56,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"8c318732-a279-4c39-8d50-0659f47e8476","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":56,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"4c266bd7-ca18-4d03-97ef-9ddb95cd3790","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":56,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"a69edb0e-80c7-4619-b292-cc96008225a0","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":56,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"52c9ea01-998b-45ca-8c56-7c7f2cca997c","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":56,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"112292fd-767b-41a7-a3ae-972c7cc5fef2","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":56,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"b35490bd-7a16-4436-b355-78b6fc4c6e7d","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":56,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"656026a6-c39f-4e46-9c8f-d0e694be6c1d","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":56,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"c640c0a0-e071-4801-a57a-8ea361c2ceeb","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":56,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"1457a7fc-fe75-4b45-80dc-ba2263c3fc36","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":56,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"5d24c6d4-bece-43f7-9574-dcbd94b693c7","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":56,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"c0a6f908-8bf4-4f18-89e8-e2685091716b","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":56,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"9c40e411-08d9-43d2-bd65-1d2626cf9401","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":56,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"8b36fbda-147d-4200-a7d4-72118f4f0023","block_type":"box","text":"initial public offering.","page_number":56,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"3eaa7ac9-b89a-489d-b575-bf2329991847","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":56,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"b3958a96-f716-4ec8-bbc6-27699b16a6b3","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":56,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"6f7aae9b-375d-456d-8aa6-0e15f1f7b5d6","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":56,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"d7632ba5-884f-4751-a6b5-2b5db329bdb2","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":56,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"3452686a-0364-453c-99ff-ca972d2f8ad6","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":56,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"11911bae-517c-487d-8462-abbc024e0ae8","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":56,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"7fda90e7-5bd9-4a45-9d5c-9b055ee04f17","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":56,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"bc3620d5-51d6-4cb4-a90c-b46cc06a4ca2","block_type":"box","text":"more established companies.","page_number":56,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"7752d60b-4ec9-4008-abee-3b594b534bf3","block_type":"box","text":"II-26","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dcdf65e2-a7af-48aa-9e1d-2ac12db0066c","block_type":"box","text":"NM1026U-5984554-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cbd713a8-30a6-4bf5-867a-e9f609c26ab2","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":57,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"747b8285-b7a7-4312-9c59-675cc25d45ab","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":57,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"e60777d4-504f-4840-858a-fcc091f9afde","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":57,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"2630ebd0-b359-4a39-951c-5483446f2f26","block_type":"box","text":"below.","page_number":57,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"013d47f8-bcf5-44a7-af52-f3a55564f78b","block_type":"box","text":"Real Estate-Related Securities.","page_number":57,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"a61015fc-e698-4999-868d-20a0c4eca491","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":57,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"221c5d96-cf1d-4217-8f2b-944ce6ea2b29","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":57,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"0bac331c-84a1-4afd-a0f9-647703bc615b","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":57,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"e9346842-84aa-4e0d-aed7-04f22c86b523","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":57,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"78790f76-ae4a-4fee-9b8f-a4de068593c5","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":57,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"a239d49f-ae76-48c3-84c8-cf8e50cab3b0","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":57,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"3834359c-ec16-4d1a-8b4d-636336f00cb8","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":57,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"4c1b3da0-6b18-4efd-a6c3-fdab8ac3e984","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":57,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"6604e4a7-caaf-4fb2-a428-4d7b08a93bbc","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":57,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"556ffb63-9097-4071-ac75-f8dece8124ba","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":57,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"54767078-4c19-48a9-bc62-8d38fff240ea","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":57,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"54228a64-b6f0-4674-bef4-ad3ff035e28a","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":57,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"82086d8d-df20-4574-bc04-dc3f184a2aef","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":57,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"ed92485e-9e9d-4d10-a67e-fbdf8ec5e66f","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":57,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"4c54c56f-257d-4bf8-aa76-4123a1582a83","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":57,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"dc78168a-771d-4ad1-9a58-35ca9963527a","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":57,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"13c0255b-146c-4567-9aee-c7bf42dcb707","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":57,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"86afe05c-1f51-43bd-878a-01c65b7d464f","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":57,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"37ee42fe-507a-42a8-aab6-ca423ed53658","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":57,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"fb23b2c2-e438-424d-93db-96383301fa20","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":57,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"fe3994f1-dd76-475d-81be-bbf8edbcf859","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":57,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"d8263381-3928-4ad5-acad-13039cd31a2f","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":57,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"a4cc859d-b1df-4b4d-92a8-5dadec0533a2","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":57,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"35e7d56a-2d5e-4912-8774-b544cd399977","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":57,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"34bb495b-c29b-426c-9dd8-ab7edf8e422e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":57,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"df570b30-8d63-4b00-a801-14b2eae74e90","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":57,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"b8d34726-69fd-4835-8aa7-798d13866edd","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":57,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"58fb8455-b1cc-4b40-ac43-aa5310853bc6","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":57,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"6f61caac-8616-4a1e-ad4a-3d547d836597","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":57,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"1c2c2ec6-ebd0-4fb3-9e9f-db4049c23607","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":57,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"d1c87874-7feb-49bf-888f-07f472e9d4f1","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":57,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"7095175e-a75c-49e6-8cf0-2ae9046ba39b","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":57,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"0337b45c-a611-4aca-b589-2c1a750a7e8d","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":57,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"cd3cb80a-3e0d-451a-961f-1cf3609129f4","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":57,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"997c5427-7d54-43e9-9d08-b9e719c9bb32","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":57,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"919584c1-7c82-4ed0-9566-2142ae58b24e","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":57,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"72cb3abc-ac1a-4e05-9a50-e2ed50c5fec0","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":57,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"968cb4c3-4bb3-4a3a-9955-1708f8425320","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":57,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"6acc0b62-9d4c-412f-81b7-0a7316d4124a","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":57,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"c87186db-d297-4251-b9fc-609fe055182f","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":57,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"c156c9b6-0a11-42da-bcd9-28743de96b32","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":57,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"496a5633-3553-4630-aff6-ea37b9ef6b1b","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":57,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"f7caa3bb-9d50-486d-b76f-c361d24daafd","block_type":"box","text":"cycles.","page_number":57,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"c8c29d53-d717-41da-9d03-4c213e48f572","block_type":"box","text":"Tracking Stocks","page_number":57,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"2c84639f-b0de-4586-85ba-d15e5e7ba8d5","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":57,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"5be2e384-117a-4556-b0e6-054c41c65dec","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":57,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"a5876006-d628-4849-a9b2-0cd493a9a1b4","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":57,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"a27e0f23-44fc-4eb6-86e6-831d4ec79e65","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":57,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"cfbfe184-54fb-4923-9ebb-eec26af8a695","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":57,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"6c4b7c90-9353-487d-a1b6-60e8bf838113","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":57,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"01861a68-9cbe-45b0-8286-9dcd155117f1","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":57,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"b2061779-e60f-4493-bb61-d4dd7fe3ab63","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":57,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"14e48c6e-c140-4ba4-a4af-a0bbd28d0516","block_type":"box","text":"II-27","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cabf2067-0f5b-4d46-a966-ea1309457dc9","block_type":"box","text":"NM1026U-5984554-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"02fbe2a4-c3c1-43ce-b357-f4414bbb0298","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":58,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"0dce52ff-578f-47bb-afc5-fe102bf7e1cc","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":58,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"d78bb5d7-1bb3-40e4-985f-a831c8b3a9cb","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":58,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"956a95be-d0ea-464e-9daa-d603db1e635a","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":58,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"be822351-a8cb-4140-b9b6-bdf044672ee9","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":58,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"6e123730-f618-4f89-9b18-ea723d250248","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":58,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"ccddd433-1c20-44d3-a90b-69a06acdd2c5","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":58,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"a36db2fd-6b0e-4547-806d-8d7f377dd574","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":58,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"44387790-58ee-4a8b-b920-021b605c44c0","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":58,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"40b36da7-3314-4464-a60a-8c918beb6bf0","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":58,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"acd055d8-031c-4d09-a4b2-3070f2a749d5","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":58,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"469b8ae8-71a7-4702-a74b-e1c5a1e3b87d","block_type":"box","text":"ETN.","page_number":58,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"9014982a-2ea3-4643-9f99-8b435e6f3f33","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":58,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"ac155979-21fc-461d-84fd-7812a19cf06c","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":58,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"37e7f870-4171-4253-9321-b2550ecd9c9b","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":58,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"241ba39c-5ce7-4cb6-bea3-73da67d4e460","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":58,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"4a1d163b-618c-47d9-9094-465bc28f380e","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":58,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"ad73787c-045f-4896-9283-cedb2ad4a0b2","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":58,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"3a1f883c-d511-4369-93f9-1d6713dd7fa8","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":58,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"9bec41d7-dad0-467a-a932-54264215ba74","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":58,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"20ce0b37-cb48-4ccf-9761-158e53b75ff2","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":58,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"79e3b280-bca6-4d17-8515-1d4da487fba0","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":58,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"6dbcbcd2-3846-4317-88d0-0ffccdbdce8a","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":58,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"bbd5e2be-65d1-47d5-9e6e-bbb0c2e8eaa0","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":58,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"38ed4914-5a15-464e-a335-c9464bdc551a","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":58,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"1470d135-02db-4e61-a097-ac8cd7eb63a1","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":58,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"501b5c67-50cb-4d10-94ba-d828122a61a4","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":58,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"d18021d0-296c-4308-8b1e-7b2a9e39d4d8","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":58,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"e607e1f7-d711-4c37-81bc-ddbffa2cd982","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":58,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"b7914fd4-cc18-4a7d-ab6b-3245efaa32b5","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":58,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"9c2e20a0-4580-4375-ba3e-6e59c36262c8","block_type":"box","text":"Foreign Investments.","page_number":58,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"2308d646-1fc3-4c4a-bf37-622f754c76c9","block_type":"box","text":"Foreign Investment Risks.","page_number":58,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"349fbab5-7fc7-4443-b3af-9d043d8fdc5d","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":58,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"c16f5dcf-3994-4675-8eaf-d3979e752657","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":58,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"f645edcf-6511-4ec7-8fbc-b552490cd5f3","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":58,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"233f78cd-1414-4b8f-b544-75f1028e9e72","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":58,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"2bda8d43-1d61-4bac-aa9b-a7edd153f89d","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":58,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"95003742-82e8-4de9-9dfa-f828d7672664","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":58,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"0efa7b80-64af-49fa-ae4b-356a2276f54f","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":58,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"897f9e30-33a2-4054-aa3c-7d36dec76da9","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":58,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"ab982556-a44b-462d-ab55-93d35e574d65","block_type":"box","text":"benchmark index.","page_number":58,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"057c56b9-db41-4251-b2a0-1e5d196776b9","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":58,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"2529e7b0-ad5f-4dea-9312-13fc94a54444","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":58,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"c8f02f72-8052-4bea-ad16-d7a1080bbaa2","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":58,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"f76986b5-7db3-4858-8dcd-c5e7bcb044c6","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":58,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"b951e182-d9bb-4481-89a9-30fecd20d2a0","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":58,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"f98b3f89-4d81-4d05-9703-f3ca06d85f8e","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":58,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"cf0c763a-a161-4262-9c7f-bc54bb63ac7b","block_type":"box","text":"securities and zero-coupon securities.","page_number":58,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"61504ac0-ea08-4c9e-a1fe-0af54a107e00","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":58,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"eea0bd8f-9e2b-404e-b542-548c11d77cfc","block_type":"box","text":"taxes.","page_number":58,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"f35d94f5-a543-4182-9759-abf41e93c91d","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":58,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"3e83e78f-fec0-4c89-84cb-0c302d081ea3","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":58,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"96b2c0b3-5aa8-4fd1-bf85-f6f945788a48","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":58,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"c5a4e550-ce59-416e-80f5-19af66c9d5ad","block_type":"box","text":"II-28","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7fcbff3d-4067-43b0-b6dc-1669097ffb75","block_type":"box","text":"NM1026U-5984554-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"244a357b-e0ee-4fa0-bdac-1e4e5786c038","block_type":"box","text":"underlying security (","page_number":59,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"ce22e035-3f5b-41d6-b8f8-3bf58a183aa4","block_type":"box","text":"i.e.","page_number":59,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"add809de-7f17-4bbe-8124-e7d83d091106","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":59,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"1a76ea68-90ad-4e46-afa1-3dd3cefaf67f","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":59,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"e0849617-dfa1-46b9-aa14-bf789527c4f8","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":59,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"be89d033-bf08-48fe-94f2-27814c243831","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":59,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b7d2ba26-dfcb-4700-96fc-ad6d954c9f83","block_type":"box","text":"Foreign Market Risk.","page_number":59,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"4eb460e3-1efa-4964-9862-208834fe68a5","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":59,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"d156942f-08ab-4fdc-9275-5f6bee350bfc","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":59,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"ac0b29d2-b343-444a-b0c1-f1420c33665e","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":59,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"f7a69492-e248-44fe-8a99-20af5e330ca9","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":59,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"57ffb9f4-8925-4aa6-b7ae-064a2d26111f","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":59,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"26d7bdd3-9b1b-4699-abd2-14ea71f5d2cd","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":59,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"f22dc54e-f157-498e-87fb-c49c3abe8b28","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":59,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"440236c6-f0c0-4b76-a9e6-7e9bee579165","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":59,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"b711b8e3-2a0e-4467-ba95-9e8fc130f4a4","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":59,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"e651b51c-e740-471f-b47c-9fde138f73e6","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":59,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"0fac2fcd-87d2-4f14-9454-be0c66e680d0","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":59,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"425abf33-04bc-40ed-90d2-337bd6203e00","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":59,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"360772f6-9d50-4ab1-b8df-dfe3efffc968","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":59,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"bede09b4-b049-433b-9581-9d224f66ffb0","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":59,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"6b7d3151-a8c9-4e5e-9aae-656e34ce4a4d","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":59,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"f3302715-884e-4852-8071-f0749570714f","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":59,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"4f7bc2e0-7ad8-4aae-80f0-b2861ca1c914","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":59,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"246daa52-5a9e-4f70-8060-08ef8fa0048f","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":59,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"91c62117-29d1-4f79-b7ea-0f68158840f0","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":59,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"9bd4908d-d7a7-4f6f-b633-e191a78d622d","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":59,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"bf7e014c-5457-4b70-8dc8-ebfa572e68f6","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":59,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"94261e4f-e541-4cab-93cf-a525747653b2","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":59,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"1d555069-7737-41a6-9a00-e4d2cc075cf1","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":59,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"f3ba6175-e348-442b-83cb-8fb935ef6f35","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":59,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"a6a80ad2-9ba3-4505-aa64-f8301cc5e85f","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":59,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"88e6a076-db3a-4139-80f3-e955d4a825d1","block_type":"box","text":"Fund’s operations.","page_number":59,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"f5e42c3c-7e20-4542-a74e-3f75e40ae58a","block_type":"box","text":"Foreign Economy Risk.","page_number":59,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"4e49cc51-0481-4543-a70e-8acd44d53ee5","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":59,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"adb2549a-88ff-4af3-a873-ce9522551e66","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":59,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"62c55203-c1f3-42cf-9a41-651232cfcb22","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":59,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"1d75a608-e8be-4a32-835a-29a02e5a396f","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":59,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"57534632-e63b-4da8-af47-454bb5333c61","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":59,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"3ecefe9b-0d44-4e94-a0dd-fe120df3f77f","block_type":"box","text":"measures.","page_number":59,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"8a8751ce-9b23-45ab-a470-88a5e7362791","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":59,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"1f201081-c7ac-4d19-a0b1-984c6a43981d","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":59,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"20b9206b-2fb8-4b83-a24a-d6b8cdbd65fe","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":59,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"7d0b6dd6-01da-4de7-bad9-65fa77425d10","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":59,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"89f85d54-ff38-46c2-9d5e-74ff6c9f6e55","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":59,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"147b6bcc-0c2c-4e8f-92b1-14ad441e5383","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":59,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"99815892-86ea-4ac0-b649-d0a265ca42d2","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":59,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"73ffce5a-c7e7-4295-a3fc-6cf77f5b3bcc","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":59,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"17cb7cf1-565b-44ed-afdf-729c051c931f","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":59,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"aeff243e-8fc5-45d0-9e59-b45635516472","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":59,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"4fd7c3a3-e843-40e1-85ec-d81545e257e4","block_type":"box","text":"United States or abroad.","page_number":59,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"faabe63a-964b-4ed3-972c-22a2dc2e53fc","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":59,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"378a7db6-8743-491d-a801-083aae62c24c","block_type":"box","text":"Many foreign governments supervise and","page_number":59,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"b7efe587-fa77-4397-8067-67179a109e2c","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":59,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"873c6097-8084-4b36-aedf-44290755504e","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":59,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"ef4c685e-543a-4663-9cbe-fe4ca9e89fff","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":59,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"9b74e847-613e-4d0f-a20d-d07965580654","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":59,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"017ff2f9-8fc9-40cb-8376-09c526a23709","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":59,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"b42d99a6-470d-45bb-8f59-382a53538fa3","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":59,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"0d0de206-2fc6-4212-bbbf-ae8f9f086332","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":59,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"c366bf6a-d52b-43c8-81d6-dfec131e5986","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":59,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"fe9d4c0f-9ecd-4627-a23e-d1442fe76bb3","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":59,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"d7cb9aa4-7402-4758-95b6-98b67d5dd411","block_type":"box","text":"II-29","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"242beacf-5cbc-43fc-9a86-ae3a7d830b60","block_type":"box","text":"NM1026U-5984554-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a09987e3-51d1-4abd-b4c1-5d1883ce4e44","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":60,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"261486b0-e576-44d3-87b2-6c0e8efe6c3a","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":60,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"a88e681b-0fea-4001-a00d-f4bd5cb6743e","block_type":"box","text":"investments.","page_number":60,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"cf985e4c-d4df-4d98-9df2-6dd7cb31a707","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":60,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"de73cef8-9c8e-4281-bba6-5a7e12c8e483","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":60,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"2b91bea3-47a4-4d0f-ad03-315ebacce525","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":60,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"497a766e-af59-47e3-b427-4ff49449eb35","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":60,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"82f6c50f-7b77-4be1-9df6-1e111d6493a5","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":60,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"f9c4ce4a-77fc-4593-9dc7-0f477cec1f86","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":60,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"06a9b306-092a-4c2e-92fe-bbfb8c94ef48","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":60,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"0a6186bb-0db1-4127-9865-e9fd1af1e48c","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":60,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"5e456b49-f2b0-4f16-9cf6-53739147ad40","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":60,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"07c6a30f-744e-4c4d-879f-71906a1e1e22","block_type":"box","text":"States.","page_number":60,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"4d16f2e2-253e-4cfb-8bff-be70fa25ca34","block_type":"box","text":"Publicly Available Information.","page_number":60,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"a0850842-7ac8-4a34-9d33-ca7bc0ad0c0d","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":60,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"c5b3878e-bb82-4b26-a1d4-8b1e470f262c","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":60,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"544e1909-51c4-45f3-a167-af9e726b8916","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":60,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"82e31768-1b78-454a-8e38-55d27964ce6b","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":60,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"ac48937a-4926-43da-9897-2458361e181c","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":60,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"4423f4aa-dec0-45d1-89c0-c41242d8f78c","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":60,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"9b21a269-7ed8-4eee-8477-4ed61d5a9ff8","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":60,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"8918b411-4abb-420e-9fd1-e0a654cbd474","block_type":"box","text":"United States.","page_number":60,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"2b1e8db1-8ceb-4373-aa35-66630aee7483","block_type":"box","text":"Settlement Risk.","page_number":60,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"4a5f739e-351b-4f12-989f-d42deee4ca35","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":60,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"55195eae-df41-427b-a321-d5dfc9a215ae","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":60,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"fa73a7cb-0adc-4455-9b00-63d0631d48da","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":60,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"8712a681-7d51-48be-8161-9d85ba9ca209","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":60,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"2cb0dcdc-b174-4928-a6b4-2c3beabc1bed","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":60,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"98ed0ae0-703a-4eee-943c-e4445685c7d7","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":60,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"66c22878-bd54-40c9-a568-92e8d69694fa","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":60,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"ee084210-ef61-4c44-b612-d728e6fec98a","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":60,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"26faa2ff-1fa2-41d1-9b3a-1059d9b67f8b","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":60,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"bf11ce5d-e2d5-419d-a921-d24d3638e615","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":60,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"72b81f90-7199-4281-9a73-31a9856d9afb","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":60,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"6537db73-3478-4a37-86b4-eaa86b5a2308","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":60,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"7fe06127-a30f-41b1-9dcf-ca427f42058d","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":60,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"7269a4cb-6b78-4ab3-a0b4-05c2fcb83075","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":60,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"665757d9-c5f5-4b66-b1bf-5d3fe65e9295","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":60,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"7433f9d6-f102-44de-96e3-373280414f49","block_type":"box","text":"Sovereign Debt.","page_number":60,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"ad4e438d-347d-4d78-a3af-275a810a7e97","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":60,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"ee5cbfd0-c2b8-4bf9-b34a-9867bb44ae58","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":60,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"4dd8d056-2b26-4a8c-a041-4cfe068f63ed","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":60,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"e39ac0b7-b2c5-4f44-ae0d-b35afc93ca66","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":60,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"132019de-04f4-4199-9639-b95fbf697e92","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":60,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"1e75aa78-d5aa-43c0-826b-445596e4efc0","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":60,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"e58967bf-70d3-4a3b-8b08-b8d2548de1cf","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":60,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"a4148345-6b89-4394-aa76-e5ce17aa09c2","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":60,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"7fe36fc8-cc8d-4f51-b12b-d1b5e2e3a6e8","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":60,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"4fd2c849-42d2-4d90-bea1-6304224b946f","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":60,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"02b1f317-f350-43c5-b995-5827183e6501","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":60,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"c74bac25-3265-436e-964f-4dae6836c6e9","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":60,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"90040c4a-dd9d-4412-98e8-6df309530964","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":60,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"73d5dc8f-b2a0-49e6-9d30-6425a08b6c09","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":60,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"207030ee-afb4-4430-969b-65995e032dd6","block_type":"box","text":"debt.","page_number":60,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"b1dc88f9-70fe-430a-a98e-d3650c251d76","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":60,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"d74b7d2a-6191-43da-86cf-0b60de67ba72","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":60,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"0a788f35-205b-4f53-be60-d3a2b45dbf9b","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":60,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"a0c48fd4-a113-46bb-8439-a80c872cc571","block_type":"box","text":"II-30","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87573a97-7e4c-43b6-8e53-b29f8baaa4ac","block_type":"box","text":"NM1026U-5984554-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d6bf4412-442f-4dda-8b6c-7182b9444cc8","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":61,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"fdd18a53-1b97-42cf-bccc-f191baca34d3","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":61,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"63994c0e-ac61-4cda-b7c2-c09ef3a78408","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":61,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"bbc07f33-27b7-4a8e-86db-f1ffd23bf76a","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":61,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"9d69aceb-1360-4504-9c88-711718c9a3be","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":61,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"d76b97e8-6225-4725-af9f-fdd0fbfa0c97","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":61,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"d493c1ce-3a28-4782-9980-2e11708e8e49","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":61,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"958f4a32-2df2-4375-96f5-a0f451e6c014","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":61,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"dd378ef2-ffc4-47f3-aa9f-3562740e9ff3","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":61,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"f940bd9d-41b3-4893-9c57-a6111358f9de","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":61,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"089bfbf2-c5e4-44bb-9e50-7436c5faa7d1","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":61,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"72020723-a212-442f-9288-c715e2587593","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":61,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"bbeefa6b-7604-426b-9918-e704f2554872","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":61,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"4cb39be3-ee61-4d42-9b15-914e88821080","block_type":"box","text":"in the Fund’s net asset value.","page_number":61,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"0631fac5-608f-44ed-aa4d-6fd80eda8004","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":61,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"7d2aae18-a007-44a0-8c9c-617d24d7f7cc","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":61,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"c92b5d03-cd24-4bbf-a386-03c96710a33e","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":61,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"3dd4d2d6-8c4d-44bc-b93c-38c43ec67211","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":61,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"737fafb7-f047-40f1-bea2-20c9af972cd4","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":61,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"4797e1da-0c51-4d59-9882-a14cd31f0003","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":61,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"4197d177-dcb2-4625-ab25-f0cc56a7ed32","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":61,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"29792127-5588-4060-890c-0b725e738c28","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":61,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"5a1702cf-edae-4809-aee8-278e85f5fd54","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":61,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"27697906-212a-4ac2-b13e-5d3fac4660b7","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":61,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"1b1f6fc3-c9b8-4ca9-9194-37b3b0fc1c04","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":61,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"317f67d6-e72a-4ad7-b62b-1107603da432","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":61,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"b7f12fba-abe8-4a4e-9c13-6e9087e9c36e","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":61,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"4141b8d5-d537-48d6-9ea6-63c23d2b3df8","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":61,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"4d6231ba-9125-4090-b2e9-0bce2e8189aa","block_type":"box","text":"Fund may invest.","page_number":61,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"7ec8f90a-4ee3-40ec-9c5a-d9bec494c70c","block_type":"box","text":"Funding Agreements.","page_number":61,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"6ed6ee74-c7ea-4e00-9799-f9eaee5069da","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":61,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"9fc66755-b870-4e46-baec-5d3268593355","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":61,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"eb7be9db-bbf7-472b-a6b3-e0a5fef94579","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":61,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"c5e913d0-d265-4336-abfa-a95b06bbbadb","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":61,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"711b058a-1890-43b9-b9e8-e7b4d0519c8f","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":61,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"98e8e131-5aac-405b-9947-aaa115e4d742","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":61,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"4c4081cd-7881-430f-9132-4e8f407e82da","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":61,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"3cfe5cad-0a5f-4428-8763-101f00801a8d","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":61,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"7cbb575f-d2b1-430d-88f2-8d9d1989509b","block_type":"box","text":"Guarantees.","page_number":61,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"5f1e0246-a153-4345-bc46-883024dbd838","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":61,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"92f2c491-0fa6-426c-a762-d9c99eea2fd5","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":61,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"697f8517-b3b8-46d9-96f1-bb99838e4898","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":61,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"3f43c476-999d-4736-bce9-6c50415e659e","block_type":"box","text":"Illiquid Investments.","page_number":61,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"4d62eb68-f5a1-4e43-b143-65cfb1d75674","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":61,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"3e7e155b-99f3-4faf-b4ac-aaf7409f8501","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":61,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"ae7f85a1-6938-4ee8-b8c2-14bf48f4f2d5","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":61,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"9c89f91c-ffd8-48de-9823-e53080c4511d","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":61,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"1ae7c6a3-7649-4e4c-947b-e85c3cda72e7","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":61,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"86a605c3-46eb-4412-9ba5-94959824c3a7","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":61,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"d453018c-ff8e-4071-b479-8690be827a84","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":61,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"40f5786b-1371-48f6-8a01-370a94bdacba","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":61,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"1d34b2a9-7d0b-416a-9dd1-d4a26fe49483","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":61,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"eaa4176e-efa4-412e-8dbe-8c41c4f1b030","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":61,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"3f98ce39-02ef-46f5-95cc-65e073aad726","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":61,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"4ede52b9-eacc-4657-9117-c3294e5378f7","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":61,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"ee9ff111-c285-4583-8b78-b27e044c0b3f","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":61,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"e5e41767-d85b-414a-a6aa-7e867abc3fa3","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":61,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"b6b4df63-ae56-478f-92ea-d2af8aa7bea2","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":61,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"6a7cbbfc-7e3c-4d2e-9ed5-71c813fbcb99","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":61,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"a7c416f5-3b62-4a9a-bf82-7d8fac7b1337","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":61,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"1b104698-aa16-44fe-aa53-9caeda8fdb60","block_type":"box","text":"II-31","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d75d8b4-bc00-4194-ba1c-26725bb2b4b8","block_type":"box","text":"NM1026U-5984554-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e9028aad-2489-434d-b8d8-770fbcb38db7","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":62,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"ef5a79b0-ff53-4df6-bdd2-503807d16486","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":62,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"74a9e5ff-f761-462f-84d4-c96dbc24f761","block_type":"box","text":"Index Funds.","page_number":62,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"64241a28-ef22-4d31-9d7a-fa39baf545bf","block_type":"box","text":"Cash Flows; Expenses.","page_number":62,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"676ab1c8-9a74-4792-b94c-096b21a8288d","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":62,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"c8067488-ab6c-4e9b-8564-43b1b9b66a56","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":62,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"94314d0a-c2a9-4908-ba0a-7a0cc1982374","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":62,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"9772cd80-32df-4e60-9844-0e21849e54e6","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":62,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"3d727758-20e6-4d8b-a691-65ea09249dbf","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":62,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"cc4d333f-1b20-4524-8548-6976b6dbb23d","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":62,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"9f874f29-0623-4342-a890-7a18c10526ad","block_type":"box","text":"(","page_number":62,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"adf4e841-7472-4a6f-9b5a-5b6adb0bd388","block_type":"box","text":"e.g.","page_number":62,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"d01d84f8-bcfe-453c-8bb8-516f057284ad","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":62,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"55f385fe-166d-450c-8f7c-1294f8d57e4a","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":62,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"66a1ed52-59df-423b-8f7f-272f3694730e","block_type":"box","text":"par ticular security as an investment.","page_number":62,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"9bd4b9e1-56db-4980-8de4-db8eac6af38d","block_type":"box","text":"Tracking Error Risk","page_number":62,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"56d7ef9f-c286-4586-8077-8d32c2a1c5f9","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":62,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"fa8069f0-9a2b-4b0e-9e87-d1fe8dba2c4e","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":62,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"9d08a571-f750-4b37-b499-8da3b9c1c979","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":62,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"d2d74d14-e2d7-454a-a73c-bf2be798d81a","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":62,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"6198d084-c6f8-4047-8626-19fc1b827c26","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":62,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"bfa79d70-b1fd-434b-acd1-e528b8d4f32c","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":62,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"c6345d1f-d2de-40e2-9211-716212d5f6a1","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":62,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"cb598e3c-01fb-4513-ac74-3eb4ab0b6c07","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":62,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"1b8711a0-441c-4aea-b7f4-4dc890adaff0","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":62,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"24fcb18c-2bad-4f4d-bdbc-0ca7586c657a","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":62,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"11287fc6-1155-4c46-aa2a-746e2f59fb46","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":62,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"3e611fb2-be54-4a58-bc5c-4f0fbf4fa467","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":62,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"1e5fbeec-6d45-4410-8fc4-7dd4a8c1a786","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":62,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"03b7c465-7494-4aae-a632-ded8dac2c0a1","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":62,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3a60b740-1dad-49fc-95fe-ae5cb85f2f10","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":62,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"206e4a3f-099c-40ae-9550-e58c46f6e522","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":62,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"7e8272a5-59e4-4e94-9f9e-c59534289157","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":62,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"184b5bfa-54bc-47e3-ae4f-f68345680c7f","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":62,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"985d37bf-ff8e-49ee-a330-1779b91ce57e","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":64,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"a6be9db2-03b6-433d-a1ca-a824d7955d5b","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":64,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"cce08b68-135a-459e-a7e0-2f0a01e4ff9c","block_type":"box","text":"ICE BofA Indexes.","page_number":64,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"a92c0a9a-73f3-47a4-89b6-4791c06a504f","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":64,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"476e56c1-8d3c-403b-a71e-040125c40c9f","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":64,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"295ba3ac-cbeb-4d3b-b363-f3e3860a5e3e","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":64,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"7efed2f9-f180-4ed6-8aca-dc1633c7ab50","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":64,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"2382abc8-778a-421f-9d3a-9a87a5e8335d","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":64,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"7c523b2e-123c-448f-9a17-f08bd5ba152f","block_type":"box","text":"completeness, or otherwise.","page_number":64,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"f3ad0563-43e1-4f0a-a853-babc904e3c60","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":64,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"7765d59e-d50a-4fa4-bd00-04093e9012f5","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":64,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"e3a22eb1-8e02-4ab3-9269-e1b1921e12cb","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":64,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"7bef15cc-c1af-490b-af75-4062abb0be5d","block_type":"box","text":"Indexed and Inverse Securities.","page_number":64,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"5374259b-bdbf-4492-b844-897fa6ab5398","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":64,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"b5e54c46-22f3-4ced-86d9-93eb7fab4ff9","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":64,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"d63f999f-ca92-42b1-9317-56c7652128a8","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":64,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"80ab54b3-803e-45d7-b695-435e18c3b4cb","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":64,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"486d171d-3bdf-4cac-b0f0-9fff33d0da48","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":64,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"c623275b-ebd3-446e-ae5b-a7dda5d9e3aa","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":64,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"89d864fd-4541-40d2-92bd-c2fb12e5d340","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":64,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"1d461e56-ee4e-40fc-99b7-affa7b0ecba1","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":64,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"b95e193a-465e-4fc3-871d-1bb3d418918b","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":64,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"107df298-90f8-4504-9c45-031bab9edd77","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":64,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"ecbc644d-1d4e-44a1-b56f-2a41a534024e","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":64,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"13b4fd12-df76-4ab1-bb76-73e168725227","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":64,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"4fd6fc08-cc06-49e5-ab94-adc70ec3c78c","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"d2a56695-909c-4f9e-96fc-3a878b99bdff","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":64,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"14fa8c47-2704-45b4-96f5-11e2ab90b071","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":64,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"19d40a04-8da8-45b2-b731-67381c2e4200","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":64,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"4ba63d06-0c83-4e72-b44c-3df600f177e0","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":64,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"3cbec634-c748-41b8-a262-1af9ae3bca55","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":64,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"a3b822c4-4c25-4b79-9c06-b014461a97eb","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":64,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"672c15a7-1476-4b5d-888d-bc2efce1b681","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":64,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"386d6526-0b00-48e0-bd61-2306e7302669","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":64,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"0b7b62b6-d03f-4da1-9a2b-02fe3b635b21","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":64,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"63dbb14e-f77f-4a02-a069-2b6e70602964","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":64,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"0bd2969b-8908-481d-9e91-b6196f9f5be3","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":64,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"99d19224-4393-4a59-982a-a810929364dd","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":64,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"acc2b4bf-7af7-40a3-85a3-5ea94a1a5dce","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":64,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"961d0923-8596-4b24-ac02-9a02f4a50e46","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":64,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"bcf29603-d94a-4e87-b5a4-d3b3549c9f94","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":64,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"813f58f9-48e3-4c44-a73a-e509132aaa51","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":64,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"72c896f4-6b64-4668-b830-05437b3a2f5d","block_type":"box","text":"Inflation Risk.","page_number":64,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"bce99077-b5d4-4fd4-955d-cb2dabacdc2e","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":64,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"32d5fac7-711c-4434-ba9f-16dded4a47e7","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":64,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"be2bd190-233a-4785-8b27-b77f9790dbd1","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":64,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"2ba0a4f3-189b-43b8-b68e-90038c80035a","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":64,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"095bdf72-a2b9-4084-a5d7-97f214ed0ebf","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":64,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"0aef0e91-4d98-4d2a-9b37-c128f7ebcea4","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":64,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"135c8c5f-d9a3-4705-b7c6-4f1de9634084","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":64,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"ffa12a31-d383-4488-9c22-d27785f2bd6a","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":64,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"792673aa-a1d9-44c2-8212-f32470ee8179","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":64,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"65d4c1ae-9a27-495f-be44-c04778e4e98f","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":64,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"079091d7-5902-481b-a712-655254f29bf8","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":64,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"adfa3fbf-6f66-421e-80d3-a620ea1801ab","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":64,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"09bc7144-97b2-4ce1-84b8-b44e4f51e87f","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":64,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"eda19f6e-f4f0-4606-9d90-bfcdccded1b6","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":64,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"5d51aa2f-4090-4e13-bf03-e6e8a74833aa","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":64,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"e99f4def-1cf7-43b8-8c00-df5971c942bd","block_type":"box","text":"II-34","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0cf6f636-7abc-474f-a529-95754c463d31","block_type":"box","text":"NM1026U-5984554-64/232","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"08d3d787-bfa8-46d1-8e7d-1e87ba8fc93a","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":65,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f6008d01-4878-4f0f-a77d-81e0a8237128","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":65,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"d2e332e0-62ec-4ebb-9d7f-c8ae0d72923a","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":65,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"fda87d97-3f2a-4fa8-a7df-c69d6ffa1485","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":65,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"c0b738db-86f5-4ae7-9bba-a82df8c46a97","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":65,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"813f4a98-2ea4-4344-9a31-2510108df681","block_type":"box","text":"be available for very limited periods.","page_number":65,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"8addb7df-a067-441c-9103-1d8070b1614c","block_type":"box","text":"Investment in Emerging Markets.","page_number":65,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"c6044ba0-ed23-4544-9ef7-85aa36bd799e","block_type":"box","text":"General.","page_number":65,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"03faa489-9546-44a7-ba62-b6b9d59067fc","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":65,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"f2c26aa4-ff4f-40b3-b214-4dbdaf5b3523","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":65,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"34605e85-f65f-499c-9c01-5149693338ae","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":65,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"af9df6b0-0ac1-461c-ab0d-7b5669f32a11","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":65,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"9411277f-46e9-49d5-b9fe-8c80a24aaa08","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":65,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"5a58fd15-b179-45cc-b034-634c486ebaef","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":65,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"c885ab41-af64-4675-9e0c-e5685b43f81b","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":65,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"e3832d4b-e866-4891-9ad4-927126672e5d","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":65,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"5cb9d888-df8d-4227-9fa1-9aa923b6c125","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":65,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"65992e63-c762-4aae-b2dc-34e4ee54a29e","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":65,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"ef1ff18c-475e-4cfa-b334-0ce6d5cf9a20","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":65,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"edb91807-de23-4fe8-9cd8-b72b37d05705","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":65,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"27634f5b-e474-443d-82aa-a33643aa88ea","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":65,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"fe6398cb-d856-4da1-a30a-f57616e391a4","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":65,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"01883d89-7041-4311-b5cb-9361884c2588","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":65,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"630f43f8-defb-4ebe-aaf5-bc673ca4a943","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":65,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"ba8cd6d4-12bb-4653-8abe-8119864e2e71","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":65,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"20312989-740a-4d69-a141-f43c5dca8f92","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":65,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"10ef6daa-9adf-432d-9286-53b13b4cdb43","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":65,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"5025335c-8f42-4121-acb5-ead7d9df81c3","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":65,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"5df40ad9-4f7e-4931-aad9-f23663126d0e","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":65,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"bb6c9e71-b098-4c37-9016-1e0f298542b7","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":65,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"398e2ad6-7bfa-456f-87cb-8c7aab0c29ca","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":65,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"832af037-2192-4428-98c3-0d6314c094e8","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":65,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"87dc0b77-a75c-4053-afc9-fa8636539bac","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":65,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"a69eca04-fba8-4719-b242-22fa3c6aa09d","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":65,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"4a8bdafb-ca48-4fbc-bae7-7a9b05cf4d1d","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":65,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"c96b6371-1885-4fda-b3a8-acd449d256b0","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":65,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"95bca9a7-2acb-426e-813d-7bac06ce84a6","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":65,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"e22fb381-52c6-49f4-998d-3d2d9cd064c7","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":65,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"7c3cd27b-d7f0-44ec-90cb-891cc1aad54c","block_type":"box","text":"volatile than investments in more established markets.","page_number":65,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"13454a46-7503-47c5-a759-288b98febe18","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":65,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"d6cd0cf6-d75b-4578-b951-74460d530daf","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":65,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"b2bc3445-2e5e-44b3-b5ae-e06ea78957fc","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":65,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"f81369ee-dca4-4ad8-8e66-2e39ef364c58","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":65,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"26b18d07-f9ff-43d5-b917-67286827b5ae","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":65,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"4448f2a8-6259-456c-af4e-f4adf135ed78","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":65,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"d7964d7c-47a7-48c4-8e42-a36d6b1ab918","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":65,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"52393301-1d2a-494e-a9b3-e12e9672ed18","block_type":"box","text":"acquisition or disposal of securities.","page_number":65,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"15342b7c-cd59-4c44-8ae5-2d8b6c22ebb3","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":65,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"e1612991-8809-418c-b989-8b55481dbbe8","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":65,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"0f1ddd1a-c59c-43db-a11c-36b1cbd609ff","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":65,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"b2196a6c-cdc7-4fc2-9bd3-2bb27627ea72","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":65,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"3a61d7b7-3d61-4f27-a370-0447f8b02fe5","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":65,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"735d18f8-88b6-4afc-b3d7-f5c681085278","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":65,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"e195227e-dbcd-4d10-8280-bfd72a390a79","block_type":"box","text":"II-35","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b037f79a-98c2-4c0b-9995-86dd221d1320","block_type":"box","text":"NM1026U-5984554-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6e443d45-1bc6-4094-bf14-e6c3491b34dd","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":66,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"9d43c5e7-6939-4d3f-a581-58fb5ebfa080","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":66,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"6c935cf2-dc7e-4c7b-a39c-e412492d6fc6","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":66,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"4d994260-ccaa-4aff-b108-7838a6adda7c","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":66,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"57b7259d-ac08-42e7-8b12-c0f4ca511e04","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":66,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"4064710e-28a9-4226-b415-efe3dd03477f","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":66,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"fb22fdea-3270-4943-bcf3-7a44c7d84b85","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":66,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"442e643c-bb9a-4cbf-bb81-c4fcd42a0c9a","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":66,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"a2009cba-21e9-472b-81c2-c12f5d0267f5","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":66,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"614eb35d-6991-4c37-9f9f-7851f4a5add2","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":66,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"5e16eeda-de66-4615-878a-63b47bad9faf","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":66,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"cbe3de29-92ba-45f4-9ac8-fe2375eb84a3","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":66,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"6cb08b5e-3c45-4938-a4e9-6c8b7a8c7744","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":66,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"4c4c47b4-5e8c-4298-8667-069003cfd1d6","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":66,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"d5ed7f16-eaac-409a-b450-a69697b22cfb","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":66,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"b22f1c99-9a6c-472f-ae07-d26d252270c1","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":66,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"be96d49f-dbf3-4197-9dab-9e853593d63f","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"9c51ae4e-d95f-4db3-92fe-599d8a491ddf","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":66,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"d2bc9bf0-8137-40f7-885a-16b9872d7b61","block_type":"box","text":"per formance of the Fund.","page_number":66,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"6f60a507-0696-4a3a-a8e6-e98544aa89e9","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":66,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"d28a9ef0-eae3-4748-b106-5ae36f26dfe4","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":66,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"80fadb1e-d763-4ac9-8e74-e37492c22956","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":66,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"e9e76a1c-a20d-46e1-b74d-6b1277b57e3c","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":66,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"c8eaa378-044c-42d7-87c6-d4b57b4a17e8","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":66,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"9ffd00f0-1474-4c5d-8bd6-b2e339f695b4","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":66,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"1a0efdfd-57b2-4023-9628-dc3b88750107","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":66,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"23d0309b-37ca-48ec-99b5-8436cb059499","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":66,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"b817c769-833f-48f0-a308-98cbaaa4cd33","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":66,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"c9eb4ed7-2002-4578-a6b6-54ec29147fad","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":66,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"2e9acd36-fb82-4efa-88f6-055941ff8012","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":66,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"710d2cc6-d6d3-4d75-9053-ceceaf69cad7","block_type":"box","text":"affected by a variety of factors.","page_number":66,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"aaf68934-0c89-4b17-9a40-90540b9385fc","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":66,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"23b88476-f5cb-4a61-90e7-d5ea93c960a0","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":66,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"05a31ceb-44f8-4075-a815-209f96532bbb","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":66,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"3d94126f-bc18-4492-b62a-8a6637111409","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":66,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"84804982-2077-4630-87a5-a58c5624e1db","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":66,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"775763c3-af83-4323-979d-651108bf1716","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":66,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"164dd468-e1ae-46fb-b0fb-b64dd05b5e80","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":66,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"43d30292-76bb-4cbf-a301-fdf680842d9e","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":66,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"a8626f04-0f48-4451-a0ff-54f1853f77da","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":66,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"de6d9db2-3568-45c1-a627-271110a85ac5","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":66,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"93f28dcd-0686-458d-aad9-0ca6ef469377","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":66,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"38ab252c-e52b-4bca-b416-29eeb8c812b2","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":66,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"072fd817-9d9e-462d-ab6d-7e8fcf681bba","block_type":"box","text":"nations.","page_number":66,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"027964fe-3019-4bd8-af22-f5336757f15f","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":66,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"d8e249c1-60b4-428d-99d7-c1fba4bd6ec3","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":66,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"d8773358-1f1c-47f5-9e6f-bfdaa479c05c","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":66,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"1830e3a2-6a07-486a-ba0c-7892c4841c93","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":66,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"1a47399a-fdb9-4e8a-b2db-2a4fb2355069","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":66,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"8ca3c574-6450-4556-aec0-1c2b12232644","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":66,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"8f2991ab-b6ef-4a42-96dd-b1add5c018d5","block_type":"box","text":"market Asia-Pacific companies.","page_number":66,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"728ca6a8-7f3b-449a-9ab8-de82d3236e9a","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":66,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"cc3c1c6e-ec18-4460-a4b8-57b1d71ad0e0","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":66,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"489310f8-1d10-4a2b-b683-083d725c3dff","block_type":"box","text":"services for such securities outside such countries.","page_number":66,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"fc272042-01e9-46a5-9983-04e4a366a874","block_type":"box","text":"II-36","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24da9bbf-d1cc-4fae-b4e7-07a938de199b","block_type":"box","text":"NM1026U-5984554-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0d7431af-4408-48d9-8244-00fde6edd199","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":67,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"1ae14478-abc3-48ef-b956-a394bef363b0","block_type":"box","text":"to commercial banks and foreign governments.","page_number":67,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"c2c16330-a4e1-47ea-994d-fcd15ba52c6f","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":67,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"c249b144-6872-48bd-ad3b-062a17664270","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":67,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"f12b954e-f752-49e1-8df3-89081e1d32fc","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":67,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"3c1d22a1-ea65-4dc4-8413-d271025be2f0","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":67,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"1970d8be-6756-43f3-8775-f8fbbba3292d","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":67,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"035d11a2-871c-4c51-9f6a-fb3ba6c1b0c9","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":67,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"34e69eff-b9d1-4561-aa99-29fbc21737df","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"a66b59c4-fcb2-4aba-82a4-42cfb7ab16a7","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":67,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"6a61066e-3f0e-4dd7-9b66-1b14a48c03b9","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":67,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"ed4991c9-c28a-4510-9dde-115b799908a7","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":67,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"d78d3653-8810-4153-a5db-00640ace0e88","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":67,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"d357e471-4497-4550-a81f-1a12d8dbbf57","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":67,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"a5798e4b-17a8-401c-91ee-8617416bd3d9","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":67,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"aa718414-2e59-456f-b207-c3cf30555a95","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":67,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"a01713ec-2798-4c00-a45a-1ae50a47698c","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":67,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"3210bd9e-e5eb-4030-ba40-12b0ec6a191a","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":67,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"e7bb2c0f-b4e7-473c-ab56-6d49b1a2fff0","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":67,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"0482813c-fe6e-42b2-be13-cf38370a29f9","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":67,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"53968787-5ece-41a7-bd31-e5954788ce91","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":67,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"feb06eb2-94f9-4058-974e-d0faac230f7c","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":67,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"19943ade-13d6-43fb-a0de-614872c2615b","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":67,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"21c85f38-b3ad-4abe-bd71-a730c1ca0833","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":67,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"a1297566-5b32-4562-a7a1-c921353ce8f0","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":67,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"f5f9c1bc-e7cf-46c7-b214-2c17dddf654e","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":67,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"9a3b2a8d-d373-41eb-855b-04759d18f9cd","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":67,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"f4020c6a-cedc-4939-9519-d64040614ea7","block_type":"box","text":"investment at that time.","page_number":67,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"ef983cb0-ced0-4761-b748-e0a37ef8ef69","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":67,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"62dafa64-63ca-4e08-ae67-5b9c75e8ed49","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":67,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"68097ab5-5ab7-4992-a78b-22055bda4c26","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":67,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"6d7d31d2-c41a-4fe4-8856-b5ff8cd6634a","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":67,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"ae3e7d47-2f58-48d0-9ed8-1acd9f7cc79d","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":67,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"a3aafa7e-5b30-4b75-9c70-d7acea783b15","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":67,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"2fb52f5c-6e6c-4dcd-83dd-b7ba416ff5d0","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":67,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"edba8d6e-9ca8-4e5f-a05e-5e93e3d94e3b","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":67,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"f920ca66-deff-4d51-9d42-4a6972f4685a","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":67,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"efbf6044-0555-4705-9fa2-4cb87359f4f2","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":67,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"a00bd36f-a19f-43ee-bdcf-cf53118feca3","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":67,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"ac563d5e-196d-487e-b5a8-034a06f53ec5","block_type":"box","text":"government).","page_number":67,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"4dfb793a-59fd-4ccb-a521-65e668ac0088","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":67,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"fe3829e9-b5b8-4133-a849-ec06a84e82bc","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":67,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"8c7d3120-0db8-44da-ba02-ef8631b9c934","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":67,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"8e3cda4f-21a6-473d-8c18-00fde74644e2","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":67,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"68248f2c-a544-473d-a06b-7e5d9576f02d","block_type":"box","text":"foreign banks and other financial institutions.","page_number":67,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"a521ebad-e73f-4716-b66b-3428baefcc49","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":67,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"1a652767-abb5-4f71-9a97-6853760360fe","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":67,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"76e832c0-05b2-4098-af0b-245bb0b70c49","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":67,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"4ff36915-c6d4-4ed4-aed8-66863ae3c465","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":67,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"253e3e01-c517-4ce7-87bd-af3748dc3290","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":67,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"cb83d9c6-c55c-4d97-a3d7-d632f94deb62","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":67,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"ddf11633-d236-4f53-a207-7dddc0534513","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":67,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"c3c4cd84-1a8f-4b3c-9e86-ca79414ba65d","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":67,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"226293c8-153e-4bee-a590-0e33956acb70","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":67,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"60c98b65-30a6-43d6-8e21-97187948a375","block_type":"box","text":"II-37","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e3007df4-2d65-4218-bfb8-cd91ac6cce96","block_type":"box","text":"NM1026U-5984554-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1a9824d6-e18c-4fa8-a9f1-db215f69f991","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":68,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"e073db13-4c07-4ad9-89cc-917f7ec57a3e","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":68,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"cc5168c4-34c3-41bf-b2e8-d3b74801b759","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":68,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"7be1854e-95a6-481f-aec3-043afaa7c281","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":68,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"3efbe2ae-6ac2-46ad-9e0c-30365d29771a","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":68,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"9e293ff0-5643-40eb-8b86-8e3e70608ff1","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":68,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"fa2538c6-239b-49b9-94bb-0c9e5d84e9f9","block_type":"box","text":"foreign securities.","page_number":68,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"f5ec3ed2-7e8b-4c87-b3d8-c4c17b1a0efc","block_type":"box","text":"Risks of Investments in Russia.","page_number":68,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"8e2f3c1d-923c-43b9-97e5-2eb0810e4835","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":68,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"889f35ce-05a6-4791-a034-f216febfa335","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":68,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"cf304452-75bc-43c4-a5b8-9bc8c848dbeb","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":68,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"82486720-e0e1-4335-8e49-32b9ba688e2e","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":68,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"be64fbff-f0ff-406d-9cab-05ac95c5607b","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":68,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"1019bc4b-4b06-4765-9738-76f011591aa4","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":68,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"9ec43d56-6af2-4ad2-9310-a91c4a03152a","block_type":"box","text":"developed markets.","page_number":68,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"1af1a552-ca9d-4f0a-ad74-7af344ee407d","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":68,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"2eb5c351-c6a2-49f0-bd86-2e1d67eb011a","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":68,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"f0b7d004-b886-4a8d-ad8c-684213fcb6f5","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":68,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"d5708d82-9b9b-45d7-8019-41be25ef728b","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":68,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"ca789e76-d2be-49d2-82e5-37f1d38c5025","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":68,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"9e0deb6a-feeb-45ea-9547-d9f70f414ded","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":68,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"d0b811d2-4831-4c30-8e72-6fa4030a9923","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":68,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"ae2ebb9e-0145-4a54-bf3b-9091563b15ac","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":68,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"22bb53a1-d831-45ac-bc4c-43a71131c8fe","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":68,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"aae0c82e-f6c6-4292-8266-06a77840b348","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":68,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"17eee907-f4de-409b-93f8-2e0316b1dcd8","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":68,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"b28a8c07-4c29-45b2-9477-0a7412d43f44","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":68,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"5717706d-4f23-478f-bd8d-796496809a44","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":68,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"ffa712ea-076d-4ce2-8c76-b6666c74e7df","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":68,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"cddb64c1-31e1-4106-99da-f7bd09e2cb6f","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":68,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"a4a0b87d-d4da-4dfd-bd46-1c1c15d6f5aa","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":68,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"6c2aeee7-090f-44a4-bd01-61ca67fbbbfb","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":68,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"9e991148-80d3-4db4-ac1b-479ddb0b8efe","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":68,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"8a57e938-3e02-4033-8e62-cf74c18890c1","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":68,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"200abadd-ecb3-4569-be0d-a3f261c7f263","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":68,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"08c8831f-5ec1-4116-8a99-be3f65137158","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":68,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"c1e5b5a4-e731-43e7-be84-ab1bad7fb7bf","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":68,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"15a5361d-3932-4c2c-aac8-6035674496bb","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":68,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"66a87cde-4dd8-470c-bcd3-514307ba7e9c","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":68,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"adc32d7b-be7a-4bac-8b75-b68f23190f06","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":68,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"fe5cd172-cb89-434c-a426-dff577310184","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":68,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"6afd39da-2bdd-49ca-a315-eb5b09a913ff","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":68,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"e3cc11ff-7230-44e5-affa-64a2d2bd3fce","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":68,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"f32196c5-2340-420e-ba04-4ded6ee941ec","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":68,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"2c1272c2-7e64-4c7b-8126-8311501558e7","block_type":"box","text":"sectors globally.","page_number":68,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"dcbe2d21-402f-4700-9720-602be5916b9e","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":68,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"a6f729bf-0eb6-4262-8ae8-29c46929a4a9","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":68,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"1f83a49e-c3dd-4b8a-af60-19adcf081f98","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":68,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"8a3792db-9fb7-4675-971b-c0ba06349c63","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":68,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"3a55d321-7800-4723-b5c8-1936db6b7680","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":68,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"801b134a-aeb7-41b0-9a9d-50f4024b9abb","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":68,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"3a9817eb-f890-440a-b73c-8e906236342a","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":68,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"71595966-da7c-4875-bbb8-bdcfeb16002f","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":68,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"aad50a8d-6415-4cc3-9ead-9204bbc48750","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":68,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"87d9ce9c-14ab-4008-b6ae-ff8b5c3ea3a6","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":68,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"cdf90154-db1b-4327-81d6-96c91a453920","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":68,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"8df739cd-67ee-4086-9535-473152637c1c","block_type":"box","text":"II-38","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fdfff90-794f-4dc0-9435-59a1f0bfc2ed","block_type":"box","text":"NM1026U-5984554-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d1a70cca-b87c-43eb-8490-36cf4332299d","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":69,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"64e5be57-cc16-4319-9a1f-13887e283ba3","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":69,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"2ecc235a-7529-4743-aa2b-6bcfe4268191","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":69,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"367fe589-86de-4166-8aae-0cb72afb0ca4","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":69,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"33bccc69-919d-4437-adee-6f1a69d7bad5","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":69,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"0bb68831-4e0e-4120-8a3e-eac8b4b11c4c","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":69,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"f33dcfb3-32e9-4578-973e-baada1a1d926","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":69,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"0acff92b-0cd1-462e-b4c9-e4395a9f7b6e","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":69,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"cf50bc8d-3e6f-4cc2-a901-e9c0f119260c","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":69,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"568c922d-3b64-41e0-be07-4c5ac3bec1a7","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":69,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"dc547073-1816-4871-84a3-c1f274cddad5","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":69,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"74bd0695-28a7-45a2-8873-48215d90fa5f","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":69,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"658228a8-acf5-4a64-b7d4-0181ef3390bd","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":69,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"25912199-b69b-45ec-afec-a5f23102066c","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":69,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"04e061bb-fa68-48f6-afa8-f5fcfb93ee74","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":69,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"de7e6c03-c680-4e68-b79c-bf475d1b3c97","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":69,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"2d0ab3a1-4c0e-42d2-9a49-0c59a54419f7","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":69,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"39627912-33f4-48ab-b8ed-62f1efcca348","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":69,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"49085aa1-3339-49a9-9953-c97fab8b1897","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":69,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"d926e348-6e9c-4928-94e1-2da5272d5181","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":69,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"4f43cd9b-f398-4a81-83e8-b8b87f2b29e4","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":69,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"f93103f3-9f30-4ac4-8670-138176096ce0","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":69,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"a5c69bd4-f497-47d8-a7f9-8bb56d835ad4","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":69,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"2ed268b7-ed84-495d-a62d-3dfb607439f1","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":69,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"05f0a1a1-b626-4447-9231-09f769c9b992","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":69,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"605c14e5-f610-40a3-b6eb-be8d18173be8","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":69,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"7e21ef03-be5f-42e0-901a-94db1c49fe33","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":69,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"3e0a1ce7-18a9-4fda-b432-96ce03d7afae","block_type":"box","text":"impacted.","page_number":69,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"613df9a3-9c9f-4b83-850c-1ac2ea7ee0fe","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":69,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"40ddf8ac-1f76-4973-b780-54409e9025ee","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":69,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"c2d76bee-5814-45d9-9d96-b0948ca356d0","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":69,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"f5d5d68f-1325-405c-9c8b-a761674e1123","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":69,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"b751f9f8-f63e-47b8-a943-cdc62713c56b","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":69,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"b2168791-47a6-44d9-b84e-5230e5d3876f","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":69,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"8119f268-4a53-4151-a20e-780fde8d7689","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":69,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"58104e2d-a1ce-414f-a5e5-b58f86d14ea6","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":69,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"c869dee1-c148-4e77-9ab0-b711bd3b1e70","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":69,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"b861a47e-6329-4f14-a246-637e7c8d62c5","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":69,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"13ecab04-c7db-4b7d-8a5e-c475bbef71d4","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":69,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"08a204dd-f6fb-4182-8a8e-8f700de752d5","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":69,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"960244ff-3b59-4be2-b443-3843f9f277e3","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":69,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"2ebb1534-322d-4fcd-bb5f-7af37c966cfc","block_type":"box","text":"economy.","page_number":69,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"e8923501-7080-45f7-aee6-df829e0b2a3c","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":69,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"b1bdb55e-fb72-4d6c-928c-db7b3d4d0ee0","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":69,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"f48cf49c-a456-4346-a8a2-ff7b2477b206","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":69,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"05454529-6b79-4ef3-808d-f6c050f0fb93","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":69,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"0ed414c2-edcd-4b22-b4f1-bc7dfa85e0bf","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":69,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"a3518e87-808e-4740-ba87-ec71d2b82f88","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":69,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"5a5a0b5e-2c58-433c-85b2-c0b7da3341fa","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":69,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"4b2112f4-4de9-4e67-9ef9-a93a10595932","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":69,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"0f080b06-3893-4de2-9701-17e4740f1c0a","block_type":"box","text":"typically the case for investment managers.","page_number":69,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"ac113729-a554-4be1-ad86-31a1bad18acf","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":69,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"2b08d9a8-5e89-4bb8-8733-3acff0d2a226","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":69,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"9b7b9b83-8138-4c92-9249-2ffd88d9553c","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":69,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"47a4077b-aa00-457b-949d-4e866510bede","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":69,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"078c9504-01df-44d4-b8dd-9572ff62484f","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":69,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"980f97d7-b637-41b1-a78c-80aa024551e8","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":69,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"e6f2b9fb-9a79-4cf3-a449-c6fa063e6d22","block_type":"box","text":"II-39","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff692371-57d3-469c-a95d-d1078b2e444e","block_type":"box","text":"NM1026U-5984554-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"40c12e62-3701-4378-b57e-f9042ffd6108","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":70,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"6a6b15a2-ce17-425d-acec-96ffd78cb5ce","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":70,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"f8601e9e-797b-4623-9153-93dde3188dc1","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":70,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"74315c76-88c7-43d6-a80c-c399272ae4a9","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":70,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"e3568925-651b-446c-8497-da169446f1f5","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":70,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"665184ae-b458-465a-a0bc-1bef1e2ac4c4","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":70,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"7f1cbe8f-c40e-4862-ae07-830bd6ebdfba","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":70,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"da56311b-df18-497c-89fc-8ebc60687132","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":70,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"80bb8339-bc4e-4b8c-869f-8a5fae92a0bd","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":70,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"cbbe2168-9101-4116-84e8-07d4a9047b8e","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":70,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"f6fa871a-f21a-4324-a36b-03e75a94117c","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":70,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"0d707746-ea01-4c5e-a907-0b366c41c4b1","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":70,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"b9a0b480-4b2e-48b1-b43c-779bb7dd0301","block_type":"box","text":"will be indirectly subject to those risks.","page_number":70,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"4f788e59-eff6-4926-9bce-45f6e7ed2143","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":70,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"9f09f21c-af51-4b99-96a0-792c48cd24b4","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":70,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"4741e31e-2aee-48da-8ba2-544a62779bba","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":70,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"93fd39bb-01c8-4303-a1ef-0ec08d746d3e","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":70,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"ab1c9826-07b8-499c-9de7-31f29be68d4a","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":70,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a33e4698-af7c-4892-83b9-2efa0c5e6ca7","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":70,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"f4fa2ef4-933b-42cb-b1b9-1b3549f47d9f","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":70,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"2dcceaf7-6ab6-45d6-a8ac-82ef7c4a3fac","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":70,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"05af18c4-e994-4f48-8079-3a4194531070","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":70,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"2ef3999c-3375-44c5-a741-e280092b8a4a","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":70,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"b6e68429-e059-44a1-8788-9e85371b90ff","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":70,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"35f316c8-0af6-4940-8d44-871670b50e95","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":70,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"38adeeed-9d25-45f1-a0dc-faa38b7aa3cb","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":70,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"3754ba30-c63c-4f7e-ac98-70ec6bc2bb7d","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":70,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"ac62d045-5093-4941-abf8-524ec5e005a4","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":70,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"377aadd7-ac62-41d4-8d8a-cf57529c6fee","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":70,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"660a99bc-cca4-4554-8b3f-e6de85ca5a1c","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":70,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"a1c93d4b-f8f7-43a0-950b-45e018bffb3e","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":70,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"9b2c9398-d1bc-4003-8be1-601b0a92071c","block_type":"box","text":"impact on a Fund’s investments.","page_number":70,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"d87d45d2-4c07-4af4-8e8e-66967ff97097","block_type":"box","text":"Brady Bonds.","page_number":70,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"dfdf586b-750e-4256-b593-85d94369cf3f","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":70,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"4f94dd4f-7959-4e7c-aa3f-048d8474b423","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":70,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"69801a66-5675-4f49-9fbf-211a9a46006d","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":70,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"4596f060-e49e-47d0-9eed-3b206e8e2f1b","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":70,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"36ddd5a2-0aac-4f68-b381-c4fdde948ad8","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":70,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"ace67152-1556-4b7e-bc9f-85cb57685c6e","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":70,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"48d149fd-7929-4e9d-a3da-97c1489cec04","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":70,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"7b495de0-fcc6-4a65-b5f4-93efb51b149f","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":70,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"134fa05b-8d3b-4c50-b8af-622660cdbaec","block_type":"box","text":"Venezuela.","page_number":70,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"d58bcad0-2325-4374-b9b8-f8155576e33c","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":70,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"20365126-f235-447c-9e33-df8b0bfb4912","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":70,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"dc21e8b4-de43-4317-ad9b-09bab430387b","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":70,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"1ec8c028-9d00-4e84-a8c8-8479f98a2b16","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":70,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"5a2f5cbc-ce4e-46a1-ae9a-3f0567451481","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":70,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"1532b5a8-30e4-4eae-b93c-75c91173bb17","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":70,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"a54d3f14-0502-4cf0-8afb-409c8e3c3989","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":70,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"16662720-b4b1-42d3-a4df-bb9e7b7b66da","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":70,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"bc6234fd-2077-4ea1-b69e-6eeb71dc36ab","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":70,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"78baa057-23c4-48d3-b640-fbc5b363d33d","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":70,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"77a08b11-f092-4ef3-94e1-e996a4dd3be7","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":70,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"cc5d76c5-cfa3-4693-b5a2-399dcb325ea0","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":70,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"185c7fea-9ddb-4069-9f4a-8a697baf5e73","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":70,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"aa4793bb-b02e-4c55-98af-355b89fa2b78","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":70,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"63c7ba71-e954-43c4-a93c-38e34ad1ddc6","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":70,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"59c9b87e-6885-46be-8fc8-40b769eb32c5","block_type":"box","text":"II-40","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0d84fb17-3360-4299-ac2d-9e07d124980a","block_type":"box","text":"NM1026U-5984554-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1be0ac47-4b45-4962-a17c-b35454cf9109","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":71,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"a3d6a71b-71bd-4f5b-9eba-f221f1d33fa3","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":71,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"22645798-f56a-44fa-8b65-b1321c0e96c6","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":71,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"e0d7d82e-c04e-4850-828d-992dc3a1c8b6","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":71,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"c52ed418-6139-45a1-b975-c8bb906fd6cb","block_type":"box","text":"China Investments Risk.","page_number":71,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"754bd960-2189-46d7-8b4e-b77bcbe3ab18","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":71,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"a73c138a-8b1d-4209-9511-f3d3457d7b96","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":71,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"50fc6db2-f232-4e0e-9424-c4e7b7a337b8","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":71,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"194ef6bf-1b13-4fe3-8d3e-caddd727244a","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":71,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"c981335b-86bc-4c9d-b3de-ca00b2ea63d1","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":71,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"5932ea39-59fa-45a8-9bb5-744beef29366","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":71,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"459455fc-e4d8-4db3-8e30-f1ce980f5242","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":71,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"7c5767cb-4cfd-4b72-b8bd-6b79cf4aecef","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":71,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"1663360e-d28d-480c-ae4a-c0f50154b733","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":71,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"40cd37e0-2ec3-435c-bf42-5de2df60da4b","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":71,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"0ab4194c-8d42-48a7-a76c-b1f71fb2e6c2","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":71,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"9dcb7223-5928-42b8-bbf6-e40b4079ab82","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":71,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"5c8b112d-4e4e-4042-987b-ae13660ef25f","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":71,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"dc3cb367-b718-43fe-9e34-48d4af1726f2","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":71,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"2296a523-3166-40a3-8721-3ba74d3bd322","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":71,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"65506ab4-ab5b-4e87-bdfd-ea5416410eb2","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":71,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"13cc050a-31f9-449c-b6b2-8e4861b11578","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":71,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"de220811-ee45-4840-b559-5f06fed36695","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":71,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"e3adc86f-fae9-4913-bd47-2678fe509cd6","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":71,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"8ede912a-3c12-4759-9429-9885538c2753","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":71,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"4b0eb9ba-2b12-45a0-a5e9-d83b71bc3d56","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":71,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"5d6f94bb-a1cf-4b04-af54-01e74ca6bb05","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"3ae64bb6-0dbe-4345-bc76-537a9db5e2b3","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":71,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"b52db7c1-2a6a-4d1f-bf6e-94580611d8df","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":71,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"71a54edc-90f5-4dbb-baf7-c07658ff3f1e","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":71,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"42b97e0b-52a4-41f9-b8f2-e6e37317f5c4","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":71,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"6a7d8ab3-bf02-42c9-9dcd-b4affe28c6e0","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":71,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"d23c43e3-ab61-4cb6-a213-f14b4af2f5a3","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":71,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"4bb7c5b6-29d5-4467-8e75-ce0313550dc1","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":71,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"42eda8d9-8a1a-4f0f-badc-644dc8b2b206","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":71,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"20c300d1-b20b-449c-a81a-fab704f703e2","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":71,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"72783450-1fb3-49d3-a7ff-e1b26d37519f","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":71,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"6ea1e4fb-ae28-4eca-8d76-5ad26b932a7e","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":71,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"a18baef0-8ede-4c8c-b99d-0d1c15a1f026","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":71,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"e68f5c35-1ad3-422e-92d3-bcbdb1677ec7","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":71,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"73d86476-886b-4225-96ef-a735df5e257b","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":71,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"3f72e50d-c97f-4b2f-b5c7-7c4db90c24be","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":71,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"0deed36f-6f52-41f7-a74c-766b1a9c0af8","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":71,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"491b7b71-c626-4f77-afc2-53a7e9186acf","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":71,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"4ff6c0ae-d8df-49ce-97ce-08f9b456046f","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":71,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"88b2a2ba-6648-4c29-8467-4971379b3a34","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":71,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"3ff3f164-fa9e-49c6-aa02-2c9dc9221de1","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":71,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"3cfd9bd4-8209-4d68-81e3-63b4c636b6a7","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":71,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"d1d69268-c0de-4d92-9a14-e1a060de8512","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":71,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"61311b97-ff51-499a-94fd-6b5cb492ea25","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":71,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"35125f23-c361-4f4d-b493-25c2bfcbbe23","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":71,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"e03c2897-5d9d-4bb5-83c2-627038924ec2","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":71,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"0f18e085-2381-4c0c-8432-0f1ddbab3574","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":71,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"6eeaacee-eee0-458d-b195-4eef681cab28","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":71,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"46e7ba2d-9f6f-467e-b0ed-cf94a013b42a","block_type":"box","text":"sub-custodian.","page_number":71,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"ae4446f7-35d4-47fc-9df2-e33ab39ab150","block_type":"box","text":"II-41","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ee1382a6-c750-43d0-852a-47b40840fb4c","block_type":"box","text":"NM1026U-5984554-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ca599e34-db1c-404e-8600-ba118ed7b6ae","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":72,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"c94dcb1a-e9d0-4171-9f26-d7f9a2445a01","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":72,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"9a5de999-21f5-4756-968a-af8bd351b1d1","block_type":"box","text":"on investor protection considerations.","page_number":72,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"9e1f245d-755e-4afe-8dc8-282200f82808","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":72,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"5cf421af-fed7-44ab-b5af-ec2c66a7e725","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":72,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"30079ce4-f008-4f7d-837e-b23ab68d82b5","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":72,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"c5442b48-2aa4-423f-8278-3d4b331af2ea","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":72,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"93695605-ef65-4569-ac18-38b77d8f1942","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":72,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"bc22d6ef-97ce-44f0-9951-27ee55e81238","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":72,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"8eeb6631-6fe9-4d54-890a-1a4f60ebb7b1","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":72,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"f8acc8b3-4e47-4b64-ae98-af24f5aee450","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":72,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"28a03553-339a-412c-bdd0-d1894b0043a3","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":72,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"56ef92cb-3e02-49a5-aedf-a7f80c4f9968","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":72,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"1023b9f9-b050-443d-85f6-3c33b47d9f47","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":72,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"31be368c-49b7-4a6d-ac6d-f415f2eb39bc","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":72,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"670b40db-2056-4802-b804-8e530679bad6","block_type":"box","text":"accounting firm.","page_number":72,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"44306787-eaa0-49e3-ac8a-29438c3a81ff","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":72,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"3ab9873d-a2a5-452a-aec7-bec10b3d436b","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":72,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"6184e6d5-141c-431e-9610-cbe09f126fc8","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":72,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"433889cb-4284-4c74-9a8d-7bef3676cc12","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":72,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"5360524d-e08e-43ef-b3c1-4b44f64a4182","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":72,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"dc85c0d2-2fbc-4cef-b0d8-9a37bf3df57e","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":72,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"bb04271c-3ddb-455a-aba6-0ca84b6b51c8","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":72,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"1358f1ca-3283-40cf-bcae-4405c798cb04","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":72,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"3474daa3-2a6d-4d43-90df-57da0ce258d2","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":72,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"355c106e-3c7b-4e24-a207-08faa2f4cf85","block_type":"box","text":"RMB (“CNH”).","page_number":72,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"57864fa4-6f5a-4a99-a164-9ecb3c179cd5","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":72,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"c73130cf-0c52-4120-80a4-66814f648595","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":72,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"3558ee4d-abea-4d53-ae57-d10e1647c4a1","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":72,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"d4302be7-09f1-47a7-9dfe-3f721a709247","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":72,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"7b1622b0-09fe-4353-8cea-f49d5da1505f","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":72,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"6cda2f26-0462-4fb1-a028-bea4be2f2078","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":72,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"a0004838-3ae1-4580-96d4-3a0889399a11","block_type":"box","text":"represent equity ownership in the operating company.","page_number":72,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"39e84740-63c6-4367-83d5-ea0c3a9b90f6","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":72,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"058a24cd-6d5c-4400-a1cb-fdc6198c9a9c","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":72,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"2ae39aa8-6f9b-4262-88f4-c33c03f562fc","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":72,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"1f634a27-9e39-4ea0-8130-76e804c8d999","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":72,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"635c5484-3591-42ed-ad1a-9e769b05ae3f","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":72,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"967532cf-75cc-47ec-ad89-dc3c985f6fd9","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":72,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"53a6a67e-069b-4cfc-b390-1dd22ce22e59","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":72,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"e464b974-d0b4-41c7-b734-58e0cfc3e4d7","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":72,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"e7b1f430-bee2-4b77-bbaa-5392f203e252","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":72,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"8c87712d-354e-4558-b590-69dfab952d6b","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":72,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"c17cb737-7430-4427-b5a7-bdbdbebf595f","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":72,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"4147c2c6-4cae-4033-b49a-decceefa7b99","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":72,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"08f40b40-348c-43f8-b719-324a2ec2bc3c","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":72,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"d49e7d03-bdfb-49d7-b27c-cc6dcbe1bd44","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":72,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"20e400c9-9c58-4f6c-bcf6-f4445cac7da8","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":72,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"08a737ff-816a-4551-9d52-3cef4f9c2787","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":72,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"9b9cb127-5a34-454e-aec7-8526de5517a8","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":72,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"4b703aef-05af-4ce4-b418-467e5dc38d37","block_type":"box","text":"losses to a Fund.","page_number":72,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"52739c0f-5c3d-49de-96e4-d704847c1b3b","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":72,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"a02dd80a-c9a4-4429-979b-a282e9101b52","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":72,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"c3aece49-76f5-4388-afd2-f59c6ececdb1","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":72,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"5b9691d7-4e47-4b16-b04d-045294767e18","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":72,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c43a33f3-a442-4802-8f69-713d71d25e7c","block_type":"box","text":"II-42","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"977986ba-8bad-42ec-b825-7b2413198171","block_type":"box","text":"NM1026U-5984554-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"04d9e8ab-a703-4f6d-96af-7b4a1d83867e","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":73,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"3484cc52-7231-47b1-b25e-2f6d88ee36ec","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":73,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"a61b35aa-a3b7-4f98-b21b-aaaa09f07871","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":73,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"3b67bbe8-49ec-4c3e-941c-f47665896ad8","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":73,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"28a0bb7d-0333-44bf-b6a9-3cdff7b56231","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":73,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"95884e27-37df-40b0-89f4-8842cd3307cf","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":73,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"564f3c9d-e585-4645-9f57-e6fc586a663f","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":73,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"f3fce247-7b95-45a0-a77e-f7a5aa3b3920","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":73,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"ba93cbdd-5954-4b5d-aebc-b732f7d19cd0","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":73,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"bc7f91c2-32e6-415b-8900-2f119bcdfa74","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":73,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"fbcb20b5-33d6-41dc-92bf-c36c135efa5e","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":73,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"4833bf75-d210-4b01-a4a0-036132165993","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":73,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"e7f9f9d9-256c-4157-90cd-490260e8db71","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":73,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"3ce1aea2-469a-4224-8752-7d5d001cc1a0","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":73,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"88d55be3-20d4-4b29-bc5f-dec1beb0cc2a","block_type":"box","text":"such companies.","page_number":73,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"29fc2577-855d-4307-a94b-ac246ee596a4","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":73,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"b15c341f-0821-43c4-8595-cef00c8a9ac5","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":73,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"3b8d73c2-55a8-42d1-ab0e-f4b17dc11db4","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":73,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"a030d55d-7545-4fe7-b007-afd368f178b3","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":73,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"f961b49d-f780-4f25-9b60-d4bc619d7e49","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":73,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"a3c408c4-5e59-450e-b6c4-01465f21f22f","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":73,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"82e53c43-c98c-4e78-9b5d-de1cf2d857a1","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":73,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"a5aa686d-1e0c-4eb7-9edf-d90c40fc1d77","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":73,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"eff4b433-745e-4806-a93e-dfccc4f76103","block_type":"box","text":"standards.","page_number":73,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"fcdb2451-b6fc-4428-8597-5aeb564e6737","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":73,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"dd788a70-873f-4cad-a903-35660b400193","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":73,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"3c16967f-e6d0-4beb-b0da-fdb72172515c","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":73,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"fc92aa1e-39ac-41ad-9bf5-2f3cdd407fba","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":73,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"3d29a954-7a36-4388-a06b-17ad61475515","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":73,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"f3642903-a2ac-43a1-9c0d-2abcfdfa4ac1","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":73,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"ed989a39-fd85-439a-ac5a-097d4c79620c","block_type":"box","text":"General","page_number":73,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"ac976fde-5822-4148-97ea-647d756a26b7","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":73,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"8a254550-d528-4da8-8b59-e76ce83e41e0","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":73,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"ad9ed5a0-0945-485b-92e9-bfa18d4c5e17","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":73,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"f20ee876-79e1-4bdb-b4bf-3d76dcc61e29","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":73,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"44b81a5f-cafe-4c5b-b2ab-ef42f7752158","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":73,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"40883611-4363-4b11-88e9-5c017350ea29","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":73,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"d9df75c8-f556-411d-bca2-67a8fdb1fe6f","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":73,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"b7bf0107-9744-4f97-9d3f-fda59d26118e","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":73,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"a4dd240c-d902-45df-90b2-e893270e6f55","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":73,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"4b0034fe-9ee7-452f-99de-a82d9914f9ab","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":73,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"c5eff0fb-9f81-472b-ac10-82f5ed552df1","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":73,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"8ef1a35a-4ef7-47a7-bf88-ec7e820337c7","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":73,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"ab971541-02fa-4edb-af25-70a4f82c2ac3","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":73,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"9da6054b-df5c-475c-900f-8deec1730d63","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":73,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"bc65ed7c-8bc6-4402-b013-bd27745c79c1","block_type":"box","text":"company established by SEHK.","page_number":73,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"dff448bf-64f9-4ff2-9b70-aa20b873d34a","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":73,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"64fd6148-2139-4829-b565-07b6250df04b","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":73,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"bbc5f661-b4d6-47ae-976b-36549910eeaa","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":73,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"a55009c9-fe26-4bb8-891d-17324588d29b","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":73,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"c24436cd-262d-443a-a2cd-57122cfa0afb","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":73,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"d24ba099-fad6-47c8-b0fb-eea65846f02b","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":73,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d1ffa921-08d5-4644-9bf0-a0186b79d30d","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":73,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"f6d7f542-ff9c-408f-87c9-5671a6543931","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":73,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"51c81966-26fb-4f10-8a9e-f5fbbf431637","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":73,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"b252183b-df4a-413b-9916-59cefa5eecc8","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":73,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"2f78e3b3-5dc0-455e-adf7-a1c0e7dbc723","block_type":"box","text":"II-43","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8c1bfef3-52ff-4acd-ae5b-0f509e25f310","block_type":"box","text":"NM1026U-5984554-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6373c92b-c714-4bc4-837a-433d4aa77973","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":74,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"03b011c4-0a1c-4e73-a2cf-354f4c49bf38","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":74,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"83fb2006-d26e-4073-ae1b-2f414a95c379","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":74,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"118f5f7a-6c8d-4df7-968b-627f9c66e8e9","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":74,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"09b1a5b5-8a6d-43fb-8710-71b42577f112","block_type":"box","text":"i.e.","page_number":74,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"21f80b68-ee83-4975-99f6-6e94775c0bb0","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":74,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"e90e8f4d-2243-40cd-a6d5-818f37d1e567","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":74,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"0424b74f-dd20-47b8-80fd-86d2c025de0c","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":74,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"29c499ca-ad5f-4b9f-a7ce-7c28c83f7d5f","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":74,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"163e4df1-308a-48df-a1e4-55d92e161bce","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":74,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"96219bce-6ddf-43d6-b2e7-676f2558ad80","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":74,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"d279bad8-1082-4f7d-89d2-467c1f9dfa84","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":74,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"4d7e3c6e-67b4-4729-af4a-be47e0b271ef","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":74,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"6fb65c6b-d0ef-4925-a7d7-0c112459a8f5","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":74,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"1d900c92-36d2-4b45-8f04-f1c9b33b7912","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":74,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"3a6942d5-f787-417b-82aa-401c177715bf","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":74,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"815d147d-dad7-4202-bc6d-ad0672842987","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":74,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"728322b0-941d-4cb8-88bd-b9efc2cb261d","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":74,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"75cfb135-bf89-4b23-aa63-fde34c3e8164","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":74,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"d0d7c65d-2c25-4d1c-871f-27fcb4654179","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":74,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"41b7dd48-2939-48d6-85e1-87f2566a2b6d","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":74,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"5168f3e3-6c02-4868-a4b3-df846e1ed25e","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":74,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"bcd58d78-5318-4a47-92a0-49d9cb8b3ab6","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":74,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"66912dd8-8eeb-4104-9480-64d2a2228afe","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":74,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"e0af4d6d-5889-4250-9199-6f7ed05feb22","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":74,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"7eda0323-4c95-47c5-9471-077a4fbf94aa","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":74,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"d6fb5b9b-5dd7-4039-b293-f4ef25d9630d","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":74,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"4aee70f5-54d1-41e8-8762-32bbefab62ea","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":74,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"dacd1fe7-9931-4488-9580-2ec11efbb0fb","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":74,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"3d6857e9-5d40-4476-b9ac-74ab785295b4","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":74,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"c5f3aa8f-6ac7-46d9-aa67-fc258eef0082","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":74,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"e48e9bc3-0538-4632-a2fa-2f4ebd1a53fe","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":74,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"10e4dd08-4250-4cbd-8fea-2b70546d791b","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":74,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"50c16d23-3608-4a36-b57d-58b39683af7a","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":74,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"27edc3d1-0458-4640-b60b-8aab4acbdb53","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":74,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"4a68d778-64a3-4f07-b09c-00f72dcef126","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":74,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"b9d2ad68-c2a9-45b8-8b14-5d456bd18dae","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":74,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"04082d75-3020-481a-bbad-6d8720c32982","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":74,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"9bcff4c1-91fb-46d1-ba4f-4e69b3c38967","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":74,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"da278856-5b80-4428-a347-488463cfce89","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":74,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"879eaa80-c677-4176-948c-4ef1671c9824","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":74,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"6f62a1f6-5309-498e-a93c-3ae004fddc4a","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"646def12-a8c4-4ebe-8db7-a42bafc385bd","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":74,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"ff91402a-424e-48a1-9eb5-f3051516a59b","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":74,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"806e87d5-353e-4389-974b-b1f3c1027c77","block_type":"box","text":"PRC.","page_number":74,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"7f3c8700-4ffd-434f-b62a-8fb45a4ee3c8","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":74,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"275bf0a3-5f5f-4ff4-ba05-09a673814745","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":74,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"59605205-9730-4a97-9030-eb033466e3ab","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":74,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"23ff8bca-cea1-402d-a9e1-012bae49fd80","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":74,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"755b1c53-4b64-49b1-a31c-9ea2c52a71d1","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":74,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"c63d3e4f-d8cf-4e20-a177-97a8b32dc223","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":74,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"653b70ef-db69-42c3-adb1-6667725ff2c7","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":74,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"5bd8fe9c-50fb-433d-8fc3-7b86910aa6db","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":74,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"957468fa-6507-436b-b412-328b72ab7fc2","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":74,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"1842b8dc-99c9-4e71-b1e6-a7757a7ee437","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":74,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"5b5bde1c-74ea-4aec-8517-35929ef62243","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":74,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"07974a23-43b5-4866-8da2-0d79cfed5794","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":74,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"2fbc20b7-f2ec-41c6-a783-5bcbc99cc089","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":74,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"d69c0f8c-b264-417c-8414-39086d091edf","block_type":"box","text":"II-44","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a0fb675-a9a2-44e4-8e11-5cf3f8f9ab70","block_type":"box","text":"NM1026U-5984554-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c11c7663-23c0-494f-af24-52c10d639116","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":75,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"f3bdb47a-db3e-40bd-bb5a-d0eb62f61e7b","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":75,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"849f8748-c454-4d61-92a3-3adeae096a49","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":75,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"13157167-b36e-443d-8383-6822ad9666a6","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":75,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"eaee05f4-8de1-482d-9182-c51287a576b4","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":75,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"5b3fe52a-e6eb-4df7-9f5a-c3624ada41ce","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":75,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"a73bb169-0bfd-4a10-9a50-c7046da513f5","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":75,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"d56ffaf0-664f-4167-afc8-c6e48ecd86d5","block_type":"box","text":"Suspension Risk.","page_number":75,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"6e9d50d1-51d6-403e-ac68-53164351cacc","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":75,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"7b94ff35-5631-4431-9dad-1f4e67632b7a","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":75,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"9702754c-6235-421b-ae55-3671c8e1370b","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":75,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"7a1a1cae-95ac-4804-aabb-52ae10becf41","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":75,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"135dfe11-b220-4b02-aab7-8b247ecc971a","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":75,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"1cad54e5-8cd6-4c6e-bc0f-3d4e0797c64c","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":75,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"6c530837-d7f0-423e-97dd-22de20f28da4","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":75,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"0f2cabd5-109c-4943-9064-4fdf0185d494","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":75,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"c48ed6d6-7901-49e4-bdbc-2a237dd94126","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"ded9daa5-4849-4175-8256-fad520e70cdb","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":75,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"540bc312-f483-49e4-8b76-7bb0fc3e5400","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":75,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"50814cad-da17-40eb-a1a6-dcdfbfdc0219","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":75,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"0b3e851f-5340-4d40-ae6e-1dccbe2528a7","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":75,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"8455fac2-d371-4b4e-be29-30171db8a4e6","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":75,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"d007133a-36d9-45a8-8630-b3f3564d9bab","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":75,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"e2f16daa-d319-466c-8f2b-733b0c817254","block_type":"box","text":"A Fund may invest directly in the","page_number":75,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"65fab6fa-7694-4cab-adfc-3ac74d883eae","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":75,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"2f26600a-8567-44a0-a76c-80a487588056","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":75,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"9028b46b-d1e4-4a4b-a610-1d598fde34f0","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":75,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"07e7849f-bc4a-4dbb-820b-8c095cd820ce","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":75,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"5ac2dcf0-ac3a-4819-ae8b-f8a1a0ae4ba0","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":75,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"db071376-fcf3-48fd-bdf6-83418e00f382","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":75,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"e2eb9f1a-27c4-4c40-a720-0143195b53fd","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":75,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"2ff639e2-07ff-42f6-aba8-2f06cd2dde72","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":75,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"97657ec1-d101-40fc-801f-cf993e0f4732","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":75,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"13999dcb-cc6b-44e0-bbb1-9da040ce3ac4","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":75,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"41ed24ee-940d-40ae-b677-edba2673bc80","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":75,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"38d21895-3ad2-4e04-b030-869db88b8f22","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":75,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"c19fac9f-1e0f-4017-8448-de7839c53933","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":75,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"0bb54f35-909b-4c44-a402-f2a3cd0fffe7","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":75,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"003abb26-6c64-4b0f-9473-2015b5c6b7d7","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":75,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"4ad98f94-667a-4d7e-99cb-1c6a84c2ad6c","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":75,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"88932215-eb7e-4bab-8ce8-df6171e4395a","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":75,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"ce3591f7-c311-46af-b7d8-0d81e002326c","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":75,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"c6c57c4f-155f-4bd5-b94c-b6f40aba269d","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":75,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"69d52f78-2523-4207-b49e-62c8c9894e2d","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":75,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"8abfe687-a679-408c-9f58-8e4bc11c42a2","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":75,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"e40c235b-1467-439a-b0fd-d23b963df5fe","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":75,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"67a7cb35-922c-4851-8b01-fd306068247a","block_type":"box","text":"i.e.","page_number":75,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"09f98b16-c25b-4e2a-b9ff-4287f77953b4","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":75,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"ca7ca8e0-6974-402d-b3cb-9d3d11a10198","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":75,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"bd6b8935-fa71-4284-945f-691a6824a6a5","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":75,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"cae464e8-30f4-4058-8048-8ef8da93343e","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":75,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"5fd6ec93-10db-4b23-a8b1-27c3b56459fe","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":75,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"c40aba52-5420-47ad-b8a6-34786098e0d0","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":75,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"da076e5b-5658-4b77-a45f-da235d536b17","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":75,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"114933a3-0652-4514-8666-8543b068043a","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":75,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"91fdfa8f-2925-4941-bb4d-b89a09253404","block_type":"box","text":"par ties.","page_number":75,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"fb9b3b35-450f-4a18-bb90-33b9757a54a6","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":75,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"bd6837d6-d7eb-4cf8-b71a-8a935fee8107","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":75,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"eef48c04-bd8b-4e49-9bb3-4f17a37d6e03","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":75,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"efc65668-185e-4754-a853-4add7064911b","block_type":"box","text":"II-45","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dffa0566-a4b8-4fe6-a737-ee89e8f74d1a","block_type":"box","text":"NM1026U-5984554-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8f090148-5ecb-4cdb-9f2d-0336d7150d22","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":76,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"69047dc5-8638-47a4-96cb-d2d71b9d4622","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":76,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"cbca1bf3-8571-408f-884d-279a62ac86e6","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":76,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"5526a8e9-f1d8-4df1-984d-b09db62130b4","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":76,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"34a912c5-dfcd-43db-a25e-e223bb99e24e","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":76,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"8f08b2fe-0e55-4ddc-b718-cbd1b07ecebc","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":76,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"c6430f59-cc62-4ee4-b1fa-43efb9c39c64","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":76,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"c99a111f-e9d5-41b7-a800-74386295f64f","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":76,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"17ae5d66-57b4-4b9e-8dae-b94a2f6a23fc","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":76,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"5a172755-910d-4c46-8f35-ca7925b55777","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":76,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"d21d89e9-d15c-41fb-b5d6-85e8877b9010","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":76,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"7695e1a1-e6c8-4338-a2f6-e15293602fc1","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":76,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"3d063a1d-d5bc-4df0-a782-13d6a4db368b","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":76,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"2ef53b05-1820-4f25-b371-0b7f731410b9","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":76,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"cd675f6c-523e-4fc6-9470-5afecca6cfd8","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":76,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"00a60e9e-6a6d-4ed0-8c29-700821aa7c91","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":76,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"0b2b0847-4a4d-4baf-9d4b-f9bbee77f0c0","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":76,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"ee90235c-935d-43c3-8d25-a0a80cc45952","block_type":"box","text":"per formance.","page_number":76,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"76a2128e-150d-418b-9367-6615cc6f20bc","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":76,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"7eaa6206-42ea-48cd-a13a-210650f64970","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":76,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"286094f8-3c66-4f2c-9628-1ef7117cf423","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":76,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"e37d244b-0dac-4f9c-b0e0-d7e6f803208f","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":76,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"eeec94a4-4a33-43fc-b498-3ac6a0a45b86","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":76,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"fb63d89f-e82f-45b4-9568-827070ab1bf0","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":76,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"0f5a49e6-7142-49c7-beca-747b50c2c525","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":76,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"f25e24e4-6445-486a-8b50-14514d64244d","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":76,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"af730b29-0b03-4f89-9efd-0ddb1b7785ee","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":76,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"f392f96d-592c-4a3e-80b2-b4c818b1b836","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":76,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"b5d7ef97-3642-4598-b899-34d4e9e3c88b","block_type":"box","text":".","page_number":76,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"e907b71f-862b-446d-ab2f-ccaa9ee642e8","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":76,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"1ca4ddf9-cc97-4e1a-b541-e273d3d956f3","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":76,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"0d6448e6-7e9b-4116-bf56-7cd5c6476ae5","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":76,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"3a85236b-ece0-4a30-ad47-2e5a96658f0b","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":76,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"63ad1b47-552c-4dbf-9ef6-33263964e7ef","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":76,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"0bf60b2b-61eb-46ea-86a4-1dea3653a8d0","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":76,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"43518c01-690b-4e1f-baa6-3f7a9c30fa14","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":76,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"f4245709-c5ab-4086-8414-9fc9b64722ed","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":76,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"3e545f3a-a636-4359-8da4-882895527ad7","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":76,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"563141cf-861e-4076-a1bc-74899aea4452","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":76,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"8783b2d6-17b0-4f13-8eb4-09beb8caa426","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":76,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"7ae4fd98-a117-48a2-b7cd-a6cddc843253","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":76,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"f47895cd-3bd9-415a-b0c1-21b5ccecb36d","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":76,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"a8d42fc8-e2cf-44c9-b200-0d3993ba6055","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":76,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"5af00ea3-912b-4ea1-8a32-04ee0856f148","block_type":"box","text":"without notice.","page_number":76,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"27dcc55d-b94d-40b1-8300-fe70e1a5017d","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":76,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"4db5c567-67e6-436c-bffc-4236acff1c1c","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":76,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"17db23dd-807e-4c8d-a9b2-acc477f825b9","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":76,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"ac184754-6ea1-4be5-983f-ae183bfb668d","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":76,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"7c3d7ec8-19af-4e24-a6cd-8080fe2eeaaa","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":76,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"e10ea192-60cb-4f5a-8e02-7ea4d4107352","block_type":"box","text":"December 31, 2027.","page_number":76,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"6df2adda-f057-4421-b9d3-2283efdacb79","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":76,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"98f24ac3-26b6-4f9a-b609-42592e3fe722","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":76,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"d3ebc680-ed2e-421f-b2ad-749e142e4eb6","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":76,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"a61982e6-1576-40ce-8753-a1ee15c0ef5f","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":76,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"c1d9a730-93b4-4c07-b917-4bfeae7a3a38","block_type":"box","text":"II-46","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cda81ece-e986-4e52-8210-bf5ea572defd","block_type":"box","text":"NM1026U-5984554-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fc490e4d-864a-4b9f-9ba9-c7348d2b1060","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":77,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"239cfe48-b8e4-440e-9830-dd0c5ad5b58c","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":77,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"d8b51abd-7611-425c-bd88-5958660573fc","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":77,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"05bc0961-69d2-4f61-9818-3b3ed4a61adc","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":77,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"150a3ae9-5a00-407f-9e9c-884e88da4356","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":77,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"2693810d-2281-474f-ab94-74b92fd9fad5","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":77,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"8e6c3dfc-f6b5-4845-b451-f203f053d211","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":77,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"fa2eaa12-d71e-4df4-8ca5-3632c6356cbb","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":77,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"7779623e-cba9-4797-8611-82723d8fca9a","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":77,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"4990c3bb-4739-4276-a59b-590cfd5933f6","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":77,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"89ed1e92-d799-4f5c-be69-5fc141c67e1e","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":77,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"eb506394-ad4d-4224-b6a7-6f8a88221441","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":77,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"4d1be30d-88b0-45ae-b5f6-9e31c914f250","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":77,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"4c6fb745-468c-4bf6-82ef-344b2288e542","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":77,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"1f9c33ca-9c6a-49e8-8dd0-1550cf7bbd6c","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":77,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"f15ab3f6-1858-43fe-9a57-4f2579b023cb","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":77,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"7ed40943-d3bf-4313-8c87-b8cfc180dd42","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":77,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"c695dac2-94ed-4ed9-8fcf-895146c032ee","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":77,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"9ca5d99b-3343-45e7-8e80-042ba9d9ffa2","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":77,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"38f8e070-74cb-46cd-be99-c2075ed18747","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":77,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"c9dc663a-e380-44dd-a73e-a107cca04daf","block_type":"box","text":"the PRC in notifications.","page_number":77,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"b362df85-3131-4cd2-bc72-f456f78000bb","block_type":"box","text":"Investment in Other Investment Companies.","page_number":77,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"d75631df-bfab-4c01-89e0-38fac31998a2","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":77,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"9be2d8f3-4165-4734-b423-30d0f358f656","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":77,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"83a581fa-26c0-49b8-9607-35d9d8b174ed","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":77,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"97d8ec1e-8b66-4373-a005-fdd4602f9d2d","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":77,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"00a5f127-4c79-4eda-8a97-ad6af0f9f3c7","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":77,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"f8391abc-5864-4fc4-abe8-622350156f6c","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":77,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"452a3368-66aa-464b-8c51-c948752720a5","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":77,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"9f2f0f74-dea4-4e4b-bc1b-87a7004ac3b3","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":77,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"f9b48214-1526-43fc-827c-b3eb8f9ecb82","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":77,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"03717934-f664-45fe-a623-7327c00cb42c","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":77,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"c89e53b7-2f9f-445b-8322-e024573867ab","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":77,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"7cb3d725-7cfb-4b13-b1a2-31ee0db6c2c9","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":77,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"db4c74b2-f76d-481b-bddf-91d5069a6458","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":77,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"475860c1-af89-441f-a080-6a1944a04710","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":77,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"5105094c-deeb-49e1-b9b7-609853ed69a8","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":77,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"0c50259e-2a23-437a-994e-a0d105ac890f","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":77,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"3a993331-af28-4140-8996-9dead75a9ef2","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":77,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"679d3625-7f2d-492f-8e53-c821add822d2","block_type":"box","text":"subject to cer tain conditions.","page_number":77,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"b17a0914-a00f-46ae-ab46-6a94bf4ac727","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":77,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"5f8eff97-5d68-4c47-9206-f855a81a5e94","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":77,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"538bfd44-e64d-4dd5-b5dd-1999ba5d995b","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":77,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"6fdd6ec9-b420-47e9-a3d1-72743ce94e0c","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":77,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"040bc0ad-869b-4721-90f2-8fd70e302e59","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":77,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"a661098e-5a0a-4137-8d19-222a84253af7","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":77,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"711249e2-e845-4b19-ae0a-7459febd8be1","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":77,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"3050ee15-8557-4a8f-8136-50d833541e89","block_type":"box","text":"loss.","page_number":77,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"57829f59-fa8f-4bdd-837a-b43ee5932d6b","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":77,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"d40d63d0-7087-4f44-b459-3c3e36fdc660","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":77,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"9bd34698-7b04-4cf9-8a4b-954ddfa3785e","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":77,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"98d6f478-94c1-432b-a28b-bdd520ee2962","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":77,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"efb5a9f8-72ee-4a5b-82c3-9bdcdf6bccd2","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":77,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"22d3c5a1-cf8e-43e2-9c23-5394cc35d7c0","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":77,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"318f4897-fbb9-4e49-9f8b-cfde0dd25bc5","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":77,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"36860d9d-741f-44c4-b27b-bf5339273959","block_type":"box","text":"II-47","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"935c1e4d-ca8b-4acd-9eda-e636ab394d1a","block_type":"box","text":"NM1026U-5984554-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b7c0a560-4981-414d-9f32-5df4da1dfc2b","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":78,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"d7f0d1d4-252c-405b-bf70-8e46fa0b8ce8","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":78,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"f1c50eee-f51a-4326-b57b-613aa382417a","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":78,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"32b51536-783e-4b52-89db-0baa09a6b05c","block_type":"box","text":"assets.","page_number":78,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"2897f785-4bed-4c74-aada-518cc21cfff6","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":78,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"2267593d-cb42-41a7-a315-21e8a680c708","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":78,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"81797b82-a619-44e2-bedb-b1780b96d867","block_type":"box","text":"e.g.","page_number":78,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"e7412621-cee9-49ee-b5b5-9601c3b63dde","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":78,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"235d31a3-902f-467c-8cd5-dbce2f4290c1","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":78,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"b5defe20-3576-4a79-93af-e4fba4c017c2","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":78,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"170c47fb-d75e-4daa-b77e-c6a474ef7d3e","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":78,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"cb93a16d-4d82-4c04-8e3a-a015ba19c96f","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":78,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"43c3d479-c3e2-4a5f-963c-475b08322865","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":78,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"7e6655d2-e340-4209-b6f6-a8c7af00c537","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":78,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"fd178786-38fc-4e0c-b123-45812f8feb30","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":78,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"459cda57-d487-4a6d-be3c-ab48031352ac","block_type":"box","text":"countries.","page_number":78,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"471ad412-a9f3-4a9c-8af2-4460566f0daa","block_type":"box","text":"Issuer Insolvency Risk.","page_number":78,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"6e4f29cb-3ee7-41de-87d5-0fad54299b53","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":78,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"d49a7319-e36a-47ed-85c0-807c6c314e8a","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":78,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"c57a8c95-d114-4db3-a6b2-92434b54f530","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":78,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"1cfd49a4-c398-46b9-a233-d8f26cee02f6","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":78,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"21fd415f-d2b8-494f-9b54-0c910163e561","block_type":"box","text":"issuer uncer tain.","page_number":78,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"1731fde3-6820-47b9-a6ff-29dbd8074939","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":78,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"d958e861-f584-4695-bac5-ac2b960baf92","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":78,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"40e6cd80-509e-4ac5-b6ff-55f3a4ba9820","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":78,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"5c135caf-9b11-4277-88af-ad849d602de1","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":78,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"eff30a9d-d0ac-4c48-93dd-496eafe2b4d1","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":78,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"696ebf03-0cc9-41ec-80fe-5c6f175bbb57","block_type":"box","text":"eventually be satisfied.","page_number":78,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"f3a81d74-5ec2-4d6f-b671-3c66dcead280","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":78,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"a945d388-73a3-487b-98ef-45d680d6ab02","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":78,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"7889a426-3199-41df-9e2a-0b8401f7a2df","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":78,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"dacd1e60-e9ba-4bb0-9fdc-afd77f1dfc9d","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":78,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"2fdfed66-5352-47b0-ab8c-edecdf0d8265","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":78,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"e9b9e58c-5dda-44fb-967e-69711cec87ca","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":78,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"c3f51c55-6baa-421d-9b30-9941e233920f","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":78,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"dbfa9567-2cfc-4a27-bcf5-468eecfeb56f","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":78,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"573b8209-c3ad-401d-bdad-7f1b96683662","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":78,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"0cd1439f-6870-46f1-873a-2cca07dee841","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":78,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"9bbcdca9-d191-4ffb-bc97-126441ac16fe","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":78,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"57bcf7ab-6861-4e0b-9e08-6e0fdda34ef3","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":78,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"8fa6230a-bd59-440c-8683-3e6b2d76ac0a","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":78,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"508d94d6-0040-44e8-a1bc-4509d9d8f445","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":78,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"f66b725e-52fe-406b-8b6b-89246ef9c61d","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":78,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"dbcab7a0-e939-48bd-805a-ca179222662b","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":78,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"2586ba62-fddf-4f5c-a90f-36899f650fcd","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":78,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"87bc4f6d-24d9-41b9-8e33-d0994d456d33","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":78,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"cbb57e04-e296-49bb-80f3-e83ae8494e19","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":78,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"c66ce3ac-3425-45bd-b6a3-784293d7e2d7","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":78,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"5971eaf1-759c-41d1-b018-118284ef3157","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":78,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"192c30a4-8172-497e-8b70-c675f9872be4","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":78,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"eb40f2f0-d8e9-4c4b-bf9e-f2fec7354d7b","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":78,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"cc85c005-0089-4b26-af50-41ab773d4f51","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":78,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"a78b9ec8-4f38-4b66-8b85-1446bbb98c01","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":78,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"73d719aa-4c29-4e25-b722-5d9bc0cbc3fc","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":78,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"eb7c5202-8a7d-415b-8268-0b297dd2687e","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":78,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"79560cd4-6964-44c1-b96a-458d887b23da","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":78,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"def2f93e-0326-4c36-958d-f0ca44d7c9b6","block_type":"box","text":"that assumed generally by an investor.","page_number":78,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"1479f52c-86db-4198-b6f7-8d152aad6365","block_type":"box","text":"II-48","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"61a02fbb-6257-468e-ac65-f086c01aa5a5","block_type":"box","text":"NM1026U-5984554-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"138d5ee8-a16b-45fa-a693-314217dacf9b","block_type":"box","text":"Lease Obligations.","page_number":79,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"e538c63c-37d3-400b-97bb-30d68f627860","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":79,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"1406568e-0fcd-4d82-a7e5-af37356f298d","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":79,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"4ee6daa5-83d1-4c20-a452-d26e4849d0d9","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":79,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"3e5ddf0c-3d91-485d-a2a2-d577fbe9f2f2","block_type":"box","text":"Life Settlement Investments.","page_number":79,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"c89c7e9b-5173-4cad-8762-fd315e91ece3","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":79,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"16cef10f-ad75-4223-ab4b-278453599754","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":79,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"f39c7911-7a16-4aa5-be96-b5757a065bdf","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":79,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"95efd7ad-7b48-44f8-b9d7-dbe5a1112593","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":79,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"2fe861d8-b3ac-45b6-80c3-d7615feaca55","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":79,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"da772723-4189-41da-a546-2f9264ef1e20","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":79,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"eb631d08-dc46-47c4-9e88-a61d05bc264f","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":79,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"7eca8c4e-98bf-4296-bee5-274d5a0a697a","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":79,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"8d16566d-cd6a-48bd-bedb-b678b060e27d","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":79,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"3c6ce9d5-9220-4307-8f9f-074ee1f24b9b","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":79,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"7801575e-da86-49ce-a8fa-a854fabdb258","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":79,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"db98a588-c62e-4e30-98e7-4a08324932e3","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":79,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"438643b1-5689-483d-bae8-5673f41854ae","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":79,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"6b91974d-4f6e-4133-86e5-faa7e5f04ccd","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":79,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"97e68e42-7ca3-4285-af44-babad793075f","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":79,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"e5326405-30d7-4532-a34a-f83037f21c97","block_type":"box","text":"Liquidity Risk Management.","page_number":79,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"f732e7ee-da1b-45bc-abe8-667672a512a6","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":79,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"eea3a51f-cfa7-4efa-80f6-d6ee504eddfc","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":79,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"b489ede0-6977-47a1-b9b2-47d96c5c24fc","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":79,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"33acfe5e-7490-494e-93cf-a4ab291a0b04","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":79,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"3dafdd7d-e60d-41cd-8756-f6a72d727686","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":79,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"e728e1dd-8468-4fd8-9a35-792892244b0e","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":79,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"3ed85778-021f-4ceb-b84c-0e3ee993883e","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":79,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"f69267a4-ac1a-407a-bef9-d5277fe1e110","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":79,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"896e73f0-cb86-4e45-bc58-3523d7252fe2","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":79,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"7b5f8599-254e-4327-85d7-b737bfafcd97","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":79,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"95fcb7b6-ddd1-430a-b817-3e736e54da87","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":79,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"2c7007b9-44a1-4ccf-a919-a3b9b60c8ac9","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":79,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"1e05fc86-1bf0-4a22-a346-046159d080de","block_type":"box","text":"Master Limited Partnerships.","page_number":79,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"bad955ca-3252-4940-8b40-f08c5cc2f29a","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":79,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"8d7c6573-523e-4cc2-856e-9c06be2df0ef","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":79,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"7aa14283-edad-4c73-b089-66562ebf5abf","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":79,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"811a84e3-f942-49f5-88b2-106809bece68","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":79,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"283031c9-04b5-42d6-80e9-74309a7659b3","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":79,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"f90a07a3-e632-450d-b486-4d8beeec1ea6","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":79,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"1a7c87e7-8c74-4d27-adc7-c9a8fa55ee17","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":79,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"7b47c681-c2b3-4695-9f7b-988a6afa2cee","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":79,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"5f1ee20b-0293-457b-8ed9-18dcd95c1550","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":79,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"fbcd79e0-2625-45f8-97e1-7457ac573103","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":79,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"5cabcee0-23a3-4faf-8f05-4b0edf3fba34","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":79,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"d5add993-5e58-4856-9a6d-7da6b8d6e370","block_type":"box","text":"in the par tnership’s operations and management.","page_number":79,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"c4da91bf-1139-4c92-a7e3-2c6618a6575a","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":79,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"3967157f-c8d9-4ac3-aff8-ca5c286595a3","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":79,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"58919160-1c77-4b2d-982b-29176b3bbe3e","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":79,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"68671c20-2ad3-4569-9df2-71510bf4cd6b","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":79,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"b3971194-27c5-4431-bac2-d775dea8e202","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":79,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"0cdd17dc-f362-4063-ab6f-42ccbd4bc79f","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":79,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"3537520d-5433-4cd8-959e-d34b34bb923f","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":79,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"37cfe72c-bd20-4c84-910d-79dc02c503f9","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":79,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"bad91966-f4ff-4b5b-92d4-36018cb5de70","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":79,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"54fffa32-b8cf-4303-b801-ca3dd3ad7bcf","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":79,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"5ac847b4-ab5d-44e5-a9cb-5ea76e271b2b","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":79,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"47837953-0fac-48d9-bc32-0af12e9260dd","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":79,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"7eb78039-50ba-4fe0-8673-03bba26f845b","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":79,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c1805720-56f5-4158-8762-e0304e29aa45","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":79,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"78bced40-c01b-4b59-b610-8417cc76acb9","block_type":"box","text":"II-49","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"932518d9-6787-478d-9f53-483730df8d91","block_type":"box","text":"NM1026U-5984554-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"17b78008-f437-409d-b288-7c1e5e8ca198","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":80,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"cb094515-510d-4ec1-ab5e-ab228abfa10e","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":80,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"6fd72207-7455-44b0-9691-9a89ab9aad25","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":80,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"15140e01-6f65-474b-863b-44ea6b9d58c2","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":80,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"cc878055-09ef-49c8-a899-a523cf045fc5","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":80,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"a312c1af-16d7-4217-893b-d1a5dcfb294d","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":80,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"9c68f39e-3ca7-4eba-9b4a-0e585cd549c9","block_type":"box","text":"Merger Transaction Risk.","page_number":80,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"e6ba2756-cf70-46b1-9a9b-ac99fcaf22ad","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":80,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"74ee5d33-7f74-4606-a01b-06fa12dacfe8","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":80,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"3fb4dc73-7c5a-4eaa-abe4-af6f84171d44","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":80,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"9c2c3077-6c48-4b22-932a-ce14cc19b7ea","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":80,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"4aa2f3f3-911b-4ac1-a99a-51f65443886b","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":80,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"cfbf8973-1074-4683-b59f-1cad001d7515","block_type":"box","text":"the Fund and may lose significant value.","page_number":80,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"a4452f69-f119-449b-b5f2-594e0574815e","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":80,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"442616f7-935b-4e22-9767-ff014f9edfb1","block_type":"box","text":"Cer tain","page_number":80,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"8951017a-34d6-4443-b648-0d51ffe639ce","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":80,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"9afed47c-b1ef-43ac-aa9a-3f40ceb1ff0c","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":80,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"419dedc4-da85-4e0f-bf5e-477f0cae3893","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":80,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"6cafb403-a730-4916-9411-17d41d8e36ed","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":80,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"4b5857ec-4f3c-445c-9b3c-23298ad37440","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":80,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"b1f5ffa0-8bd8-462a-8ccf-852c8f26a482","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":80,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"6950ea65-6fc3-4698-a9b7-35ad3ab86bf4","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":80,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"53039cdf-358e-48ce-86d2-526a88402eb4","block_type":"box","text":"branches of domestic banks.","page_number":80,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"06976bd7-10d9-4123-b583-bad743ddc8a9","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":80,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"e3b3451f-2950-453b-a70d-70b0ee8ddc2c","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":80,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"dcb3d05d-b815-4b86-b923-52feaaff8e99","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":80,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"528775ce-ecbf-42e7-a0e6-c57175a8ab7d","block_type":"box","text":"paper of a foreign issuer.","page_number":80,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"3f16dd38-0997-4986-b440-2a78b215f47a","block_type":"box","text":"Money Market Securities.","page_number":80,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"3ca3c4d1-c8fe-43c5-b5e7-4141f73f1b50","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":80,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"f9db390a-5bb1-49cf-927b-ae12121f506a","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":80,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"fcd3e2ea-6a95-4c9e-8cd9-4e2f43a234a1","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":80,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"355bf2ff-347a-4d4c-9d21-bc8aedb15d2d","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":80,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"bb3340ec-e0c9-403f-9524-41234327c191","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":80,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"7a1684ee-c7b7-4d7f-8b57-fea70d46b72b","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":80,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"9c69ef23-25c8-45ee-a562-5e8de7d4dc79","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":80,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"ea0cb22b-5dd1-49c9-b3c0-873eba32d1d3","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":80,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"f27f3b44-1270-4597-b6b5-3995baf8b9e2","block_type":"box","text":"agencies;","page_number":80,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"d49d47ec-40cf-4415-b160-d37e92e09ddc","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":80,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"5eeda9ba-1246-46b4-aae8-6bd0e13c470c","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":80,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"5aeaddf9-e100-4614-9d2c-11ebfd234661","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":80,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"d36696bb-c11a-4a3e-bf05-55d41b43393d","block_type":"box","text":"obligations and credit card receivables);","page_number":80,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"95cb90d7-f915-4cc6-9b2c-d0aba575986a","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":80,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"292440d0-116a-4891-955f-cbc90525507c","block_type":"box","text":"authorities and related custodial receipts;","page_number":80,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"3f7566d7-283d-45b4-a508-31c8eab14c40","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":80,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"f492517e-b57b-4b02-8828-ec4793dd2b68","block_type":"box","text":"agencies or authorities;","page_number":80,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"a33ca229-74c2-4f3e-aa62-b2d27b4fd818","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":80,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"8ddc2ede-92c5-4e27-9f9a-c92f90d69875","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":80,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"c7572135-3a7a-4138-beb2-c08f35ad1936","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":80,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"dd2abced-0195-416d-af02-d81260561409","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":80,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"be676a39-bc05-4888-b4ca-8a3bb1fd23d3","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":80,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"0800c8d0-ba83-41b7-84f2-b4a512ff0a3d","block_type":"box","text":"States;","page_number":80,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"9301620f-9923-4305-95cb-7f81a3d3aa87","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":80,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"aa9ef1e7-1f20-4ae5-8e03-4eac6694690e","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":80,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"130ca8ae-e05a-4241-af3b-9a514665d529","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":80,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"3f9e7569-fae3-4686-82b3-097576fc5d97","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":80,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"0728f0aa-8213-4a9d-918a-fd185fbe8c05","block_type":"box","text":"II-50","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2b1e7ba-8bbc-4cfd-adf4-678f94c626d6","block_type":"box","text":"NM1026U-5984554-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b1e2dc34-b9ba-4ca2-86be-f86b3da66e26","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":81,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"897cef72-1b7e-4d88-a324-ee12bfa2f75d","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":81,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"bc5793cb-8b72-4d82-926e-35ab894c0071","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":81,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"684df2c2-7188-46f1-affa-7276dc9dd750","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":81,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"f5721473-c675-423a-a89d-cc5f667ad9d9","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":81,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"15d56502-62f6-4a88-8ffe-14e53c6fa74d","block_type":"box","text":"States.","page_number":81,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"578e0d0b-121a-4745-ba87-525e39642f62","block_type":"box","text":"Mortgage-Related Securities.","page_number":81,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"805a0444-4075-43f6-a6cd-bfbd8e723f15","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":81,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"1bd03f4b-14fd-4c4c-84e9-9d70a62c138d","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":81,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"309d380a-9d8f-4b50-baa9-87ff4c82bc78","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":81,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"a0362cc3-2eea-4d21-9b04-d2654eec84ca","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":81,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"7fa35ec0-75f9-48d6-b175-c8b69cc2e42c","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":81,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"66f33274-4bbd-4441-8a28-8930eea9182b","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":81,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"97717a6f-481f-4669-885f-bc0a4ea7773e","block_type":"box","text":"maturity or specified call dates.","page_number":81,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"e8297a46-3629-4261-bfb1-1aa1b812c12e","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":81,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"96e85ea3-cabc-4706-8e62-c9e9476b3990","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":81,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"277f68b4-c9b3-44e6-ae4f-632e678389e7","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":81,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"0bd71749-ede1-48ed-b150-868d36f74d49","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":81,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"6734098a-4cc4-4a3a-b796-171a51fe3b56","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":81,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"0d05064e-5182-4138-975c-a10b4770f82d","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":81,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"ee9c2502-f87b-4404-a160-1f93b4fd29c7","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":81,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"6807943f-3263-49dd-902a-5cd6fc4a0999","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":81,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"e5d37938-56b2-4707-a7b9-7dbcf2d7e908","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":81,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"1b1d5cc2-505f-4e04-8d9b-2d4bb474182e","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":81,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"f2c72673-35da-499f-90d0-2e6a65322958","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":81,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"4a56016a-3922-4d0f-96ba-1655267e51e8","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":81,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"50c8917f-b24f-4f1b-85b7-26d01a83c2ab","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":81,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"33eb9082-4173-45c5-b430-c32966a9de51","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":81,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"1e614ce5-5ab4-4749-a442-e793e8cff181","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":81,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"dded8394-75a8-4d3a-bc50-fb3fb87a2547","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":81,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"9af003a5-cea6-4a23-840a-3d1d273cc0e1","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":81,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"10b8e9c3-7cf3-436c-b3a5-ab350e744b1e","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":81,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"0310f21e-65a7-4384-82ad-924c9c6209d1","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":81,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"a523cf56-a7fd-40ed-ab12-ceb5ccbbfc1e","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":81,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"a8c3d82a-46e0-47c1-a1c6-f553cc8f2b84","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":81,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"1995a527-a6c6-4889-8ee9-ed1b8e2a7038","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":81,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"572b9c36-0970-417b-b2f3-37b6c42c9f8f","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":81,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"0f1a1011-2620-4b2e-a2f1-6fa7eb18a40e","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":81,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"5d15ab57-2d5b-4af7-b115-4278a8e6cc5e","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":81,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"86596ec0-fefb-4ef6-84c0-cae204d69660","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":81,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"8054df49-1afc-47a7-a710-e6e9f11ab179","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":81,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"6fa01b63-8096-430a-94f0-aaa48ce2e5aa","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":81,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"7ce37ea3-ec5e-4712-aa1f-549a69789bea","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":81,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"8d29ea60-9b03-43b7-8c4c-9765b11b74e8","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":81,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"44a623ba-c6d9-4120-b74e-6ac31301e999","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":81,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"7ed0072b-132b-45b8-87e2-25b529476272","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":81,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"98ac24c8-f2fe-4fb5-9e0e-8a5d45bdded5","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":81,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"f5ba063e-d60b-41a4-b6fa-8a18075116f3","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":81,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"ba302451-c055-41ae-8089-7b238418bd1a","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":81,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"0d631c31-67d4-4da6-9082-282690d83cde","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":81,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"75671ccc-06c2-4909-9622-161c3f150860","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":81,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"e490feba-341a-4581-9c93-5c806648f0cd","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":81,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"ef9b4971-e408-4a7d-8c14-db102445271e","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":81,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"8cc469fe-f61e-48b1-86a7-dd7ee5ce29ec","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":81,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"c9974605-509f-4a61-be88-b8e3023f15dc","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":81,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"5f0e142c-0981-4bde-b4b7-67c8b08358f0","block_type":"box","text":"II-51","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57f9258a-4379-4cf0-86e8-4934ca03071e","block_type":"box","text":"NM1026U-5984554-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9b4b2d59-7af2-4257-9250-20e8c41c3b6f","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":82,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"99fc49d9-18c3-4ad4-b3ce-3e43b137b820","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":82,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"9d29d1f9-76c4-4ff6-9604-ada9cb31a17c","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":82,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"285e7f68-c7fe-438a-8bd2-1a8d9263caad","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":82,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"ae9caa2a-b4bb-42eb-b43f-410df5303f4b","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":82,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"b0a7787a-7bb2-4fff-8f8c-c3f663a296aa","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":82,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"98c55635-4574-4d33-9355-bff6a751c2e8","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":82,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"463f1dc0-cc24-4226-8db9-b9ca19d3a5b0","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":82,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d01621ae-642a-421c-a54c-c6d485e08751","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":82,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"8ed1e3e7-8b6d-407d-ad8f-6db6fd2d88c3","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":82,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"509a8b78-66fc-430b-ab7a-bdc783988c81","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":82,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"209a305f-5ce2-4521-b10a-0f96111c3bf7","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":82,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"512152cf-8026-498d-8bcb-049d144b2823","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":82,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"9d25c094-961e-46a3-a03c-2ff686f1c29f","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":82,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"970c9abb-e468-4aca-9f30-27441eb24b77","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":82,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"5846ec4a-2ae3-4687-829c-438c57965fe5","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"b0e28003-2b30-414d-b66b-81132d9718ff","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":82,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"760890be-29e9-471a-8f98-1e51d6e2f4b0","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":82,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"3afaf326-61f8-4a82-97f2-169f09c6a706","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":82,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"ce707d67-cd66-41f8-a1e2-8a0829916f23","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":82,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"6e19faa5-9d19-412d-bb90-2f1ff001a088","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":82,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"1998df53-c6fb-49c1-abeb-9f24a2742d68","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":82,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"4948fc7f-d8ad-4189-b15d-d2dab25cb8bf","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":82,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"ee87a1c2-3e1e-4cdc-8748-c6ce0cf819d4","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":82,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"d2d54414-ab1a-4dc8-9dd4-6bb5557aaf0a","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":82,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"136c891c-30b4-4cf3-a320-58c4568d50c4","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":82,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"b01bb804-6427-4b4e-8e93-18b0f08ca247","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":82,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"f2b913c5-c66d-4701-b4fd-bfd4075159de","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":82,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"3ab1a4f8-f7b7-48a8-a1c8-1f1fd9808c17","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":82,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"4e1a3195-d2a1-4efa-8f05-0466ed4e9437","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":82,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"713dda70-7a4d-4d7c-bdee-dd2b07352b6a","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":82,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"89e9124b-b9e1-4a53-b720-2c41243dd449","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":82,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"ef0c9503-b971-4875-a6e6-d37e20ee60ee","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":82,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"a4aa1c3b-b4bf-40ed-b1c3-6aa713cc0862","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":82,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"f962d3e8-71f8-4e58-a611-d7f4bf40d520","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":82,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"6d784e76-3fd7-494e-b8e8-8a3ac994d8e2","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":82,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"992648e3-557a-4196-b29d-2e9013d826b2","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":82,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"f0e3ad0f-5d21-4bf5-97ef-b26b439ba626","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":82,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"9c938452-0181-460d-85ec-1faba09f7204","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":82,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"0f00b6cd-774b-4284-b574-318ca7ae06b0","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":82,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"93f05cc0-a755-4597-b3f5-5a1ede85f842","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":82,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"94b2b605-9dd2-498b-a193-b01f4284be14","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":82,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"856b7956-9913-48d5-8eeb-9d6990fde884","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":82,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"bc3f9c5c-1104-44b9-a24b-33e7ffe03fcb","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":82,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"ec63d395-3e64-4e5f-894e-571c4b495c03","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":82,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"f9cf9560-77e7-49f7-9693-02ac5fe423bb","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":82,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"0f9306fe-6fad-4489-8380-11e8de451f19","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":82,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"b129073b-2383-4700-9d7d-c4eb285b0748","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":82,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"2a933b0f-8c4c-45af-b8a6-b4b1668df09c","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":82,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"97a672ea-b399-4a5c-86f9-25b22c57a6fa","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":82,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"466d3d7d-7689-4e49-8414-4ca603d32496","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":82,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"fe45d180-00f0-40fe-8d86-b810432dd306","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":82,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d65ed230-7d19-4f5e-bf34-12a7499d78b7","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":82,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"f9c596a8-2dd2-4d26-b76f-9bc2bdda9876","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":82,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"2277a81d-14f7-44ae-9ac2-f8273bd177de","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":82,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"b3ca8078-e011-48a8-aef0-323155b021d0","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":82,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"6cf4b34c-0916-4236-8e01-fcc011540f41","block_type":"box","text":"II-52","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17aa2c60-94c1-4d2c-8b8c-d050bc985e0b","block_type":"box","text":"NM1026U-5984554-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"eb27ce11-fd34-403b-9570-25cbd815f912","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":83,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"9e13b92c-ee33-4fad-8416-a42a45f7a90d","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":83,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"a120a45b-641f-444e-9f8d-4a4e74608957","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":83,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"e76f2e7d-7e7e-4181-946d-0c7103dd5f5c","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":83,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"9b171ac9-998c-43bf-9690-df187abeb470","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":83,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"4949e5ff-ede5-42bc-a790-64d1a8b01da9","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":83,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"45c92ea9-cb06-4921-842e-e54521ea408e","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":83,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"897114d4-75ae-49d3-8f3d-0a90bc501f1b","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":83,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"b590417b-5ed9-4a25-a46f-f2a0aee9f4f6","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":83,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"06b693a2-e216-4383-9a1e-643a7f72260e","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":83,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"f60667d9-d695-4f4a-8a04-d45fd29fa2ba","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":83,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"25f7af71-ff9e-4b70-8d46-5755076b75ad","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":83,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"23a36392-4ab5-47ea-b158-7e4a10d86ae8","block_type":"box","text":"of principal because of the sequential payments.","page_number":83,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"b08f9c74-0dbf-426c-81f2-c49e55fdb0ca","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":83,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"c843fc89-7d76-4a8e-9c22-e8f78bbbc89e","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":83,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"7efd8f6e-cc80-45c7-a0a8-d89f2d96d058","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":83,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"a4851959-54fa-4d73-90db-85da07422719","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":83,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"f1153851-eb95-48e1-b5f4-009921d0c9a2","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":83,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"1aa682b1-0dac-4021-bc1f-e95407519117","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":83,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"762b7da6-3504-4f4f-8777-b2cccbef9a44","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":83,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"a3f87c30-8c43-4667-b1a2-b99a709e61d4","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":83,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"d830bcd7-d513-410d-bc70-fe0884cf4cec","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":83,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"bddddaea-4d7b-45c4-98f3-61d32e92979e","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":83,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"5a4769ff-1260-44bd-8597-4422eada508e","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":83,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"5e5e72b7-79af-4dec-a5ff-30994e6304f1","block_type":"box","text":"securities of any single such entity.","page_number":83,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"302b84f4-c45b-4dec-9efe-c3ead92be6f9","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":83,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"c7cfd8b7-42dc-4e7b-92ab-766c6cfe149b","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":83,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"605c5fd0-1afa-441c-9a06-9897bfff59a4","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":83,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"2fa926cb-2402-4dff-b950-06ce33352c0b","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":83,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"8c72656c-6e77-45ff-8771-7dd484a9c73c","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":83,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"4bdf43b8-adb1-42c4-9c51-a2c00ea9d3a0","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":83,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"52c830ee-97ee-4c9b-a27d-967a8d4757ed","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":83,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"3ce83099-e760-432b-b26c-d622aee717d9","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":83,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"32209a81-0734-4051-af71-91258ccf4455","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":83,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"adf6269a-2244-4f62-a1ab-5904a54d5132","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":83,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"80796b24-ed3c-4708-86c0-feee11d4609c","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":83,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"2fe72fe0-e9c6-456a-b3cd-66ceb22552bb","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":83,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"f9cfe544-587b-42d6-a914-f2491feb484e","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":83,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"0afb07be-790f-43f5-8100-af4eb46c8b12","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":83,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"1ff7984b-c705-46f5-a81a-cee3c7a68168","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":83,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"6429a2c2-403a-43e0-8f10-b5eb7fd49e40","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":83,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"252dd0da-ecb7-4d18-a637-539c2909d52c","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":83,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"4f40e030-a23f-47f4-ae03-7ec4f95e154c","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":83,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"daaaa79e-313a-4821-af78-394155d24218","block_type":"box","text":"classes.","page_number":83,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"a49a9046-143a-4677-8dc6-a0b41efbb40f","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":83,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"3f3917ee-14a1-4dda-99d3-f15f37a06c71","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":83,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"8a94491e-41c9-4cb0-9eba-33caa477eb30","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":83,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"982f70c5-dfb9-4c9d-a5b6-e4dbc4c9c24e","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":83,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"0d36ae73-9e9b-4afb-9c24-b0f3ff4908dc","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":83,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"c048eb00-ecaf-4d3a-aa26-a770ecafe8de","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":83,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"4168e032-e0c7-48fb-91a9-8d11bb4ca5af","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":83,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"4f8ebe47-8f88-4dc9-be98-8d3bd9a87681","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":83,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"1a8098b8-84f1-4c26-975f-0ae89ce7287b","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":83,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"472f4bfa-2358-4f0f-b41d-a708b4c330e1","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":83,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"55768605-3af5-4829-b9bc-b3ad1a864883","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":83,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"029a088a-db7e-46cd-8e50-72ab0aefc3d9","block_type":"box","text":"to a designated benchmark index.","page_number":83,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"2552567f-b107-40e6-aaff-d43e5280a71f","block_type":"box","text":"II-53","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d35f5271-529b-4077-ad83-a43abea29b72","block_type":"box","text":"NM1026U-5984554-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6376c345-8e29-4e0d-b913-cd1f9a6353e4","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":84,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"5b2969a2-372c-4927-9466-204e243f0082","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":84,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"338ca0f2-d9cc-40d9-afaf-40f239009f4b","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":84,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"6ca825d0-deff-4c4f-a0fe-a3c667c637fa","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":84,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"73dac772-848f-4af3-8633-68951b434e05","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":84,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"3ece0c7f-fa95-4f51-ad5b-a2cadec09bdd","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":84,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"54d828f9-eb38-488f-97b5-b4a83b6f1660","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":84,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"e16756d6-567b-4b1a-b380-9bd4f5af2714","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":84,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"55a7e979-0db9-49f1-afa6-85669bc53d18","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":84,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"364dee0f-eb28-4ad8-93e8-6271935704d6","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":84,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"cf8ea699-19dc-4265-b923-7782da5cf4f7","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":84,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"449f3ef5-6f22-4dfb-9ed5-d478b371e609","block_type":"box","text":"CMO Residuals.","page_number":84,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"8a989bf2-1473-4f05-a912-b1ac816deb82","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":84,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"3d7fbbc1-7491-45ab-8067-91b971dbc13c","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":84,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"c442c84f-af2f-404a-80e2-76028633da7a","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":84,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"93a2789a-9d0c-4f99-806f-c380ab0dd887","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":84,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"c1b8757a-7a87-41d6-b6cf-a94a7f1692b8","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":84,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"03c231d3-a3c9-4bc9-8a83-2ef80089d0e4","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":84,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"60b1d01a-fe42-4b5d-b67d-9cc781769162","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":84,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"d0af7fe8-3bcb-4112-b776-688fd032a9bb","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":84,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"2b269bd8-ecc7-40a6-a168-4a2918adb864","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":84,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"62b437fe-1b13-4b1c-a7c8-4ef25a5684f0","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":84,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"c56d0433-ef0b-4f44-8e54-5670ab45318b","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":84,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"2f64cab9-1146-4a83-86bd-a7f47d499e7d","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":84,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"24694501-bb20-4345-9930-c50723d4ac34","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":84,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"4af49a90-12d3-4fb7-8dd4-03a70eca0220","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":84,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"3fed18b0-2cf7-43fb-8776-263dc08917a4","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":84,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"19486439-7570-4b2c-8a7c-8d28ac775221","block_type":"box","text":"a CMO residual.","page_number":84,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"d14e7427-34eb-4a85-ac4d-880769b9746f","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":84,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"94e7ea93-91d1-4c70-9154-9f04ad5e3152","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":84,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"340c7d84-12fc-4e53-9636-eb59ff534f24","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":84,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"6daa2c2e-9f42-4587-9813-a6e1d3d4761d","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":84,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"f4c5af86-b31b-4366-9c0a-f673c0c2cd62","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":84,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"e926c27c-76b2-41ae-a6cc-90e30fe7a459","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":84,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"307ae17d-d9c2-4100-a6da-8cd52f9245ad","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":84,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"420f5448-430b-492d-904a-bfb56ef73f57","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":84,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"05538490-a731-4059-9eab-7d9fd351f6cd","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":84,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"92ff0548-1d09-4ac1-bfa8-7075750729ea","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":84,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"f098b34d-daae-4a35-8a96-1f24bfef5e4d","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":84,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"2d73cd9a-e6bf-4aac-b5da-38a9d913ecbc","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":84,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"25e662c2-2258-43e1-b717-6df23bd16a4b","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":84,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"a672939b-d75d-40e8-9696-a78f34853f0a","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":84,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"67e2d467-c53a-4d70-a035-5bf9c69a7b05","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":84,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"93cf5bfc-fa0d-4756-95b2-3a0f616bf40f","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":84,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"784bde47-469c-4c71-b576-134df82f58c2","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":84,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"dec62315-8d66-4369-95b6-800e13e0e68f","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":84,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"2c9f44a0-1c06-4142-9684-19998f860a71","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":84,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"6f88e797-eadd-4cfd-97dc-6f5494bfddb8","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":84,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"f1967021-a014-4ed3-bd36-63df6569bddd","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":84,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"c25d7f56-d98f-4678-a215-7e37d69407b0","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":84,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"f5289e24-d608-4a7f-83f5-7a7104d26392","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":84,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"7093385c-6099-4045-b1a3-e6b2decdd9db","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":84,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"7a52e55f-8bcb-4afe-be28-9782e6ddb035","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":84,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"07fc7162-05d9-42c9-a5f6-effab75d135d","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":84,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"ed7e9b4a-931a-4381-894d-bc6244dc4a4d","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":84,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"bab2ebb2-5e00-4137-9659-f5e5594f63ff","block_type":"box","text":"Tiered Index Bonds.","page_number":84,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"77d03a8d-5791-4241-a673-e9cba32afca7","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":84,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"7a4d7a3f-1711-44a9-a717-0acb13a381b8","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":84,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"edf82e03-023a-46ef-9e0b-2d1f478abaf9","block_type":"box","text":"II-54","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5ae4c740-b66c-41f8-9ca0-2c85ba109b6f","block_type":"box","text":"NM1026U-5984554-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"862066ed-5a9d-4b82-b2bd-93c8c380bf3e","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":85,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"747be074-d048-407e-918a-6fa560f10c21","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":85,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"4e5b666c-e4b9-4f4d-bfdf-b81eae84523b","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":85,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"94dc522b-655c-4fa3-b1c2-3776c7d8ff02","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":85,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"603743a6-47a4-4cd0-8d99-a30142c9b887","block_type":"box","text":"that of a fixed-rate bond.","page_number":85,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"96bdd203-7599-44d7-a8f2-d86319d2e512","block_type":"box","text":"TBA Commitments.","page_number":85,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"8602a28e-b685-44ed-8690-92b3bf6de71d","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":85,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"2097fbab-ee8e-4f08-a63c-2e2b57cb750f","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":85,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"562f0489-406d-4ea8-8d4c-46ae65096e85","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":85,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"1ef92b12-a318-4228-baf2-d951c2c54129","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":85,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"70ef6060-88a3-4d2f-ae45-4a0ce55ab102","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":85,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"f26dd1bf-4668-4e36-965f-5c0a7f192f43","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":85,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"63d77fe3-6383-48a6-9efa-b698049985f6","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":85,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"49237af6-698a-4758-a16e-b5f3f03cb4ae","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":85,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"aff450d8-2437-4917-b821-e8c2f3d21d83","block_type":"box","text":"below.","page_number":85,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"63fef4d5-4b50-41c9-a6b5-2d8e02e21838","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":85,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"83013cbb-9dc9-45f2-a85e-02dd416a72f6","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":85,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"4ce4e648-2486-4a66-9379-852c2fe68640","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":85,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"3693a036-e617-41bd-b26a-c9defedf6712","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":85,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"20f24a4e-91bd-4da3-940f-cde439f35374","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":85,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"73163d7f-dec9-4b95-8fea-6ffe0ba8dc71","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":85,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"cf9c6610-281a-4e5d-9781-8b99c09b4019","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":85,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"391a5464-919d-4837-92da-5d3fe4393d55","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":85,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"9fe68662-6493-42f7-b8b2-87c471076ef1","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":85,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"da956a69-627b-4f13-b38d-169c58d77fcf","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":85,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"3a20bdcd-9f03-412f-822d-d3397cdbe20e","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":85,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"e773152f-168c-418e-a6fb-c1a4ebe4f30d","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":85,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"56c9b1e8-ad5f-480a-95bc-a2d54856e6c4","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":85,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"99a06051-0f6d-4596-93ef-8acd901e5186","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":85,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"f74a210c-c6d6-4ec5-8629-1e404cfd41c4","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":85,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"6bc76eef-1a21-4a98-9991-9a9fa7b8cbd4","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":85,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"f9342fca-d8cf-4763-8139-a5b8392e7b29","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":85,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"aad5cdaf-2d95-43da-b96e-2e87c3b4bc3c","block_type":"box","text":"securities in the forward transaction.","page_number":85,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"0b57e1c8-0fae-4507-ad8d-10a6d1c19ed5","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":85,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"37dd8faf-406a-48ff-a97e-e01438090534","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":85,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"13e29577-6ba5-4c5b-a113-eaf7fe36ea97","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":85,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"02d06cb1-2950-4090-8357-d34e634d3a20","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":85,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"7e238c12-7572-4036-b191-5235c4e2de5b","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":85,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"6e9bd83e-6dfd-41ac-abd5-878f111b2ee6","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":85,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"da7dd4b1-5bd7-41b6-b43a-ba4d156a6692","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":85,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"b2d9e8ca-338b-4b57-afb3-502cb7e8adfa","block_type":"box","text":"securities (","page_number":85,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"e61003a4-155d-4eac-990c-188120c14f13","block_type":"box","text":"e.g.","page_number":85,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"5461fb25-36fc-44dd-a4ea-b64831ec11e7","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":85,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"63ff363a-918d-4788-9b64-7cd91014b7dd","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":85,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"bfc52f37-b7b4-412d-bffa-ee598a030eb3","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":85,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"b6b4dbd1-384d-4e4f-8ae6-1674ea4722ee","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":85,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"1def88bc-701b-4cea-b7d5-3b90679ef0aa","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":85,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"ef67ba82-f5fb-4b36-a0ba-94fc5f817a87","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":85,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"2fd06e1e-ef0a-4a0f-9bac-61c89c72984b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":85,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"deb631db-cdba-4c35-9c38-d6c11d99207c","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":85,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"d8f25d98-c91a-46fa-90ba-a3c5d638e26a","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":85,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"4bcd7a21-1e5c-424d-b516-ae211576ae32","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":85,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"d5175dda-7828-4501-ba23-a0202e0eb58b","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":85,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"adac9cd8-7479-4562-8be1-ff232915c9f9","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":85,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"40ac217f-ee46-4064-b63b-b6368e151097","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":85,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"9b8d886e-05cb-4831-8a22-2874a1c5eb98","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":85,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"45ea96e5-e368-4327-b4c1-18e074c8f2e7","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":85,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"5e8013f9-9ad7-4a9e-833e-bb5600c8f53b","block_type":"box","text":"Municipal Investments.","page_number":85,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"8dd00883-bd34-4524-8831-9fa3e4be2a32","block_type":"box","text":"II-55","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fd83738-ddb2-4474-8559-53e5d9f64d6c","block_type":"box","text":"NM1026U-5984554-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7686aa91-0739-441f-bfc9-e8253a4cadfb","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":86,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"d1651eb4-31b3-4d33-8998-879decc12bb4","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":86,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"579d85d6-1377-48b6-b34a-be4282c45676","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":86,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"2b2bb855-ae2c-43df-9227-f030f1581caf","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":86,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"a2778fc6-7a46-4a04-8371-1a0adfc3f63f","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":86,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"b43283e2-bb7f-4edb-90ac-44116673998f","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":86,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"4cee2245-4f8f-475b-b67a-d243be0d6fbc","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":86,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"7ef88f6f-cef5-4a37-ac6c-5380d5822348","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":86,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"7c839354-e109-41d0-89cc-b34bce104c95","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":86,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"0a7b4ea9-048c-49bc-ad1a-5d1caaa380c8","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":86,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"9e5d13c5-8601-4403-bdee-d67679c9a017","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":86,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"80ed4b27-1e55-4fce-b6ec-2f7377d874da","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":86,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"2d90dccf-e277-4e82-8c89-4577b939240a","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":86,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"f989ec80-a998-472e-9a46-7d2e966d1219","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":86,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"b547b4af-becd-4854-a869-6e91c992ae6d","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":86,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"b2b232c2-18cf-46a6-96dd-a1ab1e5d440d","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":86,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"1eafecf8-04d4-47cc-926d-730f2779a73d","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":86,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"81736acd-8aca-40e7-b020-0a7d5beb1392","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":86,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"59ea311a-a499-419d-a002-24a687a54f13","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":86,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"8d4b4dfe-1f47-455e-af0c-a0ed39dcbc71","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":86,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"bac77112-21a0-46fb-806e-ee12514a8bfa","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":86,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"9e6c5796-2ed7-43c8-9ee8-d48647e879ed","block_type":"box","text":"The risks and special considerations","page_number":86,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"66ffd2fe-b1b4-4aee-a9bc-69001f42caef","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":86,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"bf2e5ce7-f187-4a1a-843f-e165ae8638b4","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":86,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"ff91935f-831d-44b9-9468-4317b7f2b084","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":86,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"df7dd013-9301-4b5c-8dc3-6eaa9d1ef9b8","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":86,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"a2339764-64ed-49dc-81f9-0c408206e989","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":86,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"5692aa7c-aa1b-4522-b02b-ca2f847f12ec","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":86,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"7ff42190-5d44-4bfb-991e-518e77ec6d80","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":86,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"c087e5ad-adf6-4d7d-b428-d6e46d5acf2b","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":86,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"ac2e341e-8022-49de-9402-680bb714f75c","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":86,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"be5f9978-cefd-4e1f-913a-fd1e55c11369","block_type":"box","text":"II-56","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c99c3c4-d2cf-46c4-b5c4-1016f3ec8e14","block_type":"box","text":"NM1026U-5984554-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"78f69f63-287e-4dca-9308-cb2eef392b66","block_type":"box","text":"Description of Municipal Bonds.","page_number":87,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"4918aea5-6518-454c-aa30-74962b65a0da","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":87,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"7420396e-9e09-4b3d-8163-84557f5bb719","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":87,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"9a8fdeb8-6ddb-46ad-b75e-2890ff772920","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":87,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"8c1f8b8e-0a94-4f93-9599-477d8cf21dfd","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":87,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"88434ec1-6250-4d11-b2c3-a367d4edb10a","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":87,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"2d167c60-a730-4d07-b445-211d0e0a4f71","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":87,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"c3eb7bf1-99e0-4745-8928-81f4b1a8bbf1","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":87,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"2ed16926-125a-42db-88cd-8823c2673ccf","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":87,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"e360cd40-135a-431e-8eb7-77405f5a4f89","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":87,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"b8ba06aa-0c52-45b8-92cd-67d2a32a83ed","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":87,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"5cb51e57-338b-4d0e-8c49-ec0e5aff3189","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":87,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"b756e1ad-79f6-451e-9054-baa2d80b8610","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":87,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"2d70fc8e-3a14-45ad-bb69-20c376cb8551","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":87,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"1147f8cc-4a6d-4512-9c2f-0e8ed4a42579","block_type":"box","text":"General Obligation Bonds.","page_number":87,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"7d6aa679-917c-4160-93da-2b7362f96a9f","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":87,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"49bdd72f-715b-4c15-aa58-1ea9cad289aa","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":87,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"809d067f-fa58-45fc-87a1-12ddbb5c9d93","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":87,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"ac2fd670-7077-4b60-963c-e90bf6e746f5","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":87,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"b4e857df-063e-41be-b636-ea607616c3fd","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":87,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"38c2a1ae-de67-4a6d-b13e-4291eb1d3235","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":87,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"e7185081-b93f-4c40-a016-3f9d61be4760","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":87,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"d7cebc1e-72c7-43fc-a0b2-176982085e36","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":87,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"db485e03-815b-457c-b660-09b43e3b2443","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":87,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"c879a486-87a2-4c6a-8ada-a897597d5ce3","block_type":"box","text":"Revenue Bonds.","page_number":87,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"99fe9f9b-ccde-472f-93cc-22f7404ac5e3","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":87,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"5586d322-d092-432e-85d3-e14ca2dd97f6","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":87,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"18965a94-39bb-4ef3-99c2-bf9522ec6263","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":87,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"1b48bba8-f0ab-46bb-ba49-af28012f7af1","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":87,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"ebfd788e-7e33-41f2-a480-48c73914d312","block_type":"box","text":"viability of such facility or such revenue source.","page_number":87,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"751809a6-fb1c-43dd-a891-81c6c9ff037d","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":87,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"a08476dd-3a4f-47a2-b837-9153edd7c0c5","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":87,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"129f4b51-279c-4006-9197-2d66694ec81b","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":87,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"48dcd3b1-0237-40e4-9e47-f1cac84322a8","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":87,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"e4a67440-283b-417c-bc7f-74069fe9385a","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":87,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"b2feb972-422f-4e11-a963-74553cd0efb6","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":87,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"c6bcee69-200b-40ca-83f8-f8f028d832dd","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":87,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"f2af4c6b-351e-4c46-980f-31dd6390307e","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":87,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"62b938d6-8a10-4f6d-8d9d-4a1271488d78","block_type":"box","text":"PABs.","page_number":87,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"42be11d7-cb2b-45ff-a27b-e0ae586ed916","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":87,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"3211b83c-3201-4ea3-8cf3-094e1153444e","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":87,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"630e9249-1837-40da-8a77-902111d14f8d","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":87,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"ba5b5827-61d5-446c-b556-d50ba52d09ac","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":87,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"c485a21e-8d33-4ad3-97bc-0de0f08c4a8a","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":87,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"f54c36d0-600d-4f26-931e-ac433726f82d","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":87,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"1d107e85-9cd1-4ac0-989b-0ee0301705a3","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":87,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"5aa86efa-07ce-475c-b938-e50108eb5107","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":87,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"2b940fad-0f70-45bd-a86f-65bd0daae382","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"c6034621-97b6-4cea-8700-dfeef99d8baa","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":87,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"24231a36-b68e-43f6-b21e-14d39e74727b","block_type":"box","text":"the par ticular facility being financed.","page_number":87,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"7ab1a8ec-7fde-4677-b97b-4fa9683549b1","block_type":"box","text":"Moral Obligation Bonds.","page_number":87,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"35b8ae2d-53cd-4021-a2f3-5447b36d97a5","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":87,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"76926876-ff53-482f-b001-f04f1a76236d","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":87,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"3fe07f36-6b19-4b46-83c1-459a3f6bf35f","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":87,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"d49543ec-aa57-40fc-acf2-7d8ab8739ed2","block_type":"box","text":"that issued the bonds.","page_number":87,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"d0970a94-d9dc-45d9-9aad-6b70f71e68f0","block_type":"box","text":"Municipal Notes.","page_number":87,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"1319d8cd-45b0-4b1f-880a-d3d788751b85","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":87,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"c2f06665-0d85-497d-9774-bc69e0fd528f","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":87,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"a58dfeb6-49a0-4975-bdfc-f7944142d0f1","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":87,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"b6dac67b-b96f-4e69-9718-6937e0e80465","block_type":"box","text":"II-57","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"267bc9ca-7c35-488f-8b55-eab38ab4ffd1","block_type":"box","text":"NM1026U-5984554-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8beab9fa-98fd-4602-8949-aa26d3832c97","block_type":"box","text":"Municipal Commercial Paper.","page_number":88,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"f182b917-baae-4659-8e08-d02a32911e07","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":88,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"1cbdbb41-be49-44a5-bd93-3cb5890f59fb","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":88,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"f1b0a2ef-8589-44b4-b83d-d01b7a3f6d48","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":88,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"c948d826-5ec6-4051-949c-b591f75b0a93","block_type":"box","text":"Municipal Lease Obligations.","page_number":88,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"fe26a4b7-5c58-40dc-8f06-9d7823a2c9be","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":88,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"dc099706-d942-48df-8a48-77aeb81040df","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":88,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"41455428-4d76-43b6-ae77-31824fab2075","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":88,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"f349b519-b7a6-48a4-b88d-19f48551802b","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":88,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"0fa9d6f6-6c2d-4dac-91ec-5c9fb563e36d","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":88,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"4330d119-0154-4715-9068-895b71c6814d","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":88,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"0d36e91a-f258-49ff-b441-e8e0cdd15557","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":88,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"cc297278-8701-4081-b81a-0f262783c9ae","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":88,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"6b4cb3ff-089d-4ab1-9787-7f09609aac0f","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":88,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"aa1c3dba-5ea7-4493-a3b4-a2cb3493061e","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":88,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"527534cd-aa0a-4036-955a-af72197bdc55","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":88,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"90d0391b-930b-428a-9f62-41f1e81aea39","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":88,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"b898e821-4a9a-449b-8f65-7583cc5c08f6","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":88,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"67f0c049-2e0d-4592-973b-06853a58bcf2","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":88,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"dc5166b7-f8c1-4365-9308-e9f153d193ec","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":88,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"3968aaca-ea9b-4f5d-bb79-1a44d1c38d1b","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":88,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"e4033a99-37f0-4364-bb85-f0647acc703b","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":88,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"080268e6-abd7-44d4-b504-48bc5642dbe1","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":88,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"f340b749-db06-4211-8014-1faf4eb857a7","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":88,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"464c64d6-44d5-4fd3-a2b5-a422422b63c3","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":88,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"face6683-3c0d-446b-888d-630904b954fa","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":88,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"1be28afc-d5ec-484e-8380-2a32cef04bdc","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":88,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4d1add79-43ac-479c-8268-340f040fee87","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":88,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"2a3a3bf8-08f6-4533-8fe2-eacb0864e0b6","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":88,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"d3f5a0c4-dc2f-4c77-9fd3-53ed5c849d04","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":88,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"1f50b64d-5215-4877-a7b4-ecc1c6deabf4","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":88,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"8d367dd8-e32b-4493-891c-a36658bc7c77","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":88,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"03139393-a69d-422e-86ba-8d362314aed5","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":88,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"7ea1e9e0-76a8-40e0-b5ff-2cb4b3904d64","block_type":"box","text":"Tender Option Bonds.","page_number":88,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"54cc199f-ee69-428a-8df9-0e5bf5975ba9","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":88,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"a55b785c-d835-4a73-8c6c-69808bcec536","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":88,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"c1ee82e7-0d73-4657-9591-00d9c54a4f87","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":88,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"ca23d6aa-fa31-4404-b093-d91e6d3fe031","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":88,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"90bcb57d-b93e-4233-9784-c3df6d5dbd37","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":88,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"7eb17d72-1a58-4276-8aae-7b78dd027a55","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":88,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"86c70d16-276f-426e-8a66-b22f39bb1793","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":88,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"682826dc-3be4-4365-b7e8-9aa6ad811ede","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":88,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"17002471-18d2-47f0-915e-6efeae75b834","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":88,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"8940aad9-5637-468a-970c-0cbdf3046045","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":88,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"eb96da32-e214-4758-82c5-77d17091e78f","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":88,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"1be191ed-1c39-4235-950a-eaabb10b2bfb","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":88,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"c616a2d2-7084-4a70-83c8-41fc91dfed98","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":88,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"3b6716d3-e99f-4c07-af74-668b959f802b","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":88,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"4a2cd120-d80d-4b69-809b-35c40aba30f1","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":88,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"c30cb9d4-1113-46e0-83ae-51b6141f655f","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":88,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"65e0311b-5e34-4fee-ad7a-2c2f4e6dbce7","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":88,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"f8b97122-9f31-401f-ae56-3ac0d9eccc04","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":88,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"83db2253-69fe-4f80-ac52-b66e777ae8a9","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":88,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"9a01d72d-3737-42be-b073-c7d0286f3d07","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":88,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"3217ea7e-f17f-4b20-b242-b6439450462e","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":88,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"7b13a29b-3923-424b-b887-5354c2ff9bf8","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":88,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"b5ec43ed-7c17-4c28-8aaf-eb6a30ab7e6d","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":88,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"532d4bd7-e088-4680-92f6-3bb43cfa20c1","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":88,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"a4207384-d642-4093-83b1-29a0123c5e7a","block_type":"box","text":"II-58","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f2410ce-f244-4882-b2b6-9b8408909bef","block_type":"box","text":"NM1026U-5984554-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ef21f1cf-b34b-4c06-9e48-f40bbb0028b1","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":89,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"51c330f6-5028-4f66-a519-7e6cabe4eeef","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":89,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"ab14ec23-00f7-4f96-af9f-4e9d4a600df4","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":89,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"3710360d-dcea-4153-bd93-9f4d57a5f818","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":89,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"867a4318-0119-4fe7-9de3-bb784445ca5f","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":89,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"5e8a9d76-4bfe-42cb-99af-882d1b45b03f","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":89,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"7e8b4a27-3ac6-4d9d-bbcd-0f351342f360","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":89,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"16ab535d-ae86-4a1c-9700-1bf45ac686a9","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":89,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"2bc89e5f-20c4-40ca-b21b-7ec72f268b0c","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":89,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"4988b473-bb43-41c8-9691-648671ac0f49","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":89,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"b6c09579-4598-4800-8601-8fd636eebce4","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":89,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"f080c06c-09d1-4fc8-a0dc-528befbe5401","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":89,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"2119a0d4-0ccc-4fa5-a94a-d499aab7ff1d","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":89,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"803d7c0f-f1c3-45db-bebf-9eb7e870e1ca","block_type":"box","text":"issues.","page_number":89,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"e61747f8-be2c-4714-87b7-54b77f23ee4e","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":89,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"0130cb87-de91-4819-be89-48af205d78ff","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":89,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"d56a7c2e-e128-4c67-85aa-8678bc6ddc7b","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"a2583afa-748a-4bda-b053-cf9adccabbd6","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":89,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"97d1c305-b4ff-4a29-b53a-ff59b1cb89e5","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":89,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"c9034833-d1db-4d9a-a098-92e47c5d2566","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":89,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"1b612454-f5c4-462a-a4f6-67d2c189266c","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":89,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"e5d00f11-35f3-4279-8965-8bd57cbddee2","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":89,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"4b738a0c-29a6-4e0c-81eb-046abc69d6cd","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":89,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"a5c19e01-65aa-42e0-a73e-49858b025624","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":89,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"071775b4-bf4b-4a24-9fca-364474303141","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":89,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"6399df60-9b34-4b5b-b277-e94a0ac43be8","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":89,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"02209b5a-e14f-4bca-9af1-55f038d4c63d","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":89,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"5c63e9ca-6143-4760-83a1-993429b2a8bc","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":89,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"9b34ef50-b7a5-4b57-a979-0bb56aa756cf","block_type":"box","text":"i.e.","page_number":89,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"a4266460-fe1b-4984-bb0c-3a3ade6c6e11","block_type":"box","text":", the Fund). In contrast, in the","page_number":89,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"80ea5122-8c92-4061-9e5c-120212c7f57c","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":89,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"40f274b1-9712-419d-a522-99cbd44f3106","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":89,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"75aa9155-dfc6-4ec8-99b6-2d6e3a52aabf","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":89,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"4ba67542-2065-4a00-b0f3-a59c9b1be4e5","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":89,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"760589ac-4624-4402-9de5-9fdcbdf43549","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":89,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"920c27d7-0d61-4518-81fc-b55affc8303a","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":89,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"99183f76-43cd-4a9e-8b5d-1e93371b523e","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":89,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"ce1d3ddb-ca3f-462c-a02f-7f8468d26716","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":89,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"9f77bc4b-b3da-40fc-9ab9-1aa688156e04","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":89,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"4cebf64e-f4f6-484a-b373-0ddcfbffb1cc","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":89,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"246fc50b-71f6-4628-acb0-b8f70184086e","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":89,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"3e3b0ea6-cb74-49c4-8bed-9baf6e3ed8e7","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":89,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"28d71211-1a52-43d5-b197-a03cb704f996","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":89,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"fd978239-f140-4ab1-8af8-c89f7fa86844","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":89,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"316491dc-a0aa-4c1c-a619-e490d67d9980","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":89,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"648f9652-5e0c-4eeb-b9ae-a5650890375b","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":89,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"6f218fe3-c297-4ef1-a41e-ee99aeed5a62","block_type":"box","text":"Trust.","page_number":89,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"85d3447d-2967-4ffe-b928-3d6b102ec95e","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":89,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"0d34daf0-884d-4b7e-a778-07c73de50e65","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":89,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"5e5a3b3e-c5c0-4216-aac0-b05bbda224a9","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":89,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"a8a54063-dd3c-49e7-96bc-84659ac039ae","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":89,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"24f6851d-f416-467d-92c3-93dc018f8c28","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":89,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"4741acf9-eb62-4bb2-a19c-3040b9cccb2e","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":89,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"7279566d-92a5-4a53-a800-018d88575cb7","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":89,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"3d9a2fa5-b0cf-4ac2-9fc4-e3095deb9813","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":89,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"e7a6506d-d13c-4ff9-a36a-dd8a4dccc08d","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":89,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"6bacb4d5-6430-4cdd-995c-40c4cbd1ba71","block_type":"box","text":"II-59","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d3e7f7b3-afad-4b1d-8171-1d362e3f8def","block_type":"box","text":"NM1026U-5984554-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0e8492f9-d712-439d-8d93-4ef33452dd1e","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":90,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"7be698ee-dcc9-42a1-82ca-c6caf0339f4e","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":90,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"9ee94c5a-2d6a-423d-973c-014876b8afb3","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":90,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"6d1f5e85-3a66-40f7-9f82-327e1053aacd","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":90,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"b8e4483d-813d-412c-a228-1642ba400028","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":90,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"faa09a22-4c0b-47e5-8280-d6a7a68c0fb1","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":90,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"cb445d5d-49f4-4d35-a0ec-02314e3db32a","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":90,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"619fd9bb-7a75-4efb-b8de-9b3d6e89961b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":90,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"3e6a5628-5b5e-4db8-918d-4f35f804e368","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":90,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"514394f2-eed2-4044-b8ed-9661baf0fadb","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":90,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"0ec3cd75-ff4f-414e-af17-86a968020816","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":90,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"bf252b42-3f53-4cce-ba99-ff88de6883b1","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":90,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"50b90fda-3a94-4cf3-8da2-35b62ec5c7c7","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":90,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"0a0e014f-4d74-4122-b1d6-4be8378d9e98","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":90,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"c854c4b3-9378-45b6-b880-4ac218c3202e","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":90,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"13d3eaf9-bfc0-4855-97b3-8e6fc23805d4","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":90,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"df6791a8-168e-4170-9199-c9c527540bf1","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":90,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a4dcb4e3-d879-400e-9109-23234d259884","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":90,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d327f8c5-c5f8-4157-b5cf-364693173c37","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":90,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"99f10400-f839-4e1b-89d1-bfa696c552a5","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":90,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"39b4975e-fe10-4c80-abc5-c9f5b590af82","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":90,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"402c31d7-a3a7-41d1-8410-687264dfc9a3","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":90,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"7ca2cc05-94ca-4845-8f4a-4efdd49dd666","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":90,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"5cf6f0bc-ea69-47fe-a251-c45b511cc06b","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":90,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"c1e1abf3-4915-4c53-9f29-29a10df2a78f","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":90,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"f2c667c1-f98a-4a43-b4cd-46219fb8a2eb","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":90,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"9824c49d-875a-49a4-b4d1-f2675351a2e2","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":90,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"8b117382-b3c4-4a20-9433-200d33683e16","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":90,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"43d5d9b3-5ffa-4101-a6e3-b93c0a1e522c","block_type":"box","text":"i.e.","page_number":90,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"808be034-1834-4261-ba0a-0c0c06373230","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":90,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"d15b5ff5-9672-45d8-a2d7-6227e3a1453e","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":90,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"fce9ad3b-c869-4623-8f5b-d9c9f2f22232","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":90,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"8f7ec98a-81ba-4873-b96d-00928f724f0e","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":90,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"7eaad220-c421-4022-a603-4e5aa701c792","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":90,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"c92f595c-00af-4ec3-bbac-be2d4fcede4e","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":90,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"4686af68-fe01-49da-9626-79a76c0186d2","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":90,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"128749d5-6976-462b-a9fe-74925bb0eeb6","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":90,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"1704d02d-cc35-4d64-8a81-7aee8a3e86b6","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":90,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"9baee6ce-062b-4701-aef3-41cc99b0de71","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":90,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"d413183c-0872-43cf-a710-f0a23dfdaa23","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":90,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"3202701f-912f-4663-9c93-64fe915de706","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":90,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"a1aeb9d5-9806-46c8-a514-a8615ea4b785","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":90,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"728c730f-5aca-45eb-b383-37b1ec5acec6","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":90,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"4335b8a5-4c98-436f-861b-5473c184dfd6","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":90,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"b6f1d8ec-e598-4828-8f25-2ac0401042c8","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":90,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"40d92334-d8d4-4018-af1c-c2bce29e945e","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":90,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"73ce1143-228c-47d9-b09e-1e365e045818","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":90,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"74f14c9d-2647-41d1-b74c-6007bf8c1911","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":90,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"8564a3ad-079a-43e7-b53f-7a9a4001ad9c","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":90,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"cea92bb6-0f16-4344-a5b1-71452c336c71","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":90,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"8e3f48c4-d3c9-4d30-9f38-4ea5d584c78e","block_type":"box","text":"market is not yet cer tain.","page_number":90,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"605985ab-aff4-4e9b-9ea7-3fc307010f05","block_type":"box","text":"Yields.","page_number":90,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"53d17301-9ba3-4009-a34e-35097d3ce852","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":90,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"12bf5e28-c6c1-4b74-a40a-5b4028167d50","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":90,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"09a236b6-4e12-4f42-9f3f-e792f1a4897b","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":90,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"2266b0c9-f01e-476f-89b2-3ce77559c624","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":90,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"0bfa419e-6c2c-4b86-9414-8a34261953d4","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":90,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"006b9995-f88c-443b-a9af-defd96d4d21e","block_type":"box","text":"II-60","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3c9e509a-86f4-4d31-acda-e5a68da05749","block_type":"box","text":"NM1026U-5984554-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b0b4396c-8174-4df8-93c3-fac2b8795e65","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":91,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"8f94d011-a43e-445d-900f-20617688c78a","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":91,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"e03d7189-0d00-4ed4-ae8d-f0931635cd3b","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":91,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"d36268a3-8aa4-4aef-a6e4-562c5e9661de","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":91,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"452e8d6f-6138-45c4-ac23-60ce417b68b9","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":91,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"d9b7967b-d08e-47f1-a14f-cbdde669e8f2","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":91,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"a5a462d9-5713-47e0-a8c7-fa32253994c4","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":91,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"e2a61144-94a2-4d00-a144-09127ac20f04","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":91,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"f216ce32-edcc-481b-a3d5-c216495c29b6","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":91,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"8ccd73b1-c7b6-451b-8927-06a94e4d2f4d","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":91,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"1dca0cf9-f8da-4a29-8f2d-d17b32c4261c","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":91,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"787adeb3-ff5b-4903-b94b-70aabadddbb6","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":91,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"003fc076-66c2-4c76-a69c-0ab0aab4c8a1","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":91,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"be64527e-9d7d-4aeb-a5b0-abf9601d50fe","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":91,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"d22444d6-c0f4-4407-a3ae-95e8a475a8a8","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":91,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"47364a62-6e12-4cf0-a271-f09db9c505a4","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":91,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"675d5ac7-ff18-4e69-9a56-844b88cb0b79","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":91,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"e4193b12-101e-42a2-b24b-6455a9097f98","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":91,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"bcf011db-c015-4746-93bb-e0a1bd304cd7","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":91,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"c9826e64-5591-4f3f-a402-a7ec7a366f91","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":91,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"520aea69-01bb-4bc7-bad2-e5e5e25a8fbb","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":91,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"d2f3b184-6894-4da9-bf30-93ae7c848ff7","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":91,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"02729004-6504-4c48-b9df-56c6818c1211","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":91,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"7beb5a95-5213-4dad-8f74-c448ce248a34","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"a15938c5-a139-40c6-92fd-e6ff9d951b2f","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":91,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"3ac51e20-6713-48ff-8efa-a3e621a344f5","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":91,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"fbf00b88-d414-4476-8044-96c90e9d4d59","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":91,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"fe672329-ebd6-4583-9a9b-e8c1992caaee","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":91,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"da1d0acf-2806-4f52-b977-856fae1600fb","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":91,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"7b9879db-f930-4c35-beb6-6c67cceb7e30","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":91,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"ffa21e06-e5bd-4e44-b39e-eb925d69bc8f","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":91,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"b7d33272-ab5c-4a2c-bb83-e3dce97a4e60","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":91,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"b4050571-0bd0-4535-912b-3c9949890fab","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":91,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"1933d31f-3397-4256-99b1-af073e61d0e2","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":91,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"ce5372b1-235a-4d3d-a8ed-ffc419decb74","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":91,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"393b237d-bd9a-45c2-89e1-abde2294e4f1","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":91,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"e1399492-7df3-4ea0-b21f-559abb4ed05d","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":91,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"a8c6ab7e-67d5-4e8b-b20f-dafceb178685","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":91,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"297d0aca-8d12-4885-9c83-abdf081c007c","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":91,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"adcce0b4-b8a0-4ee0-9867-28f7775f80ad","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":91,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"31a460b0-f443-44e0-b8c6-f64f83cecbb9","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":91,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"5449728c-32a3-473e-b2be-a300416129bf","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":91,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"e5f3634b-818f-4db2-8936-dfc1fe86b40d","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":91,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"1a435c77-00d0-4e10-91bd-68a47c4bd34a","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":91,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"c19bb5c0-71b7-425b-bfe2-9203f692f0a2","block_type":"box","text":"Call Rights.","page_number":91,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"cf47520c-b65b-4f2e-8cb6-1045f49a8ee6","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":91,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"d8da157e-2cf5-4a00-975f-1cc0e5327446","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":91,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"49b1d6ca-397c-4b6d-bf08-e2cc82ee5578","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":91,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"5de9117f-385f-482d-8181-3d0a66bb495c","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":91,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"011b0dd1-d2c5-450b-bb51-9938ea927fb2","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":91,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"494bedea-2ff9-43b4-9b19-155f5a9556cb","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":91,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"745de293-b150-4130-8505-bae99f9910ba","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":91,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"955eaa82-1c49-4d82-9454-de6d12c625c3","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":91,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"57e09bb8-efa9-43ae-8288-bdb8f80c18d6","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":91,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"7e5b6fde-e05f-4cf7-9e59-402dfff474d7","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":91,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"435a1845-3ff7-4908-9e41-ed04fcf37dff","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":91,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"bbfa6a0b-0f24-4ff5-aee4-654ba15b3c0e","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":91,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"d337f9ee-74cc-4e19-96c4-1628b13f79f9","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":91,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"494094a1-a1dd-4e09-8f73-73e7bd9467ba","block_type":"box","text":"II-61","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf1879a1-5c7c-4c59-8c1d-fc82b3d8cd6a","block_type":"box","text":"NM1026U-5984554-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7eb4eea4-2bc5-4d86-a1a6-82c90c7c0f6f","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":92,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"11ea1ca5-4444-40c0-934a-4ae45541c6cd","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":92,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"1ebb5bd2-e37b-4a55-90c8-6778a18d9764","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":92,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"eaf2691c-e9ea-4437-ae84-22e13a3a3e7f","block_type":"box","text":"i.e.","page_number":92,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"62068f07-8ba1-4c42-8a48-5f33f1887088","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":92,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"6f7d95e9-a531-49e3-b21d-241987f6ff1f","block_type":"box","text":"rates).","page_number":92,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"f472bd22-0ebb-4606-8009-5d5a83042039","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":92,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"50e56ab5-82ff-445c-995e-ab863c872534","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":92,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"4b1f4aec-f1c1-43d6-9cda-71f7ec0fc042","block_type":"box","text":"e.g.","page_number":92,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"3f79b6b1-7261-4940-a09b-b0b8d6d29a42","block_type":"box","text":", an exchange of fixed rate payments for","page_number":92,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"d79a51b3-aaf9-4483-bf45-a74a1c18a566","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":92,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"5d15151f-b2c2-40e7-b44e-7ac1e1842132","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":92,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"66d9c9b3-b35c-469e-ac7c-bc1fece58c1f","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":92,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"4c2a744a-f3fd-481c-bc31-5a052a909656","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":92,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"a6387702-1d15-4fa5-9af3-ff93ef264b56","block_type":"box","text":"with the same attributes as the swap (","page_number":92,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"9543863f-3e30-4ca4-b4ca-bfc96ac090a3","block_type":"box","text":"e.g.","page_number":92,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"7db5c669-0291-4bef-83d3-4df11e3fcc01","block_type":"box","text":", coupon, maturity, call feature).","page_number":92,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"24fb77b3-d5a7-4027-8622-e93753c42b5e","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":92,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"da7cea13-8e3d-45e0-a964-d7e21e9f64f1","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":92,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"99678115-0cd2-40c2-ac23-b14cf715ed9e","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":92,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"edd0c694-8c1f-4554-a7fe-f31bdca932ad","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":92,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"bcc355fe-c8f2-4bce-a895-3db0790aad4c","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":92,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"ee8f1fbd-71df-4fa6-90cc-31793d7240fc","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":92,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"2c41d121-5ba9-41ba-a572-4dbcc1813a23","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":92,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"1a6cc308-8126-4582-a12f-51fe522df504","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":92,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"7b113b44-8d46-49dc-91d1-42101fe14a0a","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":92,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"d94e033f-31b2-4e31-9c3f-9155b24c56eb","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":92,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"ed89e8f5-b9f6-4113-9da1-973fe76d0c87","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":92,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"4c77b35c-afb8-46f7-acc1-4f91aebe506a","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":92,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"e5711073-ab29-4ea2-9dc2-a235b1660a2e","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":92,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"ac231a7f-e7f6-4e8e-bb54-5159097a8c5e","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":92,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"9a6b650d-7682-4e1e-a1d2-dfe244918015","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":92,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"81bca4a3-6c3c-4580-bed9-b2f85eeddb7c","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":92,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"e4d4b0cb-1eeb-40bc-9c14-efe0b0e744ea","block_type":"box","text":"Insured Municipal Bonds.","page_number":92,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"0af3b434-2920-4462-878b-d3c3d0c92fd2","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":92,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"dcadc34e-f81e-4ea4-ad0a-875ee692b669","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":92,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"e5e5779e-5c61-4ac9-a081-81e3fa4e59ee","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":92,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"08834a6a-6779-4c58-b5c3-0512e1a0a787","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":92,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"f60a13c5-bf6b-4ce9-9cdb-52db9711334e","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":92,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"43d753b4-b7a3-42e3-bacc-aeedc2f3ffc8","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":92,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"4b29285f-d9fa-4e39-9076-ea9e93f09d10","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":92,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"5eb4b06a-d2bf-488a-8cea-6ed79b098b4f","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":92,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"4f0b9d2a-3e89-445c-a41d-9a448fb49f1b","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":92,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"85757645-47e9-4d47-999c-c38c02bde0f2","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":92,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"e36d89ea-876d-460a-8e6d-0f0b00a5ee75","block_type":"box","text":"bond could drop.","page_number":92,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"caf731ce-b0b5-45d9-ba98-ab5fb1273fe4","block_type":"box","text":"Build America Bonds.","page_number":92,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"6ed7c991-733e-487e-8369-c2f0dde13cdd","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":92,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"e7975430-8307-4b4e-b0e5-566caf7bb8b4","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":92,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"04bf5b69-2a7a-49d5-9333-332fb3b2ae05","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":92,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"e6c944da-235f-4bae-8e8c-21a8af7f3663","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":92,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"40df120d-4d5d-4a3c-b9e1-66d9ab580c0e","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":92,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"4381fdcc-1187-4071-a7c2-1328d9745c3f","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":92,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"15017f49-0d0d-4958-8456-4e413f80a589","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":92,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"7bd05210-96d4-4e05-928b-a8509af5abd1","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":92,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"1aca9962-dccb-4e11-bac9-6527a3357f91","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":92,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"9479f6ce-d85f-4e72-8259-7cfcc7b5aad2","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":92,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"e0373232-9e16-40cf-99ac-8d440d03450b","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":92,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"de000d69-42f4-4791-8991-1f773d81a351","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":92,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"59874bfe-8e7d-4eb1-8ece-2e95f98343a6","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":92,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"d65b3afc-66c0-4cc5-9f50-a9e6f2ed9165","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":92,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"65bd94f1-fb0c-4d40-83b7-7c6a51eecd38","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":92,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"03a69633-0320-47bc-a893-da5af8c3bf62","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":92,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"6fb6ea56-307d-4bc9-87c0-6ca74ef96ca9","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":92,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"d5b1c99f-5038-4658-9251-a6f38757eff4","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":92,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"5b117f83-8a82-4a8f-a3dd-d2478fc155da","block_type":"box","text":"II-62","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"624df095-8bc3-4311-9851-cc6a32fa64f0","block_type":"box","text":"NM1026U-5984554-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"338f9a6d-eca5-416b-8143-5f6a7723509f","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":93,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"872b0c41-656e-4454-bb81-abb1011c0e56","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":93,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"5c3b1840-4fcc-41a9-b3fe-27f44e0a9a1d","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":93,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"301bcf13-4659-42a1-83d9-bcaf633195c0","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":93,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"80114e01-6b78-4673-9a9f-673dc612a197","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":93,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"76a68ca5-07e6-4c80-9724-0db6b017f61e","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":93,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"79857401-ecd0-44b2-a54e-15f2b5cdcbde","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":93,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"0ac6e8b8-d57a-4f1d-9f9c-bbea07e1029d","block_type":"box","text":"their face value to the sponsor (","page_number":93,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"1afa4dec-3ba4-49c9-b2db-847ac1fb83cc","block_type":"box","text":"e.g.","page_number":93,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"3db8e0f7-fc0f-4f1a-88a0-fbb270f80c09","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":93,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"49c72f0c-4994-4d1a-8980-055dea62372a","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":93,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"c5dae644-06b5-4ad0-aed1-8f601c72671a","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":93,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"e1478d94-ca43-4434-93d0-cfb6d786a1ad","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":93,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"6c0ac20a-66f7-48e1-8e72-16656ec0ff7b","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":93,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"7ae956e7-3339-428b-ab37-88913457aadc","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":93,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"90dd7d39-e040-44a7-b9cf-f02d74bd7b98","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":93,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"26af7959-9ec0-41f0-ace3-c9b42efd8f31","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":93,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"8c5c583e-7886-4846-a64e-f8d4ddcda46a","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":93,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"9ce50cb0-a704-41b7-be57-b7bb8ea5f59f","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":93,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"24f16ea1-7ca1-4280-ba19-ec2302a8da8c","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":93,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"e1dbb0dc-af7b-4950-8366-e864adb5cf55","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":93,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"6fee3fc3-2bf7-46e8-b800-78b1215866f5","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":93,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d12d6e34-314f-479a-b5c5-180612adb146","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":93,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"01c83c8f-674f-4c75-b543-561f0f494299","block_type":"box","text":"such opinions.","page_number":93,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"4d73cd5e-ebd6-4372-9a05-87f9f55befeb","block_type":"box","text":"Operational and Technology Risks.","page_number":93,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"da7b8fef-8264-4923-91fe-f6cf22c11c94","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":93,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"e6174b94-be6d-4a66-915e-0c2abc628b62","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":93,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"d6339033-397a-4668-ae6c-5ad8b8377d70","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":93,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"9aad05ac-9ba1-4c39-a581-de7f65e7f086","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":93,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"138e8c5b-a2cb-4e83-b950-413863f658b6","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":93,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"1f6524bd-cc34-431e-9f00-f21d7321f74a","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":93,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"4e1b9859-6fee-4082-a21a-43b16abcdff6","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":93,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"315ed784-37ff-4ce3-a6bf-c90c62042329","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":93,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"0abe7528-987d-442c-9b3c-7d7272d0f65a","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":93,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"dad930c9-0cb1-4676-9d1e-9707930c073b","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":93,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"0ef60dfb-3dd3-4e02-ac45-f9d07581fb91","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":93,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"e249c919-302d-41b3-a17a-0e210b8ba320","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":93,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"ef4e6119-4cd1-4b8c-a0de-6d4dbb13481f","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":93,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"0dc338e3-3135-482a-8e83-562158ac69cb","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":93,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"caa4ad0f-4b3e-4caa-8bfb-162195256596","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":93,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"a748c268-ac9a-4990-8310-a6514ebaab27","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":93,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"85c2a54c-c214-4882-8749-52e9ab509e4b","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":93,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"bded607f-0858-4f74-825f-ec23f764fc11","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":93,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"4b01a93e-9b7d-4884-8478-f94b43d9bc52","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":93,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"778ae4f2-935c-4c30-8ecd-f1610d27fd14","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":93,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"22813d5f-2baa-4ff2-a72a-587c8de0359f","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":93,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"2923f05c-f32d-4a7c-871d-0aba32a08259","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":93,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"9912a544-9905-41e1-a91e-160d566be066","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":93,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"4b3abf0b-b44d-4601-a3b6-f4dfc039fda2","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":93,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"7ecb3e5d-c1e0-428b-a7e0-23d5cb8a08a1","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":93,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"cd665db7-487c-4824-a384-abb248f514f8","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":93,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"e7302c46-30e0-4fb1-b0b0-7ac8e380b39b","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":93,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"e6f300c4-141c-4dce-b437-253255c52124","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":93,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"d4d40b7c-95eb-4b02-8cf4-002b19527fce","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":93,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"92fb486f-48b7-40ab-bbe8-9d20de4ad531","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":93,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"4fe0492c-4fdc-41d4-9b8f-ea096248d104","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":93,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"0ef6536c-496a-402f-8801-aa6af164c109","block_type":"box","text":"infrastructure assets.","page_number":93,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"16bbbcb3-0ec7-4138-b9af-b1c5113f33e3","block_type":"box","text":"II-63","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b6b384a3-95b0-4bc2-9291-f7f78f7d4f7b","block_type":"box","text":"NM1026U-5984554-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dd58a194-49d0-4e69-998a-d740a9ff87e3","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":94,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"52771cde-c6b2-41a3-a63a-81c5a07237ba","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":94,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"acdb516e-56cb-430c-9571-1dd9758a0312","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":94,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"5385e327-2786-4a65-a90f-bd826363f2d3","block_type":"box","text":"or services.","page_number":94,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"c09eaaa9-5f29-4a0e-98dd-2df8b87a665d","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":94,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"d862cc57-9fd3-444c-81d1-fd3c222cb9fe","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":94,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"779d4fb9-b767-4ea0-af3a-c08272296b8b","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":94,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"6af27ba5-42e3-4f5a-b94d-6ef1735f32b9","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":94,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"e3056abc-1c02-4a09-876f-237af3c1b01b","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":94,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"46bfe8d3-3275-44bf-acbd-f8e5917d7f51","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":94,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"7fdd67ab-de7c-4a05-88c9-a56932d916ea","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":94,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"fae19e05-006f-4f9b-a37e-2052fa831ef9","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":94,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"a93e7ebb-043e-4b06-8dbf-3ab3516b4551","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":94,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"22131f4c-3d5b-4c95-a9f8-85fa936d0e9c","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":94,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"c246b465-3d5c-4d83-a326-785e695867fc","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":94,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"1700cb55-b796-41ef-a319-2478d3f45215","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":94,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"06a3b871-6d34-4341-a459-05fb83ed13f6","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"6c3f3de1-7974-412b-a187-0c9ebd694c93","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":94,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"e77a7c92-1dec-401d-b30a-62ba3f946b26","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":94,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"159052de-c484-4536-8415-88076a708e38","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":94,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"bfe90237-23b6-499d-972a-4ef534531025","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":94,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"9c447cc0-c99a-4014-a921-5f9747e73aa5","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":94,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"682fec3e-8b2d-4e8e-8bf1-bfc28faa62be","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":94,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"698fcca0-6798-4564-bc0e-33cdd247d53c","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":94,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"4cacf8dd-97c7-41f5-ba93-3a5d6b28308f","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":94,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"d114b362-619c-46d6-b97b-1fc4e492a935","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":94,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"75a39c9e-d90e-4bc3-b293-3f4424762bce","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":94,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"c9ecc331-15f4-4ee3-aa9f-16f278c17d33","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":94,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"d6624785-6962-4245-9dcb-beef049d4d3f","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":94,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"b483075f-5788-4a5b-b34b-b3119b62c206","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":94,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"c87ccc22-e13b-4894-9c8e-df970e9c94e6","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":94,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"69255266-8be1-4090-a508-932462c5d53c","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":94,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"df5b5e69-c2f1-4604-9a53-84bc83f123fa","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":94,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"2640b2e8-b12c-4f3b-85dc-8440758141e6","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":94,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"fcfbd81d-a27c-4b04-bd6c-8b12d329110b","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":94,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"a67bdf68-61b8-4801-a2c2-1ce75792dec6","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":94,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"588a618e-2be3-4bfe-87a2-728012b872b1","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":94,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"84dfba3b-f691-4f13-8f3f-6a5808169b0e","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":94,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"dc168ae5-51e8-43ea-86c5-0987be736b14","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":94,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"53389f75-c85c-4912-882e-f8d4651136a1","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":94,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"9388272e-fdaf-45d6-9688-077cd5059789","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":94,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"e7721877-2d82-4592-807e-397fd2b4d937","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":94,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"491b33df-1361-4913-8f3c-00c65a59c9e7","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":94,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"78c09c9f-2017-4c4d-9a24-7f0a5053bc71","block_type":"box","text":"resources to monitor and implement required changes.","page_number":94,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"062fd8ed-1d1f-436b-b01c-2cf85be18d4b","block_type":"box","text":"Participation Notes.","page_number":94,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"8bc9cae2-2878-4d63-91a3-bc2442b9c2e4","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":94,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"24ceb48c-0c18-4fcf-9119-53432595c7e3","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":94,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"b7d5f709-2b2e-47ec-8f84-43b356d1c360","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":94,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"2fd83b20-c6f0-4a19-9163-36f560784e6b","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":94,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"aa15000e-d08e-49a8-ab2d-aaed64a615fc","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":94,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"ce52b497-7d5c-438d-804b-9c9a2e6d4f89","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":94,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"7afd329b-5d31-441e-82d7-e2d7cbb45177","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":94,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"53d5ea35-bfff-4181-944c-f8fc5248b729","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":94,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"daee4df7-5ecb-4ccf-bf59-7dd2b6856091","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":94,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"fc9bf43c-5b7a-493f-9b7b-15064e8f00ae","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":94,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"5f8b62af-9c76-4c00-b101-2658d04c1ca5","block_type":"box","text":"II-64","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f326d555-7cb4-44d6-bb1d-b4d8b3627457","block_type":"box","text":"NM1026U-5984554-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f533585f-2c78-406b-8121-d5e4d510a031","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":95,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d361a120-7264-4aaf-939b-f6d28bfeda25","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":95,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"1c695135-9d8a-4898-8ae2-b3b5efb894cb","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":95,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"6686c51f-d7a7-47b4-a2eb-41238d1f3181","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":95,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"751530ba-969e-49cf-98f4-65df1bf0d022","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":95,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"830c17a2-8f8a-4242-b74f-455479060569","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":95,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"5041f02d-eead-40ad-82fa-3fb28c10a02d","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":95,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"2e0415d4-41f4-4876-aa99-0fd6ceb78b88","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":95,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"fc7f4ade-2f6b-414f-8010-e89e86bb6eeb","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":95,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"ecaa2f87-695c-418a-aa0e-d8243a0086c1","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":95,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"d561b8f5-cf03-4861-90a6-f5d19e18bc4e","block_type":"box","text":"Portfolio Turnover Rates.","page_number":95,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"c60fd80c-f05d-455a-8c14-0fd378950c70","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":95,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"e8986158-3f69-4f30-bca8-123d83104af7","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":95,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"67541fa0-a54e-4055-bafd-673960f7b2d3","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":95,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"a44f92e4-7a77-48c5-a44a-93fe6c791558","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":95,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"6fa5d51f-f4ab-45fd-99ca-6934737c6e51","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":95,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"a759e7db-5188-42aa-8b61-1ae9775314b4","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":95,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"9b67e3b9-ae70-46ed-ab8d-a386fa398f89","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":95,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"fc14eeab-5cd1-41d0-ac38-c2fa8b0a3452","block_type":"box","text":"i.e.","page_number":95,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"310b181b-5bb6-4930-bb57-ee897f3f79f7","block_type":"box","text":", 100% or more) may result in","page_number":95,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"6fbfac37-64a6-4329-bd6a-f07b8020654f","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":95,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"8790ec28-af3a-4995-9832-32616de6c194","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":95,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"83b81699-c5df-47ba-8192-b6bcb602961e","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":95,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"920b2b15-bbdb-4f40-b9f2-689b602fb90f","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":95,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"abd397a4-1a9d-4d42-b2a7-0a551500504f","block_type":"box","text":"Preferred Stock.","page_number":95,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"66aedcb0-55ce-48aa-83b8-85fb81baad3b","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":95,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"ea21a8e0-bf0d-4061-a476-381deed88de4","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":95,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"908fa5b1-107f-45dd-844b-9222f5f7279a","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":95,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"748c24bd-c799-4181-841e-fa0ffbbccd6b","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":95,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"3c7dac7e-c965-4e6b-9318-b8b7fe7b1466","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":95,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"7ed52ee0-15c5-444d-84c5-68095a6a1b02","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":95,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"9198b76d-751e-4ffe-ac03-13be5ab6c0ee","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":95,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"f9c57ea1-f2b9-4264-873a-21200e99ea8e","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":95,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"eea26f8b-a5b2-420a-89cd-93490eed62a5","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":95,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"be4ef329-e539-4091-838a-05b0324918d0","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":95,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"1d34de20-adc2-4fd9-a9e0-f3d148a24f7f","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":95,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"67efc3a7-a4e8-4741-9883-e19a26f2b329","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":95,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"b9786055-c8ca-43eb-bdbf-02a5298559eb","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":95,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"54c8781c-d38e-4e8f-b639-926d9efae4c4","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":95,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"6b0d4f1e-5a8a-41ca-bd1b-4fb09ff29805","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":95,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"ed231b5a-6a37-421b-9b42-e12411fd4071","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":95,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"e250f5fe-4d8e-450f-9c29-4de5d814facc","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":95,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"135895bf-fcb4-4a1f-b79f-ecc3c6cf649f","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":95,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"2906eb51-de0a-4ac0-ae98-37aaf81be478","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":95,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"d6afa03f-a541-4ab0-bb76-1e68c9cee5ef","block_type":"box","text":"Trust Preferred Securities.","page_number":95,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"fa1ae616-398b-4a8b-94ad-f38caff60a92","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":95,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"ad22ed06-e61a-41f4-ad01-39e2084b90d1","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":95,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"35c2ec7d-5b22-463d-b577-da9c64a74385","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":95,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"43256e22-d43c-4c00-9c68-c9458579e8e5","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":95,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"a1768905-153c-415d-b36a-82a6eb872320","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":95,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"65f4439c-a3e0-41e2-86f3-909d182812f6","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":95,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"441e4e04-fded-4e91-993c-20ddcaccd9e7","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":95,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"b905d107-fee0-44e8-9bb1-8a931182777e","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":95,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"7e994a87-6652-4ceb-a91c-07a0da9af1ec","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":95,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"da7a6722-1993-408c-a0d8-40e21491f24f","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":95,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"a5ecedef-a0ac-4537-90d0-d631f505e5ab","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":95,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"f7e22a9b-4d19-4b87-8733-a5bd545959f1","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":95,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"5508b765-2233-49c8-b18a-ec9fb2c6549a","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":95,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"010244e4-1a66-4427-9826-242b02c6ef7e","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":95,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"63bea629-19ed-4ff6-a195-7865b2989e1f","block_type":"box","text":"®","page_number":95,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"99b0ef74-b9c0-4c29-ad8c-475aed0c18ca","block_type":"box","text":"”); monthly","page_number":95,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"4351f75d-8d20-476a-b7b7-7d9080107aae","block_type":"box","text":"income preferred securities (“MIPS","page_number":95,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"4428adf6-6c9b-4b64-972c-ed3401b0bc41","block_type":"box","text":"®","page_number":95,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"7431dfa6-e9c5-4f32-bb69-595fe169e2f9","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":95,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"1cf12b91-bdc1-4df9-979e-092ab3c165e4","block_type":"box","text":"®","page_number":95,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"2b016253-c3f1-4501-ac55-2922b0c52a9f","block_type":"box","text":"” ); quar terly income debt securities","page_number":95,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"1856190e-1f52-42bc-8cb5-a7b76fabb4e4","block_type":"box","text":"II-65","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a21b7657-ead9-4276-9143-6480db027650","block_type":"box","text":"NM1026U-5984554-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b61c8b1f-d5d3-4fd8-9c09-e9a6bc16d37c","block_type":"box","text":"(“QUIDS","page_number":96,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"4cc35687-2239-43d0-b9dc-dbc692328510","block_type":"box","text":"®","page_number":96,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"af474fb2-2feb-44c7-b7e4-a637140736d8","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":96,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"26c11065-0d01-40f5-ac58-1e59842ce3ea","block_type":"box","text":"SM","page_number":96,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"9903496f-b351-49cf-9b2e-44b9fb50b76f","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":96,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"73f33cbd-d456-461c-abed-2f05907c1521","block_type":"box","text":"®","page_number":96,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"b34ce4e7-7801-4ca0-bca3-d4d8dddc9dfa","block_type":"box","text":"”); public income","page_number":96,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"8c30e268-d0d1-415a-a311-18137685b273","block_type":"box","text":"notes (“PINES","page_number":96,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"33ac8834-53c9-437e-9f37-873e6785805d","block_type":"box","text":"®","page_number":96,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"5ef1cf2b-356d-4ac8-a1bd-8b1da1db33de","block_type":"box","text":"”); and other trust preferred securities.","page_number":96,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"2f2c9538-9b6c-437d-bdc5-33b1aef7f442","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":96,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"bfcd6726-9a68-416a-9aa1-5677c855981a","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":96,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"7578a700-7353-491c-a827-9c39f49412a7","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":96,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"e5359ed6-b978-4c0d-a597-89bc3f7894be","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":96,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"0d1c332c-bcb9-4b60-b94d-08e59df7a888","block_type":"box","text":"regard to whether all payments have been paid.","page_number":96,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"88a751e4-9489-44a5-8835-c2b619836027","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":96,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"9dae45cc-d805-4e67-a347-aefa14309598","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":96,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"f5969a3d-dbb8-4708-aaab-81ae9c659076","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":96,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"ab4e625c-6a44-4b18-9a47-871b3f456fa0","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":96,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"0c88aeb6-7a49-4c50-9f31-39ce4036424f","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":96,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"bc5802d3-5add-49d0-8cd6-480362d4003e","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":96,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"b0f802c0-5d41-49fa-b659-67822383f753","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":96,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"e8a5fba0-b4b2-4054-b048-44976c32850b","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":96,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"0c291cf8-4478-4594-a679-512ce074a152","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":96,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"06385677-8a71-41df-aba1-6be6c9804ade","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":96,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"be567910-eb14-4f9c-90bd-e863a9c9d19a","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":96,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"650ee003-176c-4f09-8679-e554b22db554","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":96,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"9ad67cb0-05c5-4873-9121-b5c1c583c5f0","block_type":"box","text":"debt securities.","page_number":96,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"ba970357-a7e2-40e4-b058-8710f82674c6","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":96,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"e798def0-636d-4210-ba88-86d1fee00bd4","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":96,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"2be03fc7-8796-40a9-afd3-6afeec473182","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":96,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"21ca17a0-f135-41d7-a94d-434239dbd1db","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":96,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"fedf86e1-5600-471b-93f4-04a81824abed","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":96,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"4fe3d400-0a48-403e-a95a-8bae604be175","block_type":"box","text":"i.e.","page_number":96,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"c26d04ed-7373-4e14-869c-fb00e01c2f01","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":96,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"2ff998f6-c4f2-4fe8-bdef-e26d8d72e540","block_type":"box","text":"buildings.","page_number":96,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"1341255e-8908-48b5-837b-2f1ed5145c3c","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":96,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"e3c9dad2-70e6-448f-b5c9-d459302c2aca","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":96,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"f1420262-a445-45ec-93be-8cf823ae042d","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":96,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"d3e7ec1c-265e-4f13-a88f-55117afb6191","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":96,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"0a119f12-cea5-4025-96a5-27a52a6dc5a5","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":96,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"0fdbebf6-df8c-491c-b041-6db2c19d46e4","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":96,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"db6a01ac-c692-419b-9a0a-e9736145ac09","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":96,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"95e5dd57-a52b-4928-b0ae-e1ed44c708bd","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":96,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"7f1324e8-703c-4606-9bc5-01a2a7b37418","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":96,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"065d8ce2-78db-48d9-b185-609bf71e71a9","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":96,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"b4e00de4-dfe6-4778-827c-dfc333cab08a","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":96,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"6c13e117-6ede-48d7-b5d2-b9b81ac30abd","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":96,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"3f109531-22a0-4de6-be6b-1071b5b02ddb","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":96,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"c9f79fb9-3bd1-4397-addf-03b54899d9d4","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":96,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"248dd6dc-6fe7-4dec-ab35-137083ac8538","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":96,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"a067d91c-32b5-4647-9947-26a88e91395c","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":96,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"ac73a939-9282-464f-9551-cdaa35816fe7","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":96,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"5777c5e6-c76e-4f4b-ba7d-5fc59fa7f298","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":96,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"ca4551e9-16eb-43aa-b704-3986223b397c","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":96,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"9df903d2-1dd4-4dab-a762-8e7bcf95a334","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":96,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"f8c8c5e0-19e8-401e-9c10-b47d89a0ea54","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":96,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"9a9a254a-f2d7-4a14-a219-c3f119e98dfa","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":96,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"5cf0696b-99b3-4cff-93b3-74a6ce79b576","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":96,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"edc8f5d0-8e62-4839-aafe-d649a5be2a7b","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":96,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"7c0a44fb-ebe7-435e-a4dd-99869651c350","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":96,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"9a5c132e-2604-44f2-b00b-331deca2f677","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":96,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"4b84a8da-ee3a-4195-a3ab-7ed81324b48e","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":96,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"65b4ed04-318b-4ebd-94f9-4dbe2de1cf76","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":96,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"7839ba0a-370f-46ae-9ea1-ceab8e2e06da","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":96,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"3c72f14c-586a-42d9-9332-f28252b4e034","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":96,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"ed27668e-08cc-4e76-82d3-6e26eb0c5073","block_type":"box","text":"II-66","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74740c1e-3e3a-4f58-9d89-85003348db12","block_type":"box","text":"NM1026U-5984554-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fecda1a4-ee2a-4d4c-9d69-339b14bfb867","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":97,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"eb68ad9b-6fd2-45db-a986-4d6cab7a8e16","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":97,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"1605e4d5-8058-4148-a3d7-e90f1d052777","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":97,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"47bfa12f-62e7-4255-be73-e3570ec63c84","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":97,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"8a459fa7-8a8a-40d0-a210-f07473325323","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":97,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"e72fe532-eb0c-42ef-bec0-998424caf9d2","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":97,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"3e202ae0-d9bc-42a6-91b3-fe1a42c1cf9e","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":97,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"daea6833-bac6-43df-84a7-3637da8efc5a","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":97,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"f6a6a075-c97a-4849-9783-8cc53a18c11b","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":97,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"3999004b-2ff3-425c-bd8f-47914138a425","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":97,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"37b33baf-3c14-493f-a21e-e72a70eacb54","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":97,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"2ec833ba-18ab-4b0d-89a1-8445cdce9b06","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":97,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"7407c445-dd13-4f2d-80f4-9d2e03cd7559","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":97,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"32a6d931-a475-4e8a-abce-bc59a2f9cad3","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":97,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"14a35c97-7165-48f3-a067-3ac4a892cf5b","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":97,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"fa181b90-30ea-4dbc-98ae-173d73a7ce95","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":97,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"47b0b237-cd02-4126-a542-7fef15a8f49b","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":97,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"55a37686-0811-4c14-95ac-5b13242638ca","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":97,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"ab112eca-5d6b-4492-80ee-87fb4a6d7144","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":97,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"ec0d8481-cc09-4e39-a226-78cbd7b9d2db","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":97,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"276b521f-2207-4f66-96eb-93d8f3c50f97","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":97,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"2e9ee9f1-6f58-47cf-8b13-4b4dc1d939fa","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":97,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"d528b9e9-9ddf-4dbd-91f7-db7163974f5e","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":97,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"08d502ab-da7e-403d-8712-e3d69cfe3eb1","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":97,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"5ac8fafd-0dd2-45d2-a27d-154d225926d6","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":97,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"09a71564-4a4c-48e7-a2fc-ae0f7cc77e4d","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":97,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"14142759-e071-4fa2-80fa-a6a8d7c5e473","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":97,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"4f07eade-cfb2-4904-833f-dbfb5e11c2b0","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":97,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"4c385dba-1eab-4d85-9cd8-12a8bf9919e0","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":97,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"0ea7a011-7487-4e17-8804-259cde086e97","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":97,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"dc865a7a-9459-4fa1-bd17-c67990964d91","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":97,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"9f467d93-f390-4870-90eb-800b283dace3","block_type":"box","text":"conditions.","page_number":97,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"427b2c8c-0074-49a5-9a23-44562c843eb6","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":97,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"807312f1-7141-4cd9-941a-c45cc36897e4","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":97,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"b404dd19-50ea-49cc-8fc2-dbab6e9e7268","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":97,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"8a8922e5-7900-4e1e-a69c-4148ea4b6f89","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":97,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"ec0a57c1-2762-41f5-8a5a-32cf7a54795c","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":97,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"cea6495e-98d3-461d-827c-47a7db615493","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":97,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"9552a940-d1a8-4b26-9479-abd736f5d8e2","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":97,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"0c213906-8af4-4001-be0e-705b51dbd6d9","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":97,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"61260422-ffcb-4cc4-bace-d418c9f3e5dd","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":97,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"48a649d7-4d5c-44e0-a0a4-7c5ea2375268","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":97,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"907ed001-3e40-4bb7-b03b-af2d0a7e4fdb","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":97,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"98ff6b45-34b9-47e8-8440-8491321f0542","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":97,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"ea810a82-5149-4fb0-8096-e6dff2a6ea36","block_type":"box","text":"affected by such events.","page_number":97,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"7f7ee8f9-ddb0-49ea-8d39-a4c0e41e5665","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":97,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"172748b9-ce88-4219-a7ff-0efb9721b25c","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":97,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"d0e77e9e-061e-4935-a02b-bd4f35ffed10","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":97,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"8f449918-a7a5-4936-9140-ccce756af5a7","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":97,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"13af9689-4bc5-4dd1-83f1-fc5b49d4032e","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":97,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"90009737-2860-4623-a43b-6f2abf97e25e","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":97,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"812688b8-f9fb-4fb4-9849-e8f146a3c7ea","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":97,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"5472d3a3-c53e-4682-b753-87230f4a473e","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":97,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"406ab672-a914-4301-8e2e-90ce05989599","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":97,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"46c55379-4738-472e-b833-4ca1dd15d4e9","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":97,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"7a42dd2c-df5a-444f-a0e5-541cbe3f88ea","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":97,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"e9af764f-2c48-473c-921f-12e57b3190fc","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":97,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"e744419c-38b1-4796-965b-6d87950f1db0","block_type":"box","text":"II-67","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6251fa1b-8197-4a4c-9c86-ee6673de42a1","block_type":"box","text":"NM1026U-5984554-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7bdf0cd0-0ab6-46f4-8844-8e41f7b2fc10","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":98,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"95bfbe62-9720-4c51-a728-e529587605a4","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":98,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"f2d6c40b-36e3-478a-a287-e695a827c332","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":98,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"5e139413-9c14-442e-b71d-560138982ddf","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":98,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"b6cbeba0-6f90-4d44-8fd0-cf532fd93ebc","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":98,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"e69e946a-72be-4d13-89e7-158df800a590","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":98,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"ecfd8d1b-6262-46dd-b3fe-6fa8a0bec93a","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":98,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"ea5f230f-f4d5-4e46-b08a-30e453043a83","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":98,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"066ef434-781d-4221-9685-b6bf417645aa","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":98,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"30913569-cee0-4335-a374-aecfd42bde8e","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":98,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"aecd3ff1-3d45-4842-9066-00f8c04bf9f3","block_type":"box","text":"investments.","page_number":98,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"d1584b0d-e62c-4eff-b350-552e72eb910a","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":98,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"7e50eb28-a30d-43f1-adf0-2a727e3e6611","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":98,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"090cb652-b9b0-4145-b5cb-575d61717d85","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":98,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"4e4d3b3a-b8f0-471c-9b85-9e6022fb197c","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":98,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"59fd8e0b-1a1a-49e6-9a4f-9af9d1dd9cb8","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":98,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"49d21b90-5a1b-4d5c-93d9-079ea82e3f84","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":98,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"e9d0165f-5d46-4f87-acde-ef1165e12221","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":98,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"3c246b8e-e907-4828-88cc-a1830970721f","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":98,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"5a9a9d53-ac78-4623-98e4-8e50d67a2a0f","block_type":"box","text":"Legal and Regulatory Risks.","page_number":98,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"0e1c69d1-8b16-47e4-bf94-49d7b163e085","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":98,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"50761d55-c1cd-483b-8b04-469c5f8aaea8","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":98,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"0d586d5c-525b-4be3-8274-63a4ad0a4c74","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":98,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"4409f329-e279-44fe-914d-3ab994bdd4f8","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":98,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"92260b3a-b8d5-4fca-b86b-23bcb24c67f7","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":98,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"fd3d221c-7793-4a94-a9ff-b65a1c8f0ada","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":98,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"2dab7215-4929-4ec7-a383-ffefc4d397ff","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":98,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"00767e94-e388-431e-b23f-c6743e8e4a81","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":98,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"759c670a-93cb-4d9f-ac04-5b4d59e46853","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":98,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"75681c92-be0f-40ee-8034-db00ff82183b","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":98,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"94a7ad0b-7d95-455b-a90f-8c6cf2085838","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":98,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"dde545da-f72e-4da1-9987-e3e79b4ea8d9","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":98,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"c202d36f-7dc9-471d-8753-b79900ed57b5","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":98,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"bdb8155b-bfca-4b1f-9a21-c48067fd5d27","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":98,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"41705c57-9d33-42e4-ae11-0269e0e37844","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":98,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"a1408834-3667-4ca6-a422-bae3dc084268","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":98,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"5349fa33-f182-4a96-9f46-0a6831b75fef","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":98,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"2d4617e0-80e7-4332-89cf-56eb6d7c415e","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":98,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"6f139d05-c86f-4879-aa81-092d53ddfcb6","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":98,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"b950c9a2-c36e-467c-a862-f83a5abf443c","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":98,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"30805d6c-7c38-4a65-885e-03bb72f40c32","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":98,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"2f793134-208b-49ce-abeb-b5c1db47b78f","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"5eec43e5-c84e-491a-977b-390c877c8624","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":98,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"34debf32-3f5f-494e-9393-e10bbf8aa0eb","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":98,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"50eeb98f-8b03-4602-8424-e950cae7129e","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":98,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"5dddacc1-5835-44b6-b6cf-30591258d0d1","block_type":"box","text":"Geographic Risks","page_number":98,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"798f7158-439d-468a-95e9-cf7466515063","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":98,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"3986fdc0-2c8c-4af9-85fa-777121b69f02","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":98,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"6c288219-b4e8-4c45-9b12-7903b2001cbc","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":98,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"581ec1d5-a70e-4e36-a64d-e73da16666f2","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":98,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"3e44d7a1-e2fa-433d-a18e-4da4e7925585","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":98,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"cd586f0b-7b48-4c5d-9905-9f13aeda42d0","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":98,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"15b0190b-9e79-4631-bf29-11675e1d6f82","block_type":"box","text":"Fund.","page_number":98,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"788975af-7549-4c5a-b76a-2aabddedd907","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":98,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"a79aa6c4-ef05-4ee8-b0c6-556036984534","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":98,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"44de855a-ea5e-4653-8e2a-1f2d3285454f","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":98,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"cf3bf32f-a7bd-4971-b5fc-d6c31c3d5921","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":98,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"1688e77d-1d5e-46ef-93d2-8f801d38ddd2","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":98,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"f8384eb8-b809-40db-ba0f-a35027d59a2d","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":98,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"996fe5b4-00c6-4575-8e01-34b7f2aa761e","block_type":"box","text":"II-68","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba54db67-cce1-4474-8be9-2a05be24146d","block_type":"box","text":"NM1026U-5984554-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"252086ef-5ba9-453f-9f38-b8e3814d0223","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":99,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"fbef0857-b2cd-4907-bdf9-0c1f1d0e8a4b","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":99,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"35fe8213-df1d-4ea4-9b74-64bd15d5e687","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":99,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"0eb42271-42be-487d-8638-081f9f4870b1","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":99,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"9c2d7d58-6524-459a-a820-b26b28e86b80","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":99,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"bf2bd1de-30b8-425c-8d79-5e17cbbad6b8","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":99,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"98a0902e-3ca9-420a-9db6-9c488773bdd4","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":99,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"8cd87631-3dff-4cc3-8c15-7d836aee49d3","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":99,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"61d90bf8-c4fb-42ca-8856-27c5d73a98da","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":99,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"8fa7ca08-efa7-4396-8461-b6f41ea62396","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":99,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"8c068a9d-7303-4a5d-8320-46b2d5b30e48","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":99,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"79e30af2-2a26-480a-aa3e-caeca3f194cd","block_type":"box","text":"e.g.","page_number":99,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"80bfcad5-15ea-4555-bda5-75b41ce479b5","block_type":"box","text":", SOFR for","page_number":99,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"18356913-4c2d-49b3-9947-9977bf54d7c6","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":99,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"29320f02-2259-4477-8942-8cddba4e0466","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":99,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"cc7cdfdb-b56e-477f-bc00-adae02c01f24","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":99,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"4743515d-bff4-404b-b547-722639d2065d","block_type":"box","text":"determined.","page_number":99,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"373ac7ee-aead-43cc-b2cd-c7a4ef6904d9","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":99,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"d2a29a4a-e3f8-4a1f-b85d-f7a9a7f58bd2","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":99,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"3d9e9542-9b2a-4cd2-822c-2a8a7c39a6f7","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":99,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"26d51408-2a88-4da9-9fed-a37fa78eabb8","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":99,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"de2b86d8-be0a-4040-a205-36c38f7ed078","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":99,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"7dad721d-7cf7-493d-a18a-5c153eb4bc33","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":99,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"3493900c-db4e-4375-9928-25b58ed029a1","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":99,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"d456576e-e657-4570-90c9-fb36e58600d1","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":99,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"b995b1c5-9eba-4381-8b2c-5f6cd4585041","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":99,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"ed0c37df-b7c8-4566-8eec-ee1e7542671a","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":99,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"768eb71c-ce4f-4cfa-b1a0-18d14932ab08","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":99,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"58f1af86-9e9d-4ac2-a6b2-b3a5401fb941","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":99,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"41219033-5659-424a-8cda-2d3ebbb1940d","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":99,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"0be914a8-49a1-4ed8-810a-93043265bb0d","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":99,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"f826ba96-b0ca-49ca-8021-354c555b5c12","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":99,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"7eeca1a2-8abb-48e0-9656-c8a683b2374f","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":99,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"f8e13faa-aeeb-4e5c-9b5c-7410bcc82fc1","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":99,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"5001e50f-1d51-43ab-9c71-2d2d6eff31c1","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":99,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"57d10940-06df-48e0-80d4-de0b81faf874","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":99,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"99c48426-e871-4825-9213-5427e0b2103a","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":99,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"1a347a35-eac8-4552-a7ff-a69877e2dc3d","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":99,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"a2865f7f-324f-4bd9-99da-781b14b19409","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":99,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"c4a5c01a-27f8-4ebc-adc9-69f0ff7e3fc8","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":99,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"eff2c261-3402-4a1d-8f3e-0f15b7900602","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":99,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"a1847588-6c1e-410e-9b40-a201c4c6310b","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":99,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"48f11d8d-e061-4887-aa49-8bb8316a0b4c","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":99,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"18a615a4-eaec-4d1a-b2b3-a627f094b4d3","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":99,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"b80a8142-d315-4107-b401-c833a832a171","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":99,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"c7434fe0-85c3-429b-9b11-2fec52a48374","block_type":"box","text":"consequences which cannot be predicted.","page_number":99,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"9810bc0a-9b57-42ef-b162-93c6dcf88431","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":99,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"e08ba787-20e7-4900-a996-0f362d27b0d8","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":99,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"6e9d98d9-0f0c-4fec-b95b-48879efdaf3e","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":99,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"0fba4625-7ceb-4729-a714-26a86b6aba01","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":99,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"022bd836-9a0c-4d75-941d-4f011dd1a77b","block_type":"box","text":"term of the agreement.","page_number":99,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"649b4111-4fe4-4bcb-9202-e6d93c041d09","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":99,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"cc1ff3e2-de9b-48ab-bbc0-4f5cb03ead11","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":99,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"cd504db8-9731-4b7e-8942-049b1e3aa9d0","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":99,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"81ea18ac-ae0f-4c1a-a999-8402ba73d890","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":99,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"d84cce85-7694-4d3a-a6ae-4448c31274b7","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":99,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"92839f53-b389-499c-a689-4bfef862c61a","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":99,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"b155f5fb-1652-4a46-8de2-cbdb380829dd","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":99,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"5ac9b7af-842a-438c-934c-a59687aa5b7d","block_type":"box","text":"II-69","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c53da62f-964d-4fd7-af78-309cae0b4c28","block_type":"box","text":"NM1026U-5984554-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9cfc2d9e-5e3e-405d-a8d0-a7ff2664e55e","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":100,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"fea17537-645e-4814-bb17-c4979d5351a1","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":100,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"b771f341-4981-460e-aedf-a4b3826c2b9c","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":100,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"60222cca-681f-4551-b50a-dc00ee2a6d75","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":100,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"a0131e35-c0cb-4034-a1bf-e7d5e50166b5","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":100,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"4a0c2ea2-1c8c-42a8-8331-3b529635b951","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":100,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"9f34d057-d36f-4590-a394-7222d729c388","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":100,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"c9630697-adcf-40b8-8cb3-8a4a5bb836e6","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":100,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"51ddd78a-3374-4a9d-906a-aff0898e30a8","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":100,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"2c45978d-6dec-4117-9147-20fdfd2cf672","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":100,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"401f4b6e-0142-46b1-8280-606474fffb85","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":100,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"bdd733fe-1b42-4f9c-b027-528c9244b900","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":100,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"43eb063c-7c9d-4070-b267-27ba9ebf4dc2","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":100,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"2f0d2f44-138e-4d54-bb4d-c21e5f7caaa0","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":100,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"19ccdb74-d873-4e88-9c0e-186014e579c5","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":100,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"a074cab3-caeb-4f26-912a-c92cb4344eba","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":100,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"290b5d1b-eae8-4642-b3f9-288a03ae2514","block_type":"box","text":"or by another authorized securities depository.","page_number":100,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"13c71e17-a2cf-43ad-b141-1a2556f4939b","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":100,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"a0f47651-851d-4262-9436-a39d5f40a13c","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":100,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"fbd0545f-8259-4bf7-81cb-03fc2415ffaa","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":100,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"00f9d2ee-62a5-49ab-97db-4bbf64f9ac61","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":100,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"88b62b64-665a-4f63-8688-80d85ce06e50","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":100,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"d185d40b-e87a-4dd6-9c36-ce0eb26d921a","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":100,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"a4f9c0e3-c3d2-4373-903e-3814dfe2be5c","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":100,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"fdb52c9a-a6f3-4348-bdba-5fadce673d08","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":100,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"0f39dc0c-7d4c-43e8-a293-f51486f337c2","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":100,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"82f1e210-3106-4c03-bd05-d9c868d63d16","block_type":"box","text":"the repurchase price.","page_number":100,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"13f0d3b3-57db-4a3a-8a2c-1d97ca047431","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":100,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"3627c03c-f5be-447b-94da-eb541c33af8b","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":100,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"f76e085b-cdb3-43e3-aa7e-859d33f2627f","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":100,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"d0bfb31c-fb79-4c22-807b-8f464bc509a9","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":100,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"b72621fd-b09c-47f1-8f5e-8742fc4140c6","block_type":"box","text":"strategies without the repurchase obligation.","page_number":100,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"a5024591-171f-4e3d-b5bf-eb4eb9597c75","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":100,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"e553f4e9-f11b-4352-ba67-464da260f82e","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":100,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"ea766d8e-74dd-4e60-a6ea-9593f492c38e","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":100,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"1f0eca12-cd1b-4667-ad73-82fbf323e24f","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":100,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"64012fe2-7058-41c3-a43a-0b1ca94afaf9","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":100,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"fc6f1d91-2fe3-4dfd-a5f8-56088f2b3446","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":100,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"0c202624-d0e5-41c1-bc85-d2f3c9608e74","block_type":"box","text":"i.e.","page_number":100,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"e9a5495d-cefa-45d7-92eb-f3f7e1550318","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":100,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"b7088ad1-3ed4-480d-b0a4-203b5e11b6d8","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":100,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"09a13b2a-11c4-4611-bc4b-dcab4589ac9a","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":100,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"87f6568f-2474-49d3-8e8e-69e7aec91f89","block_type":"box","text":"and income involved in the transaction.","page_number":100,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"a31871ae-4532-4042-a0ac-8d5ce054b8ee","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":100,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"2d0d1981-d62a-4e7c-905b-7b413b6c82d9","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":100,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"d4f79f2f-802f-4d29-a2ea-116375e6b548","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":100,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"3c09ab94-9163-4ab1-89ff-87d705b9a672","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":100,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"a9698bb6-cb38-40e6-acb8-4a71d4244fbc","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":100,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"0a565356-5fe7-475e-acca-b37029ea6c00","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":100,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"7b415515-c0e5-4b4a-ba67-7b6fffa7041a","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":100,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"589462b3-5148-46a3-89d7-07710ae44c75","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":100,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"f221dcdb-1b0c-4eba-9687-fb90005cc717","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":100,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"2ce0f97a-5dee-44d6-b150-3832f4cec7de","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":100,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"0cde3748-3db6-4201-993f-6351dd8cbe7e","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":100,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"1181f6ed-1934-4299-94eb-6fa225296473","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":100,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"d49674f6-f08f-4e0c-be31-8127cf683e03","block_type":"box","text":"Restricted Securities.","page_number":100,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"0cd7d49f-638e-4f6a-9abe-591fbcddd99f","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":100,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"ae96a8fa-ac47-462d-a6f7-57b95b56900b","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":100,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"f29d82a1-3526-47f1-a258-16876189b785","block_type":"box","text":"II-70","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b11b993a-9d68-4632-8a9c-fff5de557fb2","block_type":"box","text":"NM1026U-5984554-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"23a559cd-9bc9-4bc2-89b0-1d60841c1234","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":101,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"90969033-f44d-45cf-b0ad-af9bca04115b","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":101,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"a4abd8ae-4387-4c74-8e4d-23e547426d6a","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":101,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"57bc1efa-dc66-491f-93ef-da034a6589e3","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":101,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"1bf12081-7c04-4198-9c40-e8e0f1ba7e2a","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":101,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"97435c0f-96bb-4bba-abcf-eb87b3089e89","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":101,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"6ddc4b1c-b4cf-4981-935f-35a601729c19","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":101,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"0300f3ab-df77-4449-ac46-565e9b587058","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":101,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"ee5dc62c-e733-435a-8be9-99a947ac29a4","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":101,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"964e39de-bd73-41a1-8f4c-8ed6dcd5301d","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":101,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"63539ab1-b98c-489d-81eb-18f92e308495","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":101,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"b1f0b711-cee0-4b59-9d3e-72af723a7e89","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":101,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"960f9e90-6265-4c55-b100-7df58353bdd3","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":101,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"9ab3f50e-b254-4d59-b500-668d7481d246","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":101,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"f389b4a3-7df1-4ac5-8bd5-a56377f1ec65","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":101,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"007f1b97-2515-4bf0-acba-59ef799fe8a3","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":101,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"245aeb9a-4cbb-4b45-a23a-58503e0c5012","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":101,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"cf6214e3-6f14-43e3-bb89-c47802969f25","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":101,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"d698571f-a8e4-480b-a124-f5e929c39c49","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":101,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"f1918b8c-8b95-4702-9147-476eac72f5ca","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":101,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"f0f58fb0-1b14-4643-ad05-54841ce250b1","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":101,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"7436134f-9259-4dea-8885-12c9ee08f0d0","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":101,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"e722f37d-728a-4387-b676-defcb1142070","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":101,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"18aea99b-65b3-419c-abb5-80e77852a44e","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":101,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"b5a0803e-54d4-42b7-8cfb-8c477738b492","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":101,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"ce255759-9729-4ccc-b91c-4f8b49d9a8b1","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":101,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"ad05645b-efbb-46c9-991e-bdddc206dc5e","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":101,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"a542973d-4301-4dfc-8487-39297fbdf42e","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":101,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"474d7a63-8e59-4584-b5b2-eb68a23af967","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":101,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"0fe12459-7124-4c96-8279-86544cd5b63c","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":101,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"06d5d840-4dfd-46a2-9b6d-db30abf7f947","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":101,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"88350a33-6d11-45c6-8023-194e56ae8e4a","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":101,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"f45dd1da-8849-4117-8ea4-633d0a836be2","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":101,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"8c4e301e-ab1f-45e0-8314-dbbe3dda5d5c","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":101,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"a48791a6-ae25-414b-a55a-c97b721d75c4","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":101,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"932c6dec-62d6-4d3a-a4c5-b61a61f83ea9","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":101,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"e5bf4827-b26b-493e-8c58-704f43b7c680","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":101,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"fb9c87cd-9cb8-4fbb-a1e1-68a0b7b85c52","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":101,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"439ac944-1fcf-455c-82e0-8a5a166129ce","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":101,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"0204b6fc-74f3-4fcb-96da-d808f6a00436","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":101,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"354a71cf-70b8-49b7-99ac-bd0181d77f33","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":101,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"34352f0b-9a92-4c05-9798-d626fa4c85ab","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":101,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"820340b5-3fa1-4c4f-9173-cd8a4bbd97fd","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":101,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"0eb04f3d-ed40-47a8-be4f-e9f6903c6cc4","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":101,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"f5982c1f-8695-48f1-ba20-e6d1f13a7e0c","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":101,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"9144f391-1f2d-49cd-a2ba-62ec4a230ad9","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":101,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"353c9176-d329-43fa-bd1d-227c9a67bc3e","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":101,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"633919ae-1719-4dec-a526-cda250be74a2","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":101,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"932ec435-eeed-4024-bc81-0d98636ec2db","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":101,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"cd518a21-b962-4c98-9d13-c9eeb1ad59a1","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":101,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"2f6dc8c5-935b-46e4-8efb-ae7f91682efe","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":101,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"07ef2e7f-a0b2-4aef-9943-1cb276b562e5","block_type":"box","text":"especially as that Fund grows in size.","page_number":101,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"4855547f-2abc-454e-98be-4bb8fcb6436e","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":101,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"424224ef-08ef-4664-9c45-5b4293048cc4","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":101,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"c16957a9-5464-4cd4-8550-59f477cb4af3","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":101,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"fcb6db46-d8fb-46bd-956c-0afff6341453","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":101,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"bde1b2b5-eef9-4e67-bfb5-ef0eccb5fdec","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":101,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"c23935b7-520f-462f-8885-35fa0398d821","block_type":"box","text":"II-71","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8b237756-5e87-43a2-9647-415d373469b7","block_type":"box","text":"NM1026U-5984554-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"46a376e7-99eb-4313-a42b-20e652386a8e","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":102,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"f39f0ec2-187c-4529-81bb-1e1afa185fc8","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":102,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"d6195497-7d63-41d6-b3c7-f91143260f2d","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":102,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"be7ace50-0594-4559-9486-71774a731728","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":102,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"cdee318b-5f04-4558-ab7a-c77cb423d59b","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":102,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"dd97b46f-3730-4e2e-bc88-11509896bcf1","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":102,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"eb91ffb0-75d0-41b1-9a91-208ab4b9e9c6","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":102,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"beaf6801-e61a-42be-b779-8160265e4e6f","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":102,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"fea3d8a1-30a4-4e5f-a024-660f4ea4b183","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":102,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"5be8504a-2d02-4bab-8b13-fa53c1495a3f","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":102,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"ff3d3ea2-7f1e-4d98-a138-d8b44309303e","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":102,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"c6cd9e86-367e-40b0-97ca-81c8ec9fbb68","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":102,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"bc31d6bc-6134-433f-b5cd-c5e7110994ab","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":102,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"5b3be9a2-713c-4c83-adf4-c15f9e8c29b4","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":102,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"64c7c3d2-82ed-42bc-a34c-083e8694e4cb","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":102,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"4f26ada3-f088-49f4-b51f-cdc9f086b3ed","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":102,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"43f6c8c1-34cb-437e-96c3-bea5a682738a","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":102,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"bce8373f-ce0f-406b-b055-9aa36e3462c1","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":102,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"980961e3-5141-4555-8e73-4da9665ef7bf","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":102,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"0381b726-712a-4bf8-9d2e-9aa9f4689018","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":102,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"35e2c8ea-2a9c-4d69-9638-977e5558e73c","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":102,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"7b5fbd0f-f1b2-471e-85c8-123e8ad8c16e","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":102,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"cdd5dcc5-714c-47c5-b02e-23c7a2d3ca33","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":102,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"d102a1ff-262a-4c2f-9fa9-1dee197847f6","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":102,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"ac3f495a-deb3-4f05-8234-1c4aef75188f","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":102,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"c7b38842-a826-4082-a9e7-9893845d6f62","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":102,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"99d479ee-be51-4a56-af2e-4202f0792e48","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":102,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"1f45dec7-20b4-4597-8461-e1f6f0e6a8b7","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":102,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"cf4901c9-536f-438f-a174-4e6979c81268","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":102,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"7f162483-c458-4cae-8139-329ee613c64e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":102,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"fbbfa0c9-df2f-463e-b19b-bda87fa260a9","block_type":"box","text":"similar financing transactions (","page_number":102,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"e00756fe-cb32-4acc-a600-83370f3b20a0","block_type":"box","text":"e.g.","page_number":102,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"516e8db0-6e54-43ae-a2a8-7b6c482139b5","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":102,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"22321f2f-72dd-4cdf-aea7-9dd134afea88","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":102,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"8b636362-0719-4da3-8d4d-6cae8477aac7","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":102,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"639f3804-c54b-4184-a5ff-7c437bef5179","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":102,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"b624780c-fcb2-42ce-89bf-f46587710cbb","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":102,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"38ff47d9-2d25-462b-b1a7-290689bbaf62","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":102,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"b20c1075-63b7-4cba-b36c-646c9a018162","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":102,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"2b03a26f-b4ca-44a0-934a-f91369226af4","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":102,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"a0c557d4-4017-4911-90b3-c289e810e08c","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":102,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"586bf467-9d39-4c77-be57-ba3ffebed5dd","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":102,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"4c527a72-bc74-4ac5-bbdc-bda75abf6c6e","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":102,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"15f95cca-0f37-4d02-88dd-54b6955db04f","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":102,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"cea6f1ca-a8eb-47b1-9bad-bda9e649daf9","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":102,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"696c46bf-3d70-4944-89dd-cca80bf57bd6","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":102,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"a743867a-a684-4ff9-940b-81b6e3eeb821","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":102,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"46271be8-fecd-4ae9-b1ee-8da49f726ffb","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":102,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"1a85c8fb-4a35-4be6-98e4-33b89e7fff99","block_type":"box","text":"amounts to be received under such agreements.","page_number":102,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"824770d9-0323-45b9-8f58-53b3af3beeca","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":102,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"d9a12901-0980-43e4-95d1-34c86052175e","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":102,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"ad54e26e-c6f8-47bd-b1f1-38bf1257eee9","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":102,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"3b28fcc1-159d-457c-b21e-fd31d67e8a08","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":102,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"3efe49e4-0b84-415f-99f1-49dad9ea4ade","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":102,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"eabe275f-f28d-4dac-82b4-c287b047f2f7","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":102,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"bd6b3323-5d2a-4faf-8b73-eb523e6ef218","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":102,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"3ec429a7-a9df-48e2-8f1a-f819ecaa35e9","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":102,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"ca8e0008-11e3-40f9-a7ed-bf7741b42faf","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":102,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"9c437da5-1303-4cee-adb1-1f3035e666a8","block_type":"box","text":"II-72","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6e36003-71b9-4ead-800f-f675b1333d69","block_type":"box","text":"NM1026U-5984554-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ec6b25fb-7379-4504-a4d8-c7cbbdec41a2","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":103,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"d39ca292-c7a4-4ccd-9213-825dbdf71e05","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":103,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"3b214b08-54b0-4785-9725-bf065408790b","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":103,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"5d03eea5-12e1-4c6d-b535-88e7eb828022","block_type":"box","text":"Rule 144A Securities.","page_number":103,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"96ed521a-78d8-418d-9558-65337df64588","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":103,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"ccfcf799-0838-4ecd-999b-e0815d2dc624","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":103,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"449f2f6e-1af2-456a-b1f9-b2ac9c7fc417","block_type":"box","text":"Securities Lending.","page_number":103,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"fa782601-2487-4f7b-a0dd-8557fa8101b5","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":103,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"dc6393a5-c105-45ac-b56e-8520df39b198","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":103,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"340e4c54-f559-4a23-9cb5-8f5f74dde966","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":103,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"b2281fe5-2e57-4278-9378-c104287f798e","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":103,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"81da54d7-9040-44f9-9fc8-fc3f3d111e32","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":103,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"04cba388-1249-451a-8c5f-44f9e8f86a7a","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":103,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"0ba54dbd-c04e-49b4-9c5d-e9a41b9c0ab9","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":103,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"995fa302-11cb-4a31-a197-89f25e7b81bc","block_type":"box","text":"the securities were not on loan.","page_number":103,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"8c5c8809-49ac-4384-a027-35c2efab715d","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":103,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"8b1c4e91-85d5-41ba-ac5f-b927a34fcf89","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":103,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"aaf047cf-9e6c-48da-a763-4beae951c52e","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":103,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"3d36e9e4-6bd2-4477-ab9a-c180a2edf525","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":103,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"ca34f104-fb21-42d0-820a-af92d80b8a90","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":103,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"f7210fa0-310a-4de1-a78b-e1a817fdd04d","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":103,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"07f9d89e-8ddc-488d-9c4a-e8c395deadcb","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":103,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"39d91305-448a-4faf-8523-bef99b03daf9","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":103,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"bb5414bb-bbc6-4859-bc0c-df2c2ea3576e","block_type":"box","text":"i.e.","page_number":103,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"f24080a1-76e3-4442-9d9e-3b2cbbd3a915","block_type":"box","text":", the risk of losses resulting","page_number":103,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"d4e6143c-0cd0-4432-bae1-e19773dd855c","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":103,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"b2a4a359-126e-4dd6-8953-7ee3da87547b","block_type":"box","text":"i.e.","page_number":103,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"b5098ef0-6e2c-4d18-a263-6d2b00e6ae46","block_type":"box","text":", the risk of a mismatch between the return","page_number":103,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"0eb03e0f-69c6-4d34-88c9-103438a8902f","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":103,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"887c6f97-ece9-4e89-8263-e9b7fd523da2","block_type":"box","text":"i.e.","page_number":103,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"3e978036-06c7-4764-adb0-8bf0adc84e52","block_type":"box","text":",","page_number":103,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"d188466a-0e11-4a18-a2a9-0de0b29998c6","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":103,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"fd72f0ae-f70e-4ce6-93cf-80f487deda9c","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":103,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"19a962ff-b4ac-4972-b0bc-b1623938fb92","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":103,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"e0856123-3f06-4e1f-9cc2-f2cb15499d1a","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":103,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"8ee63a08-1887-49f9-bec4-0911d36ea495","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":103,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"99af93b9-2264-4b00-ac19-a32d4d0ec090","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":103,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"66a5df68-04f9-4eea-9e0a-cc49d0be4a51","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":103,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"98ac99c1-c1f3-4a48-9d7f-b45b5b837c3b","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":103,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"6618d402-eecc-4bd4-b03b-27258c6c8ce0","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":103,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"7bda5b31-38da-44c1-92fe-c132ad5d97be","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":103,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"69b623ef-ac69-427b-a4ee-99949f53adab","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":103,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"44a92ebc-f059-4e95-942f-5f3ff6d34658","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":103,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"867595a4-e5e3-471a-b8af-c353ad0af924","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":103,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"b3b8d3c0-1fc4-418a-8903-6dc341738979","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":103,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"438b06bc-8726-412c-968d-9ea8655c8511","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":103,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"0dde2951-b364-486d-b7ae-3227ca2d169e","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":103,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"2ee76949-429d-475e-94dd-a1443c37913a","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":103,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"6e0d5930-ed4f-4bb6-ae17-32443eb81736","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":103,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"2714e93b-a6e3-4952-8b57-51335c04fd5d","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":103,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"c09097af-12dc-4beb-8f50-998885caf671","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":103,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"08bdfdd3-7b72-4b5c-a75a-0733f6d400fa","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":103,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"7e220f90-5f65-4d12-bd1a-ac80e5df7767","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":103,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"e49a5bdd-0eac-4b71-9524-6e5988d1237e","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":103,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"fc4b1b61-a6cc-42af-bc6f-eb5c24730372","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":103,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"8ecf2d2b-4cd7-44e9-bd85-a1c49a96a3af","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":103,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"fbf46f08-b89a-4e2f-af8a-ff4f169a4fe5","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":103,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"70177ad1-452a-4b08-b4dd-33ec987acc34","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":103,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"9e39efe7-5b39-4fe1-b158-3b4f24776338","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":103,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"3555b8bb-dbf7-4bc2-b626-3a27bb4ef63c","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":103,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"20928ad5-a0bb-429c-8f3e-7e18175e987f","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":103,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"3a85ccc9-bf3c-41c7-ba5c-cc62bcbf654d","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":103,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"95d67e32-434e-4c26-a7e2-f6a5bd6054b4","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":103,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"27348227-3b82-4b32-a768-4890f1f4bb38","block_type":"box","text":"II-73","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f8be9cd2-154f-490c-8110-6f6922f79a00","block_type":"box","text":"NM1026U-5984554-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7d6f25c1-ad3f-4127-8fee-f9d61592f011","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":104,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"8f5fadbb-c822-4a02-94c6-e295ac041343","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":104,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"bce01d51-d504-4d0e-a0c2-56ec68a8e605","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":104,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"438953e3-3d28-4358-a122-43b2dc5a1c19","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":104,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"231d74f3-84b5-4794-8c26-6c21d583a9cc","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":104,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"7f23c35b-caa5-4ba0-b5f2-0b2a43581a59","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":104,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"0260311e-d12a-493f-8525-807173afc51e","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":104,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"7538a19c-661b-4857-8e73-657b328415c2","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":104,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"0ffade4e-45b5-4de1-8535-750722ea357c","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":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"3e0182a0-2e0d-45b1-a89e-aa7489101b19","block_type":"box","text":"the current expected compliance date.","page_number":104,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"0f9e2745-7c39-4981-bcab-f6df63e8c426","block_type":"box","text":"Short Sales.","page_number":104,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"94639e42-202f-430c-b145-7b088fbc9c46","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":104,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"4ab6f8df-2f30-415f-b710-47a2a87a4057","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":104,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"d74b4f7f-a323-4f7a-b401-ca9db11c95fc","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":104,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"4b5af4b9-193c-4039-988c-086131cdb79b","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":104,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"3c6012cb-22e9-4779-b4b0-d41255442a86","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":104,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"7e2ee69e-1c92-4fb4-a71e-dc357856723f","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":104,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"ef4fea49-3030-4307-91ea-4a5652738f29","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":104,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"bb21803e-ba0c-454e-95a4-945a56517156","block_type":"box","text":"securities to the lender of the securities.","page_number":104,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"b6e4f6bc-cfa0-441d-890d-ca782d6319a9","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":104,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"abb794c3-f86c-4016-957b-6c95ca8309f7","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":104,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"180bb219-9033-4186-badc-9a879cdf02a9","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":104,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"20e313e6-ac81-4b0c-8ba4-bf98b44a7cbc","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":104,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"5c3376b0-346c-44ec-ab37-c7d772c633f6","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":104,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"67a4cedf-ad78-45c4-ade9-f7e2909d11e4","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":104,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"f298123c-6644-477b-9f97-cee630ab20f6","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":104,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"ca10a287-3e8d-4b0c-b22d-6efbcabe3b12","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":104,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"ad0298ae-1c7c-4c84-8ced-0bf1334e573a","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":104,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"f904672c-cfe3-4fd7-a941-ef934c0b16bc","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":104,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"b9151898-c97f-4902-8ba9-3687abb17379","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":104,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"6f44fcfb-de40-44e2-a948-67feb8ea00c7","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":104,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"40ca355e-9c56-4c70-95a9-12d4aed8849d","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":104,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"11b2e83d-b41d-4c10-bcd4-f172e0182a4e","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":104,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"611c395b-d849-445c-bbb5-cd475bb3bfd7","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":104,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"7e896b3a-f023-4937-ba87-ea14a47cd9db","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":104,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"450a7d0c-f7c9-491b-944a-ba8dac4cdd25","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":104,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"6520c1cd-f3fd-46f5-adef-2cafc638bf03","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":104,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"fcf52622-d2b1-4b15-987d-a5b45228887f","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":104,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"fb475cdb-e68d-4b93-a732-8201ff8fcd52","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":104,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"b28e699a-5283-4167-b340-c14f998dce46","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":104,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"2be38914-fe90-444b-994e-abaeb583a4a2","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":104,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"247ca756-d457-4cf3-af92-90041ca107d9","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":104,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"f8c9fa16-4412-4c38-aa4d-785b4b99a5d8","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":104,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"2a534ec8-c0cf-4600-8b0d-bbef2948b5a3","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":104,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"cdddd7f7-8dab-473a-a71c-5fc1c31e8259","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":104,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"933a7312-a236-4e1d-b634-0d369d0b5fd8","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":104,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"bc586ee5-6b97-4f80-b961-de2bca4e0f68","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":104,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"f30db579-879e-4a40-bd55-2741de9e093e","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":104,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"382037fd-ceed-442e-af0e-07ce89358ae8","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":104,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"1d184e4d-70af-45ca-8b8f-7e6703c99ae0","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":104,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"9190fa90-66fd-476e-bfc0-6a78344d7c7d","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":104,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"aa66ddea-6d04-461c-b4b5-ce350cc4aa50","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":104,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"a307fd6f-3311-4be6-b918-2053c47c5948","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":104,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"9bd6b9b9-0ac6-459f-97e9-7ab6da1141ff","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":104,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"8c6681eb-1c31-40b9-a93f-ecc76c866be9","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":104,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"1dfd893d-c9e0-4ece-bf6a-1e66a98a3e37","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":104,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"27ff75aa-fc7d-4df0-b1ed-5007ed67b2d6","block_type":"box","text":"II-74","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a828b5f3-81cf-455b-b6b6-1fe0ad8cc6e6","block_type":"box","text":"NM1026U-5984554-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4ea3ce66-48f6-4bbe-b28e-1e3e113db8c9","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":105,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"8997be2c-b7f6-4221-b31a-2db66df0986c","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":105,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"aa035b56-a822-4c3e-bb66-7fd55d69cf66","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":105,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"fbe97836-6ec9-469f-897b-084f2f58dda6","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":105,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"2583a755-2f0d-4991-ab3a-cff651182326","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":105,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"4db3d373-96ce-4612-86f3-28c90b91b81c","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":105,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"7387a2f5-5972-430f-98ef-9fccb9d39d66","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":105,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"d34ff0c3-3c28-4648-9d88-fe4eea700a99","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":105,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"e4ea2a41-9fd6-4ecc-a54b-e5d800d47732","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":105,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"f43a6fc6-cb7a-4faa-b0e2-a3f5ae5c93b9","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":105,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"3bf0cb8f-df7a-4db6-8d21-6e40a5c6453c","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":105,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"df0ee729-6716-4f0b-9c80-20b5ab56a9bd","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":105,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"6eac3d7e-6c46-460b-ab96-07fdb905f30d","block_type":"box","text":"Standby Commitment Agreements.","page_number":105,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"6dbb1ae9-097b-4a02-a746-f45eee3e4ade","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":105,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"6744a938-a7dd-4a36-92bd-8b9410809d09","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":105,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"4909de9e-3b80-49e4-a00b-4f92804ba8c0","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":105,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"377c8e4d-d05a-4e52-bc26-4fe1c5098450","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":105,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"fe47563f-5daf-46d0-8ef7-b7d2747a8b73","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":105,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"54b5fead-da3d-455d-af34-d51c329b0aaf","block_type":"box","text":"advantageous to the Fund.","page_number":105,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"e287d836-b55a-4127-9e79-5842650671b4","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":105,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"14b45635-4c74-4f06-9cdd-2b08ff60db0e","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":105,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"68ee3a2a-4b2c-4752-9164-e7bd32f7474d","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":105,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"bcfb7490-8aeb-47c5-a040-500073f8eef6","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":105,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"e2940774-1435-4f6b-a415-f763e6accfe7","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":105,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"d9c144d0-83ef-47ab-a6b5-b0d40dee1b29","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":105,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"6a3dd51e-2b91-492e-9cec-e95e844e1664","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":105,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"cd264369-22e8-401c-8134-650849e2062c","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":105,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"107b2731-f811-4657-bd89-806e18d19262","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":105,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"0d5fe36a-bde6-40ce-9dc9-5f62b240f112","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":105,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"de0bea98-27e7-42a2-a012-59121459f78c","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":105,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"df5bf244-6679-481c-8503-8e0bccfd658d","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":105,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"cf148c43-aa4a-40dc-a617-fb6a31e2256d","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":105,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"8dad2437-fb6f-43e7-a842-c45c724c9156","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":105,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"8025ddf0-984c-4765-aa60-137302439d4c","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":105,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"4491dfa4-4b98-43dc-ac37-0727900ca63a","block_type":"box","text":"Stripped Securities.","page_number":105,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"2160bc1b-8591-416b-8b0c-12539e88edba","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":105,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"b6358f3f-04a4-4586-862a-d4eb9371d596","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":105,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"de069371-49dd-44e8-9456-4fdd21637833","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":105,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"23500141-113b-4081-b7dc-519e1e8013cd","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":105,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"c4765ee7-926e-4b68-971b-8bd6b8397322","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":105,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"223d57c6-1949-4251-995a-5c81fe7a207f","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":105,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"4a328f08-258c-44df-b0f8-125a902fc235","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":105,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"e0c3c0c7-9d15-4d5b-a2e0-57f8dbdec6a8","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":105,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"b0afe5f4-2f66-4b40-ba23-028e03656a7d","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":105,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"d8bf1965-8ad5-44f0-b4f4-b00fe7ca837c","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":105,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"cb5bd098-e6c0-4025-b829-99ca2fb52681","block_type":"box","text":"Structured Notes.","page_number":105,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"68b09a45-bbf6-4163-a4f4-6b095a3e9c54","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":105,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"e8390f52-5a32-4fe3-82b8-d1e9099175a1","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":105,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"075fdc9d-e79e-464d-bea1-ab5acb5dfade","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":105,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"db605dbd-5bf3-4031-9615-aef2b0e48f03","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":105,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"f7a99a57-1ddb-4fc5-b3d3-c7abb46d9713","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":105,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"e2d61bd4-b4a8-4141-85d5-bc44be975596","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":105,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"85dfb1ce-67ca-4ba8-b48b-89d25fa21756","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":105,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"0636683b-60e7-47c0-ac1a-c9e4902a89a6","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":105,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"d4f9d2f9-18eb-4093-97f0-a4a0327c8981","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":105,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"70019f46-0ea2-412d-bc52-3101759a0540","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":105,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"6b7194ae-d279-402f-8f2b-27c0f9a8044d","block_type":"box","text":"II-75","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"690ecb9a-7db6-481a-8fff-36a656196bee","block_type":"box","text":"NM1026U-5984554-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"87c26d66-861a-4099-906f-f12fb11db300","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":106,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"2df4abfc-f21e-4aa3-b793-62f27109804a","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":106,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"868af068-1a17-4dc6-b7c4-a224123e3e0b","block_type":"box","text":"the risk of loss.","page_number":106,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"80aab9a4-cf37-4e69-8490-578b2e9e3f95","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":106,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"9a92b171-c484-49bc-8621-73b8036f1720","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":106,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"a8c9092a-fe34-487b-8447-24bdcbf2c59b","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":106,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"9c3da9bc-3456-4fbb-9413-4db6b95d50d3","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":106,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"8b0d0092-5346-465e-8972-f5b5cf688f6c","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":106,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"e49818c3-5c03-4a0a-b287-d57856545cb7","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":106,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"1a554bef-7b5d-476e-b813-79a20ac32f14","block_type":"box","text":"Taxability Risk.","page_number":106,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"e07bd7dd-e680-4ba4-8c88-929c273018bd","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":106,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"047c6cd8-35a8-42fe-8d5c-e469d4730102","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":106,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"b56b223f-1c2a-4010-9fd3-2e71f918ef46","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":106,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"45fe791b-d79b-48bd-b1ef-48027ed50705","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":106,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"0b1cf137-2936-4609-b0de-58f0cbe83195","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":106,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"6a8a7ffe-f458-4c61-8ac1-05f1a0505211","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":106,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"a6a5b0f7-2ed7-4aad-a129-6a16eb9d87da","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":106,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"ab8e1e9b-09f6-4ccb-8154-b90f1e92c970","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":106,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"1c2b2788-dad1-4adc-a01f-11bc89939e5d","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":106,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"082656e6-6095-4e8c-9aa3-366180d2d6f8","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":106,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"396084ba-6a21-4300-b3e6-10401d4a4e09","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":106,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"c4453339-0648-4e8d-8564-9f861b763287","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":106,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"b943767f-4836-4f8a-96c4-fe447a9dd9a0","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":106,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"2c097a73-cdcb-4503-b8c7-deb8ba80dfae","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":106,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"305a5f0f-67de-44da-92b6-158a9b158403","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":106,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"e4cf5de6-f5bb-4f51-99e7-aced1b46f148","block_type":"box","text":"the value of an investment in the Fund.","page_number":106,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"c809a23a-7824-4bc6-a886-f9558fd5eaaf","block_type":"box","text":"Temporary Defensive Measures.","page_number":106,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"dadd616d-59ad-4f8d-b718-b2b942e11030","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":106,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"c81a6cc9-08de-4192-809d-dc387c89e04a","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":106,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"d63bcbef-9f1d-49dd-9185-7d97207bc2ae","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":106,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"adf60127-580c-4b1c-8cd0-e0c0e4c06bc2","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":106,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"da1cbbca-2e59-4686-b7bd-63167d0df466","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":106,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"65664c4c-ccf8-403e-a239-6d31061c5ff7","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":106,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"237fef3b-1d54-4488-abc4-962c09fa921f","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":106,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"4a2bb2df-c736-45c3-886a-baf0c7429188","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":106,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"e547655b-11c6-4fe9-ab4b-4b4377cacdab","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":106,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"2a0d7ed0-533e-41b5-9721-a4c4b69ff4f6","block_type":"box","text":"its investment objective.","page_number":106,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"66ea2380-f3af-4e38-9d4b-e6f3d2cb2ca0","block_type":"box","text":"U.S. Government Obligations.","page_number":106,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"03d4b3aa-ba4d-40f6-bdd2-207f39044080","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":106,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"485ba417-47bd-4ac6-9fec-d9913d281aa1","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":106,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"7dd78ba4-dfd1-4edf-8223-0b3e832d7c4e","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":106,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"2afc6e38-f25c-45d2-9c22-3ea0d081ce45","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":106,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"c72d89f6-60f4-4d6c-8fdf-1837de1fffff","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":106,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"5e503447-796e-4f8e-ab39-ddb33759eadb","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":106,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"24c8efa1-cb6e-4697-b430-ea63b45a3285","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":106,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"56a31745-287a-4bbf-99dc-f9bd50b63446","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":106,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"81922573-3fe8-4325-b861-096d4feb786c","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":106,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"44c437bd-03eb-4a94-bfa7-6033aa69ae16","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":106,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"39dc848c-4290-4150-93df-83c383308b6f","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":106,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"9cf49583-07f2-47ae-ac1e-2887837be721","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":106,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"b20c1747-efcd-497b-af46-c93f78a94aae","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":106,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"71169b6c-8b07-49d7-933d-718d59ad8c6a","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":106,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"e857705f-537c-4fc1-ac43-1c37fd5990ba","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":106,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"06a14c30-e428-4c87-b30c-40185974ca85","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":106,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"a0a6352b-9074-4f02-a0c6-917beabf3c02","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":106,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"92668d5f-2e54-4419-9c21-a89a210e1c11","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":106,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"1c472aad-66f0-4095-8f21-9400153f8b12","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":106,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"d8af365b-1f89-4b46-8e3a-ba1eb98b6a53","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":106,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"4cce2e27-e241-40a3-8f1f-5ef38d68896d","block_type":"box","text":"II-76","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a810f445-a412-4a5b-be37-7f2e3a6fe678","block_type":"box","text":"NM1026U-5984554-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"59d2db61-3a95-47f3-a46d-a006d879e46c","block_type":"box","text":"U.S. Treasury Obligations.","page_number":107,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"f70ee20c-bf3c-40d0-b1a0-d7a6315e30f4","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":107,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"fa0166f7-8ebe-4dd0-a7aa-dfc0f497c25b","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":107,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"a055dfb7-b7bb-4ae5-bde5-054fa151b60f","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":107,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"93be424f-0169-4faa-8108-103c86e62ab2","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":107,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"726c5a27-8941-41e6-a62b-b6b6d643ccc4","block_type":"box","text":"do so.","page_number":107,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"089da0f2-3e44-4a2c-ba27-80199a3a82d0","block_type":"box","text":"U.S. Treasury Rolls","page_number":107,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"f732bbc1-d78c-495a-8c1c-64fce84073f1","block_type":"box","text":".","page_number":107,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"960f9a33-f927-4e3d-b4f1-b24e6a344ccb","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":107,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"ccfe05d1-1adf-42fa-bb55-c9a3e67d9fa4","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":107,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"5d013e54-736d-4848-97f1-38677977f9c5","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":107,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"b504f36e-842d-4ea4-895e-a57ee7d3288a","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":107,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"77a691a3-e07b-458d-b8ca-12451c302a34","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":107,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"4aa7b386-7964-4ef5-a54c-e1a9215844c9","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":107,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"1c750c34-37c5-4c5f-ae58-ab13b3c0702a","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":107,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"9edd8617-5179-4381-bb6d-d4d945ccb51e","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":107,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"21087387-6a4c-492e-a808-128006e50d8c","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":107,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"d9979266-43b7-4dec-9a21-41e4ce19bf3b","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":107,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"6c2a16ee-e8a1-4212-9ae2-ba7545e2e1f7","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":107,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"b7e6c781-d595-4eee-b04d-b53e5d9ffeb2","block_type":"box","text":"Utility Industries.","page_number":107,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"645ba17e-3e34-458e-98fb-67c0abaf1848","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":107,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"6db72891-be85-4972-969b-4106f8f9713b","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":107,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"b596db82-0419-4922-b87d-715fa395ed7a","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":107,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"6eb34930-b693-43d5-943e-9006ee2ba417","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":107,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"22e1f538-3525-4038-9184-2f6be8fe62e5","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":107,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"73b1cde6-2398-4bee-86f2-f2cced377614","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":107,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"cfc05c24-0c42-45c7-9719-8ba96a8104b5","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":107,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"3d0022b2-843b-41e3-b46f-00f84705fbb8","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":107,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"27af17ef-28bd-4dc9-a7ea-66b272bb306c","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":107,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"5abc04ce-3baf-4fdc-b078-6c9cda9ac2b8","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":107,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"93c5f4c7-394a-4c76-a46d-37c7e9bc0273","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":107,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"53574961-96f8-46a5-b1ab-aa5200b83d93","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":107,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"3ee580ce-a3c7-493f-a591-8db80c0f3e42","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":107,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"c0908081-405f-40af-a86d-2527cdfbe034","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":107,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"5dc7abce-d8dc-41ad-9d01-05f9ca3a895b","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":107,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"7998837f-16c6-4e59-84a9-f3caa63f0730","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":107,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"f64b41f9-3df7-4c10-b897-38867c39ef5d","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":107,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"24de7bd5-1474-4f4b-b1d7-f62f932488fb","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":107,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"c018e109-ee9e-41ca-8597-256dd5a52ea4","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":107,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"c4662607-e311-4157-be84-ef18704bdc23","block_type":"box","text":"utility.","page_number":107,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"17685f92-a2e9-4819-93c4-ce2ea182040d","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":107,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"d3868b56-ea0a-4b4f-88ce-97bbb3c2cb35","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":107,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"fff3ef62-889f-448b-bcd2-0100a6381930","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":107,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"41219eff-5f7d-42cf-a5a7-6581dca80f82","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":107,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"2f779874-a358-4366-b2f9-a1d236c441c7","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":107,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"fa75be07-fcc6-4468-b743-ee28a02edafa","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":107,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"d8cb49e9-9766-45dd-8751-904bdb07b9a0","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":107,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"01f39cb5-6419-4e73-8822-a8ce16666968","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":107,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"6a994924-dc1a-40d3-a1e1-5f31d685e2d0","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":107,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"f45ae371-4c38-4670-a680-8679d633393f","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":107,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"c3b60ac5-abe4-436f-91f4-d805ed5318e0","block_type":"box","text":"continue in the future.","page_number":107,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"b2f1ff3a-ea45-4438-93ad-413c30b58964","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":107,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"3ff25656-a71f-4f25-ad28-724d665feea6","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":107,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"6c96fa16-f603-4b64-a4ec-cf81bf14b649","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":107,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"4ce28bf0-2468-422f-b134-e2daa837d2c0","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":107,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"db0982a3-c34f-423d-a4f4-4c44c75e0eac","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":107,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"0327db00-5196-4e10-8bf9-415faa4ed74a","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":107,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"63d8ceea-bbe2-4ad2-b58e-01a4ec05750e","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":107,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"72253887-26e4-404d-9203-1e975ba33935","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":107,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"25201f4b-8f3a-4876-8a1f-941824ce3e42","block_type":"box","text":"II-77","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b1d6a617-0ade-4491-87a8-a2a4e7aaadc6","block_type":"box","text":"NM1026U-5984554-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"93830f90-1c4d-486f-932a-0cf24c925d45","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":108,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"60f5016f-6da8-4961-aa60-c90433565ac2","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":108,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"93aa05c1-9b94-4931-aec8-6990f9fc4d62","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":108,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"ae4238e2-f298-410d-a05b-be2f11f26e2f","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":108,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"8660a042-8df9-4390-91d2-cedf7da65ab0","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":108,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"e95cac8c-abfa-4cea-9206-0a713675bf05","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":108,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"2978e9c8-33bd-4541-980b-4307e6d318b2","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":108,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"ad320d7e-e54b-451e-aa16-fc98cb0bf62c","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":108,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"a5f43d13-9ef4-44f3-b827-c18b49bc75b8","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":108,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"600e4f03-c0a3-4703-8a39-0605a96cc77f","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":108,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"044129db-ec2e-4b63-a2cc-4a3e8be831c0","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":108,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"6e4e043b-ba9e-4023-9f64-75159403abb2","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":108,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"948c197d-e9ae-45a2-8188-17b6c7f268bf","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":108,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"84e36ca6-5f82-4e32-b417-a5239a5f56a2","block_type":"box","text":"ways different from regulation in the United States.","page_number":108,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"c639c66a-7825-4cd9-bace-7ef532462814","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":108,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"67ae0a6d-ca9f-4f3d-9d2a-956a256b4b7c","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":108,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"46844071-ed1b-425d-b46f-268896b39f8f","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":108,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"3910587a-f846-41ee-9cb1-5a6ccaeaa1ca","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":108,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"3520e288-58d7-4787-8561-e3d15063093d","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":108,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"c847ca44-fe34-428a-94cb-a8f7e6fa4114","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b15e72d6-8167-40a2-9ceb-a8b9830f26d1","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":108,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"f84af725-69db-4115-957d-e7b97333155b","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":108,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"caf709e0-a35a-4ba7-a728-4602a07290b4","block_type":"box","text":"increase.","page_number":108,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"1c0fa66f-b019-414b-811e-4670ca4c9693","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":108,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"46647414-4149-4121-82f0-97545d3bd6e8","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":108,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"9399f646-1698-4123-a2e0-a47c4cbf2fa9","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":108,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"f3135355-2247-49ac-aee1-4d2c2824423f","block_type":"box","text":"Electric.","page_number":108,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"f6f6bb02-8d39-4cb5-805a-6026ed86c04a","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":108,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"8c288b5d-a5e7-470d-9b53-8ee903845f7e","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":108,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"cc2a8b6b-29c4-410c-b4f8-b9382ab0fdec","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":108,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"ff7da34e-6e39-4b0d-8232-eef34df01862","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":108,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"2da70a7f-3bb4-4800-821f-5b3279c57b09","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":108,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"e057a466-e095-46d2-848c-7f4af7f41199","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":108,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"fa8e4e00-b51c-42dd-b849-d250e5fff571","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":108,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"31c22716-600c-4486-bd86-22c3c2565ba9","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":108,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"2a1cac76-a4b2-43a6-be26-a80b8a3a6fe1","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":108,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"097a5e53-bbd9-4dde-ab6b-8900349edcb7","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":108,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"a86da9fa-fc7a-4042-ac31-8416b95a8325","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":108,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"a82d8fda-7ee3-462c-b6b5-2d43d2d109bc","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":108,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"262b2e29-cbe0-4076-82a8-19f9186d7bbd","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":108,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"32660ffb-b262-4ef3-86a3-3b30f6f80783","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":108,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"cb75b744-291a-4c74-a5ab-d131740d493b","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":108,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"2cca5088-ed4c-4443-8f50-764f813052dc","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":108,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"250aa778-39a3-4e3b-8cb8-6f0360e6b8a3","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":108,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d3bf87c5-a748-47cb-ade3-6f1f7de9f58c","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":108,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"7bb71296-e498-499c-bf56-862188b44e62","block_type":"box","text":"and for decommissioning such plants.","page_number":108,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"eaa92c69-3f65-4bd9-bd20-5f4ba1b51793","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":108,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"6271c711-ad34-4ad5-84cc-9f8e558b6b06","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":108,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"0b25af06-3213-4ca4-a85c-d00f271f21ca","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":108,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"b0ee5eae-215f-4292-9f1f-98c9e42c6820","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":108,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"a56f8729-0f5d-4fe9-92f8-6ec9026e7673","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":108,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"285c629d-a92d-4146-8587-4f193494bbcc","block_type":"box","text":"greater predictability of cash flow.","page_number":108,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"99546909-edff-4a16-9141-06ae39c3afbc","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":108,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"518c2459-d3dc-4382-9389-fc1073756540","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":108,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"6c4e65f4-56a6-4c5a-ab43-7a117e1bdfa8","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":108,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"a6725863-8f67-40b5-b391-40e5d5444dd8","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":108,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"ce06325d-68a9-4c9e-8eee-c86296342cee","block_type":"box","text":"II-78","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e12f9f6-a468-4f74-b143-abb66ce28219","block_type":"box","text":"NM1026U-5984554-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d91c89d3-81fb-410c-a0f6-c2f8936b5000","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":109,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"9f3f0b85-31d9-4a2e-a0c8-7e2fd93ff1f6","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":109,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"24cec426-26ee-439c-8d88-f3bb8019abb7","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":109,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"b527af87-b501-4ab2-9aee-7976914cbe20","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":109,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"56111d5a-7328-45de-98a7-2249286d9fd5","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":109,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"416f543b-37ac-4ca6-9b04-31322a198bba","block_type":"box","text":"Telecommunications.","page_number":109,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"2ae74c72-810d-4f48-a164-62e906f8845e","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":109,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"fb32da14-59b7-4ff9-82e5-8293f94aa704","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":109,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"71f21b5c-7ce9-4193-807b-c79fa6658953","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":109,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"ec485daa-b47b-44c6-ae48-07e44a2546e4","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":109,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"e229df60-0f0a-46c2-82b3-5348d0ed2129","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":109,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"fa515dea-81b7-4f7a-87a8-7bdf097d72f1","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":109,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"2f62a428-1a13-4986-9754-ea1d4549d277","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":109,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"8545faab-32ae-419a-990f-f37926b5a32c","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":109,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"f33ea548-4ccd-43e9-8ac9-61bc13e2adbf","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":109,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"8e404d60-b276-4214-802d-47069b773785","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":109,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"d7394870-1f33-4969-8e2a-51428d2af4cf","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":109,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"d654fa2a-0df2-45dd-bc83-8242a9078e47","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":109,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"beca5433-77f5-45eb-92e9-e9bafba2d84e","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":109,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"8bea4ffb-6240-4b85-95f6-32d7502844ab","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":109,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"906eb377-fd11-42b1-a06c-3c8764ba2f5f","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":109,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"60240104-859f-4d63-8391-83bf823d0c77","block_type":"box","text":"residential, corporate and governmental customers.","page_number":109,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"9a5a9d83-7010-4d20-99cd-7ffd45faac82","block_type":"box","text":"Gas.","page_number":109,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"a0c3319f-1433-4cc2-b239-8904e3f3cc47","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":109,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"2bd3f147-d663-43cc-b980-f9fd9bda9956","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":109,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"f91e455b-c7e7-4af5-9d9c-4b21a1204c26","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":109,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"37f37c57-c1cb-4542-9d37-983a8e0cc582","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":109,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"57b76d32-5a41-4416-9ab5-0282e78e469f","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":109,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"e35a4791-8c93-491c-a275-a5e9c499f9a9","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":109,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"ebb09e74-7bca-475a-b9e4-cc93aa75ca7b","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":109,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"c414041b-0859-435b-a0d3-b033b969e916","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":109,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"f26cb0b7-1f74-4f0c-8b88-3ef626fbd8c7","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":109,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"a71b2ae8-dd21-4ca0-bdb4-74cfeb46edcb","block_type":"box","text":"Water.","page_number":109,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"b0d6c08e-feda-444a-8d44-0428323f6a1c","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":109,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"4c586cbc-2cec-484e-8056-ef1a4598836c","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":109,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"73f15a12-e9c6-41a1-af51-30424aacf783","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":109,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"35279fa9-e00c-4cf4-9119-432ac37188c5","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":109,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"4531432b-ac12-4fee-9e00-5adb8a0c2884","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":109,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"f3bd0692-f727-4314-9518-6ff84d09427d","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":109,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"8f8dfaf6-ed15-42cf-a43d-37c936e5d5b7","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":109,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"aa8ec76f-67b0-4d31-9bf2-09b6a7a4dcf7","block_type":"box","text":"Utility Industries Generally.","page_number":109,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"a6c6b125-84b3-457d-a8d4-fcce7784910d","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":109,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"6d691e94-ab0c-47f2-8e1a-9fc2a296ea22","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":109,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"2a5486c6-3ba2-414b-bfdd-65f3dcf4d9c8","block_type":"box","text":"not develop in the future.","page_number":109,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"0b26180f-a4ab-428e-9f7b-3f7495be5372","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":109,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"e931f45e-ddb3-4079-908d-5d82a2e71cce","block_type":"box","text":"A Fund may purchase or sell","page_number":109,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"295621c8-ef3f-4620-9cd8-29c81c96d963","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":109,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"f1f22888-6109-4123-b49d-89cc79dc6764","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":109,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"39eec7ff-3c2b-4804-b585-d31954339d23","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":109,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"9fda814d-c6d7-413a-bdff-76b4c52fe159","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":109,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"e76c1833-df95-4546-8d85-61faa38eeef5","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":109,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"3c3eba3b-ed1c-456c-bc7b-dcdc241e7d40","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":109,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"e3903476-4174-4b9c-8dde-f2f8a5182612","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":109,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"4e4fac29-8f40-4464-a17c-80432b2ee616","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":109,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"0972c950-9b0c-449f-a037-804c71f46452","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":109,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"35309b02-ded1-4603-ba87-6b4d702c6dcf","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":109,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"521a2d04-d29f-461d-8653-e70dfbac540a","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":109,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"22ffa727-39a5-46c2-8880-45d627821948","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":109,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"bfb35b05-4b65-41c8-b67b-2c57da64ace9","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":109,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"fc3b4562-aeff-4d30-8724-91845e213550","block_type":"box","text":"II-79","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1125782-b2b2-4803-bcfd-7954de929a21","block_type":"box","text":"NM1026U-5984554-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"eebc9b3b-bedb-4d95-8c85-1615a102d807","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":110,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"f9106bfc-68c1-423e-894a-825c1baf61e4","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":110,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"d861cdba-b38f-4386-bad4-32ebaf2d7442","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":110,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"d5bffd30-71da-45d9-8476-5b95a17e697f","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":110,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"9ec0e1b1-89c2-443f-9476-80544e3025ca","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":110,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"5c880c98-d976-4d2e-8d85-edf4879a58fb","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":110,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"d6960762-2cfc-4e3f-85fa-7604f8c76e69","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":110,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"d5c009f5-574e-480a-8866-0c3c95a5f951","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":110,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"6542c5aa-a263-43d1-9173-608fc375a4e7","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":110,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"25e74142-2ad0-4241-a2d1-17c51e58bc4c","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":110,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"8ac232ae-4437-401a-ae13-eba0b0dbfbfc","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":110,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"28d4a26a-3cba-4ede-9fb3-42022985a6f1","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":110,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"cf51b4a4-3bc6-46ed-a2b9-bd7af9907dab","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":110,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"46daeb32-5234-4fc9-9cac-85cde8abb864","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":110,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"0a7f0bd5-f620-4fbd-81fc-9e4136bc7717","block_type":"box","text":"securities (","page_number":110,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"b59ef797-166b-497b-b81f-4bc97dd182d0","block_type":"box","text":"e.g.","page_number":110,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"074c4fc3-ea88-4190-b179-2c1685ba44d6","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":110,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"f81eefd6-7781-48a4-911d-6adf0434c510","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":110,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a7e48fba-dcea-4b63-9369-76f1b6bb23d1","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":110,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"21522314-52fe-47bc-98a7-7ecd437e9e74","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":110,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"9e0c9abf-e8a1-481f-9367-eade4024851a","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":110,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"fad9ef1e-da06-4e98-938e-d35eb393b1a8","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":110,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"65b7af77-6548-4d3f-9634-bd66b363099b","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":110,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"4489cb29-6a2a-41cd-a9a0-9a943616bed7","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":110,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"54c736a1-9dbb-495e-a58c-dc13002d3825","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":110,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"40c6e05c-e622-4280-84ca-742104af0396","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":110,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"9db9c96d-4580-4b76-b9d1-3399e7b78807","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":110,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"439db867-348e-494c-9fa0-10b7996cddb1","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":110,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"22b0b070-69c6-4f34-93d5-f3ae280e9723","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":110,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"2cf94b0a-d4cc-4be1-a85b-9c019046b62e","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":110,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"cea4d05c-7721-4d10-86eb-7656945eb62f","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":110,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"fe51a157-f9b1-42df-b5ab-b21f8b010454","block_type":"box","text":"Yields and Ratings.","page_number":110,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"563ab788-d4d3-4c39-aefb-4f8432eeffa7","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":110,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"e694f274-415d-43bc-9417-465a0a00f0d7","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":110,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"a0114c04-00c8-452c-916b-f17901e6dbc0","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":110,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"814b97fb-f91c-48b1-8aa9-00c0139583da","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":110,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"859b4801-ead4-4a7c-9f4b-b8a0d62efcf7","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":110,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"c4299c53-f97a-4b9e-ab42-d9a165b12357","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":110,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"6adfb0de-0dbb-4b4e-80ef-dd17b23448a3","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":110,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"375a96e6-1d0a-466f-aaff-31dbc3cb1fb4","block_type":"box","text":"continue to hold the security.","page_number":110,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"d3506379-843d-43a5-b551-fa0cae53ca73","block_type":"box","text":"Zero Coupon Securities.","page_number":110,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"27c7c87f-cb9b-49ed-8749-33f59646cc10","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":110,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"5966fdf6-f4a2-42eb-a5ec-11091dfd629a","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":110,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"cd759413-4df2-4bb2-aad5-6d9f576f0612","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":110,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"71a3beb7-8e88-452b-a2b2-9a969fbacb8c","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":110,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"84f2ef47-2e16-4cf0-8ab9-6a878f1ca78d","block_type":"box","text":"security.","page_number":110,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"f69c591d-9f47-4172-a5a9-40782cceb9be","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":110,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"17c24b38-9b03-4fa9-9567-e14d7c00cd35","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":110,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"76896dbf-6793-484f-a5c7-416b253f2857","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":110,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"e6ed3120-74f4-4f34-a57c-6ee03c53c1d5","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":110,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"5c37c74f-4690-430e-8222-ca5bafa29a29","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":110,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"6f8f124e-3e93-449c-af43-414734371488","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":110,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"49cad6ba-c8ef-4a0a-a37c-8f6b1d33417d","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":110,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"83bda1f7-1744-4c30-90e4-fe55a9c519e7","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":110,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"50b7bce2-a1f6-4739-a200-2e96ebab7674","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":110,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"46a4e61e-db0d-4092-85f9-fa1f4d86acb7","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":110,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"d45b2e61-852b-470c-9bb9-768a5f2e8696","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":110,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"4f4b2c19-c095-4137-a1d3-776aad41606e","block_type":"box","text":"II-80","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b1bcf0cf-b397-4d1f-8a9c-bd6b10081cbe","block_type":"box","text":"NM1026U-5984554-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"426c6fd3-5a71-4620-98dc-d218242fcb72","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":111,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"27e69cde-e4ef-4596-8725-71f0ebb9d43e","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":111,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"460246ef-37b8-4e0d-a622-f1369dc0b93d","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":111,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"12a859d2-a6b1-481f-96eb-caaccbe849dc","block_type":"box","text":"intervals.","page_number":111,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"cdf72ca1-5f2c-4513-9ea2-d9783a0d23e6","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":111,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"1bd4295c-8ef6-49ae-a48c-3dd067936249","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":111,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"1e03a452-8703-4ac4-97b8-76303066e462","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":111,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"99ebee74-425f-4253-941a-39bbe372d844","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":111,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"468f6541-e572-4dc3-96ad-c35f1b8c31c9","block_type":"box","text":"exposure to zero coupon securities.","page_number":111,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"62bb7808-74cc-4181-9ba5-4ac421c61740","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":111,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"fad52635-6748-4a6e-af7d-175b5a71332d","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"f02909ea-93be-4f1a-9f5a-b0c0400dc141","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":111,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"fad15265-0c96-4c02-8f70-44adfa63e788","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":111,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"236a6e17-ee2c-48c4-92a7-7f6085c38d0f","block_type":"box","text":"Suitability. (All Funds)","page_number":111,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"c962199b-e9a1-4ee0-aacc-9c7692449033","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":111,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"db2d7305-7c08-4a5e-971c-19401cedf674","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":111,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"dec23547-5107-49da-9589-2826f682e053","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":111,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"d49a4559-57c5-43ae-a0cc-eb688413e4dc","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":111,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"00dd1b0d-1328-4c9f-9e04-62d840e6dd5e","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":111,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"412a85f4-8743-4c1d-ae98-1a497eb422db","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":111,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"48a2e72a-477b-4ab4-9dda-ce96efb07a59","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":111,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"e7c8c261-f969-48a5-9ac3-1b77da45bcb6","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":111,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"58caf51b-7c68-4292-99e8-b27958b80851","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":111,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"48388cea-ef86-4890-8cf4-fe1a11b3bade","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":111,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"262f474f-6f8b-4dbd-a740-d4b7fd811a9d","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":111,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"e9fdfa49-835e-44e0-9de7-742a6819c232","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":111,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"29c88282-d3c1-4ac9-a643-f37b5e142190","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":111,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"b6ed2010-7a89-4d92-b562-dd3c8c2dad79","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":111,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"ab2e7116-33ab-4295-8738-78b10d82ab3d","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":111,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"91593d44-4cf7-4020-8906-5c75d8fe9003","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":111,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"66749ffd-5b19-49a7-b3c0-f25dac13f4b2","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":111,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"5ef4381b-ad67-4121-a8e7-2e2e236273ee","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":111,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"c87534b3-0764-41a3-b56c-bbd8c4961586","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":111,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"835bac4a-635f-4791-9391-1f8237359545","block_type":"box","text":"(","page_number":111,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"95edcb4e-52c2-4753-85a4-e802a155b749","block_type":"box","text":"i.e.","page_number":111,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"2b9ec768-9477-4504-9c60-9e3b6c126ff9","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":111,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"005290ce-5083-4bf2-b55d-9258db410e1b","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":111,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"ebcce1a4-0698-4535-b331-3f6a98118419","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":111,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"afd5f3b2-2f6e-41c0-a782-a212d09d22c1","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":111,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"07a381f8-55b2-4861-950a-25382522c719","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":111,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"718e1a82-c50a-4383-9302-913869009053","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":111,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"ada66b6e-6442-456c-a632-1a9f555b32a9","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":111,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"91211f52-8c18-4447-ae3b-f2998132f69f","block_type":"box","text":"regarded as the sole issuer.","page_number":111,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"3019dd0c-7b8b-48f9-93a6-c08bd3461c9b","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":111,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"2d30de3e-23e1-443a-9ee2-adb5ab8e8afb","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":111,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"e66232bb-3be8-48fb-9dd0-d91ed426eaeb","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":111,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"3ece637b-a0ec-48cc-9273-579dffa44f6b","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":111,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"c9aba9a8-359b-4c8e-8523-56c6c89f5c4b","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":111,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"b65d067e-b50c-45b0-b6fd-8880338c9849","block_type":"box","text":"75% of its total assets.","page_number":111,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"0b0323a1-1cd3-4002-9096-e4b48fc4a7df","block_type":"box","text":"II-81","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dca12faa-1c2f-4fe8-ac86-b9db372cc570","block_type":"box","text":"NM1026U-5984554-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6b77914d-fe6e-4191-a9b9-216f9fe3c7f5","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":112,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"a43813e8-3a75-4872-8f83-a9fc0a20dde0","block_type":"box","text":"Directors and Officers","page_number":112,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"dfd21f15-6626-4f23-a794-4409146a29c2","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":112,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"f737e9fc-6cf9-401b-b522-c83a503b0c77","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":112,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"9dd4856c-eefb-4241-961c-e820f66acb14","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":112,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"26d161c1-3969-4e77-aee2-c31f3fe26ef8","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":112,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"fe7da3e8-a6c8-4ef7-85b3-8f685331de4c","block_type":"box","text":"Management Arrangements","page_number":112,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"e2efebbe-1bc3-432a-b3b5-827773273adc","block_type":"box","text":"Management Services.","page_number":112,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"5de1bfd0-5675-4b21-859a-3f8e09522489","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":112,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"c0b10d2e-e9b7-4586-904a-d0cad185e1c9","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":112,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"0d5dba52-dee2-4ece-bb21-f7cc7f07d448","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":112,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"72aedaa3-4b58-418f-9c4a-2d523f2586f5","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":112,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"2c20f768-b278-4672-b711-f11c04509ea7","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":112,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"2fe01dd9-1680-4e6d-bd4d-1ae09dfb3af6","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":112,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"10bf1ffe-8362-4419-a22e-062a6bcdd86e","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":112,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"17753c7f-a7ff-49f0-95e8-e694cf63d839","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":112,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"9497ed02-5bf6-46cd-9705-cf77771636f0","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":112,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"67585a0c-ccf4-4a20-b40f-c9f7e5e86bb9","block_type":"box","text":"Management Fee.","page_number":112,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"f08bb5be-c9d6-42b7-ad2a-e9ceb3b56e59","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":112,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"9b9b2959-0838-421b-9510-41340ff26fee","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":112,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"3e36dfeb-27ff-43b1-99d2-ec3df726faa1","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":112,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"afcfa269-13fc-43ca-982a-352cdf97fad9","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":112,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"74b8c974-a18c-406f-b84b-3d13ac6d3a9d","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":112,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"91b0a586-094b-446a-8e2e-5fd6fe28fc7c","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":112,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"1417c449-d0da-4c09-96ef-ed5158094d26","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":112,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"26b5afbe-fcf2-402d-bfec-3aa995b120f9","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":112,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"7e3d1412-5857-4a36-ba84-0e5e5d6329ac","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":112,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"ee820c33-21f7-4004-8f06-07c8f59d2d78","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":112,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"4a74160f-a1dd-42f6-b9a1-fdee6312614d","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":112,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"34573a9b-d7be-44be-ad13-2adc5a3e5c88","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":112,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"e9493059-e512-42b1-a0d0-3bb69f998b0c","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":112,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"224b7ffb-592d-4bae-9edd-6b1aac623ec1","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":112,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"4394e944-b973-4410-9d73-0eed082ecf3f","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":112,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"59229381-0934-4bff-831c-60fdc8d3cb15","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":112,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"f12dbe72-5f38-4b55-b279-484ef7033a68","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":112,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"09765034-723c-43cd-8b3a-f0e8e1950829","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":112,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"de7c7b2c-8adc-41be-b060-0bd58138a074","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":112,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"9e526fd1-8663-4f35-8d9b-384d0a52f30b","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":112,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"0f02bc1f-f408-491a-86d2-24b1417dacd3","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":112,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"eff923ed-56a7-47c5-8695-a22724090fcc","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":112,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"ba010d11-c39d-4c5c-ba2f-85c3763dcdc4","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":112,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"edf015e6-b80f-442b-a643-0c9f914c29cb","block_type":"box","text":"Sub-Advisory Fee.","page_number":112,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"5aa500f1-6aeb-4f0e-81cd-d12918619100","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":112,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"d02ebd21-cc8f-43dd-9e98-67ea8fa98df7","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":112,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"534f303e-9f43-4773-9217-962da4a284ca","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":112,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"d3ed532a-d7ad-47b0-a57d-4746044322aa","block_type":"box","text":"Organization of the Manager.","page_number":112,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"4cb39532-fe1a-4b35-9e64-3958b26cb120","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":112,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"c4ce497b-efc4-429e-b16e-7dda3d0723cf","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":112,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"d502c29b-ec4b-4db9-b670-68c293e67681","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":112,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"44be25f4-d72e-4c80-b827-3cfe1f58159d","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":112,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"46c3b6ce-af23-485d-96d8-eed6b3fd83e5","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":112,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"21929d59-f1df-4a5a-a0b2-7199f657554f","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":112,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"6b5c26b3-067b-4b88-8a5e-48e15e719897","block_type":"box","text":"Duration and Termination.","page_number":112,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"839688f0-e20e-426c-ba89-96933f05d12c","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":112,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"482bf348-0215-4ce1-afb5-9cdbd4310afc","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":112,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"d3feb721-6082-421b-b9f9-4d0482595200","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":112,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"c072081a-dd57-48d6-96e5-a6f15ff08f21","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":112,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"d8696cea-288e-432a-98c6-dcdc5bd88f1b","block_type":"box","text":"II-82","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62769149-8220-4281-b135-1358d7accda9","block_type":"box","text":"NM1026U-5984554-112/232","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f7c776da-11ba-446e-8878-d6205eda2323","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":113,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"cca64ef1-2503-4f9c-b48b-d39372b3a674","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":113,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"4a6852dd-0ad6-47db-9f7b-c941a39e3537","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":113,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"87b7e962-2a3f-441c-b1a9-cc21b1c9fd5e","block_type":"box","text":"Other Service Arrangements","page_number":113,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"ded14865-e75c-4e29-8679-8bc94d9c5f5b","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":113,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"486416c3-faa8-4c98-9799-8f390a50bda1","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":113,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"c58371a9-5254-492c-9fb8-dd0c883ecf5b","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":113,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"d01f970a-359d-455a-b103-54743a21f0cb","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":113,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"ae3545ee-9c86-4a95-a34b-aace7ca615df","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":113,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"aba6ea44-2f9b-46a5-89bf-890e4ab72684","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":113,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"6b5bed18-0f99-4346-a3ec-3f6f0ee645bb","block_type":"box","text":"that Fund’s SAI.","page_number":113,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"a4b4d33b-eeab-468f-aa41-dbf717a7ac38","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":113,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"e3a6bea7-451f-4183-b185-5d22e46b3096","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":113,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"021a0389-5b46-4e47-b883-42590b7a7194","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":113,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"1c97b82d-68f5-4896-a754-5ed7e72f2c83","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":113,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"e17c3e33-e9aa-456f-b733-9aa365f49ff9","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":113,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"a57246cc-1b1c-4291-aab0-cb6dc825d8c7","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":113,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"05cc7993-08b6-4970-9318-29c43f8de10b","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":113,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"a8373256-2633-47ba-8393-c3c8fa5aa922","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":113,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"3454310a-9567-48c8-b24d-b79fd2c1770a","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":113,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"99e75044-97ff-4ddd-b043-bf403a7a6dfa","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":113,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"fb82a0d7-f263-467f-a454-f179d2330c6a","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":113,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"9103b716-d882-453b-b26a-0414ee11266d","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":113,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"c904f125-c19b-47e2-b7bc-bcde9388fdb6","block_type":"box","text":"shareholders of the Fund.","page_number":113,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"6f89ec3e-4044-402d-8ccc-f1e078e1e641","block_type":"box","text":"Transfer Agency Services.","page_number":113,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"6d9e4f14-3535-4fed-ade1-83cfbdd6c131","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":113,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"e4d15da0-1b33-4620-b4a2-dd41d837eac9","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":113,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"f56c0636-f682-4cc4-a89a-320c0e028931","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":113,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"dfeb6304-7cd2-4456-bfc7-94d3b64292cb","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":113,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"dc6ae93d-0821-42d9-9575-bb84c5f14458","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":113,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"5a62210a-73ec-40d5-b6c7-bbe44bb826ec","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":113,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"dae6ea4d-0155-4097-8fc1-950a19afb46b","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":113,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"ef9389a5-40e0-4953-ad68-b016d6fb7066","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":113,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"99db43ec-2091-4d8a-a2f8-ff713b4924c4","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":113,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"51f443a9-0d42-4f34-a8f4-fad33690c3bc","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":113,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"d22a370f-bbbe-4148-bfb3-a81eb8f1f362","block_type":"box","text":"class on a recordkeeping system.","page_number":113,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"ce156979-82f7-4df6-b951-65072b2088d9","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":113,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"56e91770-1496-4d7d-b261-5b63bcea602a","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":113,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"28f32711-27ed-483e-a04a-22d089b63ca3","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":113,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"5d6c886d-7c5c-49f3-8ca0-cf8261a4a4e4","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":113,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"16fe20d0-3851-407d-98dd-d0e5ef048df9","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":113,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"09427f11-2d16-4d54-8210-6a964d867d0a","block_type":"box","text":"Custodian Services.","page_number":113,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"6d56e3eb-e57f-43c7-aefa-ed4e8136d4b8","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":113,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"0ff04ebd-489d-4c98-8dc8-1e3422877751","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":113,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"018c6222-d9eb-428f-b598-e77705c0f73b","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":113,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"db6b21a7-ff5a-4100-9941-7e7ae8a1696a","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":113,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"d95dce9b-7232-4023-90a4-539f567a7ccb","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":113,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"3f53635c-83d4-4ceb-9ce9-a83e7054cb11","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":113,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"3eaadb7f-5c4b-4918-9813-2bdb10fdad70","block_type":"box","text":"cer tain assets.","page_number":113,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"720c8f7f-0026-4862-9a7d-2fa603e22bc0","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":113,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"25eea386-3728-446a-bb02-69a9ddd5acc7","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":113,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"a4c0fc1c-1198-4c86-81a8-853d2b42f8b6","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":113,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"13e74388-bb0f-4254-99ee-f7f708b3d085","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":113,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"d4930c86-c534-4f41-a5fa-33de20b4c034","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":113,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"c850cb08-65fb-411f-b363-f88372a54978","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":113,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"20d69655-3bce-479f-9d47-85e587a75418","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":113,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"32056b5b-8539-4877-9b7e-53abefaa0a7c","block_type":"box","text":"Fund.","page_number":113,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"cb8e4cf3-0b4b-4c6b-b08b-6c5082c27fd0","block_type":"box","text":"II-83","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6fdbd9ef-9405-4086-94d0-b2e95e7f8f3d","block_type":"box","text":"NM1026U-5984554-113/232","page_number":113,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ace080c6-0799-433a-8ed1-092b624d71a5","block_type":"box","text":"Accounting Services.","page_number":114,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"26988369-cea9-4c79-b955-a9d8e9691758","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":114,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"423d96c6-8a84-4927-9e6b-c27874b6ba66","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":114,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"a713a6c1-f6bd-4e5d-b516-ccc37eded8b0","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":114,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"e36f0535-18c2-44de-a62f-5c012d11ae80","block_type":"box","text":"Master LLCs.","page_number":114,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"0466342b-9d28-4ad0-b86c-79c1de3eaa64","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":114,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"d0c20f2d-e98b-4cda-8f37-4744abb0e11f","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":114,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"52619d69-d0ec-4720-ac1e-27787b28525a","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":114,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"7ebd89db-1d80-41fe-b037-edf6e69a56f1","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":114,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"a2058d01-7eb7-43d7-8018-5d3acda15241","block_type":"box","text":"Distribution Expenses.","page_number":114,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"ba136e04-1a82-4db9-bb6c-5d354f56b3cd","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":114,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"e228da63-5446-4c0d-8fff-117f966d65c9","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":118,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"dfee0607-1ce2-422c-85e4-3aaa3ab7b404","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":118,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"e2c1be2c-3898-4296-8ad3-06d73a893177","block_type":"box","text":"Contact Information.","page_number":118,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"30ca9d67-30e4-43d4-a0fd-21b4a7032624","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":118,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"9b3a4686-4794-40e6-825c-ea5040908139","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":118,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"6ac939db-c982-4345-beff-5cc474346206","block_type":"box","text":"Compensation.","page_number":118,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"ad53adac-6fb7-4d52-b853-ae940aeb7028","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":118,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"6b21c7cd-4236-4409-96b2-f7cc8674f88c","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":118,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"1c392f2b-b695-4d4f-bee5-b8e87c9c90b9","block_type":"box","text":"about such Fund’s Por tfolio Holdings or Por tfolio 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BlackRock, its subsidiaries and their","page_number":119,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"e53769f2-9583-47de-a8d3-cf51bcdd5eaf","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":119,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"f2c37a95-9be4-40c6-b7bb-d012cbbe8515","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":119,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"dab4ecf8-d1d6-47b6-a790-9e53507dbbf5","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":119,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"efcd3563-2dad-4f8a-84e5-4ab7d2016248","block_type":"box","text":"and have interests other than that of managing the Funds. 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Such other funds or accounts may offer exposure to strategies that are identical or","page_number":119,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"718f6bf7-c527-4ad8-a1e8-f4efe97f319e","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":119,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"0fb4302f-e977-4732-9a93-accf8459b833","block_type":"box","text":"services provided by BlackRock","page_number":119,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"848f02c4-df8e-4454-b1ce-e128f7e8e9bc","block_type":"box","text":".","page_number":119,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"a930ecc2-676a-4673-9a88-bb5e41d0483a","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":119,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"597387df-f66f-460a-9f6b-0dbc8e217aeb","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. 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Such transactions, par ticularly in","page_number":119,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"3ef7b4ac-544d-43e2-a067-a94f237ae8c8","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":119,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"9dfdff7f-011e-4d61-82bb-a2a6d5e50f6f","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":119,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"cc17edb0-bec8-4e1d-8c1e-770199a5d107","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":119,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"9edfac80-6f15-425b-bf82-ac4dd7d0d9e7","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":119,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"0b019eeb-e799-4706-9f36-84efdb6aa447","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":119,"box":{"x":70,"y":732,"width":816,"height":12}},{"id":"f1fb8bc5-4b36-4add-baf1-d51f4660e53a","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":119,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"87d9f261-0cd8-4f16-874a-e433c87d372d","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":119,"box":{"x":68,"y":763,"width":813,"height":11}},{"id":"d047dda9-b46e-4bff-a687-a9c60f2e17f5","block_type":"box","text":"based on the information received.","page_number":119,"box":{"x":69,"y":778,"width":247,"height":9}},{"id":"6c6a8483-4184-4a37-bc23-4b710446d975","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":119,"box":{"x":101,"y":801,"width":777,"height":11}},{"id":"33957465-6b23-48ff-9dfd-fe8a634f2762","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":119,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"7622b78a-4b24-4866-a29b-1d0c530c948b","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":119,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"2a9ab6bb-211e-4bb1-9bcb-0e46d8ffb9d9","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":119,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"ceae469f-3ab4-4bba-9900-aee0ff6bf2d5","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":119,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"3d7076fe-52b3-450c-8c06-e85a4108f64d","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":119,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"2d902be2-b462-420f-9143-3defd2566eaf","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":119,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"a97a0151-d913-48a5-a310-a70a5e42de81","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":119,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"7744cdb5-5b6c-4be3-b3e1-57665762a8b0","block_type":"box","text":"II-89","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fa66cd16-d9aa-4189-a0f9-83cfc0b4a6a9","block_type":"box","text":"NM1026U-5984554-119/232","page_number":119,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5dc09ce5-11a2-4c66-a45e-bda56731718e","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":120,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"a93d9f35-522c-45e7-8d05-a7a07519061d","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":120,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"0e61cc51-4b7e-49dc-8b94-9517cf0e9e7e","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":120,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"577f06a1-78af-4869-bc9e-7a39f7ef8460","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":120,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"97ab2bb7-d223-4031-8b2c-f9faf0bb06a9","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":120,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"9a5ed4cc-c61f-4dd5-a469-2001f95d1f6b","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":120,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"2f15052b-edba-445e-a765-f1d94c2021fa","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":120,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"8a66cf5c-4746-4458-a277-f808f23af2c9","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":120,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"140ffa91-b94e-406c-9991-a8f4f7303216","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":120,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"59fdb9e0-564c-4286-94b3-4d9477f681b4","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":120,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"e31baccd-eb45-452e-9674-f22ebc0c8aff","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":120,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"dfc55d03-25e2-4473-8670-58ee8e707abe","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":120,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"e7bf9fa9-c2eb-4e14-ab00-963d83a3ab82","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":120,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"854a2e4c-97ba-4f21-88e7-f6f81f6dbfa3","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":120,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"aeccc32f-da72-4500-9369-cbf7db592f94","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":120,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"8f02847e-5888-4080-a43a-a78a3975ba47","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":120,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"c79d76bf-650a-4258-b111-1310c8280f7c","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":120,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"3774061c-f0f5-4b89-b392-4c7295a6c494","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":120,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"aab572af-0440-42af-aa6f-3af3f0a40d62","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":120,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"1fa26d24-057d-404d-8fb7-d61d6b7364b2","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":120,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"21d62f07-dd8d-4da8-b6a5-50015a0d9aaf","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":120,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"0420d02b-ee13-4a27-a2ad-ecfee9997da6","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":120,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"d8f7a9f8-e8ff-4d19-a20d-c0b86b76f038","block_type":"box","text":"Funds.","page_number":120,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"91c788ed-e19d-4465-ab0b-c1df91b8c6c1","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":120,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"40dc8925-3c05-4fce-89b8-b97aa3eaf05f","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":120,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"31a393eb-213e-4770-92c6-5c84131e8a77","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":120,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"75705211-d635-4414-af5c-86b950ebbe8b","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":120,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"d3009441-b08d-4441-b2a4-f104b024e284","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":120,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"14f6ed77-acb1-4734-ae46-b9d6614c3894","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":120,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"4986764c-b8c3-450b-bb63-71ad77be588f","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":120,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"fea56ea4-e3b4-4530-a0ec-3626bdbbf5b4","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":120,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"a9a43bd3-dbbe-4f7f-90b1-3b929567b4c2","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":120,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"1d18fa6d-0d88-4084-8200-58ae32d0de8e","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":120,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"be0428f8-419a-486c-897d-6ce8d54e76c8","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":120,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"2ff20b44-da31-49a3-8c1c-1f92d71cfcbe","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":120,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"37352677-8a94-4e8c-8968-248ff456618a","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":120,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"85f0af0f-0697-4152-8978-85ac9add0f80","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":120,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"d79b28d9-add7-4bfd-9a8d-80220f553850","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":120,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"f74cd80f-bba7-4bc3-92a1-5643f1dfbbaf","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":120,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"00b70405-f36b-45da-bd1a-4ef1f3f4e1d2","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":120,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"f51a4ed9-0614-4e2e-a416-c3fdc20b1c45","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":120,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"98fc4e9d-cde6-4dbf-bf61-073f5c3d58b9","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":120,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"91fd3451-9f2f-4dae-9266-27f944a06659","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":120,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"1df6c217-9fef-4cbf-a658-3f09063c10c1","block_type":"box","text":"case.","page_number":120,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"4325cd3e-63a0-4875-afdd-fba36f5bf754","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":120,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"f112ed6e-f14b-4d49-a4d6-7c4d6fbdf5e4","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":120,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"f5401e65-c413-47e2-877e-2a7ee7a3ca72","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":120,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"78a99b25-af9f-4634-8106-58f6e1a28992","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":120,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"254e6b39-3f1d-4a42-bedf-e3046578624b","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":120,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"29dca029-c59a-4246-b32b-b0893eb8dd4b","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":120,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"ea915b61-a12e-4fdf-b972-5db689f6f7ca","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":120,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"de2c0f01-2b03-4c7c-a7ec-d6c54f2cea79","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":120,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"037ce98c-4a6a-416e-ae12-303b764c87f4","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":120,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"c4ec8c34-5058-4cea-8bf0-7780fdc19679","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":120,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"2d2ecc7d-9cc8-46c0-99f0-02be54e3fc24","block_type":"box","text":"II-90","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ab449aa-3d5d-47e2-b5b8-45b5b0f082b4","block_type":"box","text":"NM1026U-5984554-120/232","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a90bec83-f479-425d-b180-1c12331bcbc5","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":121,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"990af6f5-2383-4608-82cb-a5aedba394f3","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":121,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"2b971db3-de54-4ad4-9c49-915c9798cc4b","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":121,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"b4bebe7f-7771-461e-98e0-758351fcefa8","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":121,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"da38430f-ca9e-4183-bd66-23032e04d4d5","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":121,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"97895644-20d9-49ab-987e-9b7ec4ea806d","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":121,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"d8d55787-cb6a-4a20-9ac0-07d343cb82a9","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":121,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"6bd0c0ba-ae6a-4f16-8487-456eec43f674","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":121,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"000ced64-9472-4f1f-8c32-c12fc19c6427","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":121,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"874c07b5-3f90-4902-9ede-d110577ff008","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":121,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"5ea7d6e1-1d8a-45e7-9383-5b400dfa1d2f","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":121,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"71cd4d7c-757f-49a6-abb6-652c01220f7d","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":121,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"7b9f1782-fa4e-4216-af8c-f355a998c123","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":121,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"c21d9f6a-9634-4fe4-94cf-7385b4771b30","block_type":"box","text":"managing a Fund.","page_number":121,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"e51618dd-af4f-4bb6-b7c5-8093f0fba768","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":121,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"5028a343-7b89-41d3-8d4c-1a55e43e4f9b","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":121,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"98be113a-54ef-4d3e-b7d5-b53dcded3e82","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":121,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"93475497-79d9-4260-b34d-8580e98f4443","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":121,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"e608bdd5-71f9-49fa-8f94-93c5191043f9","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":121,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"35dea799-72ea-4ec2-b3d2-5595e086862a","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":121,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"0894422b-212a-4def-ac1f-25d53b2bedf1","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":121,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"8d3ba1ba-7225-4f18-8f15-d4fec9fe0ba7","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":121,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"bb72553b-6ad6-4dd5-8a8c-fc56e1b19d09","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":121,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"819701a4-bd3d-4c8a-be12-d8e9bf1ddb29","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":121,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"3569fd34-257d-40b1-b7df-fe4fe199ebbd","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":121,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"b58bf839-dd8e-410f-84eb-23a5160df573","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":121,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"f5dfc774-7928-4baa-b4de-bc072b092280","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":121,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"14630608-1c5b-4caf-b0c0-043dd3b55711","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":121,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"b17d7444-e65b-4b9e-9cc8-4e1ba4d5c945","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":121,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"6473c98b-babb-4641-9344-9769ec275918","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":121,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"d4a989b8-e363-4b1a-8964-ef59b129587c","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":121,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"8c79d20b-980f-4f13-a4bb-852ff7a7ad3e","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":121,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"718ca5d2-638b-4147-a99a-3d0bd25a506b","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":121,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"de9d6563-0a76-4879-b02e-eecabb253405","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":121,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"8123e114-8f9c-452c-a2b4-f77d1846efee","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":121,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"625df7b5-5416-48d8-80e3-d5a38f2ac713","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":121,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"8a1c169e-d86f-42ac-bbd5-402e66430a89","block_type":"box","text":"under management for BlackRock.","page_number":121,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"d3641f68-ab3e-4ec3-9344-07ed3c3fc86c","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":121,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"167d5b9e-2b32-4acc-98a5-62ba1a072615","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":121,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"c050a15c-6d7e-4b65-8fb5-eeb682156110","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":121,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"f4a61f32-7cf1-4cde-a362-6e185c1115a5","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":121,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"133bd828-0d24-40f9-960c-19edf08fa4ed","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":121,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"3505c566-3c69-4b8b-b1ca-a7b134d1a751","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":121,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"7280334e-19fb-42ce-b5a2-b1d3317792bc","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":121,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"173ce87a-a0b3-428a-afb4-aad9c0791be5","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":121,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"5995519a-86dc-4880-9d06-b9aa4988d912","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":121,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"0c2712de-3151-4177-92fb-89989eb57f1e","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":121,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"5433ba57-c350-4171-ad96-b05269bca7f9","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":121,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"e875345a-88f0-4861-a7a3-a1bc46018ce2","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":121,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"5c8b2c4b-a0f4-4d5a-bdf2-aceb3d1c3774","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":121,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"0d326912-28f5-4fd0-af96-068818e3cee1","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":121,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"2a83f4f4-bd1c-4abc-a6c9-b2fae1b2394f","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":121,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"947ee8f3-6e23-42d8-bc1f-11267edb383c","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":121,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"b7370ff3-8811-4c75-a7c8-f40e37b7def3","block_type":"box","text":"II-91","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4fecb55-233f-405b-82bb-1af08483853f","block_type":"box","text":"NM1026U-5984554-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8413bec8-4375-4a94-ba72-84c51379ea18","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":122,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"4879682f-5166-498d-8266-850b4c9f3daf","block_type":"box","text":"any such fees or other amounts.","page_number":122,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"2847fa86-b438-4957-ac86-3ed6553dffa4","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":122,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"ad11b9f3-2efd-46c1-ac40-31a9d250ab59","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":122,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"e14d469e-79e7-42b9-96dd-b7221dabbb2c","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":122,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"a9f0ed4b-e8be-4341-ae86-8ddbe9417547","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":122,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"b8219f37-1bfe-44d5-ab8e-93ad0c6458d8","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":122,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"c0b2430c-7f20-4ac2-be33-5e149e2cf592","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":122,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"2e95ff7b-22e4-48bd-9f21-76428e41189f","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":122,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"8ae0ab9c-3456-4962-bd59-f535ef71aa2e","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":122,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"a192aa60-6664-46b5-8bde-279c25a38746","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":122,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"50e535bf-86b0-474b-95e4-d5279f8ce25f","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":122,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"f2a23050-5191-40f9-a270-167ca538a4b9","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":122,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"e5c595af-9c82-4598-a2b1-7c0f12011530","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":122,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"6ea29f89-2225-44e1-a9b9-a685b0f5363d","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":122,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"46d54fa4-25e8-4802-88bd-aac34208f29b","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":122,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"b69c25c7-7cff-4cbb-af87-7fb3900f3728","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":122,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"a85a4cdd-5b19-4a38-9fb4-28e727dd97b6","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":122,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"f9790f2a-88ed-4f82-9592-b5cbc3674f98","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":122,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"750e520e-8cda-418c-8d51-362c8c6ec1ea","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":122,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"d6bb063d-7325-4240-adbf-398f3bd1dad8","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":122,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"a749fef5-f908-4536-a284-e8656a23e0ca","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":122,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"ca12ba5c-7b24-48be-9f57-d10eeca38051","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":122,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"53bb7dd5-a43f-4d75-b0a3-a962a85035f4","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":122,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"e39e1a34-22e8-4ab4-975f-9f4575e9e51d","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":122,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"1afa349b-8b29-4e10-a156-dc53f96a97c2","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":122,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"85cc494a-18f8-4d50-b04d-054409586e34","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":122,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"180ce050-bfae-4a55-8604-39423ae1e29a","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":122,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"945a4076-87d3-42d8-aee2-9e1fc0609be4","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":122,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"6fc51421-b718-4c5f-84c8-cbae42c9d1f3","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":122,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"ccac9b64-a5da-4e7c-a6fe-e985f24d146d","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":122,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"2d788797-86eb-497f-ac1b-77563547e7ec","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":122,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"ceff7b59-ef69-4df5-935f-1db2db362077","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":122,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"ec320843-8743-43a7-bc00-388465040efb","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":122,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"b0652873-a811-4f19-8879-2b601a207532","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":122,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"37631685-6fd4-4604-8425-eb532dfebd34","block_type":"box","text":"regulation.","page_number":122,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"45b3773b-3530-4296-827b-c2eeb140cccd","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":122,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"9c7e569b-cdcc-4ecd-8d5d-c0b2036ee0d9","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":122,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"046cdb24-fa54-40c1-a323-1a700111c308","block_type":"box","text":"various program limits (","page_number":122,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"71767ae6-413f-4320-b40d-43a24800e5a1","block_type":"box","text":"i.e.","page_number":122,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"33a548a7-1564-41c9-a10d-a1c994dd1408","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":122,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"90430bb8-c8c8-4767-b002-3d6a56b085da","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":122,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"129cc02b-2d86-41f9-b1f9-4df54c9eab87","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":122,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"7f61e213-c9f2-43b3-9a27-320ffe2725c7","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":122,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"220f5869-f324-4bf3-8b77-918ee7829308","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":122,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"dfb972f6-567f-4a39-95fd-129a6a2ac7ef","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":122,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"7ab1867f-d50c-4555-a9a8-bfb4cb7456ee","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":122,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"c7aba541-6c49-4f8a-9999-3c9c53403c44","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":122,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"6b11925f-5f47-43b3-b846-02d37b5afca8","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":122,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"e695a9f2-5ae1-4cd9-8b52-773ca58fb4a3","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":122,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"1651e5d8-357e-4f8c-8b22-4eaefec9e04e","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":122,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"aeb7dcec-df27-43e0-914e-5d82e30a7e3b","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":122,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"d0ef7807-a150-4798-b105-6956f611e30b","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":122,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"84ae36fa-52b5-4db2-9f0a-bf2102a9cf24","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":122,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"07d7e0ad-f8bf-484f-a571-969ec94551ca","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":122,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"21fd8421-b4ab-4dea-af13-56411f78ed6b","block_type":"box","text":"II-92","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ebca22d-8ec4-4944-9721-6054dd255d3b","block_type":"box","text":"NM1026U-5984554-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0c3a74fb-3793-4370-b437-96a7db35ad2d","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":123,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"9db5c49e-bc29-4ad0-a27f-07b2dc27a902","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":123,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"c71c3ffe-aeac-4dea-9934-e835f5c9e473","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":123,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"d36da1c1-4d41-45b7-8bd8-767781494591","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":123,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"47e99eff-4faa-4b32-949c-e186d9e51021","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":123,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"0981f64f-b163-41e3-b364-21cf495b1f76","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":123,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"4718ec0c-81fd-4323-975f-dea35a2e3802","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":123,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"7da063e0-d577-4244-bf8f-9d4f35aa6fa6","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":123,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"56c781f8-5e2a-4d49-ab31-2ed2509a3149","block_type":"box","text":"than through client commissions.","page_number":123,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"32838531-a700-4149-bef3-ab7c97b10205","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":123,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"3b580f33-eba6-41bd-8a3c-0aeabd8c425a","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":123,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"85a8ebdd-96b1-457e-8758-a51883bf908a","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":123,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"6d32bf9f-d22d-4fe4-a9d0-3dcbd8cb9339","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":123,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"0bdb07bd-ff27-42df-8153-a93eef6c27bb","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":123,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"e6fc9036-66d8-438f-9e16-2fbfb99a2871","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":123,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"462ec357-08f3-4619-807a-fe2698340c4a","block_type":"box","text":"research-oriented software and other services and products.","page_number":123,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"ae7175e1-ef7e-4811-b6bf-a9d9ebbfa55a","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":123,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"0698d42a-9803-42e1-b5ce-7f24c0126ee3","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":123,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"953e9ca7-ce1c-4152-86bf-67ff7cd65a69","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":123,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"e867eb1f-c042-4161-8c67-4a0bfaca487f","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":123,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"6944edee-b325-4b82-85e1-6883c5d453e9","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":123,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"695e4665-5a33-4706-a12a-d3a99d08915b","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":123,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"ba318d44-f4bb-4f91-9129-e667d0b31d42","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":123,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"9434d042-f3f3-48b8-b7ea-527aafd30f15","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":123,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"ffeb6025-cc81-4d1c-ab87-13e799f9f4a5","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":123,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"b8bd35fd-288f-4fa3-ab42-21f8c9e89041","block_type":"box","text":"and services itself.","page_number":123,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"b379c0da-aa1e-40ea-8854-3ae113bfd9e9","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":123,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"7ccdc92f-55a2-406c-924e-46f2554fe4ca","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":123,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"e9d75952-6bfd-4103-a942-b784691281b8","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":123,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"d50d5d0d-4944-46c1-a22e-acf20aa468d1","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":123,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"b08e2cec-135e-4b20-9023-035d1ee95479","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":123,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"9c6178fa-cdae-458e-a6c3-51fb3e8ed31a","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":123,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"2af72955-d26b-42ba-8803-ef8e799b9068","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":123,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"c14010f1-538b-4774-a2ed-0ea9a0cbf744","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":123,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"cd4d6847-bcc8-4b52-aad7-cc1ed7b714ea","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":123,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"fed28637-be36-4e55-bec9-062242d93160","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":123,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"5ef02ee3-d9fb-4e78-b6cd-6127f9a99c96","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":123,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"01e7d6bd-b497-465d-a9c0-da176f62a1e2","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":123,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"e117b4f4-7e24-4a19-9c6d-6416074fc038","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":123,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"54b4fc0d-1211-4841-8270-806700ed4a77","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":123,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"de707eb0-c2d7-45d4-babf-4278c3062aaf","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":123,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"e5ec0307-c7dd-4a29-aa22-a81ef662af0e","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":123,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"80d27cd9-af3c-4356-a454-0d813f3d6ddf","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":123,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"e03d0b3b-3761-4a3f-b285-b4a7bd03ea50","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":123,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"0dd7f5da-535f-409e-a77e-9ae7af4420be","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":123,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"8d1c5a0b-0885-4057-9eaa-a1952299291f","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":123,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"07ba721b-4dd6-4c6b-a82d-fd27e1540390","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":123,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"11f2539a-70f1-4e13-a477-56b4fad577d0","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":123,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"7deeaffd-5165-489a-8923-1c76b785ea0c","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":123,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"cf8a023d-366d-439e-838f-c20ef1e97aad","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":123,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"5cd07788-3cb2-4373-a69a-472f332e9dc6","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":123,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"0eb578d3-4403-4e4b-a902-b360ea40f019","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":123,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"b543c6b9-41c8-4526-b013-c8dcdda63721","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":123,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"81997716-fc3d-4df9-95da-96c0cc359375","block_type":"box","text":"II-93","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d7fa268-7d64-4564-835e-0bb8ca630a1b","block_type":"box","text":"NM1026U-5984554-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"998414b4-025a-4f6d-8221-4fca00f5cfd4","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":124,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"1a404bb7-f9fc-448a-aae5-4304b9f4472f","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":124,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"433b13fe-a676-4f26-8b69-f7ef8ecbd51e","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":124,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"9e677ad7-f761-42ab-ad03-ef992dab728c","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":124,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"18c50880-20a2-4ce5-b2a3-dc5e92aa6b2c","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":124,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"7e65b45f-f6c3-47ce-b7d6-11d117c16660","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":124,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"0f33063f-5ec8-4cae-a2cf-2588919614ed","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":124,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"06700f7a-6f42-457f-92e3-40501f9832d0","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":124,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"f3d2129f-d95b-4834-ba70-62b64f18b7a4","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":124,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"481f360e-5324-4701-889c-614a812949cb","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":124,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"1f68f311-e650-416c-addd-6dcc33711fa0","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":124,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"b1c086b4-2325-4b11-bb8c-7afb609f2ff7","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":124,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"f97eaded-ad85-408d-947e-92a6d1e74d9f","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":124,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"461a4302-aeb2-4384-8986-5759e6c2d373","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":124,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"e3cc0110-bb2c-44f0-8761-f0bd6912ea81","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":124,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"cf4500e1-e860-4d89-a44c-69bfb0767109","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":124,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"a8c44764-77af-4c0d-934a-3e9ab6032099","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":124,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"3f4c6d44-3a5f-4bbe-b1a0-0dd515e37dd8","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":124,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"a9f8514e-2a75-4711-8407-3f197f8e7e6a","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":124,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"7c27ac42-742d-44f7-b4c5-56f8151432a4","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":124,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"a045f253-5969-4f90-88f3-0434714695e4","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":124,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"89b53bef-8813-47fb-8a1d-cf46b9d2c9ca","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":124,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"0ed97e13-c6a4-4b8f-b6dc-9bb395159c84","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":124,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"42a671ca-aac5-44dc-9bf8-65d6fe8e8334","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":124,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"39df1bb0-99c1-48d0-95d8-b2e496f94df0","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":124,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"870e4272-8346-454a-802d-dc7e941f4759","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":124,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"79431d7f-b1f0-46c9-9b9a-dc55306ffb8b","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":124,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"76876d0c-34ca-423f-a940-22bf2d48eff4","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":124,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"7f705dbe-3fb4-4f61-87ec-56a39afb34e4","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":124,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"f1394a04-4b59-40eb-b6a9-ec0e8244a994","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":124,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"1e2b5518-19b8-44f9-a0d7-aa27ac472ab2","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":124,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"ae59c6e1-4551-4f1e-9f15-d7c7bc11bb39","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":124,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"78cf7f23-d258-4c78-84b0-300952f58c9e","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":124,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"c2a05e1c-9a84-420a-bdc6-6617e1fe591e","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":124,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"bf2bfe3e-ba1f-4912-a1f4-14f040427144","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":124,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"a2be69cc-86ef-4a9d-96e4-19441888cc89","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":124,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"aa06dd75-8674-4b0c-94a5-663729c41f3d","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":124,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"b73db0ea-45c2-4308-a3f3-5bbd7c61548e","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":124,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"de14b71f-a2fd-4cf3-a807-9942626349ae","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":124,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"18ef0ce7-81d4-4095-9d4c-dba0682ba1b2","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":124,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"138b27ba-7318-4a8a-94ba-6236477ad471","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":124,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"c93cb288-65c0-4cb8-9b73-66a62e9f3db6","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":124,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"d7501912-3780-4b33-9945-4ce3bdf8b7e6","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":124,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"8a3bafd3-2585-49e1-b2b9-9d2e4aa4fc22","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":124,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"2d8d4da7-9f7a-4182-82ed-e51a397a2c8e","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":125,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"571cacdb-ce61-457f-b513-d302c57d1932","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":125,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"54c36378-cb22-45d5-b636-533c48ad2c18","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":125,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"73852693-13f9-47e8-94ed-ede4d9618b1b","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":125,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"95c25b0e-8501-4e2d-b738-376535b83aed","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":125,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"7b117429-20e7-4845-b249-51e7d239ec87","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":125,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"3ea0748c-d39b-4b53-87da-2828b6b68d9d","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":125,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"4c5e7a3d-97ab-480e-994f-6b7e3c2332dc","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":125,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"3c5d219d-4d50-40a7-9606-88a90129b7a6","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":125,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"dbef346e-55b3-44aa-8764-8e793ab876f2","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":125,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"c7ad4472-23f0-4ec8-9dea-832eb4d1b244","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":125,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"4b2ddeb9-aff5-4f0e-9707-a9f58080169b","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":125,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"8cab368d-0756-4aca-b156-d20238471d31","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":125,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"8675bce8-a02f-4198-bbb0-2379976a3eac","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":125,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"b7fc8cd8-5dab-4b02-95eb-4e76cb105571","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":125,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"f6700da6-35bd-4dcf-aa74-0819835174e2","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":125,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"b0c49389-f050-49c5-bfe2-b75a29a2a5eb","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":125,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"61b69a0e-43c7-4f41-9054-57a55c0f4a87","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":125,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"05455da3-d00d-4a86-b268-e1c1be56960e","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":125,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"0e092e51-80f7-4b34-83a3-4aaaf17d5cde","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":125,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"6bec742c-f1d9-4dd5-85a6-a0e02d20eb8a","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":125,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"12c96904-b62b-4b64-962d-685411787daf","block_type":"box","text":"public information about the company (","page_number":125,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"8143a8af-3cf9-43c1-8979-b726b100ea7b","block_type":"box","text":"e.g.","page_number":125,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"d9d9f623-58d2-4ab4-9253-fc2f208b908e","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":125,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"83eab62d-3298-48da-b457-82a65a8ab674","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":125,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"c25300bc-9925-4dd7-a84f-306267318ee8","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":125,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"db04d39e-bfda-4ec3-a7eb-ead85a34c798","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":125,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"ffcd5c0e-a55d-40ce-b14f-2cb324fa3030","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":125,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"dfadd641-339d-4555-9616-f01614cf7911","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Cer tain","page_number":125,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"c9451112-7910-4fb2-a8fe-d8bdebddb9cb","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":125,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"74a546b0-fcd8-419e-a9ea-ece77b9bbd42","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":125,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"d5c98d4e-48bd-4d96-932f-efe33c7f1d63","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":125,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"b5d651d8-5982-404d-b185-dcf7722cc542","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":125,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"892d20d2-1ce6-49a2-adf7-a843ab753349","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":125,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"4531e4fd-e944-4053-9bac-be0c66ecb928","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":125,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"299665ff-fec8-4c5b-82c5-a657858d84a1","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":125,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"d0bcd222-3459-4a6d-a059-8009ca569bf8","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":125,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"b92e8158-ee5f-4f29-9f40-bd9410f0f74b","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":125,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"b3e1ba74-48be-4374-b2c5-572f6a97f9da","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":125,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"9f6a5c52-ca0a-4ada-b5dd-3e193cf9ff22","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":125,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"b84fed2d-a12a-4468-be3d-ae5a56a880b7","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":125,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"c7cf752f-d494-437a-bc3b-008ec4738709","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":125,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"f23f4092-2b21-41d1-be3c-35fe4859373f","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":125,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"b40e36f4-7027-403b-a839-9f64329030f3","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":125,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"62b34b49-6c52-491d-861f-66edcbf4fee0","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":125,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"f8654412-8a86-422a-875e-fd9ca97d21e0","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":125,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"bdbf21b1-84a0-482f-978e-7f1e00d973dd","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":125,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"fc2eb708-2197-4875-b5be-84b61979acec","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":125,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"e719792c-5862-4bd9-a20c-f7a27650f109","block_type":"box","text":"II-95","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"588e8049-7476-49f9-8fff-8a57d6692ac5","block_type":"box","text":"NM1026U-5984554-125/232","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8c53ae75-0d3a-4943-9f65-e0a4309c4b88","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":126,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"724375d8-fb95-4967-9273-6afe40a12723","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":126,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"62e50c56-6d3f-4755-9f8b-b63c61364107","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":126,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"066ffbd3-4d77-43b7-9069-c7a7ba04b63d","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":126,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"bcf357e4-ad90-4f53-847c-5dec35c9cb32","block_type":"box","text":"a barrier.","page_number":126,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"eaad0f93-07d0-4279-8a7e-ed1c90bd035d","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":126,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"8f75446f-5671-4aa5-a25a-e566d04e39bd","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":126,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"c247f9e9-8814-4ac7-b70a-f636e8dcf60a","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":126,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"7b347c66-bdcf-44bd-8b69-d5219ab3633c","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":126,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"b6203df7-0c7c-46ca-b2e9-9d9bad2d51d3","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":126,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"972e5d9e-7d86-4cb1-bb51-f6431c8a7e33","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":126,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"e140ebc2-4510-463b-9e1c-2778b456c021","block_type":"box","text":"that operate in cer tain industries (","page_number":126,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"9bf12912-b9d0-4c05-9298-f1e229f0e6ea","block_type":"box","text":"e.g.","page_number":126,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"60a95963-590c-453d-9429-ccc23a3704e6","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":126,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"16785039-c832-452a-9610-afdd1e189294","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":126,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"472dea64-1bd3-432b-810f-c48ca10c3a17","block_type":"box","text":"e.g.","page_number":126,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"80feb06e-14c2-4b63-82a0-5a9e1d64ca06","block_type":"box","text":", with mechanisms such as poison pills","page_number":126,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"8fe3f6e4-4cbb-46b9-b198-49ce78e82f9b","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":126,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"c9ca82cf-0730-40cd-8ac4-d4dce0de7590","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":126,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"422ba507-01c0-49c6-9e81-dcd243573596","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":126,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"be672486-a48c-4919-a5c1-d7b35336a9ba","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":126,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"31ae0b80-65d4-4288-b516-909192d4cbcf","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":126,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"f52c73e0-78a0-43ac-a629-5812ac256c15","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":126,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"29ca684b-dccc-4a22-a418-cb34bd065978","block_type":"box","text":"seek to make indirect investments (","page_number":126,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"1af059a8-ef9b-496f-bc6f-931eec7cbd99","block_type":"box","text":"e.g.","page_number":126,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"ec5eb1f6-7daf-400f-8042-e71b827ada5f","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":126,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"a94e17c0-c21c-4dcd-ad05-0a68334a64f7","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":126,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"aa321a20-4e1c-4d48-aa82-6e53debc020b","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":126,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"80d42667-affe-479d-89d3-823377c8affc","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":126,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"1a50497d-4803-436e-9699-2ed9f0a463ba","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":126,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"87b2b852-a4dc-4a77-b388-49dd52eb731e","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":126,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"143b5ce4-e139-4e7c-bd39-4be8150b37c9","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":126,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"eadef87d-4009-4290-a93d-a408803bdbdf","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":126,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"a4031f81-350d-47c0-9ec0-34db427eb6e2","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":126,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"23aa0bdb-d71d-42a2-a0d1-2e39395776ee","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":126,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"5f887910-75b2-4d75-910b-6351bff7689a","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":126,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"3310d151-1f29-45a6-8e03-5ccc448f9786","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":126,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"28b3d64d-f62e-407d-ad68-1893d9120d53","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":126,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"03077b6e-6923-46b4-b23e-93f338cc3cac","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":126,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"c624832b-e5eb-47ed-8d08-753a81a46640","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":126,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"8e31a302-2d5f-4d6a-8890-f528b71e72ff","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":126,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"800cdda1-c559-4c13-b413-0bb556faf3f4","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":126,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"377659d0-61cc-4421-bc25-1d0811016ddf","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":126,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"a04f14de-c144-46e3-936d-1f67a9067dd6","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":126,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"5dbf3a21-557c-49e8-8592-c236053d309f","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":126,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"536c591e-b1cf-44fd-8156-28cfb15e6c57","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":126,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"db1228b4-0fe3-49f7-903e-e185b0ade500","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":126,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"1e2ab430-7d8b-4ee8-bb70-5a70f000530f","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":126,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"6f2aa869-f0fc-4609-a388-c0115d27acde","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":126,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"a932a5c7-2a31-4123-8165-eb084a84b4fa","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":126,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"c8c6c99e-2860-4b4b-88f0-e7620f60ab82","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":126,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"d084c2f3-349e-40cc-b3d9-75942ad71ac7","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":126,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"c31f2fab-0b12-4708-9ddc-4a16da79419f","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":126,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"4a994d15-c1ec-437c-9ef5-8ccea7a50525","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":126,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"b1661743-8136-4028-8b08-da9aa9a27e6c","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":126,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"a078c77a-6812-4054-a5e2-769109adf7d8","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":126,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"d7bef1de-807a-442e-aff2-1a7204d326c1","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":126,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"f219d9b2-20df-4f96-9b71-d4e3df63f008","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":126,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"56e5e176-2034-45e6-9b3d-3eca5ec2ab50","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":126,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"8072d85d-2da2-48ec-93fe-e9da8087c4c0","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":126,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"fa6d0475-01db-43df-b4a0-541108f706f5","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":126,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"c752b752-dbeb-412e-8d99-615196858497","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":126,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"da5ce5bc-ca17-419e-b530-ef84829d27d1","block_type":"box","text":"II-96","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1f78a916-6a20-4b77-bcb1-f919f38920cf","block_type":"box","text":"NM1026U-5984554-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2cb4beae-bd26-4c00-8cec-6958bc8d1301","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":127,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"79179bf7-f865-43b8-8c29-ad4bcdafb699","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":127,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"085d09fb-892a-4f3d-93f8-9f8e2c47e549","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":127,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"98ab58f3-ce98-4bdf-95bc-2df971e0bf55","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":127,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"b961e977-9241-4099-adee-fba20c90d8c9","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":127,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"9338955f-beed-4a63-bcf6-3890db000b07","block_type":"box","text":"strategy with respect to such security or asset.","page_number":127,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"4e54cce0-50d7-4274-aaa3-f2d7758b2bdd","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":127,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"e5296350-77dd-4eb4-9ece-f69b3aa2fcf6","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":127,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"ae1fbc41-49cf-4359-bfb7-258a088e135a","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":127,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"c4bdf609-9af3-4b96-adc3-a9131a03abf4","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":127,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"5e6baea5-6f45-43e0-a448-b341f7139f06","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":127,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"c7de13a8-caf5-480c-8d92-ad028480ff73","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":127,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"a41029fc-913a-447e-869a-393195159956","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":127,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"c12c41c1-2d36-429b-84c2-111df7cf33b8","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":127,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"2a180312-06c8-494b-b0f6-f0c628a573cd","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":127,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"a536924d-38fc-4baf-8a76-6d704fef18f7","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":127,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"bf56fab3-12c5-4aaf-b28e-58bc84cbd259","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":127,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"7f8e48e4-4989-4fb0-bbfd-ce4b5ce4ed43","block_type":"box","text":"e.g.","page_number":127,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"b9c055d2-bf0c-4191-9dba-437a2c309ff9","block_type":"box","text":", custodians,","page_number":127,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"4114a607-d6ed-42b2-a8d9-42cdf6dc773c","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":127,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"48339ae3-2e6d-47c3-a2f6-c318c9f2e5a6","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":127,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"5345efd2-daa2-4e9a-ab40-17975a77dd01","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":127,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"a5af1173-cb04-470d-9eae-85d5d5da4309","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":127,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"c9a198ee-9b9c-4a28-a373-a45a82a58570","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":127,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"57aa5fc8-b547-43cc-b30f-c2db40f9555d","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":127,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"503a55ed-5313-4d22-b34c-aa1e3f9f8e55","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":127,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"51292b4b-da02-4710-b301-72e97bbcde67","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":127,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"411d184f-0c84-4a10-8805-ee26720db9c5","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":127,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"11362afc-b60a-4926-9a50-f0ed15579253","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":127,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"816685fe-7555-49c8-b928-063aaa55b659","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":127,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"729fef60-8da5-418e-8505-ad758d90f8ef","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":127,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"070a16e8-97b1-4951-b808-a341936dd635","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":127,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"fcf2067c-d49d-4fe1-ba88-b9ce7de5043b","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":127,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"c0964c9c-36f8-4ede-957b-ed6467f6682f","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":127,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"08929a35-e71c-4771-b0e7-b7cc1fb0e8a7","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":127,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"85d71120-798b-4592-8c28-4f5fdec8c0f2","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":127,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"7ea3f479-f8ae-4b70-bca0-182c8b78119b","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":127,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"466d057b-daf3-4174-8e63-41a64314361c","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":127,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"40a31b4f-c051-4858-b4f8-3ac0064a4e1b","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":127,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"520fb4f4-5548-42dd-821b-d50469a6e3b2","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":127,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"3a9374eb-0f42-44ba-9e61-c92be5c84a84","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":127,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"0ddc8f57-a09a-47f4-8f4d-d8697fe5f69e","block_type":"box","text":"provider.","page_number":127,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"86c34190-89e5-4b0f-bf31-3219e398b774","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":127,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"c3947cb1-19f9-4d44-9449-acebfaed2e81","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":127,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"7cbbd60b-a9a2-41d5-94c3-149200c1f18d","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":127,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"b2c9884b-cd73-4847-af01-658f60b8694b","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":127,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"697243b0-1e5d-4a62-8369-a9e7aae8612f","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":127,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"90e8613d-7ace-47fd-a606-6c91eb636728","block_type":"box","text":"PURCHASE OF SHARES","page_number":127,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"ba7e4b80-1075-479a-91cb-39c0abba58ae","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":127,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"db451dda-36e2-4e31-a4d1-fc41ce168732","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":127,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"1c1e35e7-2020-4d35-a133-f5e5c9ae1227","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":127,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"a5183629-6dfa-4f2a-bd75-c6f951733329","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":127,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"9cb39236-d495-4cd0-a58b-00004213f8f3","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":127,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"9f3ac46f-9614-4249-819b-81b4f4e51a50","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":127,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"ad094fbc-2db3-49d5-bbff-830a94ed5f65","block_type":"box","text":"II-97","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5046a403-5c03-4b0d-a787-56e90ff839c5","block_type":"box","text":"NM1026U-5984554-127/232","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"deadd60f-c3bb-423b-b4c3-06d4fcecb5e1","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":128,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"63afabfb-cfce-45e6-8ad8-350cb4cfb550","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":128,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"3fe3f9f1-0a7f-4794-92da-610f253da686","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":128,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"870c56fe-563a-42c9-b198-b1ade2274545","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":128,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"c18163c9-56d6-4dd2-87a2-7e3f757b721d","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":128,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"42548902-de1b-4366-a738-8cc141953815","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":128,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"34224db1-9e51-4126-a7c6-2f24b35c5faf","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":128,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"ee850c68-1acb-4c31-9353-32d76a4c53e1","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":128,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"30c252b5-9366-4294-9ccb-8406ec74f99b","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":128,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"18064107-c4e8-4509-bd40-a0f946f5c8b4","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":128,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"ffb7e486-12b1-4f99-8cc2-1b500b2a7041","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":128,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"e48a2ec6-d134-4d79-9a5a-a64a0f2a8c09","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":128,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"74970fb5-78cc-441d-8eaf-01473691f033","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":128,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"98d43de1-c472-41a0-99fe-b85a45c0a6d4","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":128,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"6e4e92a2-d939-4482-9ec6-a239240e6084","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":128,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"797677db-348d-4c7e-9dae-397e82737f5d","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":128,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"e7681699-2e1c-4005-9ff3-272d5ab37e94","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":128,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"ad9e63df-1e31-472a-bd66-c296827857ed","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":128,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"629e68d7-b1e1-47a1-9be0-c031a08e85d4","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":128,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"89cb424d-88d2-4e9f-a7c8-37262a49d6b9","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":128,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"d9b8dfd9-7f7f-4838-b960-36b525cd1077","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":128,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"5778ec73-8c10-4164-8ed8-29327a4615b5","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":128,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"a7cff671-95f8-44b2-aaef-aab73aaca0d6","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":128,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"460d3070-6f71-4770-aca3-bc5a53600b1e","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":128,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"12686f67-2f2a-4120-b8d1-bfddfbfad3c1","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":128,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"c3a5826d-1264-49aa-89f1-f79b234d23cb","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":128,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"cb3dde1c-6a9a-40f2-ae95-e1a14606aa53","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":128,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"93aa0fbc-cd8c-4c05-96d7-8fab7ef568a2","block_type":"box","text":"investment is $25.","page_number":128,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"36622cd1-f33c-4a14-ad9c-90abaf3157a0","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":128,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"e2dff6a1-44a5-4e7c-9dea-e147c4f03f2b","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":128,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"3af0d755-c6dc-4fe0-803c-b7cd745ac397","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":128,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"57b93d4e-0917-4046-989e-c44ba1eca300","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":128,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"18503836-67dc-4497-82da-ffc3e8676e74","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":128,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"f87c629b-5f33-409d-90a3-4de8fbc6873f","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":128,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"f91238e0-908f-48cd-ac99-b91793527b3b","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":128,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"6e562036-0d7d-4425-bafe-dbb87f6622a9","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":128,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"0ad9a273-674f-498d-a439-935070063c62","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":128,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"c1f81210-6f75-4d3a-8dfd-08de39dca388","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":128,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"5fe95391-ba0f-4051-8c51-f97334a84482","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":128,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"4612234c-2add-4848-9b92-fcb5b4cbd8d9","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":128,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"37d75822-c38b-49e4-ae9e-3b59bbb0d5d7","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":128,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"01eb65c8-ccd5-48c4-9e9d-5a0ac1400c33","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":128,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"be82726f-6c95-4c66-ab4c-9a6122ecf2ab","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":128,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"1111c894-c7fc-441a-acd2-31ff6e98062d","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":128,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"c6324494-aac0-4915-860f-df1bdff8ceff","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":128,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"48b22036-e4b0-4dbb-98f1-f7bf8a26ae78","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":128,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"fea6c1af-3a67-4bf4-b757-bff5993e9098","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":128,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"28a899a0-dce2-4e41-8e93-219d904ad39c","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":128,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"ea1de94b-c7c9-48af-9ad5-7dc51ceb6247","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":128,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"925b5624-07f2-4dc5-b4f5-ff2d43f771e0","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":128,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"35f3a9d5-f07b-44a7-a008-beaf2213d9cb","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":128,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"95039a81-ee03-4a51-97dc-1db399f26605","block_type":"box","text":"adviser.","page_number":128,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"6aef5515-ab8a-40e2-b468-abc1ef962e7d","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":128,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"d7d22f95-bd3e-47d2-9679-589635451701","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":128,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"f39d0f35-1cbb-47a2-a67b-73d343f42ef8","block_type":"box","text":"II-98","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56a219f1-8c25-4590-a7ab-d6025112d421","block_type":"box","text":"NM1026U-5984554-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"62b93c0a-6d08-47bb-94b4-c13ca1f1cb72","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":129,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"3b9f278a-53af-4e64-9160-9c740983deeb","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":129,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"826ee6c1-1df1-4837-91a8-a8508270f417","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":129,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"8fb9cb0f-740d-4c56-9d0a-8aa441b9872b","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":129,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"7ac9c012-77cb-455f-a2c7-c057c3e3e7dc","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":129,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"05575b2a-6244-4eab-a537-46ba232db015","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":129,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"881cf017-483e-46b6-b0d0-420da6e21494","block_type":"box","text":"also be restricted from making additional investments.","page_number":129,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"bc8bc56e-00cf-401a-9368-12655d2eaada","block_type":"box","text":"In-Kind Purchases","page_number":129,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"9121e65a-2c18-49a1-bfd9-45092f58fb66","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":129,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"1662e05b-318b-4d37-8ba0-5e5d0cc10d3a","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":129,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"7186ab63-107b-4c73-888c-94632d0e638d","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":129,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"dc2e6014-1512-4e05-ac45-86cad0e54ae0","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":129,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"f3b37a37-c5d2-465c-a26c-59312c3291ee","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":129,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"a4c62cf8-d24b-471f-b268-526b24a9b9b7","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":129,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"19fd9ff6-32f2-42fd-b6ee-68c59e7ac3c7","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":129,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"30cba634-660b-4674-9847-0e239e1473f9","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":129,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"3a9b57d1-a40d-410f-89e9-6dd69104c8e1","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":129,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"f716a053-d558-4864-8b31-75f6b01509ee","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":129,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"818fac57-7dcb-4a26-9b8a-266f7b749dc5","block_type":"box","text":"has settled.","page_number":129,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"297ceab8-8f9d-47ae-a79f-6dc007c45426","block_type":"box","text":"Institutional Shares","page_number":129,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"911a0b6b-c342-4f18-a441-81c076fec404","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":129,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"00a29504-ca85-4858-94d1-ec320c64e759","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":129,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"d394948c-475b-4c2b-801c-ac1b01abd51b","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":129,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"8e905af7-e4f1-4214-b6c1-b6c7203a97b1","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":129,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"cf466287-e303-4318-8845-d4f99f09c845","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":129,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"8ae390d2-4934-468e-a2d0-eef698551b16","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":129,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"9d382653-c499-4407-84bb-0621947642c0","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":129,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"950aafcb-bc6a-474d-848d-38b6417f6885","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":129,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"1262f0d4-b9b8-4538-9849-b22310eb11ac","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":129,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"f822a226-9314-4006-b8a5-7ce9b1e76eb2","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":129,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"93fe1041-5554-4864-856e-ddf683c70906","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":129,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"7af44576-4ce4-48e8-97d1-d6e853daf6fb","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":129,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"269e6b82-3189-418c-a319-0ed68533d66c","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":129,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"1120efa8-4ec4-4cde-95fc-3b867fbe8f83","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":129,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"67ed789b-6d07-4ab7-b2ac-0a32f09e5846","block_type":"box","text":"these fees and conditions.","page_number":129,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"cfd13400-3b4a-413a-acc8-5b36e18b7a6c","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":129,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"ae629854-d36e-49c3-a60a-0b2f0f5e3de3","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":129,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"de7e7b2f-f886-4b05-9962-d571a47cd658","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":129,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"96081b91-9d4a-4a7e-b2ef-777dd92a49b5","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":129,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"82077f22-d1b2-4984-8223-66b5fa985ad4","block_type":"box","text":"incurred by the Fund.","page_number":129,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"2bb27661-5c0e-401a-8d38-462551692e79","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":129,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"3be56b1b-b0c2-40b5-a279-7c0849f4d415","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":129,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"15fe07e8-0035-4121-8e95-40a92cb0874f","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":129,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"6567a93b-9757-464c-91af-5dfa2d02404f","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":129,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"ed1f2083-39c7-401a-a163-cbe2d968383a","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":129,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"b9b9b6d0-f7d0-4b94-8a4e-1074ef2fed59","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":129,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"991555be-52a3-421d-b349-ba01e0782e2c","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":129,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"653172af-d53a-4167-9e44-aaf034b44f00","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":129,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"3b212d5e-a6ff-4f10-a3b4-65cd60de1eb3","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":129,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"dd627d48-8009-4e6d-afb7-1419428c340b","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":129,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"dbcc344d-16d7-4003-bf2a-d05b27e5484a","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":129,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"64df36e4-5517-48a5-ac5c-ad607421075a","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":129,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"c4266a60-8979-49c6-9569-a6c9233e4d67","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":129,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"01432f33-ad7e-42b9-879a-fd6fefb0661a","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":129,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"ca0ded3c-5a8b-4113-8544-6a7b0cd0e266","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":129,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"69b78c5f-02c2-43cd-8134-f14ab7dea91f","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":129,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"69286eaa-a819-4c7c-9c6f-2d4a3a5a76fc","block_type":"box","text":"II-99","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da33b983-9896-4426-84b5-7052e804a2f9","block_type":"box","text":"NM1026U-5984554-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5cb16da3-9f8a-42c0-8af1-8bf6f3b568cd","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":130,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"1235ff4d-87ab-494f-be0c-0ea77c1ce8e0","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":130,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"9c5aa95c-8c71-40df-9f4c-ec3cd1fab37c","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":130,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"6b989a29-35f0-4e14-9523-9bb108140079","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":130,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"7e7fb7ef-a5db-4100-9a22-cf6ba7795737","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":130,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"2272b275-caca-40ba-bc88-1c8c8d0a4082","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":130,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"c867c156-7a1e-4a6d-b2bd-2b42df9e59d9","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":130,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"1a00bd5e-b983-4e77-9c1d-a050e0dc6633","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":130,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"72aa5e12-0c7a-4f56-9673-bb2f33cd12d1","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":130,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"e2d73841-7718-4926-b6b3-a38685067164","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":130,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"f31e7704-6637-4444-bda2-47e707fadc66","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":130,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"051cfbc9-ca59-4720-94d6-86952a0434da","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":130,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"73e7d230-53ee-42ae-b2e4-9080c29dae64","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":130,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"6a8c33c7-4059-423b-b491-eba553e12256","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":130,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"a64d30e6-eaca-4d44-90ed-2c9c12930c49","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":130,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"ecaa62b3-0d16-499f-a580-28d5b2a26e83","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":130,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"fcb16a17-ab4e-44c2-9133-8b793f901560","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":130,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"4c84c292-247c-4544-bf6a-a0f10f552ce7","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":130,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"e0129456-c9ca-4e59-8fb4-565dbd610ef7","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":130,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"79a479e8-cf55-4784-8d2e-188b4dc508bb","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":130,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"e957750a-fa1f-40ba-810f-ea83b1cc6714","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":130,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"127825f8-edbb-4912-a8fd-181cc33579f6","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":130,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"df32f333-6c53-4d02-9f44-481ce5876ea7","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":130,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"8e6af9b0-0ce5-4d4a-940f-09cf90332612","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":130,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"c79e520c-01a4-4017-b521-adabe220d45b","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":130,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"450d8ca0-495c-4e4d-a0c6-411b531e1948","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":130,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"a5171aa6-d4b2-4e80-b790-eb7cbd97f335","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":130,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"aefae3d8-0581-464f-b91a-988f0e674519","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":130,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"09577b14-a11a-4eef-958b-d3accf30c61a","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":130,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"78dddd89-fa48-4b25-8648-9ee3d8583de5","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":130,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"ccc55268-67c3-4ca8-ab74-87dd629522ad","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":130,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"4cd11ac9-a4ce-4d48-9a17-7ea13c530e5f","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":130,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"762d9289-f341-4578-a29e-5920a164c8b5","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":130,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"c6254fb9-5815-4183-940b-e687975ec355","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":130,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"f49cd7e0-a6f1-4487-8047-391afbdbd5aa","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":130,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"877d116c-4696-4880-8f8f-70b085d092a5","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":130,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"920d6d74-b01d-4342-91fd-3ca6cebc56a1","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":130,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"79601103-9949-428f-8c14-42eb8845f9e1","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":130,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"2d5e4ab0-9713-4ec3-bee4-860d1366851a","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":130,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"3503aa6e-8ece-45ab-9a9a-9ea6f07f8a1a","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":130,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"ed135627-ae70-4b6d-ac64-a57564baf27e","block_type":"box","text":"periods indicated.","page_number":130,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"31b13c66-d798-4cbd-9dcd-2d1a8d496c12","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":130,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"e3a216dc-a30f-4df4-9bbb-88793d5b9089","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":130,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"d271bec9-8737-4880-9d7c-5e2dcff54a29","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":130,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"7848e486-d62d-4d05-aa82-7960a355f5e6","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":130,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"5004d3ab-222c-44f6-abb4-6e7a8f30b93d","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":130,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"5cbb1048-3c47-4ca1-bd0b-53752b8378f9","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":130,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"57212c40-0120-488b-8986-e42c317c9cb8","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":130,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"b6a17062-9341-42f8-8f20-2575cee4cc92","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":130,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"92d5576a-f6ac-4f41-af3b-731015e011ef","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":130,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"e4b6ddf5-d74d-4e2a-a489-05672c28c92e","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":130,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"46836f33-959e-43cc-b899-4ee55766e6e2","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":130,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"b60ee717-8e63-48ba-83f2-995aa6828f09","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":130,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"869ba7af-f343-45e2-b447-70d9ef674b62","block_type":"box","text":"II-100","page_number":130,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4445e704-1053-43d7-8e94-f273a065a5a1","block_type":"box","text":"NM1026U-5984554-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"927595d5-df02-4830-9bae-baec6c074fc1","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":131,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"51df7c6d-cc5d-49f7-b361-0e234f0778fa","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":131,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"5827cd63-f629-4d9a-b2d5-142fdd169b95","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":131,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"855006a3-1fd0-46c0-841c-975c2cda6e98","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":131,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"6e866c67-26f6-4e4e-9415-3ab2dea470c9","block_type":"box","text":"Reduced Initial Sales Charges","page_number":131,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"56733d25-1090-43e4-b118-ebc6fcf4924c","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":131,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"9eec667b-29e8-4f9e-89d5-c82ad4fd6913","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":131,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"58889a56-a19f-4045-ae99-5bf8a26663e1","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":131,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"eb58e41a-f52c-4866-9f56-732913c56f81","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":131,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"58bb17ef-dc58-4569-8c00-371de51e34e2","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":131,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"a8b849fa-3049-45cf-9f90-12a44507479e","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":131,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"82faaeaf-be29-4b81-a235-1e28d3d2fe1a","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":131,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"14b33015-0ab3-4658-80bf-b708d9b65803","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":131,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"88276987-557c-4b9e-b24d-124db65315b5","block_type":"box","text":"Reinvested Dividends.","page_number":131,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"9c06826e-959c-4f5b-89f4-cad70efe4ceb","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":131,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"2399646f-54be-4e75-835b-d7414252adc0","block_type":"box","text":"reinvestment of dividends.","page_number":131,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"810fa412-a846-4404-a610-7863451c7614","block_type":"box","text":"Right of Accumulation.","page_number":131,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"5822aced-6135-4143-8146-7831804637f4","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":131,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"d1de08f2-8c06-4ae4-9ed7-ed807f7ee44f","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":131,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"9995e669-367d-48dc-8589-ce00ec9dd82f","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":131,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"06db3eaa-eb3a-4cb8-a3f6-8a026e43b838","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":131,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"a3686129-6e9a-4c7e-ae4c-83d519ace00a","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":131,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"bd44e4b2-9ffa-4e5d-a0eb-5ba298a660c9","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":131,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"62ac9e91-b4a9-4392-8b75-118ab4757a34","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":131,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"1d5b8b9a-5597-48db-9c32-7c9a350e97f8","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":131,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"717c67ea-00de-4701-a85d-914a53c58b46","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":131,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"bdedf404-7cb8-464d-9e20-d93385e20733","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":131,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"d2edb586-0084-4aa6-8e00-3a9dc2643f85","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":131,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"052d2f53-8f77-4470-b808-2f9e50d9a023","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":131,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"1800c80c-3b07-419f-829f-fb291c6f1557","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":131,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"e5abdd8c-45d3-4437-91c3-05a7e5bcae4f","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":131,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"b0d357b2-e7a7-4a58-a776-893cf67368b6","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":131,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"c9ecfee4-0b11-49b2-8350-f57b23ca37db","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":131,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"6b29a61a-8564-49f1-9526-ff5c1df8582d","block_type":"box","text":"Letter of Intent.","page_number":131,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"1db1b4d1-1508-4e5f-b503-48ada27012c2","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":131,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"2b7acc22-8fd2-465b-b298-ae04b19635d4","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":131,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"eb1a0e07-4f64-4e19-a6cd-3d5bdc05ba00","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":131,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"0defab2b-d054-4a4e-9dd3-e2e5cd7f8f1a","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":131,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"80d168fa-0eda-494f-aa6e-5fbeb8fe0b96","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":131,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"066e62bc-3444-4679-8d33-ecfec4205e91","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":131,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"3ff348da-fa02-4b17-b3a5-6e58fb6b1879","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":131,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"f0e193bf-a28f-493b-9ad3-4b4bcde1d5ad","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":131,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"e037ff36-a6b3-4a9b-b1ec-a91dc58d017c","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":131,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"b1943e37-5f6c-4a72-af02-132a27a50b1e","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":131,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"ce971331-8944-4ac3-b2e2-bb0214fce04e","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":131,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"338efc1a-cdcf-4b6e-8c2a-5263bdfd4ae8","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":131,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"69496ffa-0a5a-40b3-a7d9-d38e41725216","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":131,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"f40f5863-6741-40e6-9a89-88d8d7d6a1a7","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":131,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"657a24f9-4488-413d-aefa-269e53a30e64","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":131,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"d15d3a6c-dada-488b-9eec-9a195e3eb103","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":131,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"5e09bcb7-f9f7-413e-b42f-b678c01bc843","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":131,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"33d14772-69f8-4da2-9ee1-8154d18af4f3","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":131,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"a47b1b5b-a815-4ed8-8c26-bb87cb8109fe","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":131,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"03847b76-00da-4b23-9caf-5e8ed27ae00f","block_type":"box","text":"Placement Fees.","page_number":131,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"5d508546-6ea2-4974-b274-ac2bb5c19796","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":131,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"471dc052-31d6-4a20-90a0-99bd577ea549","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":131,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"09f04327-5116-4770-a90f-3a93e28085df","block_type":"box","text":"II-101","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"393aee0c-5e0f-49f2-beb1-086789903779","block_type":"box","text":"NM1026U-5984554-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bfb3d3c2-2fb6-4563-b6ae-c9fb9759f062","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":132,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"8d028770-4dfd-4a32-a55f-08952fcd2116","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"df751868-94e2-4168-8bb6-ff57e04134d8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"3c259d01-84e0-4b78-87aa-5277db1e48a4","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"07243aa8-ff4f-4377-8b0f-252c56612a0a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"e5e17fc6-0fa7-481f-a817-5001a0d209d6","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"f552f926-9124-46e2-bcb8-69704c238bc7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"fcf733c8-672d-4a91-bbf0-709314a8949c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":132,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"a0ac273d-4876-40c0-bd7b-7b9309cad007","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":132,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"c71320eb-ea98-47e7-b994-5064cd57d333","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":132,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"1c167170-53f2-4af7-bb51-753a3f5606ce","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":132,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"3e8a57d1-9e32-42db-9b71-b608cc4b101f","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"2917fa81-8045-4c58-9528-7cc18d0b2084","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"0958ee1b-2869-45d7-84e0-7be130032638","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"02c9c8b8-cf23-4ea7-8530-7496d2a08356","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"e63d492a-32ec-40b7-bc6b-32523ce5b47d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"1c099104-ef39-4844-9177-9f9547ccf313","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"f787d6a5-87bf-4054-93ad-03e8d184a8f1","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":132,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"e75294b8-94ab-4611-ab98-0124eb9ca45a","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":132,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"03dbc532-439e-456a-acd4-094d991b0073","block_type":"box","text":"SM","page_number":132,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"fbd201ac-624d-4c71-b231-600732cbec7f","block_type":"box","text":",","page_number":132,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"daf92fd2-22d7-4141-9956-c98af283703d","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":132,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"c8eb5ce4-58f7-4dad-baf9-bb48109e3574","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":132,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"263f6fc5-3dd9-4bbb-a3e6-fa06cc6cae80","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"d78a1848-3047-4525-92d2-6de4bb9488f5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"276f7c5b-e144-48f2-a4c5-b6093e6ecd50","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"75805117-f75b-4dc2-97e4-0311853b5955","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"6a37be4f-e45d-46c6-9ec6-5f67c4562a16","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"51ae4730-ebe7-4678-8753-c229e0005813","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"516a9f8c-1929-41eb-a070-e972a3e32312","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"240904ec-0df3-48af-9693-cd94e365b7d6","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":132,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"644a9a22-a28c-4864-b032-c1975110009c","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"ce01e768-d23c-4dc9-8d99-a5cff881814f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"977b5642-4adc-4047-b373-d8be4bfbc93c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"7a401c07-7e42-4418-9cc2-45ed83b1f66f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"5df4e405-f6a7-41b6-9cf1-25f0b905ee49","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"a3197c9e-9717-4f2f-b65f-f3e911e24974","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"b7c8c193-751b-4981-a348-8281cc59a9ca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"76f59f6f-6f1e-4341-9ba5-4b3243c44ae5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":132,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"e75d85c0-5a0a-4fed-82ad-ea8efb64df7b","block_type":"box","text":"may be up to the following amounts:","page_number":132,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"5d500600-f3ef-4e38-9315-292040081716","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"a8dab8c4-7f81-4413-9175-a408f882b846","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"9e51790d-53b9-44f9-bbe6-b5670d773902","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"7114182b-7856-46e5-a5d6-18e9f496c2fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"6339e088-0564-4026-9b7c-c2e67c35e769","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"7f2ce0d7-f16b-4a46-95f2-5a2c4ee7e6e1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"a1eb6d09-10a3-4ca8-b12e-0c4813059965","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":132,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"552cc3b2-7434-44e4-a612-e49c5fde288c","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"136043a6-6b9a-4986-bdc6-bb35691d2403","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"8e435819-9801-4d21-928a-8517189d2e73","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"4d71fb58-8eeb-4005-b349-2efcde782d05","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"7806664b-ad19-42ee-85d2-554c6aed4de9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":132,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"7e1eab59-bf45-4b49-bd4c-33fa13cc20c3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"0dc1bb72-09c5-4e79-ad4a-44c0c65e7a3c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":132,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"9c3d9643-94e1-44cd-9710-b8607067596f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":132,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"1030765e-d831-45bf-a4e6-256a428b5fd4","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":132,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"58b9ed5a-0dba-46e2-9f7f-21d70382e02c","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"98d0a6ed-657b-4755-b9c2-ff8bc75a663b","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"fd81a5ce-2079-4517-adfc-053022e98b52","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"debfbae7-c62c-4ef8-a2df-466b146378f6","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"7e6d289a-5bb2-4bf5-81f6-902a47bcac0b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"dd1931be-1b84-4dc6-8c61-6c79a33d7860","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"8cf74499-dea0-46c2-9df9-bbb36d7a5d9a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"d68aa5fe-1d37-4686-8606-0bf39b222909","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"90852199-682f-4ede-90f5-2da346575597","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":132,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"fb4f20be-0768-4979-af80-e54ceebb0ec4","block_type":"box","text":"$250,000 and above . . . .","page_number":132,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"08cf1685-14c7-4e4b-9789-0782c056806d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"37adec20-b45c-48dd-a070-2c5fd61c2251","block_type":"box","text":"II-102","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4af963e6-3444-49d2-9704-3ac6e13541e0","block_type":"box","text":"NM1026U-5984554-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f5bc73fc-7193-4091-84d1-f652bf0eeba7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"6b4c8fdf-c998-470e-8c24-be47e1899816","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":133,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"3f18e6f8-ec30-4aab-bab5-9cfe27fad7e9","block_type":"box","text":"the following amounts:","page_number":133,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"5e5924eb-e8d8-4f14-b70c-890d1d6e6f6a","block_type":"box","text":"$100,000 and above . . . .","page_number":133,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"8f07f979-0480-42dd-a8d3-f197b84bca40","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"1ca70fcd-4de6-4f7e-978d-0cd95b617360","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"da338302-806f-47c6-b0ae-296e756943e1","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":133,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"33d0fbc6-48b7-4f14-a15c-ced973e892f5","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"1dbe6eb9-dc17-4d23-8a7e-f66a8f3e2240","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"3be07407-5a30-487d-bd94-92b6fe31e153","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":133,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"50325f5e-d92c-4ee0-b41f-784d86c819d8","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":133,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"ab0a6dac-ccf5-4588-be88-6a6f125001a6","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":133,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"bae6a1ec-3bde-4eda-9439-6854b41d5d6c","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":133,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"873ebbcc-815d-41d1-b279-a7086c5d45d3","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"7c168834-5c8e-4a01-8096-801ccb212ebe","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"d6f4192a-be55-4bc2-92cd-20e55af4d877","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"393548dc-0f8a-42a1-85e1-2d3b9d27071d","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"acaedc9f-3564-46dd-8b35-89b8fb8668c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"d270479a-512f-4cfa-80f8-84897af90246","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"3f37192f-e758-419d-b20d-d23bee14b4c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"4ae5752a-b2cc-4a98-9f4e-be69c2b79b35","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":133,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"626567e2-3bf6-4642-b56f-1b24a0d7d43b","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":133,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"33b02fa6-9571-4181-8e41-7a45ac2638d5","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":133,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"a314aa1f-4b87-45a2-8b9d-be9f1edc9d00","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":133,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"94638c4c-65e4-49db-9683-4e3f861c079d","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"91ec2218-22a8-45b8-ae7d-0d3de64434df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"8929a6d6-3ff0-4db9-b23c-dffdf94f865a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"0d75a55a-3f4f-470d-945b-41b7ceea1352","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"dc08d5c9-24ef-47db-b578-a434bf33404c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"58643f81-fd1e-457d-9539-f957b7783992","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"a77e405c-7df8-4006-baca-e400c9fd16f5","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":133,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"83378e27-c151-4be7-8177-8ce8b53b0337","block_type":"box","text":"®","page_number":133,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"30251e4b-2670-419d-8953-a381dc9492eb","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":133,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"370a9854-6bef-403f-869c-bf7e54cdd055","block_type":"box","text":"II-103","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"85a30518-deb3-4932-bdee-defebf80f973","block_type":"box","text":"NM1026U-5984554-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a9479dc-073f-4937-b275-40af40611a60","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":134,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"964c4ec3-8575-46b2-8b65-3cbc9a331146","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":134,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"3e2b49a4-d86b-4c8d-96b5-d5518f6d7cc5","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":134,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"98978c57-c9c4-4377-9f34-f8bb5f7798bc","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":134,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"20e08642-ad08-473e-968f-ad806e4f8527","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":134,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"f1d69006-9310-489e-bd07-fbf314d393cd","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":134,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"1207f94a-6b08-4092-a6fc-5f541eb22d8a","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":134,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"51d13cc1-d316-4ed5-a8c5-289bc84c21a5","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":134,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"1d187522-84b4-4d8b-99fd-c1e8128ee723","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":134,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"cc149375-e381-4bf7-80c4-e7a90d9fc275","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":134,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"b4c2f672-203c-4464-b644-05b323dc3005","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":134,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"602cb5b5-2609-453b-b21b-40d88939b736","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":134,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"448a9cdb-2133-4197-aba2-15aa6ed50999","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":134,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"5181be29-7e3e-4776-9c29-76265f42e760","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":134,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"e57420e4-8c75-4d96-96f5-6636aa73f2d5","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). 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In addition, a sales charge waiver may be available for","page_number":134,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"4ea685e6-72b4-4ef2-85dd-ff71650784f9","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":134,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"ce0a5a1b-f183-4c5d-a315-5655057ea8b6","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":134,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"2a1776fc-6709-4bcd-9e53-c320a6ea60ad","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":134,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"71995157-7388-4b8e-a83a-63a0d942cd8e","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":134,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"1047f94c-f631-4363-a5ce-0266fad0c3b2","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":134,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"9422b957-8a41-4f35-831b-a141a250583e","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":134,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"57f03cf7-7ce3-42af-93f7-0d937e2618e8","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":134,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"29c12ea2-dcd5-413f-b515-f6f176c26c68","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":134,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"50d62f3e-7bd5-4a4d-a4f8-e888b0189d9c","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":134,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"9bf7a259-ab53-414c-879c-5ea8cb645f73","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":134,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"1e43c207-db42-4dc9-86b8-0437924b3e13","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":134,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"f7cb892c-c7a1-49af-a74b-6305d138d9c8","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"64038f84-9fdd-44af-a40a-0343e23f726a","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":134,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"ea97a3e8-c75c-4e6d-96dd-b885e0b62841","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":134,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"0a936f41-31c9-48ab-a163-9b9f1b07278e","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":134,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"59a2d7e8-1f1f-4a7b-a565-7b73ab13b747","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":134,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"ff7b05b7-e416-4249-b01d-e14c7fdfa63a","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":134,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"f46883c1-bdbb-4276-9697-339b4e2f2b9b","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":134,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"207af26c-6a86-4e7b-ac6e-22225b047780","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":134,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"6b820835-fd78-434c-aa48-d297b68e94aa","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":134,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"948ffb9f-6ddb-4b28-9c89-a6331ce3bcd3","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":134,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"0088f01d-d770-41d3-aae6-817ea4c14e9b","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":134,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"41e7b948-da77-4f3f-ac08-c8f2462d8376","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":134,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"727666cf-fb38-4799-9e34-c3e3402ab97d","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":134,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"6e03b433-c761-412b-8930-597381e92033","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":134,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"463f73f9-ffef-4282-a5e1-acb96ecebde4","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":134,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"23045ee8-70b6-4a74-8352-df5a02f2de05","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":134,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"c8818409-0fe9-45cd-8b75-3385350cb042","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":134,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"e6ea5051-7300-4267-a37c-884599b83b0a","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":134,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"92d3ef60-0d55-4d62-9b57-4149fa1c75a6","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":134,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"36bbb62a-ba14-4f54-98bd-1a565fa2dbec","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":134,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"ab3be573-8274-4231-b695-e86904cef42b","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":134,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"36bafc4e-925d-49f0-9429-7684214eaa54","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":134,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"09013371-80e5-4dd6-b6df-67eb3b88c61e","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":134,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"fe60ef79-3394-45b1-bc5a-7421bde2c847","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":134,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"062582e7-b981-450d-be35-7c2d518c8439","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":134,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"6bdf66e9-a735-41db-8a24-94ba7326a664","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":134,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"c9c01c86-bce4-4d0a-a217-b5aed9c3b3b8","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":134,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"58fbdf8d-e97a-465b-92db-b5032f7cc372","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":134,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"8028b38a-9d6f-4f2b-b800-91bd27ba5308","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":134,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"88b46cde-a432-45e1-8adc-7a9dac5ea439","block_type":"box","text":"II-104","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"612c99b0-366f-45df-a107-1c2b63eb6866","block_type":"box","text":"NM1026U-5984554-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f6088505-481b-4519-8bfc-652f3eb8edf4","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":135,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"3343bbdb-8b29-44b4-8471-0d08bc9149fa","block_type":"box","text":"the absolute discretion of a Fund.","page_number":135,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"e43831f6-3bba-431d-a4bf-7f1dccd53e68","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":135,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"62d5fd06-2e63-442a-92a2-3ffd5adcf4c5","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":135,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"7566ae2e-a7f9-4f0c-9f2e-229e125f82d6","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":135,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"b3f43669-ff62-4642-81e7-3dd048ff2bc7","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":135,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"48383bec-6c7f-44c5-ba4d-05b3b5544f67","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":135,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"d9e787ce-fed6-4517-a7ce-3dbb48645358","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":135,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"2ebf2f1a-546f-4af9-a3a8-bab52d73f506","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":135,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"4bee3412-b5ef-4cce-ac7d-111c89dcd2f8","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":135,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"801597a2-893f-4dc2-bc99-ea7741bf28ca","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":135,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"1f3ea939-d520-4099-b35f-567e11670254","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":135,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"04fc0e6a-148f-455e-8e6e-f9fc8cda842e","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":135,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"6bd5bb4a-1f4f-485e-b112-d32e7b175968","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":135,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"ed4fa599-ab5e-4cc9-b58b-d4ec4c87967c","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":135,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"3608d48d-1090-41d9-b800-be9ea634466c","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":135,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"68d9b25e-d3e9-4850-8910-411b299e415c","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":135,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"04dc3652-1b1e-4f6f-a679-7891c95bfd23","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":135,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"f416dacf-e3ea-4508-bd31-f751e009e06c","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":135,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"5ab3c60f-cdca-45e7-9952-94302a005ec2","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":135,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"bc432b30-7a47-4b7b-b5bb-5ac71a03bfa3","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":135,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"0fa75c39-4c8d-424d-895b-fb1bb11071dc","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":135,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"205cc4da-34e7-4651-855b-95e2a115d626","block_type":"box","text":"public or private investment company.","page_number":135,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"b9e10b87-217a-4ae3-ba8d-dc92bf8817e9","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":135,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"f9a3039e-c965-44ad-a73c-1fe2cb329fcd","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":135,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"7aef40a5-23dd-47a5-a356-d0f302edb692","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":135,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"4c896a28-73c8-4ce1-90d8-7d613027923a","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":135,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"54d0e8b3-466e-4472-b871-7dca1e9eaa42","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":135,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"ec39513d-b764-4f3e-bbe3-8afe510a5856","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":135,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"27cbfac0-7229-4319-94f4-2cb7482386ff","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":135,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"aeac98c1-409e-4c23-b07d-2d54a0b4321b","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":135,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"11d70e08-0e26-41e1-b41a-00ccd487ba1f","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":135,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"779939d4-8367-4e5a-9abc-a228862a66a3","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":135,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"274a14c8-5568-46e7-aac3-492e0cf232f1","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":135,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"7cb295f5-604b-4517-a569-c543f4e8999b","block_type":"box","text":"intermediary associated with the account.","page_number":135,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"70efd077-81b8-449c-bb59-01fffce605da","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":135,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"5bb5294f-b790-49c3-99fc-737fc6fb8426","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":135,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"09ae175e-e7d6-4c5a-8803-a8753d9b81aa","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":135,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"16276c5f-9a0b-41bc-93fa-80b45b32cb51","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":135,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"c05a8797-d5ce-4dfb-8cbe-620e72db5f19","block_type":"box","text":"CDSC shares.","page_number":135,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"3f526deb-4f28-4844-a8be-83e8294cfe57","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":135,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"9892040d-15d6-4347-8589-edceb512e5c2","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":135,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"becbac2e-0644-486f-83c8-0b2ec50d0b56","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":135,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"79555bef-6ade-4fbc-a9ab-c6c1be34b4a7","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":135,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"793459a8-6bc1-4ffb-9c2a-2a6eed864c23","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":135,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"3800f42c-697f-4261-9bb4-e28fc7b124a2","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":135,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"ec2d0114-a71c-4797-9065-b6a4aecd56c5","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":135,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"7e10bfb5-35b7-497f-bff5-e6020622af0f","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":135,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"62346f9d-2879-42e6-8097-ab3c2b7eb588","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":135,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"3b14d6b4-0256-4071-b515-5095200e9494","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":135,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"8ec20d4c-9bcc-4656-a044-4590de2444de","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":135,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"641c688a-9615-43b5-8003-a1a766b34285","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":135,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"41a2fda9-d337-4d63-848d-21c9ff7b6763","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":135,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"b5f1a459-c7a8-4671-8db9-8f7b35ac058c","block_type":"box","text":"II-105","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0c1f425a-ab13-4b57-9c34-78c15894aee4","block_type":"box","text":"NM1026U-5984554-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9f6b455b-1bbc-4821-9547-23eecaf05397","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":136,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"a6fc43d7-d065-497c-a8dc-64d37626e234","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":136,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"dd476c01-d2b7-4efb-a8c8-d2f13c020c6a","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":136,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"e3508a58-4654-498a-912d-984d52191d5e","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":136,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"a84201b4-e104-4751-91af-efc9a4437d16","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":136,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"5d010565-8781-4bf9-8a06-93843b529d29","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":136,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"7c0e6e90-55e8-4f49-8de7-79fbc4ff7ca5","block_type":"box","text":"Investor A Shares.","page_number":136,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"2fffeaca-0f2e-4789-ac11-736ff1bee038","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":136,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"a5b5cdc4-d6da-49dc-bace-c10c06512c13","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":136,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"aa705564-2146-4092-99e1-051248e9c446","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":136,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"84e8bc10-e6c0-476e-b112-294a799ffea1","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":136,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"f19e77b3-1964-45b6-a0eb-552c3e627b17","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":136,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"12174a2e-d232-423f-aed0-8d6aeedc10a9","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":136,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"c976705c-6845-4f86-8e03-f15f73bdbb7c","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":136,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"3b89d8d4-ba39-4dd5-a4c5-923925b0cdcb","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":136,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"29883d91-011c-4480-8b1c-dc6f507a4c01","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":136,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"80ba9e75-80b4-4268-9ef3-69b871478bd7","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":136,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"d026b3b4-9e00-406b-9035-fb209fe11a00","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":136,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"6f500de3-0976-4353-a5a6-05b45de128e4","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":136,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"47e35bca-318b-466e-a149-24c578f57286","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":136,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"3ed736c2-9f55-43e6-853d-f8b81335b81a","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":136,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"6f5cde57-5849-4cb6-95d7-e4a6914be1b9","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":136,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"07dc703d-2b32-4f77-812d-94ad67c91426","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":136,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"b72f63c6-fb9c-4f95-8335-a02da7f2aeef","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":136,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"6f566b2f-1a24-448a-8743-306874001396","block_type":"box","text":"“Investor C Conversions”).","page_number":136,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"39e3f8ef-d7a3-41ca-97c6-651379c6777b","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":136,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"b5ae3d49-72fa-4d5f-b7f5-c9e5bb7bdd1c","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":136,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"d9f78ddb-3142-4c9b-8b2e-653921c4722a","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":136,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"7a05e733-9e90-4992-9718-b0487d41d6fa","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":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"43f98f26-3f4a-4716-a0e6-c28bb3e041c2","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":136,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"3d78d554-2f02-4876-a389-a5e0085e2089","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":136,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"4e7e677b-7592-4ca8-a33c-94cfa2658ba3","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":136,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"7776dc2f-8799-4a67-a4e0-fead4be02d04","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":136,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"246e4003-b4dd-4617-95b6-d148ae90adb2","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":136,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"d6c5e7cb-b1ce-4a74-9229-8fb93d4c2b43","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":136,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"8e2f3f80-bb83-4303-9730-18751df4b1e3","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":136,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"b0cbc789-0577-4b14-a191-df8e1cb4f475","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":136,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"d1470a0f-8f10-4fb2-a1fa-cf4d7c68f0b1","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":136,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"bf7bd975-da89-431e-85da-0f91d18b6d95","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":136,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"884cf87e-f9ff-45d3-8d97-62d9bbec72a4","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":136,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"7a582a02-5ce7-4939-8bf8-5da53a180329","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":136,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"59a93444-9cb4-4831-89d6-cbb4ea2fd7fe","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":136,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"531a7486-e39e-405a-8da4-459b97245b06","block_type":"box","text":"redemption.","page_number":136,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"6e0c648f-82c0-4467-b388-e3e22d05265a","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":136,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"9f387f9d-a4d8-43e2-bb6b-1cd9df98245b","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":136,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"38b8cb7f-7f4a-4a67-a286-80bca2165b60","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":136,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"ae351b52-69e5-4835-8223-b6988147d6d9","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":136,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"bd681f11-75aa-4fe5-bec2-fff86cc4cbbe","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":136,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"81906f54-3e30-4141-8922-b08a8bfec774","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":136,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"0410a206-3b45-4b44-ba08-45f2e6a5aaef","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":136,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"8ab3828a-b7a1-47a8-a953-e44fa24a4e09","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":136,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"92904c05-92e4-47ed-9331-4db2ef47254a","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":136,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"b98d67c7-800b-415a-9d2c-810c3daa069a","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":136,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"6cb19bf1-e5e0-43bc-a218-ac0470bd8454","block_type":"box","text":"II-106","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bbb10006-ff01-4cb8-933d-2d702eec0a35","block_type":"box","text":"NM1026U-5984554-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fe573621-a88b-41a3-b27c-04ff881a8efd","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":137,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"26401e18-bf22-4f0d-a0f9-1a1a920b82f2","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":137,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"2833dbe1-5d7c-4d52-9a2a-16e812aab31c","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":137,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"a82ec8e1-431d-4144-a495-4987cc7207ac","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":137,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"1b695754-2899-4302-9125-8a99418b7562","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":137,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"f7750e9d-b1a7-4474-8b35-54f931b7ff82","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":137,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"7ab8d849-5e35-4f24-bd44-2e40c308251b","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":137,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"ac8c8cd9-415e-40f8-96b3-53ab4064c75f","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":137,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"e3d1216b-bbea-4a50-8fe5-34d3c3012a0a","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":137,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"3047fa6a-5667-45f6-8ccc-e26c698903d9","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":137,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"74a0c9f5-54e8-4d18-a304-09e29472a0e3","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":137,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"d3434148-2e32-4b17-abe9-96cade46f9b7","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":137,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"aafb7da3-1c0e-43df-82d1-d8dd781e78e0","block_type":"box","text":"Class R Shares","page_number":137,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"51471946-7dd3-4328-bb01-19c8b2f45179","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":137,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"f19aeeaf-be97-42ab-a27d-965b6cd0968e","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":137,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"888ed935-fa3e-423c-a07e-1bed8daf7d51","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":137,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"21092b27-1005-4989-ba6e-1a5a9aefa1b6","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":137,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"78a0a43b-66ff-4f63-b24d-8e0b9a44a6f5","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":137,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"8326ccd9-335d-4a64-a2d8-353d44bf5ee8","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":137,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"6611f589-9f3c-4233-bb07-c9520481368e","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":137,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"2f200333-32fc-4fb3-b4ed-701a92295ca4","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":137,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"6752f5e7-3808-488c-8268-981f9140aeb1","block_type":"box","text":"Class K Shares","page_number":137,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"e68a513f-cea2-4575-9209-3024b560c974","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":137,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"211152b3-3646-4076-90de-6ae51d1524ff","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":137,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"03b2b73d-3852-4fc6-b630-c6bf1c831073","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":137,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"80db7b6c-8ac5-431d-b0ad-5d0aa0c90347","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":137,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"6db06442-0653-49c3-b414-de46acce988a","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":137,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"7a304cb3-05b1-4a8c-89d7-cec38fad9b23","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":137,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"836d85f6-b286-4bed-942d-180d23b3221c","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":137,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"b18bfc28-5ac3-4881-87dc-6cfa6b6676a4","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":137,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"812dd278-718b-45ee-a4b4-8b9b9124e255","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":137,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"51b766aa-da55-4d4a-a055-10a0162a846e","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":137,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"d832627a-5a08-4606-9bba-ff4ae94b5985","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":137,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"a4ee87a3-9a6f-4c01-9847-d40d526544c0","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":137,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"16b2d800-0780-4689-a402-29e364683299","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":137,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"9448ce53-1ee3-4412-aa75-08acaff31f84","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":137,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"872cf5ce-f62a-4f86-b1d0-e74c98a0d1bb","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":137,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"bb343b6a-dbba-4090-8cf8-24613dc17f2f","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":137,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"8e0b22b8-a02a-4429-91a4-929af0b13564","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":137,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"4bc925d8-4ce9-49f4-be22-c24537e29661","block_type":"box","text":"distribution and marketing agreement.","page_number":137,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"95f7b063-542e-41dc-b74d-d8480ae1d86e","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":137,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"37e91cc0-2b66-4b65-99cb-389656e16ccb","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":137,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"467660dc-77cb-4ab3-bdab-ab469f79bdb6","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":137,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"b9eea4e0-7ee8-4883-b936-56812b4fe5b6","block_type":"box","text":"Class G Shares","page_number":137,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"518d8b5c-1863-4caa-8e13-b351f929a84c","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":137,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"17c231dc-094c-4b33-9ac5-77c2637f4aa7","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":137,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"99f3f3d4-e536-469d-8d99-227e0a8ed99f","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":137,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"f3df81e6-d62c-4923-8d82-0dd21f66c67f","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":137,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"3872826b-5959-4792-8f18-47cdaf8fb024","block_type":"box","text":"eligibility requirements.","page_number":137,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"dffa82a1-40aa-4521-8b54-b90f4886229c","block_type":"box","text":"II-107","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f25b4329-ae3f-4202-bba9-bbf75c417420","block_type":"box","text":"NM1026U-5984554-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"eb8c08e2-0908-4b58-a16e-6dc346d7f5cc","block_type":"box","text":"Service Shares","page_number":138,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"a4ee3d4f-2dfd-4410-af71-347365351d2d","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":138,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"9a29953b-3e5d-4aa4-a488-11323e570956","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":138,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"2a967215-8ab6-4dbb-b1d9-91af8dae9207","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":138,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"8fadbb2d-d6db-450e-b32f-daea9590ca38","block_type":"box","text":"®","page_number":138,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"dae2171a-b215-4941-a3a2-3b0e922a9fae","block_type":"box","text":"Fund in 1996; and","page_number":138,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"20bfefcc-6b5e-451a-ab7e-b3d522274669","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":138,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"e058acf7-e256-4864-acc3-407b3abadc72","block_type":"box","text":"SM","page_number":138,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"0d9dc63a-5412-4edc-9564-dcfef01450e1","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":138,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"26182228-baca-44ed-b547-867cc0843865","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":138,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"571c8164-95b2-4da2-ba71-910ca57fbbab","block_type":"box","text":"BlackRock Shares","page_number":138,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"be578563-6c1b-481a-9e70-2ee543632e15","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":138,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"3aa97d29-801f-4d0e-add5-a9a643904d43","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":138,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"9fdb58d3-86fd-4f17-802c-c572ba746cff","block_type":"box","text":"fee-based programs.","page_number":138,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"c168d570-8251-4d7a-ba24-de44887ee106","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":138,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"b42f1bfa-65bf-45b1-930e-81cc7bf36298","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":138,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"bb120c87-c93a-4dfd-a4da-010bb6164832","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":138,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"60768f2f-d394-46e7-9980-d045c263d7d6","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":138,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"7ccf96dd-a6da-48eb-b7cf-d316d5615578","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":138,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"b94462dd-5ce1-444f-9940-dc3b4df2af9e","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"9cc66974-75b1-4981-a23d-1669d94a976d","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":138,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"f42e5389-6e50-4407-9b5b-d2091035dc66","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":138,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"2b69bfc5-3d06-4cbe-951c-3ffbc123ee26","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":138,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"4062f2dc-077d-41ec-b62d-b1b9d7e11479","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":138,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"2419e22a-90dc-43cf-aba5-ea52c619c304","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":138,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"117595b9-7685-4293-9788-f5f3eadc43f3","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":138,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"19502d0f-f156-436c-8b42-f860fcea92d5","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":138,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"5864488d-73a0-4d2d-b47d-6cbb3ea77e03","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":138,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"4102221b-e305-46e1-9498-723c280afcf1","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":138,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"df52bfaf-009a-4ad6-bb4a-cbb21889e6da","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":138,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"51d993f9-69b2-446c-b1bb-6aea9d00d81c","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":138,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"c24be88b-daa9-44d8-bb64-59e6dcaf193a","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":138,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"39ee92f7-18bd-4b76-b191-3f7328812708","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":138,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"b7463311-7bf5-4923-bc13-f99c1a3a9054","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":138,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"d9cf6273-d977-45e9-b564-53990eedc177","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":138,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"b40b1419-a5e3-4224-a89f-68893ace35fe","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":138,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"30f69337-1083-40e2-837c-8a586e75602d","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":138,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"d8096e1c-4350-4f30-9b13-5cdb18aed468","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":138,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"ba86bfa7-d790-4462-8875-04c9efee8f38","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":138,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"d4b8f611-d350-4845-9210-f82a67c7e804","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":138,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"949448fb-e2d0-4290-be4a-cf8aa7ff95f9","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":138,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"8c554a4d-ddf8-44ea-bd14-34bd9d1117ae","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":138,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"cd6a8828-1ec6-4b0a-8c52-59893a53d945","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":138,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"40f8cbbe-412f-4978-a5bb-5a6ada9c9829","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":138,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"ae41b74b-581b-4809-9b9c-65da940c670f","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":138,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"aaef41a8-7f25-437f-aa2c-8bf838edeacc","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":138,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"41dd809e-ffb9-47ca-ad55-19d2ee09d6d0","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":138,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"2f77ea08-5971-4698-b530-2ab994b52fc9","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":138,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"84d34739-0dde-4b2a-be7d-cc3145f0a447","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":138,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"f3c96841-4ca1-4dd1-a842-c4bae1dbcd3c","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":138,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"90165f88-cb5d-4b04-899b-0ed31e506cf0","block_type":"box","text":"compensation for selling different classes of shares.","page_number":138,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"949f06a1-c86e-4072-8bd0-4cdc5db47f70","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":138,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"2b231f73-e7b5-4f39-a61d-09e5524958b3","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":138,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"00bd9997-7fa3-4235-b50e-782747b97b96","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":138,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"871032ee-0851-4136-b5d1-d385b8fc2b1b","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":138,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"5aab7039-7961-4062-ad58-65241ab10c7b","block_type":"box","text":"II-108","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7074c30b-59b1-482b-8d4e-01ea70e9226f","block_type":"box","text":"NM1026U-5984554-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ac2a8b66-f3ca-400b-8768-13e270d29e2d","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":139,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"8f39fe0e-f1e8-413c-b5e5-4bbf3b9d8be3","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":139,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"ecb22c54-3e32-46e2-8848-2f76c19a4803","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":139,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"94ca360a-29f5-4c39-b6f0-1bf5277e8795","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":139,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"0fc5c5ec-913b-4315-b065-96a7e3abb614","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":139,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"ca8b9134-373f-4a2e-8e0f-7e44278035d0","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":139,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"86a7b558-01e0-4393-af07-18434c0f734b","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":139,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"4900d508-0441-4cc2-80c8-e7ef58419632","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":139,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"8bf9db6a-8445-49da-9669-afdf25b4e793","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":139,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"93c9082b-54aa-4311-9df5-c77e454fa82f","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":139,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"4ed3edf1-55b4-4c41-9ad8-b1f7e21e7077","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":139,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"29e42a44-f86c-46e0-90ee-56dea6c1f3e2","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":139,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"f9febbc6-e485-4d3c-926d-4f31e3135ecb","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":139,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"513da684-c2f5-4c30-b828-4564d9f1d56c","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":139,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"2d3723fb-1b0c-4479-bcbb-bfe6166d55b8","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":139,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"51fefc6b-0baa-486d-815e-188033430f64","block_type":"box","text":"easily accessible place.","page_number":139,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"843b91e7-b740-4c8f-8e9b-0b217b1606b3","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":139,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"b31b6c50-76d3-476c-9a24-8ed55314238c","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":139,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"d4c464a3-77cc-4974-bbfb-9d187df17bc0","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":139,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"972ca31b-3e5f-4979-a789-95c5986ce435","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":139,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"9fde328a-fa05-4c90-931b-62439453f22a","block_type":"box","text":"fiscal year.","page_number":139,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"9c5cdd7d-96e9-43f9-8992-2be431e5a523","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":139,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"634131f4-a83d-4b66-ba11-bba1c1557b53","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":139,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"87ac82be-34f3-4a59-9e76-bb428a8163aa","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":139,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"22e2d79e-b80f-4e2e-960b-2d40132f9c09","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":139,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"28418fd6-2608-4f32-91e9-de425f6b176f","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":139,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"18d9cd93-4816-4762-948c-aba490a9b2ee","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":139,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"348b7a7e-37d7-4055-b0ad-b9781412e9da","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":139,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"6ef8282c-d41c-43ec-99c7-8340e0adc1a2","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":139,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"90964537-72c1-4fde-b067-f89295e90147","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":139,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"a796ca53-90c3-4762-a3ee-4c7abda04057","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":139,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"1b4245a4-7fa8-4ebb-9045-f420948ed50d","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":139,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"4040f3dc-9834-4e56-9451-489bc788ba9f","block_type":"box","text":"and Class R Shares of your Fund.","page_number":139,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"1a5287a0-4612-42ce-b23e-243348f59998","block_type":"box","text":"Other Payments by the Fund","page_number":139,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"3b5ef615-69c1-4959-9dda-aa38ef0be698","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":139,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"90fcc195-d041-4f8d-ac06-f104bc0c4569","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":139,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"06d8e2c0-9aa3-4220-a4df-c8ee4cb62a34","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":139,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"92cff70a-848b-4a91-a07b-b003abe2351e","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":139,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"bc1b614c-246a-4795-9f24-59e67c145fb0","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":139,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"f792b119-ea57-45f2-be45-6b6f667318e0","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":139,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"71df134c-4223-474e-8578-b3ced57f3b2f","block_type":"box","text":"of these payments may be substantial.","page_number":139,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"20d940c5-621a-4d21-9e84-49dfd01d4de6","block_type":"box","text":"Additional Payments by BlackRock","page_number":139,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"8c0181c2-94a6-49f2-b40a-bdd28b1f507c","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":139,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"51fb85fc-c8f6-40c4-a21e-bcf551380ce2","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":139,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"cc92f30e-7588-4504-bb5f-e9225f3754f3","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":139,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"eb41dd9e-a8eb-4c8e-9f43-0300691848b7","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":139,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"2566ea32-79ad-4eb4-af10-8baa14f71935","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":139,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"0ce67bbb-7e8b-4638-8325-f921c4ee6251","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":139,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"3b373b49-d7ea-4a37-aca7-6060aa2bb132","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":139,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"4c271a0d-745b-4828-b35a-9ef66db8d620","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":139,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"eda8f1f1-4396-4fb9-814c-1df7987d9838","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":139,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"ca389601-ad8d-49bd-bb1e-5ac4f121b322","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":139,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"44afcd0f-bc52-4682-81ea-287c6efb22a7","block_type":"box","text":"II-109","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5fc10155-2e0c-4f02-9a26-abc548a0cb56","block_type":"box","text":"NM1026U-5984554-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8499a25f-3d9a-4e79-9f2a-86ca87372d9d","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":140,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"1afe7798-aabb-4cc8-9f49-c7cdf099aba9","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":140,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"777e90c1-8b7e-4c2d-80ce-a5a8c541dde1","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":140,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"1faa1fb8-9a4c-409f-9fba-6733df5207af","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":140,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"b190216f-6536-4b59-b147-b0674612d376","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":140,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"a7accb60-63eb-4ae0-8628-b48b645c627e","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":140,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"e8a1cf69-67e1-4de5-ad2d-be7776494259","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":140,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"75307817-6336-42ab-9a12-d18f464a26f1","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":140,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"896ae00a-b9f1-44ac-8e97-9250aab96dd9","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":140,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"701e68ca-7523-467d-b452-660f00155b69","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":140,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"4b638a3a-3c82-4200-ad2f-6042a0f0029d","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":140,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"6ebcfd22-1812-4ee6-810e-c6d3fe0215ce","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":140,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"2d3cf98e-c711-48cc-99db-b8c659e72277","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":140,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"06cc0e64-4ee7-437d-8c09-d53b7e6b9c76","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":140,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"f9673c40-f5af-4eb7-8185-aed294ba1c7e","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":140,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"b988450e-d6d4-4d63-a327-ab233b9e48c7","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":140,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"166d3c2f-a019-40bc-a685-847049585474","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":140,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"cb875cd6-937a-4acf-a846-19e36edc30f7","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":140,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"24628a78-084e-491f-8340-35d6fd755227","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":140,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"180e9429-5218-4cef-94eb-3aba4b57c725","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":140,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"4ea881a5-d711-42c2-b6c2-d1c3c40732a0","block_type":"box","text":"Funds.","page_number":140,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"6518ca89-267e-44a1-ae96-3bf098404e32","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":140,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"f6915e85-3cb7-4b90-a8a2-443ff891a192","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":140,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"156624d2-180e-4f09-abf9-9f2a8b6e3d1a","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":140,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"1b009461-960c-45fd-9813-1d554f8b443d","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":140,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"3279aa11-4f8e-4255-8043-4e45915f99b8","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":140,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"fcd93efe-0505-4987-a846-1bfcf318ffcf","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":140,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"021c780b-2039-4453-a5f7-778bf0dbe442","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":140,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"884fb54f-a001-42cf-a3ce-e3cb1a914af2","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":140,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"702c836c-5218-454b-96fa-5abd611db7c9","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":140,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"6877fc70-a773-4dd5-b90a-308ed5b229c0","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":140,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"c9af1f54-6edd-48b2-b50c-dade72961165","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":140,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"222e9f51-abff-4cf8-9a5c-c6a1fb6047c7","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":140,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"25578cf4-61cc-40d3-917b-581700938f0e","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":140,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"4ff28908-7f9f-4a70-9e3c-7d0e85f12f06","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":140,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"b12a7b47-b6d7-4a1a-9c9b-c741e530dcaf","block_type":"box","text":"B. Shareholder Services","page_number":140,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"103a2fed-69bf-4590-a16a-32c07ab68658","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":140,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"f2d1de76-a89d-4fed-b5ec-b18fe3e29a45","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":140,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"2885b56e-80c9-40a3-a3eb-3b9625a1fc1e","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":140,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"2138b8ee-444d-495e-8910-8e31152d568e","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":140,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"2bd96d74-5b3e-4983-a8d4-da4499e7c1dc","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":140,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"62fe77f8-deb1-486e-ad50-350d453c1581","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":140,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"552ab800-dd8b-4c0c-9b38-2cf21ec24cab","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":140,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"40397008-bb8e-49c1-a569-9025f9b8d789","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":140,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"d5addcf0-ed52-471c-a05c-0822e1aa5f8e","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":140,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"bbbe8a2f-5d7a-4e7b-84d8-5fe3935cfe0b","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":140,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"ac7fb2af-d99a-40d7-a00c-489fc233e8f8","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":140,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"17f723ff-c3e4-46a1-b17a-d20c7945f0c2","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":140,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"d343a57a-ab1a-4d95-9df0-c71df8797e1a","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":140,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"afdb7ab2-9a94-489e-8a31-ae0bcd83c6b1","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":140,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"bd016636-4ced-413d-a700-903ee1bed47b","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":140,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"03701dba-d39b-4216-8fa6-ad04df6ebbf5","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":140,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"0f32798e-8793-40ec-86a6-72d7973948db","block_type":"box","text":"II-110","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"27584766-7642-4b9c-a56a-d9bf33333852","block_type":"box","text":"NM1026U-5984554-140/232","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b39908ca-84b1-434b-b40f-c557c95966e7","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":141,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"982e4717-8149-4439-8a13-de346865e3fa","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":141,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"16c028a2-7ce0-40ff-817d-b57d8820dfd2","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":141,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"aa536215-6359-41b6-b081-930b9e26e3e8","block_type":"box","text":"&Par tners","page_number":141,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"b0c2aaa9-c26c-41dc-921b-f1a0bb3bd27f","block_type":"box","text":"AccuTech Systems Corporation","page_number":141,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"a2c1975d-8b48-4fbd-8bfd-fc00ae3954ac","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":141,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"9c5a9fce-ae98-4cfa-b105-b7e185966a94","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":141,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"77a984e6-7ee5-4eac-afee-f72e7b9fad9f","block_type":"box","text":"Advisor Group, 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The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":145,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"fc767d81-04a9-463b-9f77-ed985253993b","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":145,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"6a4afd44-e5c6-40e9-98ea-9b3fa6f7ce96","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":145,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"433d06f8-97d0-4c8d-afb7-4a56c6aaa4c9","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":145,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"d7c976dc-45d5-436d-b783-bc71ef1eb0e0","block_type":"box","text":"redemption.","page_number":145,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"9ead2865-8273-4b32-abe8-6a1880e3e738","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":145,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"ad7d4df0-cbec-417e-9f6f-ae1d65aa7f56","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":145,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"06671d8d-8811-4074-8348-a741cb27a494","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":145,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"08190712-00e1-4a1b-a34a-a2b75939e1ba","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":145,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"adc27dff-74f7-4a18-8b68-cb936620912d","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":145,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"3a7ee19c-b491-457e-9ccc-b7b39c1969cd","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":145,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"83809563-a29d-4043-83a4-47a53c4c13e6","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":145,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"4b03b91e-046d-4e25-804a-83433d22c5e9","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":145,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"73906c9b-beac-46d7-9a50-32b3770a07ab","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":145,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"835a9579-b6b7-4477-890f-61fa7c8be4bc","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":145,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"077bcfbd-f58c-477c-ae5c-2971ff52bc94","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":145,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"acab5eb1-0067-4fe3-833c-465ac122ec70","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":145,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"255a80dd-fe2b-4e06-baf5-3a362b8a4685","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":145,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"f3aa1cc7-78bc-4020-8854-cddcff3f815a","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":145,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"524b98d9-dad1-4ffb-a094-752c5116185a","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":145,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"46267dfe-f5b7-4681-803d-8b76354d6fbd","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":145,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"e772fa41-358d-4859-8f61-c935f9d886be","block_type":"box","text":"Redemption","page_number":145,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"41bcbca3-b2ca-4512-be2e-9bca1d483055","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":145,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"3ad2fad1-171b-49a0-8fcd-4c7e0128895a","block_type":"box","text":"Redeem by Telephone:","page_number":145,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"5f307894-2703-480a-ad0d-46ee804d14b6","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":145,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"bc07e06a-24a0-4692-8984-193f986a412b","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":145,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"994ed2c2-7770-48b0-a720-62e4e55adde4","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":145,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"9987459a-fa8f-4833-acd5-4abad3bc1624","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":145,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"20cc0bd0-4de0-42e6-a21f-ca1594234994","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":145,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"33c09842-34af-4774-8e4f-7dee776b5b89","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":145,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"acc5d242-e70d-4fb9-8382-47f02eb5b57d","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":145,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"5b2ce481-a914-498e-be49-a9756950ce90","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":145,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"2a1fc8a2-158a-43b0-b84c-dbe82c27b202","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":145,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"67b2226a-b50d-42e3-94e8-3813b5160e8e","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":145,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"3cdbc279-1c26-4f1f-846e-91434692391e","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":145,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"6ee9a452-aebe-4399-92a5-2bfe36df7ceb","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":145,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"a3569016-7ed7-4021-827c-a449ea4cbee3","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":145,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"96a1cf37-affb-488a-beba-5e32ec479831","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":145,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"88c26988-df9a-477d-b715-a926f9cd498b","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":145,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"cdd8f4c2-befc-4f4e-af61-6b6c558e6c9f","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":145,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"c3c9a44c-625e-4c31-8bfd-1af9b0f5efbc","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":145,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"630c8256-7a63-4421-a352-7f8c7dc80a44","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":145,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"0f56ae71-4f7f-41a8-a7fe-942e81945fdc","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":145,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"a1953035-4c05-4f37-8cc5-8ede47d3d9f0","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":145,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"a5ce8a0f-bd22-47c3-80f7-115bdc5b377d","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":145,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"09fd7a9e-0ed7-45d7-af60-9d79bb58fce8","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":145,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"82bbb9c7-12d7-4c60-bd80-85e762cf94e7","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":145,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"5f423af7-9c5a-420e-bf5b-df2d0d0fc1ff","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":145,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"4059f102-fd01-4177-bf99-69333ab2c0c2","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":145,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"9e1beb38-e4d0-4b20-ae47-aa5439b8f5a2","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":145,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"2b9ab758-1af5-4c71-879f-3ecaf7714d7f","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":145,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"a9758572-03f5-4a92-82dc-7ec37b96b740","block_type":"box","text":"II-115","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8b6fd090-f6a4-45ab-a893-820576aae460","block_type":"box","text":"NM1026U-5984554-145/232","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"26674f84-afd7-48f4-9f6f-87a933f13237","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":146,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"65c27061-2379-4804-82d7-5f1c8ca10e42","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":146,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"fccfb536-882e-4525-8b1e-120e9e64e586","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":146,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"480b32c8-60c7-4567-990c-8f653030f09f","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":146,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"16833cce-3b2f-43d0-9beb-fa62314b295e","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":146,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"35db7c8d-ae65-4264-8d09-d7a61d6ddee9","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":146,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"3df26325-927f-47af-8899-6b664d504812","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":146,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"181d2f97-060a-4a94-8f5e-7ed0d168e8fb","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":146,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"9137361b-8984-4dbc-b1f0-b586c0b17723","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":146,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"f760a20b-bef4-4050-be7d-cef4361f3755","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":146,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"9bc40e28-c4fe-4fbc-b030-d4eea7ccf13e","block_type":"box","text":"Redeem by VRU:","page_number":146,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"04c9e083-d155-43b3-a3ec-76115959f545","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":146,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"411dd945-19e3-479c-b914-bb4cba386bc3","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":146,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"e400598c-82b0-4a4d-b9ba-fa8d1c5501af","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":146,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"4b21bb96-69e2-409b-930f-2dcfec737d8f","block_type":"box","text":"Redeem by Internet:","page_number":146,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"3f6c56c0-b4ac-44a2-8c1d-40c94df89c79","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":146,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"d913e118-ac54-46ad-8f6a-a61892033936","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":146,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"27c6450f-26c7-46ee-ad54-5b468531927a","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":146,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"c6d7b2a3-9b02-429f-8e20-efa3028f54be","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":146,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"81ea64e8-d55d-4344-8499-eb4865227f10","block_type":"box","text":"institutional investors.","page_number":146,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"aa63d606-16af-42f8-a0a6-91b5117f867a","block_type":"box","text":"Redeem in Writing:","page_number":146,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"e3ba3528-48a1-418c-bc79-c2332184cb84","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":146,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"227c095d-f321-4d1f-b3dc-ff3ec7b7e5a8","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":146,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"3ee6e252-d961-413d-ab6e-4dffd62c78a5","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":146,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"40bfbd5f-7023-4129-832d-c13fbdf62265","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":146,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"e1f033ae-7dfd-457c-acd9-edff98ac13fd","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":146,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"9279b3a9-1f3b-46a9-8e95-8cd3c384c1df","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":146,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"b00d3875-2327-4940-9eb8-6b1c61dbd3b8","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":146,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"45dd9ff7-5066-4e73-8a2f-70e60d66865b","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":146,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"5ab73427-7f95-4a7b-8c77-18ad13afe0b5","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":146,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"0166fe04-06c1-4c7b-ad6a-2f85640ee53d","block_type":"box","text":"or wire to the bank account of record.","page_number":146,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"27f5f944-584b-4dd2-85c8-a018da2361d0","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":146,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"115ceaa9-1d48-4e83-bfdd-93a2bee51924","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":146,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"46425120-2160-4736-9a36-abab25d80178","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":146,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"69d8ab37-d8aa-4b59-98d9-59f5c1be1dae","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":146,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"c88b335d-4cf0-4892-868f-e74a961aeedf","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":146,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"b4bb6037-fdfc-4e77-b157-7b72d1d38cca","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":146,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"b7929e40-ec1f-4a7a-b834-6688fcfea676","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":146,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"221e3cc3-4b71-4674-8819-16a8beb65e14","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":146,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"36dabe5a-54af-4596-a0ce-a28acf3c48eb","block_type":"box","text":"redeemed by the Fund.","page_number":146,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"fee7c275-d33a-42cf-a5c2-139ccc342e2a","block_type":"box","text":"Note on Low Balance Accounts.","page_number":146,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"39fcc818-061e-4b07-a585-f17a5cd5928d","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":146,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"dc2affd1-4ff9-465a-9706-3de44221abdc","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":146,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"599ff5e9-3a47-4a74-921a-0066a3f517d3","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":146,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"8ba4f86c-c9bf-4064-b13f-48b55354a1a6","block_type":"box","text":"for any reason, including market fluctuation.","page_number":146,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"62a6b189-5e5f-41fb-a425-b7637a7f8e43","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":146,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"9d64d83e-f72e-4f3b-a7a7-1c025cd37251","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":146,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"35bb4174-6cbc-4d0a-b329-e80cd06bb80e","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":146,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"c61da67b-d45b-4080-a777-1e6841400c47","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":146,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"b2c3fed1-fd2b-477d-80d1-b005572cf7dd","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":146,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"0d9209b0-d9ee-42e0-86c2-a7dcd22e9aa7","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":146,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"b5d42019-7d0a-44bc-9a04-1cc1caec5a9c","block_type":"box","text":"Redemptions in Kind:","page_number":146,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"58964c75-581b-444c-bbcc-3641ee5a8447","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":146,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"6b5a7cff-97b4-4f6a-8761-ac3cc97f5bb4","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":146,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"5ac412f7-9892-4171-8d0a-73b55a88147b","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":146,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"53ffca97-fb7d-4926-bb65-f0d2b0610fa3","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":146,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"4e426cef-5b4e-428a-af80-126b04f860ab","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":146,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"58a0fe98-e2f0-45dd-8743-a7bb69caeba8","block_type":"box","text":"II-116","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5ff558be-d4a6-487c-84c3-45491cda4021","block_type":"box","text":"NM1026U-5984554-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"32f37d99-0029-4cde-8d70-a1433edb3f70","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":147,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"55c44116-e659-42a0-851f-71a44a76fa46","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":147,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c271227e-3a5e-4a24-8182-e6d01eb89aa5","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":147,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"3ab3e719-8094-420a-88b5-124c25cc4ee8","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":147,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"5421b2fe-7901-4066-942e-ca7a1d5e2c61","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":147,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"211cf2d0-777e-4bd1-bd86-0c6120d3a321","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":147,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"ca6d1df5-8b91-40f2-8c73-92329f0cdd33","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":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"8a8f9dc1-0336-4aff-af18-b366d6ad1b02","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":147,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"dbf6e065-054c-4f4e-aa16-7a0e55249f2f","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":147,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"96fd8b1a-3758-4ff3-8dc4-2f0ae2714ec8","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":147,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"7131a1ad-7529-432b-a218-c365ccc9a312","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":147,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"1dc8497f-cb3f-4bf2-be88-f7b13bd3a108","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":147,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"519a4b3c-5ea8-4722-9997-88e21faa9549","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":147,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"29154a32-2110-4420-b619-359f0b9ac818","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":147,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"5999ac28-8e5a-4334-a69b-def4ee374ab3","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":147,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"47c634f5-8d61-4bee-8cf4-f1692ab51aef","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":147,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"01a5a9cb-cf33-47fc-8e3e-63cc1b86dad7","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":147,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"c2a1ce86-8da2-4d8e-a763-0450302ad1ea","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":147,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"c1daf273-fb03-43cb-ad3f-f5886032fc65","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":147,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"3905f2eb-3534-47c8-a061-3d8d62acad7c","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":147,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"4d12f8db-2c16-4d6e-bb10-52b699fb3cc7","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":147,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"4a004261-03f2-4dcd-a384-d73a840abaaa","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":147,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"88adeb31-2d57-47e7-bebd-2c1cbbb52578","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":147,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"cfcf0446-a6ce-4a9a-9aee-7e7c2f9ca460","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":147,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"e4259a1d-2738-4231-bd27-123c622d1225","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":147,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"8dcfecd9-2d68-4ef5-8d51-98eabb9d3fda","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":147,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"3b26ac7c-ed70-4ed5-b488-a2786ee3c037","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":147,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"cd22eb9b-45cb-4025-afed-5f494f23c753","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":147,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"66758932-3471-4c55-b445-9bccf54c2b92","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":147,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"7f32810e-0fed-4370-a34f-1759fe79e934","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":147,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"cf6e64a5-6b36-4691-8c3e-52fe14ec01ae","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":147,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"0f4c3dfa-89ab-48ac-aada-132c001e9ec5","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":147,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"eedcc2fb-4029-44fe-bf98-6967f0ba172f","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":147,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"d7ed5b00-f964-49a7-8c31-d8c6781105d8","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":147,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"89e87bc2-c8b1-4edd-82a0-d7cb1a7427ec","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":147,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"659fd6e0-f596-49c6-8722-0960cc1629f1","block_type":"box","text":"Repurchase","page_number":147,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"e1b48dff-bfba-4510-9644-be6c02800521","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":147,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"77932c00-84f1-419d-ace0-c2aa13512129","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":147,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"09c20d09-8e53-4eb8-8ff8-e2b8d21f998b","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":147,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"6f224a61-7cc6-42cf-861d-0611b76eb1d9","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":147,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"1e640bf4-a6b1-45ca-acf3-fc48cb8112ed","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":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"f9cd31c3-30e2-4258-9437-639825782a30","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":147,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"8231940c-cd7a-43cd-90c6-4c9fb47d5eb2","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":147,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"af2b960d-c096-430a-ae2a-1bacdf24c582","block_type":"box","text":"next business day.","page_number":147,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"9272e789-e807-47bf-a7a5-6b1db0af1bc0","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":147,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"40f26bfb-2a4e-4b5e-925a-0891e1e9fb49","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":147,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"68dd0aa8-42c0-4a86-bd5f-0a5bb86a9215","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":147,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"17bf7794-b60c-45c8-8933-b7b1cca29bd1","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":147,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"2cea06c9-fccf-4053-8d96-d1055e137ee9","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":147,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"8ce1503d-7514-4e4e-bc93-a539a09db655","block_type":"box","text":"redeem shares as set out above.","page_number":147,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"05b932d9-3335-4953-a398-98e1388951fa","block_type":"box","text":"II-117","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"515e49d6-40f6-48f2-be28-17852ea9dcf9","block_type":"box","text":"NM1026U-5984554-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"94bfa11b-8d2b-4c3f-b986-8be95b84e72f","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":148,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"aab48ae6-3638-4b4b-ba6b-057e0b6ff4b9","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":148,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"7c6f7cb8-3776-4bcf-abf4-72786a3cf82d","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":148,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"d5eafd3d-e726-43a6-9345-9e944985a602","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":148,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"4bc45eec-7b4c-4ed1-8053-b7f9743eaa05","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":148,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"c73585b6-290e-48e8-842b-dfafbc692ad3","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":148,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"e93f2966-3165-436b-bca6-ee26d7ff83e5","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":148,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"8e64e7f2-2582-4d3a-a018-9f5638941799","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":148,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"68328841-acf5-4676-84d9-6d11683a3260","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":148,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"5b558f5a-65c9-4e49-beaf-14468cf48426","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":148,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"dc947061-2baa-432d-a779-0df8e0f34899","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":148,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"495b8f45-b667-4708-a113-a53fc374f4a5","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":148,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"1512a3dc-2369-4bb1-b3b8-c1a1e8032a44","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":148,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"00e545a8-eb32-4720-bd98-0832d4ed37bc","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":148,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"f44a6da8-79d7-4b0b-af87-9216339e2e5c","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":148,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"d505fc8e-e73d-4ce9-aed8-8d95286f7f5d","block_type":"box","text":"Investment Account","page_number":148,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"a144a82e-827c-4237-a5e3-7957ba18576a","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":148,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"623133d7-a026-4a00-ad72-0a704ed47736","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":148,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"895caf7c-ad07-4475-aa2d-8459f63736ed","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":148,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"ebcb93ae-08a8-437d-b84b-6ae4a6853d83","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":148,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"5358bc1d-2618-46d8-b5ba-4d369ece70a8","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":148,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"654eaddd-5eed-4098-bea8-0e1ff1bdda4b","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":148,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"b450bf31-2751-4bd9-9a0a-80dcba32b53c","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":148,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"f9c04b95-3504-4031-b3e6-d6545f685a62","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":148,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"210a4e6a-c834-4a9f-a36a-94556d654a63","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":148,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"4c9380cf-7bcd-4cf5-a700-f7a43d5b6b11","block_type":"box","text":"automatically at the Transfer Agent.","page_number":148,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"df8eb273-30e8-425f-a8db-efe7e67d4912","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":148,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"d9196212-8fa7-4cfe-bfdd-d9a958428306","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":148,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"836afeb5-6177-45b9-aa3e-ee5a51c5db8a","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":148,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"3e5e8854-7421-4bce-b99a-0abc122cbdd0","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":148,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"8baafb46-0230-4374-96c8-9e899627a8ee","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":148,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"e81334f9-6447-4b54-aac0-34953fb16302","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":148,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"f61dbcd5-bcec-48ce-ad56-7616f02bf358","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":148,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"d6d35fef-3226-405f-90b3-115d1e7c6a36","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":148,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"ce502731-2e1c-4277-9fba-6763a1d5046d","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":148,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"dc1cfd86-ad16-4023-a1e8-b47876df31fa","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":148,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"ff20b073-19a1-4495-afb7-bba0120817e6","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":148,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"7e739f49-a336-4725-9023-89c6841340e5","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":148,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"c29288bd-569f-4071-820b-97d03e3d6994","block_type":"box","text":"issued.","page_number":148,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"884e0faa-173f-4652-9876-5263b93e29a9","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":148,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"f1c0c5a2-e573-4526-8f47-9b5c331a433a","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":148,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"de5e16da-15a6-43af-9053-c7f6dd9b3d1a","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":148,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"76d6860e-691a-4306-bfa1-f6e9b8c0f637","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":148,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"748c1117-e8dc-4c7e-8190-6a83029016ce","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":148,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"23806aea-799b-4fdc-9872-20bd60cd46fa","block_type":"box","text":"Exchange Privilege","page_number":148,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"5820f03b-b9ba-4c72-a3a3-923ba3de84ee","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":148,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"6f586603-c0d2-44df-9c89-00c6dca43cd3","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":148,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"19768170-d8e5-4923-9653-a6f5f15fe9de","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":148,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"90e1210b-0cfd-4e25-8af3-69cee835b5a4","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":148,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"6233ddb1-fba1-4aa8-8ba8-6068be5e3528","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":148,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"7a2fab72-3dda-498d-b51d-2da5a49a231d","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":148,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"05f9d760-ec40-4aa8-a9ef-760b93ed5292","block_type":"box","text":"II-118","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e898b488-15b8-444c-9892-cd35026cd7ac","block_type":"box","text":"NM1026U-5984554-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b66fa1ee-43f0-42c5-a16b-d9d568fdde6f","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":149,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"1de34dd0-def4-4ea0-8383-b6401d6a4f10","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":149,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"8e8e1584-84e0-42b1-a744-5d661f6cba97","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":149,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"160404bb-c117-4d11-8800-0b1ffec4de82","block_type":"box","text":"Institutional Shares","page_number":149,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"07f16662-400d-40a1-9626-be8ea1dc05a8","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":149,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"32cbd703-e034-4393-94cb-820b3359609b","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":149,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"ef7443eb-d856-42f1-9246-81970220c1c1","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":149,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"9a0404cc-e869-43ad-a373-19c647b01846","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":149,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"80247bda-dbb0-4782-a42b-3a77ffa535f9","block_type":"box","text":"for Class G Shares of other Funds.","page_number":149,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"5db1d708-2076-41d2-ba3a-dca0075ecc78","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":149,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"35453479-569a-4dbe-801a-fbb4b646150e","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":149,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"b0ed9ca7-8238-46ee-a348-19ce6163207b","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":149,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"db42eaba-8bbe-4c68-a778-5ec281439274","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":149,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"a3c27403-2eaf-4b6b-8321-6b6a4af1728e","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":149,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"ce5c54c3-6ac3-4582-8361-151c690dead9","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":149,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"d370567b-98a6-4015-a003-f58b97efaae7","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":149,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"35810b9e-1c97-4d28-8fac-012d2382aec6","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":149,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"2cd07044-3682-43b9-8c32-fd7259faaa7a","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":149,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"edba8948-96d4-4bb2-a6a7-22a6c02d0a89","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":149,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"3848a598-d96e-4ae7-bea1-2ee74395320e","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":149,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"89cfb2b7-2bbf-48aa-ad43-8b0597f90263","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":149,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"b9711e7c-54a3-42b9-815a-776fe6a17d4e","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":149,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"b4962473-7a8c-4b21-99c1-6732e3cf29ab","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":149,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"7c07f5a3-6f92-4a03-91fc-c6e59f77a46d","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":149,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"54dc4599-eebd-41ab-b2cb-51c0658de9d3","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":149,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"5d293cbf-e343-45a3-a92d-8f1813bf391b","block_type":"box","text":"Exchanges of Service Shares.","page_number":149,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"dc593256-3393-4cc0-8f34-b34a0dbd1ba2","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":149,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"1fbb6a5d-b649-4e5f-9a9a-c46738e67557","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":149,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"5b08dac6-dd30-4cf0-aebc-9aea9af79dd7","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":149,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"93cf363c-24cb-4e72-a321-cf96d1b04f8d","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":149,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"e12e7e4e-8ef4-4328-9318-583022f978c5","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":149,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"6a88f4a6-51d4-46e1-b3bb-2feac23b1af4","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":149,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"92d98ad8-ca49-4db0-8036-58a1241ff528","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":149,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"f0e13a84-daf8-4765-88ad-8de5447241ca","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":149,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"c7c1cac7-ee99-4c14-ad33-66cb416110e2","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":149,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"86286ff3-b02f-4d66-bc1a-da0fd612276a","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":149,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"039f5912-cd70-4363-8ad3-517971c570d4","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":149,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"9b44c303-0309-4cc5-864a-f4af18ff06b5","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":149,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"55211c69-9258-435e-af37-0eda85ea24c3","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":149,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"696e2158-16e0-455b-a6b8-b7be47931595","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":149,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"9d4d6ff9-af08-4717-9bd3-cc7347e42762","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":149,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"789ef3b8-9076-430e-bd8f-55b3bdf20a00","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":149,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"87c5e1dd-6db4-4012-b118-19cf841194c9","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":149,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"87846a90-a554-400a-a9bd-267f76711448","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":149,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"ba8e4f74-fd21-4666-b8d0-cf7ff126e07e","block_type":"box","text":"exchange.","page_number":149,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"ae4a116b-362e-4c80-8237-31d3e57a05e2","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":149,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"9b8fe8cc-85d5-4c18-acc8-f5c0ddaa0efd","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":149,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"78edb40c-1427-420c-aabb-b5470b168737","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":149,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"41d05d5a-52bd-49a7-9327-88a5c306df7c","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":149,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"bf6a58d5-d31e-4db3-b379-b848cbcbffa0","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":149,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"3e799fd2-587c-40c8-b5b3-078bef3016f2","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":149,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"167c53e5-ed59-4a93-807e-a70773598414","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":149,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"fd312675-a4eb-4b02-997f-0c9375e94a40","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":149,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"f4bd3163-9fed-48ca-843c-0057ae3ad64e","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":149,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"0ad33593-08de-4a19-820f-4683c03672be","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":149,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"1a5134c5-d8be-4503-92a1-64d7149eeec6","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":149,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"e7975361-d96c-4fba-8c60-856192c7a3fb","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":149,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"93239ec6-da46-49cc-9cc2-2978ef9958f1","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":149,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"ef6d5c33-1778-4fcb-b2eb-c51511e80dda","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":149,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"f7a96988-c8f6-4f1d-841f-b6f5b7a6dab0","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":149,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"e65e643f-62eb-415e-be21-194e802634d2","block_type":"box","text":"II-119","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6a52327d-ec53-4c4a-ac50-68692d292b30","block_type":"box","text":"NM1026U-5984554-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"93b9e37c-cb6a-478c-9413-cdf3d6341845","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":150,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"ffa15915-bd9c-4578-9aae-ce50af7799c3","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":150,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"a9c33e00-5532-4dab-b982-ce300027389b","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":150,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"990620ed-803e-4e80-9f73-3b7a7456cd11","block_type":"box","text":"Transfer Agent in writing.","page_number":150,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"e0922f53-c5b3-4979-a84c-6edeac7d5689","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":150,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"57f43375-6fd0-425f-9887-4d4fa92cc37a","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":150,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"b03eeab2-d3d0-4f05-b075-5b3cc74d961c","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":150,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"db9c6c4c-6398-4afa-8398-64f7f7df9223","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":150,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"0f9914b3-9502-4ad9-a5a8-bd7f51376025","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":150,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"fe1b8f59-7ee4-4f68-9c9d-a5a79fbcbebb","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":150,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"4ec2894e-0372-47a2-b313-a9910ba56663","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":150,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"491f2035-b3eb-4839-8b06-25dc03c9ab86","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":150,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"cca65c29-3492-4f33-bf6c-5df9a9b86529","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":150,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"f29fc610-49cf-41e4-acf9-17d375a71459","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":150,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"a8a2d663-e0a8-4262-bedf-3f1a4845d718","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":150,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"a601f63f-5e04-47c3-b88b-33c18fae188a","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":150,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"ed4a9e58-f4ce-4720-babc-e1fcdd582b83","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":150,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"0bbb0908-f484-451a-b922-e5d0540354c2","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":150,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"584ef40f-58e2-4d41-bff5-9cd87a750fca","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":150,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"bfd6e0f7-f8cf-46b2-ba05-89caf9975122","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":150,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"a3315359-de72-4972-a662-30cb1d38c0d7","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":150,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"5d3919a6-38fe-4f33-aa2c-16537846daf3","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":150,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"f81f6a5a-7815-45ae-a925-b81d8603ff16","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":150,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"738f168b-2ffc-4ece-8859-f1a92bf33624","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":150,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"e58f4381-89f0-4f94-9b20-1f4f313170a8","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":150,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"e79508fc-e1cc-45e9-b7bf-9e321ea7878c","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":150,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"ffb61d9d-1b95-49b2-a502-6195bcd55d19","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":150,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"540e9617-aea2-492a-b823-60970f3341cf","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":150,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"c1e7c1e2-699a-4314-b087-03f8c3e6b1b0","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":150,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"88f4f57d-6d34-4f69-9930-ec6a80d672bd","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":150,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"4df9604e-0300-4b1f-990c-e9251db43098","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":150,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"18c16e31-d51d-4cc4-9135-6488d1e35fe3","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":150,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"8d4904fe-3529-47c5-8a78-1235e7cf38ea","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":150,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"4d5e8523-7b75-44b2-867c-53b594f465c4","block_type":"box","text":"may be distributed by the Distributor.","page_number":150,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"935aad63-5d60-4d0b-9585-e2099257767e","block_type":"box","text":"Participation in Fee-Based Programs","page_number":150,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"1ef39bce-cf90-4f5c-98c5-104e93336d0c","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":150,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"9803162c-d642-437d-8921-4bb9863b42bd","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":150,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"925b7ad7-b2eb-44fa-8d15-dd94520ce9ec","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":150,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"7d43dd37-2cf1-4a9b-bfce-158a9651e3e0","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":150,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"0405b5b2-7243-4791-9284-916f5b373b58","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":150,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"593bb384-024b-445a-b26c-89bd0c5d1276","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":150,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"75620878-9c58-40bb-be3c-d6dbccaf2d5e","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":150,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"58095550-b71f-485b-8f1a-3e6517cbb8f8","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":150,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"bc8b8364-62f9-4567-8c05-7750ba4076fa","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":150,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"9fd2776b-cfe8-4075-853f-44042a962663","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":150,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"21ece9de-4b5a-4c7f-b317-c63311165e3b","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":150,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"2edcb9b3-98ea-4683-bc3a-9cd689a071c0","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":150,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"0f3f9a5d-7c69-4c33-8120-7e911269efa1","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":150,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"5e7f32ec-2c7c-46b2-b06f-511097c68ff9","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":150,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"e1d6ed74-e1e7-4384-9cd5-f143f02a534d","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":150,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"9169dbed-faf2-4ff5-8fb1-c8d49ea36990","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":150,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"e8fdee61-b48b-4200-9fae-dcf4a3435d04","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"2f969811-722b-46b7-855e-22ebc73e8485","block_type":"box","text":"II-120","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2815701e-34db-4a0c-b29d-e775f3aaac1f","block_type":"box","text":"NM1026U-5984554-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c1065579-aae5-4a24-8239-b8df9e6b8aa1","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":151,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"fe0b870a-b6b9-4562-9bdd-586e8cc30331","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":151,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"f6970209-ad0d-4e45-886e-9dde8eaae949","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":151,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"09323b37-1ab8-41ec-9e94-666b2f0af42d","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":151,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"1f91a443-bcaa-4a03-a45e-48164a7ee195","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":151,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"b7abc9fb-f25f-4587-8539-6884d3b5c342","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":151,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"2e0a788c-571c-4488-9d38-4ec590d19e0c","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":151,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"d9bc2428-6055-4340-9400-e374d5ee1e72","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":151,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"45f23d56-bdd6-4faa-8299-d817a0edf9a3","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":151,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"27e1fcf6-36ed-4b66-9693-53a2f30787e7","block_type":"box","text":"information.","page_number":151,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"5790980f-8de3-4714-a2f5-966e699ddcbc","block_type":"box","text":"Retirement and Education Savings Plans","page_number":151,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"d1698ed4-1a6c-437c-9b77-ac768975663f","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":151,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"1b86e301-56d0-4cb2-906b-04af04c2b40b","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":151,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"45020b60-8093-460d-af62-f5dd879d3f85","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":151,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"37ebfe6b-1f65-42c4-ab84-22770e7604a5","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":151,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"9caec950-6dc1-463f-8e8c-54ebbaa9a14d","block_type":"box","text":"your financial intermediary.","page_number":151,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"0f3294e3-a578-4391-ac9d-2d0fa5928b0f","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":151,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"0cf1a69a-8745-4b76-8814-e85f31c0ba1b","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":151,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"113a686a-a0a2-4e8c-9d70-98e6aadbb555","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":151,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"4bdac8f8-a9e1-4632-82e7-9588fa04108d","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":151,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"b5185d03-4691-49ed-91b6-878a68d3ea10","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":151,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"6c4762ac-4465-4fd6-ae05-16639166a342","block_type":"box","text":"Automatic Investment Plans","page_number":151,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"e9322a7b-b8e7-42e2-8c04-86481c4714e5","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":151,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"9faa22e1-0c96-4a81-9a6e-c22e5d54e77a","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":151,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"7d16ca21-f171-4395-9a52-b7d081e751c7","block_type":"box","text":"®","page_number":151,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"af7ba128-e3d4-4988-92f1-49ce6c106a61","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":151,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"1d92abbf-b52e-41b9-98bb-929e319d8b1d","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":151,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"d1efb161-28e1-40f7-b631-b1e7584af397","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":151,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"aed378af-9456-448b-9c6e-1ddfcad3a1a5","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":151,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"13ab9563-33dd-4f3f-b3a8-0cda8a0540df","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":151,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"2024e210-1cdc-47b7-ae20-b3ac2826211b","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":151,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"9fe1fdc5-42b9-4cd1-bff9-c8d10acb7688","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":151,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"024da390-e1bc-4a8a-b2a6-a5f3e2071fe1","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":151,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"f79460ff-d576-4e0f-8dd1-06e6fc9e1f5e","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":151,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"c1995fe5-c47c-41b3-9f60-dc6fc2746b30","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":151,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"ccbf49b2-5fe0-4adc-b265-bd79a087212f","block_type":"box","text":"Systematic Withdrawal Plans","page_number":151,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"2ec7c430-bd17-4376-b9b5-3349c377dc55","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":151,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"2a9c4a46-d9ca-4227-9b8c-db684fc73a8c","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":151,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"a9d790ad-c112-43c5-83f9-dad84b954d09","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":151,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"dff11d7c-07e2-4870-8c9e-70065de9148d","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":151,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"5a6f99e0-b20c-4202-9ba3-aa7882fa5fed","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":151,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"a0098993-f396-4bf9-aa7f-388514921019","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":151,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"eadd47bd-255d-44e8-92a1-02f85a04f369","block_type":"box","text":"www.blackrock.com.","page_number":151,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"99c273da-e7e4-4ad5-ae2d-7c48c88dc8b4","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":151,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"9001b756-6433-424f-9281-920cab8a534c","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":151,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"8d368f17-b26c-4189-a055-80e687ca455d","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":151,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"816db41e-9369-491b-a10b-e7b49a8bf648","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":151,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"813f34b8-7c9b-47ff-9620-d0e60580e3e1","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":151,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"3dd4d737-063e-4905-8b84-8396dc30a321","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":151,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"2d3b5d40-3d17-401a-a002-999c659fb2fa","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":151,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"54b1ce1d-06fb-4af0-8741-048342c19941","block_type":"box","text":"II-121","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"310258f5-9a25-4108-9c9f-752668c0fcc8","block_type":"box","text":"NM1026U-5984554-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9f521aea-b748-45c3-a4e9-384776f13ba5","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":152,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"2047a419-8db7-4a3f-9edf-966234b3950f","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":152,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"b5bd826e-e877-4cf0-9219-b7912370372c","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":152,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"a1419993-b51d-45dd-a8b1-1bbe12da2107","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":152,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"9348fb74-78ed-42ad-82f4-db47d514d05c","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":152,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"c2feb72d-cfc6-4cd7-9897-a4073799735d","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":152,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"bc40b157-45f3-4dd8-9414-8ed376a4db2d","block_type":"box","text":"Dividend Allocation Plan","page_number":152,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"a4fd5ab5-2a01-4b09-a8ba-3ef6c637eed8","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"2fb4cc4c-64d9-4d4e-bad8-9fe2cc0cfe1e","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":152,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"8e97e69f-1865-493d-a08b-957dd95912f7","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":152,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"0a3e6da2-4a4f-4a24-a33b-624b0e54c9e1","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":152,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"1e6430ce-aa05-487d-9153-bc27b1b92196","block_type":"box","text":"PRICING OF SHARES","page_number":152,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"5c133b7f-e287-4064-b0f3-51483869e25c","block_type":"box","text":"Determination of Net Asset Value","page_number":152,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"a487f86c-7a5b-4cd0-af7a-746e7eb9c8a5","block_type":"box","text":"Valuation of Shares.","page_number":152,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"ce2934e9-5c37-4969-91cc-c2a01b5ea525","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":152,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"e2c5bcd4-446b-4e0f-a382-ce87af081b9e","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":152,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"6ab0b735-a456-4ab1-8216-ebb92d89c759","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":152,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"045c7526-b7e7-41c8-883e-9549d78a9340","block_type":"box","text":"Equity Investments.","page_number":152,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"cb7f6d61-eda6-4ca0-8618-8bc7b611db5c","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":152,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"15ed791b-d885-44bd-8036-e67a434fe0c7","block_type":"box","text":"e.g.","page_number":152,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"b164e679-de7a-402e-801e-bdf665b93596","block_type":"box","text":", NYSE), on separate","page_number":152,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"7bb0d02a-9a32-4d52-9a5a-c36061c2e770","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":152,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"332ca76b-a3d4-44a8-bb79-1ce6a2a27a71","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":152,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"2412e0fd-0dc9-4074-a68a-7f42841c1cf5","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":152,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"68f768d6-672f-4707-8423-6d23b2755f3b","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":152,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"1287fecd-cf71-4119-b09e-31f90522e4fc","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":152,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"2a525b64-8d7f-4d04-8968-7538fd24bc69","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":152,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"ab32790f-2726-472a-a498-54b9525e73fd","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":152,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"42d501cb-ed51-4df3-b6f7-a0d4bc05a2c2","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":152,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"81dcc536-0144-4f7c-ae5b-c6b6ed6b80e9","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":152,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"0b1da474-e64e-4d8b-b9fa-206a7c1e6129","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":152,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"340b0e72-8786-40bd-9908-ac965278125f","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":152,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"22a84446-3f60-46d0-9f41-35ba2a146b02","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":152,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"1cbe3dc9-2b2e-4752-a6cf-b50d89331735","block_type":"box","text":"defined below).","page_number":152,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"aec405ec-98f6-43dd-92fa-f6d85c6bc4a8","block_type":"box","text":"Fixed-Income Investments.","page_number":152,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"a4dea854-1429-4bed-adc9-7db6fc5e4834","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":152,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"d16876b8-3e2e-4cc1-97ca-fe65e15d6990","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":152,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"172e2488-f242-418e-922d-6341b3dac7cd","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":152,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"d4b8cf5d-4dfd-43db-8ea0-caa9069f1f9f","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":152,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"63e1e8e7-c835-4875-b679-70dd298d6f67","block_type":"box","text":"e.g.","page_number":152,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"474a66ee-414d-465d-8083-a8d1846a5878","block_type":"box","text":", recent representative bids and offers), credit","page_number":152,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"40bc2748-37cf-40ff-bd8a-20d396e9a9d2","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":152,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"711cefd6-b27f-4bb2-a849-f5134a6aec55","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":152,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"b64ee3d4-fc82-466c-bf24-516cdaaa9283","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":152,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"247ed718-e4be-4829-81e8-857a75332b88","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":152,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"35c9512f-fe45-4a33-9c32-9fe2a8543243","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":152,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"dcc870de-afcf-448d-9fb1-c57ee66248d8","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":152,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"167e12ef-e07d-472c-a4a9-8a6da07661e8","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":152,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"d2d6d5cf-ddd4-4e77-811b-26fe3e70f021","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":152,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"ca0d53ba-e0c4-4dfd-b23e-c3f3cc3c9031","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":152,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"9c70fec3-1c7e-483c-b045-b120c1b2c5a4","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":152,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"966c51bb-6291-4e33-bca1-5518c4de6086","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":152,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"856a2062-b146-48d2-a62b-e1430bd2d01e","block_type":"box","text":"attributes of the tranche.","page_number":152,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"b81a8c55-78b5-4b86-92ce-bb7a55711cf3","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":152,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"b40e639f-8a51-417d-b4f7-437843cec553","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":152,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"627754d8-d040-4f17-bfab-6330656cf632","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":152,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"42d2c040-a37c-45b8-87c6-6d2a6f8b9f99","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":152,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"31879143-d062-4754-be7c-4c6e86567ad6","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":152,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"a0b8135c-f1e1-4274-8701-e29ed451428e","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":152,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"4bb3c44f-e1a3-476a-912f-fcb3f9c800fe","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":152,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"680efdc3-b46d-49b2-99e0-1c31c78cbc9b","block_type":"box","text":"II-122","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"744b41dc-0499-4a79-b4ae-af20481e3537","block_type":"box","text":"NM1026U-5984554-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8f5fe6c9-f987-4f79-ae2e-fc677e229c81","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":153,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"19534e5e-ba36-444e-8f01-92f69ea0f2b4","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":153,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"c80b07a2-192e-4e04-9cfb-749ec05b6edd","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":153,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"d3a5e92c-f719-4930-bddf-e8a715293e7d","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":153,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"103d5620-9d1a-4ece-a300-43677083e8c0","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":153,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"4676d956-ce79-4c86-aef1-cd9c8ceb976c","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":153,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"a951d08a-c260-4a6d-a54f-132660825964","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":153,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"8ad79b61-7ec9-4932-b57c-8860c0f69144","block_type":"box","text":"Underlying Funds.","page_number":153,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"39791ead-db0b-49cd-b925-0258c73e43a0","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":153,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"e72d447c-7a97-43bf-8295-c26b4d433655","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":153,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"9b79029c-e590-4524-9746-f95ef626de98","block_type":"box","text":"at their most recent closing price.","page_number":153,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"963ab6fe-d2cd-4f06-b25f-da6e3adf640a","block_type":"box","text":"General Valuation Information.","page_number":153,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"116ae20e-1b87-438b-8ac4-40c9ebd20bfc","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":153,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"4f10bba8-3022-4f4b-b1ca-e11c091edead","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":153,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"0995f222-ab9d-4c2f-baa4-e8dd3c46702e","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":153,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"16f87e95-b994-408e-ad12-3c3ea5070856","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":153,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"638f954b-9df3-4dab-a2a4-5211c740fa37","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":153,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"365a6af2-8cb6-42ed-805b-55fd85baf76f","block_type":"box","text":"the revision.","page_number":153,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"4474e475-4b86-48e4-b9b4-a7921ae75b52","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":153,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"4bf2c40b-a424-426e-a8c7-edec3171723a","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":153,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"274c5610-63ad-4188-8f9f-1f5be7fc31c8","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":153,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"dd1d1270-5bd7-4ef8-bab8-c9d1a403e955","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":153,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"0af1ceef-7443-4ed5-82dc-16486ef773ee","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":153,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"fd2af91b-c220-4965-a56a-bf5bd55d97c5","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":153,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"54a59a10-4542-434b-895a-eedf4bf5c72e","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":153,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"fefc2177-fff1-4202-957f-adf0c011d79a","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":153,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"35d8da3a-150b-42b4-ae75-fd9068984160","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":153,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"b77721cf-cea2-4ece-82e6-b3ba86f1b534","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":153,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"9d80a9db-7e72-49c8-bc3c-b766dcc6808b","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":153,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"d3c0c05b-43cb-467b-b512-c1d4b5986e66","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":153,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"76be6d46-2a2e-44fd-802e-1a6476567991","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":153,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"bf2e85d6-d86f-4c60-bc8a-b69c6358eb5a","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":153,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"1354db0e-9478-413a-91cc-275bffd45297","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":153,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"859760b1-e2d8-4855-99a0-da45d17e1db0","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":153,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"c53d0498-2df6-4c8a-8551-8caa64048920","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":153,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"ac1e6ccb-a8d4-47e7-bb3f-b535e98ef57a","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":153,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"16f0e744-3d2b-476d-b392-aa7a18b8ab4a","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":153,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"f5cbf1ae-3b82-4e1e-83eb-345738c73b47","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":153,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"743094c0-ec1e-4bcd-8280-d83dbf82269c","block_type":"box","text":"Fair Value.","page_number":153,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"bb83e205-1d4c-4488-b08c-b17c9161940a","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":153,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"79be2d70-343e-438f-a232-0e5f3a949c73","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":153,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"dc90304b-9e79-4d08-ac39-b61c4967efbd","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":153,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"cb84471b-118a-4be2-b939-9a93c99af033","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":153,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"0f48e693-ece2-4516-8b1c-65a844727432","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":153,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"6da23be5-49e8-4c6e-8581-77ada3e0231c","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":153,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"e810b7cb-b4a5-45db-a4ae-0e684591b319","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":153,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"d1859b49-33a8-429b-81db-0406bfd68524","block_type":"box","text":"(","page_number":153,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"f993de8a-051b-4f83-b4e3-d79263f46fb6","block_type":"box","text":"e.g.","page_number":153,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"f4349815-c2b6-4f18-a8d7-c5705097bc9d","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":153,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"f4596460-3c1c-4f7a-a58b-69e9e237632d","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":153,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"515a4685-e2f4-4936-b090-c56a3a404a87","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":153,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"cbd6485e-54e0-4af9-9755-4964edbd879d","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":153,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"7a1f7c9a-90ca-4760-ac7f-f845e3f43845","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":153,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"96333cbf-e1a0-4d24-8373-a5db21dd71b4","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":153,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"9b834129-17cc-45a1-a58d-7d124c6bf7fc","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":153,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"ec8bcf05-b187-4e47-9a12-d8695e9ce8cb","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":153,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"6625f943-6d79-4191-bd84-1bbb5d81a731","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":153,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"d89f2199-0cf4-4d2f-89cf-912397d0d44a","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":153,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"5b234e73-827f-4388-a307-06aaff4d467f","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":153,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"a0c23350-da53-4f9f-a9d4-82e44493b5df","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":153,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"6cd2de7f-2194-4892-aa6e-b51e903a7aea","block_type":"box","text":"II-123","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea778c63-8935-4800-9fd1-3693f330b283","block_type":"box","text":"NM1026U-5984554-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"64b6ce4a-a2ff-48e1-bb52-d7dc7469e60a","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":154,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"15112774-6350-4f4f-a215-0c6738b5782c","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":154,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"8c02668a-b6f3-412e-aacf-4b9274f616e0","block_type":"box","text":"pricing time.","page_number":154,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"0f4eeea7-6b0d-429a-86bd-a9e7ba791f60","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":154,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"1e1ced7b-6c7b-4499-88ca-b4ed5ecbcf03","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":154,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"78db6cb1-dc38-4a43-a7ff-de4d4e0f3ccf","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":154,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"969f82c2-6b0b-452c-a916-abecee66235f","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":154,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"c96808df-c400-4afe-815f-e05bcca17340","block_type":"box","text":"assets and liabilities of the Funds.","page_number":154,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"3e8e7c94-fcab-4b75-8766-952210048d3b","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":154,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"3d55f6a3-5168-41aa-b29e-cd7127f856fa","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":154,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"2840ec89-5ea0-4290-be75-a0bbcf2bc98a","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":154,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"d51d2893-0f74-4e27-8290-38c8e9ee2303","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":154,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"99fbc7fd-e2d9-4c93-99db-c77c065878c9","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":154,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"8267a997-2092-48a7-9c24-8b384c9a95c5","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":154,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"9bb37f4d-eff4-4f3f-8f64-307286b6ba30","block_type":"box","text":"valuation models.","page_number":154,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"14e1c021-31fa-4f7b-9385-91efd56b496d","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":154,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"ee61e4c9-9d35-41b4-a97a-966ac80b0eca","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":154,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"2bbe263c-830c-498c-903e-9baeaaa83426","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":154,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"8d425a97-1527-4e69-8e19-003d805a7307","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":154,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"7b3ea806-7629-4011-a931-541cb3e5fe59","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":154,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"873fd2e4-8217-4833-ae3b-05f1f6f9697e","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":154,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"4a8c1f76-5c6e-4695-87ee-bbcbe7899710","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":154,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"8680a757-e843-4378-b48f-089009f99914","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":154,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"c27c6dcf-ad23-45c1-9805-aa90e6e510e3","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":154,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"9fe106c5-4049-4e9c-9654-7c468f776db4","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":154,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"97bf8dda-f6a8-44f9-a245-b042211de5d3","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":154,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"7bf2b718-27d8-4a31-a9b2-4fe11f228cc2","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":154,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"42ce10b7-9b9a-4a76-9d62-9c68675f5a50","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":154,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"55ce5139-de39-4af5-b2e6-3e53aa41dfc3","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":154,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"0e15911e-676c-4915-8eb6-29ba1504bd09","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":154,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"20896ceb-bc01-418a-a244-688bccffe4e0","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":154,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"91507b86-af6a-4581-be90-31957b2cfda8","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":154,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"ed97812a-c6be-4855-ab6b-b06f3416cba9","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":154,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"3bfc708c-d122-4c9b-a910-5edf633212b4","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":154,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"cfa81255-2d58-480e-beac-ed9d2dcb2318","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":154,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"73134041-80a5-4b70-9575-1b0b9c569009","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":154,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"565ea255-5545-4b95-8e82-c4b84e245b2a","block_type":"box","text":"par ty determination of fair market value.","page_number":154,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"f493f966-c4af-45e9-a8bf-5172124563b2","block_type":"box","text":"Computation of Offering Price Per Share","page_number":154,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"ed13e2e0-695e-4092-93c1-ce6b03259c7a","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":154,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"9ff6a3fa-200e-4293-a7ab-3a71e719bdb5","block_type":"box","text":"the offering price for shares of your Fund.","page_number":154,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"840fda38-2669-46f4-b11a-2b2f3c4383ea","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":154,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"77c05416-89bf-4eaa-9a08-3f8f0a7249c5","block_type":"box","text":"Transactions in Portfolio Securities","page_number":154,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"5432d33e-60e0-4d3e-85cf-e2ef46b8b1fe","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":154,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"5151e681-7e0e-44cd-9b5d-187f6f45b303","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":154,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"d22c050a-c645-4b48-b88f-084f53591d53","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":154,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"e47e99a0-77cb-4996-a456-a44239a86b75","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":154,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"9d675e03-c05e-4152-a783-cdf687535f20","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":154,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"c18c4878-92cc-405d-9e50-44dc61615686","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":154,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"7c005289-773e-479d-b78f-60dbba079b20","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":154,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"bbc3fc7f-8b6c-4410-8cd1-fb0d670b4d0b","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":154,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"031394b9-41e1-490e-9edd-82c58107aeb1","block_type":"box","text":"II-124","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d58eed6e-ae01-4ea6-ae94-0bb9d240fe1c","block_type":"box","text":"NM1026U-5984554-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c4520738-c910-439b-bd2d-b603e2172399","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":155,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"cb5810e2-964c-40ad-bec2-4e2a46c22e85","block_type":"box","text":"reasonable in relation to the services provided.","page_number":155,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"d0194f2d-322c-41a4-9f96-af1ad60d4c2e","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":155,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"56f05361-ff2a-4c3c-8827-762649c18477","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":155,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"de1c9342-784d-426d-a1be-49f198e6a96a","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":155,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"f0a84298-fcdb-48ba-81b1-47cdf610a45f","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":155,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"a6558d05-89ab-4a1f-aa98-e6e1fc83f86e","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":155,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"9d026cfe-56d8-4cc9-a84a-35afa8d20c4d","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":155,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"412e599b-4bdc-41ac-8d78-72ca1fa9cdea","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":155,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"e493d93d-b2d0-4620-b510-439331b166ae","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":155,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"de04b776-e296-4f65-95eb-cf62698754f1","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":155,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"12478eff-19a3-4712-8e54-6d9221fe2752","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":155,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"7620fe7e-8dac-4736-99ef-6834a0a19ed6","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":155,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"387a074c-e79f-442d-901a-2cee064b0183","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":155,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"9555a5de-72bc-445f-b826-57e7adec3a8c","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":155,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"25faeadf-417e-409b-95a4-b8126491b1ef","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":155,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"2514e5b6-e530-419e-b74c-46f6da5287cd","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":155,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"bdafedf1-6b1b-49e7-be52-c124136568ed","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":155,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"d5e6edf4-526c-4442-92f0-e5304fa71712","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":155,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"5d8d830e-3e2f-41e4-b55c-d5e05cb9e30c","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":155,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"8845044c-60ce-4263-88a5-c3d250d1dc04","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":155,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"0820b9f8-92da-4ce5-86b3-3fc386a7fe95","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":155,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"136a6ab9-16a4-4327-8cf6-251682a16926","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":155,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"621c187b-246b-4167-bb56-eb742296ee62","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":155,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"c0293295-58dc-40b1-8fce-c58e944570e3","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":155,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"7320303a-c3da-45aa-857c-d72653f2ca89","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":155,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"1369d94c-d9be-45d6-92ba-de1218031354","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":155,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"4422eaa8-70f7-47af-a02a-071c58cfc340","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":155,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"61339bd7-d1bc-4663-96d4-a0ed3eb9b523","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":155,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"a458c15d-216d-4ebc-9197-67a13808dc7e","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":155,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"c17a6128-dc9d-4ca4-8357-79ec5c3afb0b","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":155,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"a7405ce9-5dce-42cd-8ee5-b75818f792d9","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":155,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"3b6e0d00-0121-44f7-a02f-b90137c9a41d","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":155,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"98577279-97ab-49cb-8bc0-fb04076a4f6d","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":155,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"eec1da76-5547-4668-94f2-1b3b61d55fab","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":155,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"8fcfc41b-d20b-444e-8276-09b9c34f690a","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":155,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"aced6ea3-fe4e-49d3-8b9a-e385a50c67b0","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":155,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"e624cc50-1b9e-4d73-bad9-b95bfdacdd27","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":155,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"b08ee6e1-9031-44b2-b352-43fadf5554a2","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":155,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"181536da-7a37-4d40-9637-b811220d76ca","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":155,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"d8ac6144-f03d-4918-8f0e-8c9b7d0ab4ca","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":155,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"df3ab82a-6cc9-47c9-bcab-8f0d643439c1","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":155,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"fcfff1e0-5964-48aa-8b3c-c0493313e755","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":155,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"521c6d1f-7dfa-4f09-8a02-03f6065cc17b","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":155,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"6c953a75-071f-410e-83db-56951dec301d","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":155,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"4f9d61ef-b017-4b2e-9aa7-54e9841dd0a4","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":155,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"73ee7a86-0bab-4302-8ce4-ca968af5108e","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":155,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"961aecbd-cc8e-4ff5-a76b-0cef6334fad0","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":155,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"c59901bc-8b9f-48e5-b108-94ef178bcaba","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":155,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"3f7e0802-d542-44fe-8440-7645c239a039","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":155,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"7ad373a2-3b06-44bd-9e78-bd46a26f20d5","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":155,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"f18f227b-b036-449e-991d-f60e479694ee","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":155,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"7b30961a-41a8-4266-a880-6ed73e652fdb","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":155,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"62f09e9f-7c59-4201-a9e0-e04844292712","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":155,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"a08f9ad9-5c93-4122-b53a-60664e51933e","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":155,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"127a965e-6a9d-4857-9eb7-d3c9b58aa72e","block_type":"box","text":"II-125","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"658ae00f-7d91-41cf-b35e-1420437c6af1","block_type":"box","text":"NM1026U-5984554-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"89d13067-9549-42ee-a195-2799dd133728","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":156,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"5e17e93d-0c83-4c45-a190-b0655964948f","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":156,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"b134d16f-cb9f-4ff2-8ec3-23ae85041cc9","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":156,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"b37a53e5-5228-4199-a802-c399389be2d5","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":156,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"f0fca989-ebf5-45ed-8b92-f50a61f4367a","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":156,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"7cfed6bb-7dcd-4ada-884f-c65b4599a7ef","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":156,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"a6ce75d7-7d70-4ab6-b8e9-74f2f3d87bb1","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":156,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"9c887b41-c85a-4301-bec4-de459ab3a2ac","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":156,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"5ce7f645-6668-43d3-a49f-593709b689d6","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":156,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"a140de76-bb4c-4624-a18a-dab17071a7db","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":156,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"c6f7745a-46ec-472c-9e61-82313b7fc760","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":156,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"cee9035c-0e69-4493-bd61-e3943fdf8493","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":156,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"b90ccd98-f90d-4042-ba4a-a5a9201d1bdf","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":156,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"bf6aaf9e-1479-49f2-a18b-adbc496042b2","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":156,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"41fc1e0e-5d34-48b2-9098-d7b2a9e5d014","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":156,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"091c0ec6-2da2-4071-8206-fa09cc704a59","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":156,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"e0a55089-926e-4138-aa7f-177fb22c3b15","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":156,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"c2522857-bc07-41f3-8ed9-b921115c564e","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":156,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"4d269040-6e39-4b12-b9e7-ea5fe99749a1","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":156,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"b741e44e-2e52-4ce5-b1b5-697fb3e9993f","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":156,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"ead6324c-b42e-487e-9f01-fdc7d9db6e69","block_type":"box","text":"brokerage.","page_number":156,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"57d73f4d-0493-4513-a467-a001fc1d37d7","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":156,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"4c391289-445e-48be-bb4e-c668e972d772","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":156,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"2c93a30c-e1ff-43cf-a04e-3a267c20c50d","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":156,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"ec2ad1d3-ebc1-4e0b-9780-44ded87f3cc7","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":156,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"e3f6d71e-bd5f-48db-9157-28cf6735a15a","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":156,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"41da4025-37c0-4d1a-b268-5e4c15e381fd","block_type":"box","text":"Section 28(e).","page_number":156,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"f13a189f-f438-4e56-8c60-956f4c5baeff","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":156,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"21c63edb-28b1-4e26-ab9c-4c51518e6da4","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":156,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"860fafec-b631-4d40-8138-26a2d13f8621","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":156,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"65c733a3-4c0f-413c-b131-28bb289c5927","block_type":"box","text":"execute transactions for those mutual funds.","page_number":156,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"ff3aea98-f849-4bef-916c-88047695f8fe","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":156,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"ccbc03fd-8362-4641-b817-286ae047f81e","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":156,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"f76cc2de-4368-47d8-b631-6f4eb2528581","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":156,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"38acbd70-2f5f-44cc-af52-e78c35630b0a","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":156,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"0e8968df-1fd7-4c44-ac17-2bab7ada548a","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":156,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"d52fc787-17e9-4c0f-a598-64791392a1e2","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":156,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"7594791c-e3f2-4434-8f04-eff8df0bcb8d","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":156,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"6e257ef8-3684-4270-a31d-774c1423a6e7","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":156,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"ecf2bdd2-ab2b-4548-b004-8c35beef2197","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":156,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"3e799e8e-c229-46c6-91b6-cd7366080a35","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":156,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"bb24ec27-ebf3-4d75-855f-cc7274135b4d","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":156,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"759f4c23-e95d-45b3-9ab8-a60decef6bea","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":156,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"86742e61-4e3c-4ba0-b0ce-ed5a904dcd9b","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":156,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"cab462c2-8a21-49e1-b123-b6cccdfff743","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":156,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"92da723c-e584-496d-92f4-023f651fbd61","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":156,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"f5fc6d1a-4b2e-4f9d-95b5-94d27c325d29","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":156,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"744377d2-e85a-4922-be8e-277af4cd8402","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":156,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"4d3a3fd9-065f-4e93-b607-15cce805bc94","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":156,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"ebbdb290-2c5f-4e43-b0a0-d328aae5bd4c","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":156,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"21f4345b-64dc-421b-b8c7-ba5e8ab65ca1","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":156,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"d878674e-0f91-4c08-b104-31e4a2c46490","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":156,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"444254aa-035f-4163-921b-251d685ef7af","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":156,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"9d20e158-485c-4002-9b21-ba5ca33bed64","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":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"4eb5120e-5b21-4f4f-9e7b-789e92c27a14","block_type":"box","text":"II-126","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"41cb9f56-e234-4d29-b98c-d21fb3493aa7","block_type":"box","text":"NM1026U-5984554-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dea2c153-bc24-47b4-a0f7-c0f03a30cf5c","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":157,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"b8d71681-b0e5-48e9-8dcd-16d41b7f0f02","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":157,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"10ebdeed-75ab-4174-868c-e224e7106673","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":157,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"0762058d-d7d6-4088-ba38-acd782af13f4","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":157,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"dc8a596f-f117-47c0-a94c-389066fd3e25","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"da2ce4a0-089f-4b97-b056-50b4aa9401cd","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":157,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"0db5d031-8005-48ea-a6c1-4d3858025892","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":157,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"a115bcf6-0e7f-4183-bdc1-86ec679b8051","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":157,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"72520aa4-8617-4626-af5d-2ac2e60cdaa8","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":157,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"23c54405-4a55-4c49-bf49-2f6b49152645","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":157,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"ea066d56-5d62-43bf-9f2d-1fe02778bcd5","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":157,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"4da3b241-ec0f-4ac4-a1e1-63e43ce1dbff","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":157,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"5793cede-d8c6-4682-8d51-f4cb10dee55f","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":157,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"3cb1a973-7e6e-4f2d-8a86-e6e214322287","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":157,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"b60d49f6-14c6-4c5e-8a7b-49c2e9b728e4","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":157,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"f83a92c0-787a-4fa2-ae9c-c91f4f8f2dbf","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":157,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"c13cbb27-dd5e-4978-99ca-3ae43d261029","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":157,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"9b7c1329-f346-4801-85a2-77d1815a2ede","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":157,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"2834ff89-bc46-4c2c-9687-80a3cb723023","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":157,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"7c5fb2ca-a786-4d2e-bf47-960d3c9a1104","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":157,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"fc23c61f-2144-4dbc-852e-e71331823700","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":157,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"30107f89-1f9c-41d6-8216-ff883deddaf3","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":157,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"6ae63a33-8f5e-4306-9512-0bb20278168b","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":157,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"8248aecf-85c3-4f0b-8cbc-e8125d1e488e","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":157,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"9213c7e2-0bf7-4602-bcdd-08ede8e83488","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":157,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"730b1e39-381a-4c4a-aa8d-d57a3cb1288a","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":157,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"7e7e98ac-873f-4362-8b19-035e1871d1fd","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":157,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"66c47248-1f5a-4c79-a7f3-52efbfe3ed49","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":157,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"cbecf0c2-1db7-4bf0-a56b-a64c949a8a27","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":157,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"444573b9-f890-4d9e-86b8-6477599b25d6","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":157,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"7a1c108e-c85f-4063-859a-428be7b16a99","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":157,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"e723d2b5-6786-4148-8894-8c690c88b116","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":157,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"6dcfe62c-287d-4cb1-a31c-052f933efbd9","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":157,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"51c9e5fe-221a-4602-84bb-326f3eae3390","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":157,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"5f8b3e36-8e23-4ac1-a3eb-49095f42a68d","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":157,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"10bb65c7-031d-44f8-90bd-a84af061546b","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":157,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"3ebc599e-b4bd-45c7-8eff-0f0284ee8f52","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":157,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"677fc4e5-2794-486b-89b3-538bc13aef6a","block_type":"box","text":"accounts and compliance constraints.","page_number":157,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"92ba6db4-be38-4fc2-a7f8-1aa039d047f9","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":157,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"8dce4298-7480-4c72-9ebd-0eddf153a641","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":157,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"9ba58ae1-d7c8-4984-8c4a-004d6434235e","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":157,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"dc06d0ec-0eb7-4793-8316-d6197e6c8dc0","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":157,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"4c138159-806b-4892-b3e0-3450f7da84df","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":157,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"6eb562ad-3b7f-4657-b6f4-142805d1e0d6","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":157,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"e9a77776-659a-44a9-a708-12fcdf652cd2","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":157,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"f1226b8d-d56b-4bb2-9f11-b63535d05b4f","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":157,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"d6d7cf12-2fd0-4b91-9a6b-20cc9b41ae24","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":157,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"3212889c-9309-4433-9873-546662660a3c","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":157,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"57fda4bd-c2f5-4ac2-8051-16454bc504cb","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":157,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"4965df19-4d6d-45e1-8e73-181185971b4e","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":157,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"4483fdb2-b395-4049-8b8b-0dc83a7c9f54","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":157,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"b9e9cf50-85aa-4cda-a98c-a80b28248589","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":157,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"aaf31756-ef58-4357-9aa6-f07d283504f7","block_type":"box","text":"clients may be used as well.","page_number":157,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"dbdabc35-4ee9-47e7-9092-f4a9492fa93a","block_type":"box","text":"II-127","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12a01714-c110-4a29-92ea-9a2bace6f4b8","block_type":"box","text":"NM1026U-5984554-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1c8bd35e-394e-44b7-8634-9b8342f57e12","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":158,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"001dd380-c81e-42a5-9ca9-aa6113c2c7bd","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":158,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"61fafed8-7589-4dee-9a9b-c914da3fa2c6","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":158,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"f60d4d55-4d42-4a05-b4a4-d8a7ab1cd141","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":158,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"92086895-b2d6-4fca-bf72-7e94a348c476","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":158,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"387d8b1d-c1be-4817-abbb-44a8bebb6c1f","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":158,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"d6fa3b36-9a7f-45c5-8082-bdb631807a86","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":158,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"7896d73f-7175-4982-8815-b18d854cbbff","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":158,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"cf4ed990-7275-4e43-a0d3-a726ee9a0ddb","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":158,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"8d65f1dc-9487-4782-9cd5-2bc15188a675","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":158,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"a44d668c-7fe5-4e00-b0f9-e02681664573","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":158,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"facc6b94-77d1-48f4-a77b-55cc8c9b7ff4","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":158,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"0cac4346-2ccf-42a2-814d-9e9e016352bc","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":158,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"b51a4b4c-1678-4774-8d15-6a3a515f65da","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":158,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"5f3a3c59-ffc4-4a84-b9ac-e6cac6a3638f","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":158,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"ce8d5cee-cb64-4af7-96e4-8ad7400a2f56","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":158,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"1523c4b3-8529-46bf-b7c4-214dcd6b70e8","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":158,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"3d9d5cd2-4f83-47d4-8b99-2ba0c52a7bce","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":158,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"33984056-001f-443d-88e5-878e0c1329c8","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":158,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"9cc54f6e-02e0-4cca-94e0-c9df88647d91","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":158,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"535007e7-75ec-4a9e-a1c5-a59cb5f050e8","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":158,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"9d75efa6-5c86-4cbf-8a50-f4baec89c900","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":158,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"5c2f1070-bff3-43cd-b8b4-e330e2a003db","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":158,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"6408d579-f8aa-4773-b6fd-1087b6bc4e7f","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":158,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"77485d40-9b5c-4d7b-8379-820e9efd3db5","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":158,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"7cc4f1bd-e704-4941-bbce-502118b16f76","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":158,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"aa206792-84d1-4c41-8827-871f3548f84c","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":158,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"06365860-1deb-430f-8c8d-41d97f93ecde","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":158,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"7208a75c-9bb8-4eb3-ac21-7b71eecf40a8","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":158,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"6e3ae71b-e9f9-42d4-9b94-3f9b8d126467","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":158,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"7f93e155-7a92-4f30-ac0e-ea515db1a0a5","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":158,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"15697699-ec27-4219-8e26-07bb1b6ec6c1","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":158,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"c4a400b4-7060-4737-9fdc-5ee949d871da","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":158,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"d107b234-c535-47bb-951e-aa13933ea20b","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":158,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"4447da40-5509-4b4b-9e97-3f131dca114d","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":158,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"0b534954-b8e6-4e8d-9245-1573c7c3364b","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":158,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"a3ec5dc8-0761-4a82-849a-6d495c0efc08","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":158,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"c6b67a53-2bd0-4cc7-8d78-c22889ade0b7","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":158,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"9e360c71-21e4-4e9a-aab8-1b64fa5f820d","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":158,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"41768688-203d-44e0-ac5a-e4ee6654f215","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":158,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"dd2f1a60-5180-4f9d-baac-4960e6b3cb9f","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":158,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"aa40563f-bfca-410f-929f-4320dd1f5f70","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":158,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"a40b4c49-fe64-4b39-b42e-95137aea0350","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":158,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"0d24948d-f704-4c1b-a87b-7909ae98ec55","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":158,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"cd207c3c-a6d3-42e4-8be7-f901ba71afef","block_type":"box","text":"Portfolio Turnover","page_number":158,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"a1fd0177-2f80-4549-bd7b-127d080d8ec6","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":158,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"dfafe1f2-0604-4b8a-951d-f0f35566c2bc","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":158,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"098342e5-5ceb-43dd-96c2-e22ee500f8e8","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":158,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"7486fd13-5824-4179-bee9-07f6cdaa9a5f","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":158,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"ca17733d-7606-41c7-b534-f8d6b89883fb","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":158,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"78ba2d11-d0a4-428b-90e5-17d26705b59b","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":158,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"198504af-ea97-4d8c-ae70-a33262f70dcd","block_type":"box","text":"II-128","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"670495f2-6279-4786-b9f8-e9653b0a2881","block_type":"box","text":"NM1026U-5984554-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2fbd72a8-1076-4fce-a9b4-c6032811a99d","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":159,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"6a0000b6-397f-456e-a032-2aa1402c3561","block_type":"box","text":"Dividends","page_number":159,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"5ed3066e-1025-4d95-9883-68ba128c5a8a","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":159,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"6567f428-7257-4792-91a5-089ab68554bb","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":159,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"4dc7abdd-ab5d-478f-aa31-9ac9e84d544a","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":159,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"6984f98b-f7d8-4160-8386-b7a775a97732","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":159,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"2215eba2-b59c-4b81-a8be-3ff17668dc45","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":159,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"4295bbd8-213a-4f2e-82c0-2e09c3d545ff","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":159,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"b8586c60-e701-4782-8273-078b4e73f2bf","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":159,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"6f422f87-46bd-4f66-9781-da44533fabad","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":159,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"9defedae-aad4-4c66-a9de-750d3ddb172d","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":159,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"c168ed01-97a6-4ef2-9459-edcda298ed6c","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":159,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"a718c366-7307-47b3-bac4-eff83fa6b5a0","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":159,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"704e56fc-3573-46b2-9997-5ffc3a61a899","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":159,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"04611ded-66e7-4259-a05c-f8d1d8236d1f","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":159,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"6caeaf59-6260-4cca-948c-66b242a0c07e","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":159,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"490f28e5-3934-46f9-86c4-80bbbd2806b8","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":159,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"bc273cbf-7292-455c-bdae-a5e6cac22185","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":159,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"152caa55-b5ed-4676-8b1e-2eac0fdb9689","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":159,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"0cb46640-5e48-465a-a81c-cefd4978c163","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":159,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"003b92e1-b406-4372-9037-de9f0af09c78","block_type":"box","text":"Taxes","page_number":159,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"c4d2de16-28de-47e7-90f3-d1701055b6ff","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":159,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"a263b7b5-e4de-474e-8d88-24c30e6a0141","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":159,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"515516d2-5456-49c3-bbfc-a667d539e2d0","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":159,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"98db7641-2c6d-4b1e-996c-bba045788054","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":159,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"f169d796-72d2-4583-83fb-6adcdf10e92e","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":159,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"1b82b97b-71cb-4648-a0ec-fb350f59624f","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":159,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"af0606b9-ef63-4783-bf43-734f6cf89595","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":159,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"311a35c4-eb2b-46b5-8d26-0820aaeb94a8","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":159,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"9dc48112-4e59-4dfc-bb3f-d39446387a8d","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":159,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"96116dd1-43dd-43a1-9b74-c323fc6935a8","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":159,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"89d3bb61-710e-4ac5-b5c1-72b2b46a545f","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":159,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"ffe7e56a-bb8b-447e-9164-ec2da53887d8","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":159,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"4c0acdec-beb7-4deb-a418-cf1182eb1dc2","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":159,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"8359d9cf-e7f5-4abf-8879-8193e64d54cd","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":159,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"c969dcf6-17a0-43fc-9931-04c783262a71","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":159,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"8d33319c-7444-49e0-b353-46a62b92604d","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":159,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"2fa1f428-b873-4ee5-a45c-d38e9b18fe12","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":159,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"2b16a213-1a66-45fc-976f-640f3d6b2101","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":159,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"2fb7ddc3-456b-46a4-9d0c-e9505d7845ab","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":159,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"0a8129d1-7ddd-4392-89e9-e382be406565","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":159,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"fff4d135-32fc-42fc-be61-af6dfe973f92","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":159,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"c6e846a7-c95e-4f23-898b-72b49be66a0d","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":159,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"91c324f3-dde1-4cd5-8535-01058429dfe1","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":159,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"059fe75a-18d9-44cb-ae1f-c9a58e0ace4e","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":159,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"8884a77e-7a96-4703-a828-4fca8725fbc2","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":159,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"db342e59-3615-488d-b0ff-87fd045949a5","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":159,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"54d75fcb-9210-43b0-aa3e-19ba38572127","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":159,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"ef19baf2-bc4d-4c32-8f2b-9e74eb0ca3c9","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":159,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"54a3f673-f7ac-4062-a1b9-f7fe330bb038","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":159,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"9169a8d8-9b07-4879-8573-b79510a4faac","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":159,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"3c0ab465-7dd7-413d-ac41-e13b92a8b0ae","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":159,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"d9c87e67-7fb1-48ab-b779-b6c213c82280","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":159,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"09fc5e19-0690-471a-bd10-481cd6989d40","block_type":"box","text":"II-129","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e3cebdf5-fbfe-49c2-a936-b739193a8687","block_type":"box","text":"NM1026U-5984554-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"03a21055-fdde-4397-925d-b5dd8f1fac59","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":160,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"6f1f1028-ecc4-4ecd-80ef-e3b6b1273c8d","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":160,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"67401425-95d3-4550-aed1-dbdd04c5bac2","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":160,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"db21a768-01f0-4ce5-9f2a-ac6851b60db8","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":160,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"765afe9a-6cff-4c61-89f0-f90a7c2b7eb4","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":160,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"c86ac77f-bf7c-4b32-a926-c52c73d9e592","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":160,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"49c301e1-6ccf-4188-b52b-5dbd8f884795","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":160,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"11f5a02a-9628-4959-aa6f-0f1c230712b2","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":160,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"3a6dbf72-ba7f-443d-8fe0-35fad0b7804c","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":160,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"86839f61-1676-4d2f-9c58-a303b61273eb","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":160,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"f820c83b-e88f-4ef5-a4b2-048751a54dbb","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":160,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"dc59a8c8-63d8-43f2-aca6-52783b592396","block_type":"box","text":"limitation.","page_number":160,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"0af5589e-3ab1-40d8-9f90-2df5ed4eb81b","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":160,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"a59c7626-969a-4677-b22f-39330c40698a","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":160,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"4af63a8c-5d22-4d45-b6fd-68de53b05a6e","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":160,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"3031373f-97b0-40bb-961e-ff7b5dfc83bd","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":160,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"1e89b951-2f87-467e-b902-794de4ab22f4","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":160,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"cbd428f9-612e-4630-a202-a0999a402457","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":160,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"486ed02c-1215-4fe0-8ee7-ace7aef37785","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":160,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"26782806-5d6a-4138-8c38-5b74e361d9ee","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":160,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"eca2c44a-cda7-4eeb-b3af-6768f534debf","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":160,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"611d9b01-b554-4aea-bc0c-994682dc37e3","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":160,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"d7cb60cf-20dd-4c2e-a593-43c8f8dc62f2","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":160,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"ac77b061-e544-4653-bf18-67134d86baed","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":160,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"78a6f9b9-8a68-4236-8cf2-663d7a6b21cb","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":160,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"b903b476-07ef-4b95-9cbd-5e6339ba7b52","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":160,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"590beb5c-189a-4645-a92c-eb94e7377642","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":160,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"d4606e71-4e6c-41e1-90a3-e7c4bd8158d1","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":160,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"4d50b46b-05b2-48a6-8839-59223d58c48b","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":160,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"31ffc205-6315-4178-822d-81dcf111664f","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":160,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"2a39eb7d-b06d-4e8d-992e-5ce768f07383","block_type":"box","text":"constitute “qualified dividend income.”","page_number":160,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"fcdfb986-f5c9-45da-957e-cd7af86d202b","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":160,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"c52082a6-13b5-44d2-8761-4c7f0f35b0e3","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":160,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"c81e791f-cbbb-4647-8f49-64e9d034897f","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":160,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"51bc1554-4269-4dbd-89d9-8a6c4854f87e","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":160,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"dc6fd53a-023d-4b5d-8a89-0ce705827d0b","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":160,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"f3061635-5e67-4454-a14d-bb17b2e9b68f","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":160,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"3aa3a00c-151b-47b9-9575-e7e4f18d6e8a","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":160,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"09ddb915-d487-4eef-8c7e-0305e2f0ebe7","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":160,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"f4b19ea9-cbb1-446f-9e17-4b2f3400ec5d","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":160,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"1cb6aee0-38a9-4b67-b154-2f24db5a28c7","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":160,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"478f56ab-18fd-4a9a-9d6f-28eea77027c8","block_type":"box","text":"against their taxes.","page_number":160,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"ae62e5c0-e453-4314-9686-c7172120e68b","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":160,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"5769fa8d-5ab1-4f56-818f-7d497f34d098","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":160,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"86bb6499-b2a5-429c-a554-01aa0f1c7ca5","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":160,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"5977ce34-514b-4b99-8e2c-cf2ca1aabe24","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":160,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"33ddd470-7747-4d46-a2b6-3e1c31044e62","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":160,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"33b9fce0-698d-494a-a48b-ebdb076a287c","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":160,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"8a509e22-40d2-44cf-9f5b-8bdafc7bcac8","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":160,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"e4446895-26f4-4238-965f-de428768f9e8","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":160,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"1145aefc-9f40-43f0-a875-9835542bbed1","block_type":"box","text":"dividends received by the shareholder.","page_number":160,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"a5448ef2-1f4d-4d23-bdf6-faa42c97d839","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":160,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"5c0477ac-48d4-4585-b8d1-f03f23e889c9","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":160,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"2b9d564e-f1f6-4538-8744-e69c67c3d915","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":160,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"d6440f40-48ea-4b47-bbfa-c536b827a172","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":160,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"b51bc135-c34c-4509-9b77-08784503d885","block_type":"box","text":"II-130","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dd69b69a-611d-42ad-8f2e-ed7ac4c9e7b6","block_type":"box","text":"NM1026U-5984554-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4a6af30e-79ee-43b7-9aef-79d56ac76347","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":161,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"9c947764-e047-4dd5-ba56-2e91a3f71aa6","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":161,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"aaae61fb-9f3c-4b78-9c83-1c3b693f2177","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":161,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"06ae5b05-cdd2-4560-8862-bbf2e9474a20","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":161,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"6dfde18e-01a3-4c13-b6ad-0bdf1a4be802","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":161,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"07e62ba6-4bc2-4993-83d8-970c6e220237","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":161,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"3aa906cd-ee94-46df-9e40-1a36eceeedf9","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":161,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"d457b222-47dc-47a5-9eaf-112d8fcfac67","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":161,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"8bec2bb4-f4de-4d76-ab65-364705186c43","block_type":"box","text":"taxable year.","page_number":161,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"ee74feab-3b45-42de-b866-7d99eb7180f5","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":161,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"b9898abd-8e26-42f1-9b5d-2232c1d2ee23","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":161,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"d4531db3-e054-4f35-a595-579003c97853","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":161,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"f866296b-d131-40e2-a880-b6ef5451c99b","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":161,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"9fab5f42-9b13-4358-b5d6-ba7896532ff7","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":161,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"84e83256-d735-43f6-926b-78f6be70c101","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":161,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"6e23ead2-722f-46ec-bf1a-c8bc4989f50a","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":161,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"f07c715c-29cd-4f49-844d-853c69f72adf","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":161,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"80ea024d-e6e6-4587-b4ed-56399b17bc36","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":161,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"3714ffba-df3d-4e61-9045-2c4f3f7f8035","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":161,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"d3b82e18-bb3a-4744-a855-b7295072fd7a","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":161,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"d1fcafe2-cd70-4d33-af9b-407e1ae33298","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":161,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"ba72cfb3-e6f4-4b4f-8af0-f7bfad74b793","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":161,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"79853470-c05e-44fe-ad08-715468cdeffb","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":161,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"06b3e715-e6fa-442c-8ed4-384bb3b12108","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":161,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"de754b15-2d96-4a0d-99d0-d3dedc70ee29","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":161,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"55b6d914-f795-4bdc-b920-139babea71f8","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":161,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"46be4f7d-71e6-41a2-af68-ced7cfabdd82","block_type":"box","text":"special tax rules that apply to their investments.","page_number":161,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"e87f3edc-0667-43c0-ae20-754ce41201c0","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":161,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"e4ac30f0-211a-4b45-9c2d-3158da6978d6","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":161,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"7fc0fe00-a8ec-4480-b403-5eb59ceebbd1","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":161,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"3fb9efc5-8baa-4acf-8734-ebe2faf71e12","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":161,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"da41ae4e-fede-435c-a87a-79d6cfc03fab","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":161,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"f0fc2927-cc02-4fa8-9e0d-99cd839c2566","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":161,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"1d3ff63f-c0cf-4d34-a26e-b377383f6994","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":161,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"6a7ae111-f781-46ba-8d6e-f30bdd49b550","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":161,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"4e8141db-9c6a-4eee-848e-47d8ea6c6504","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":161,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"d096c42c-e0fd-487e-a03d-9c8a958e18f5","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":161,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"61852afd-9190-4ab0-a96c-d85cb80df96e","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":161,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"0c11d5b1-0a55-49d2-bd83-191a46f69ebf","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":161,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"3a11d240-197c-495f-9666-1069b4600e89","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":161,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"64b0c7d8-60fb-4d64-b371-52021c1a76f1","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":161,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"1dd15d78-5667-47b9-b520-28f43693a52e","block_type":"box","text":"redemption of such shares.","page_number":161,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"b89d0b83-9575-4676-99bc-2cb1fa4d5818","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":161,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"10d87b91-8245-4723-ade0-c5e1a9f4177f","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":161,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"eb4fa845-3df3-46bb-b0f3-94bc7cce01cb","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":161,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"295334dd-8ef3-4a21-a6e9-17fe7ab1115b","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":161,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"21d8eef4-0b7b-4d1e-b1ef-bdf3e1bb898e","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":161,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"4c8d1da1-7565-4349-928d-6d79a41d28c3","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":161,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"ff9e1a9c-79bb-4f77-ade8-8b040cc00825","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":161,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"390c49f8-d587-45a3-b376-37e042dbcf87","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":161,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"83a898fd-3a10-4c3b-a039-646337fc68fc","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":161,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"f6c6a8f7-a0d7-4936-8a28-149ac801ca56","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":161,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"fd1fe245-a27e-4761-b551-4daaee4086b7","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":161,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"00f4874a-84d1-4b21-b0a3-74db2a643d7d","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":161,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"a323a3fc-44ff-4b23-b6ea-e57dcb974295","block_type":"box","text":"II-131","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b0dd2b33-6152-4cb3-b70a-be752f9305f7","block_type":"box","text":"NM1026U-5984554-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0dfd33c1-86fe-4936-8184-6e7a4fff75f5","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":162,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"c0628aba-604d-4d8e-a398-8409f724523c","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":162,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"baecc14d-1f99-426f-9992-8265f940a979","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":162,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"ba294b6c-f986-481d-9765-8153ef98108a","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":162,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"5a4355f4-3622-46e3-ae6b-0d8057032a0b","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":162,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"fe8f33cb-ee15-4343-a7ec-6f79c2dcb25a","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":162,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"2ad6442d-b21c-4793-b5ad-730e52dd5352","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":162,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"c58edb5f-1b28-42a1-94f8-7e25ea183d69","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":162,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"474e870d-468e-48cc-b029-4049b56227b4","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":162,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"9e5e12f8-521a-45dd-a08d-418538ddccc8","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":162,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"943fff9e-c8fa-4768-b316-183abf2fc462","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":162,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"f303f696-20e3-48cc-a576-103cc85ad040","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":162,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"a0830153-24a7-4c31-83e9-db5a407d2bb3","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":162,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"ca612c10-8244-4ecf-b5b5-8e65aeb05673","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":162,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"110ddb0b-99c1-49ec-af21-5c5c36cd2e15","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":162,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"251a5431-d5e3-4481-b2e2-d14940e783c6","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":162,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"33994609-8725-46aa-9cec-298178dfdac0","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":162,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"8d504f88-285e-4d6a-9ae0-7bdd7ec75bdb","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":162,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"858c3d88-1236-40d9-9f28-ab0bdb5a6e2d","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":162,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"3d59d1ad-94a5-47cb-84a6-fac43c988855","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":162,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"5a089cdb-d878-4a31-8fac-bd22c7867abd","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":162,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"fc02e0b1-38a4-4328-b001-d1d0d7974ea4","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":162,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"a6cd9237-e9f3-4a8a-bf2c-c57d33f9b743","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":162,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"6f3d61ea-90d3-42cb-b12e-a39ce99aede9","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":162,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"0b257860-f60b-461c-9280-b52c8e0cb874","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":162,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"670817a7-5510-470a-8e70-98f370a2d978","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":162,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"2bbae08c-a7a0-44e7-a64d-328a60451bd3","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":162,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"18f41f0b-92b1-4ddb-8cd6-2ba51ba17025","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":162,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"79e6240d-3f1a-41eb-a48b-1db0b9994bbc","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":162,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"b81c9bd1-7311-4a31-995d-c84635a1c0c8","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":162,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"8f91f1f9-0714-4272-b2fd-6b882b174169","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":162,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"fd85c5a4-300a-4056-99d0-c3bd1602e46e","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":162,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"2d708cc0-b71f-4669-8fbe-3ee755492575","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":162,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"d7ea9316-9ee9-427c-baf6-09689600bd21","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":162,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"e35300f9-30f9-4713-aeb5-4dfd917aafb8","block_type":"box","text":"in subsequent taxable years.","page_number":162,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"3968a792-7569-406a-a1a8-ad7f265ec3f4","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":162,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"62e2d4d1-cf3f-49fc-bccd-1f9145028567","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":162,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"20c5018c-c736-4610-ba10-8b0d081f55fa","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":162,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"53b4d251-0b82-4373-9520-f7c91379abf7","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":162,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"bb025045-2a53-4b46-8b2c-b4f95da0ceac","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":162,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"8880d2e6-5651-48a8-b026-bff59873f4dc","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":162,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"e65af3ca-c514-45db-acf4-198f4065ff62","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":162,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"1ae2a89d-61d5-42ba-a693-8c3a17829d16","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":162,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"d2155f43-d965-472e-b869-0d5948137c76","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":162,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"bb7c11b5-4571-4bde-935e-60a2cb4732d7","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":162,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"5a496aa3-e35e-4378-8073-35de069b798d","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":162,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"cbf331f5-f8ff-4ef4-b682-822fcf0047ba","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":162,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"734c66e9-5803-4a0f-b23b-4d9f395fa80e","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":162,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"078169e8-c58a-4108-a857-8477e2856c04","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":162,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"da919eec-1411-4917-a443-034fec51bd79","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":162,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"394733e6-13ed-4637-82e9-104fee55636b","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":162,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"fbd4e2e8-1716-467a-9d35-4eb2063691f7","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":162,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"ee03c721-8c0d-4ed5-8a06-3b433eda4ea0","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":162,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"839c60f3-548c-4c37-a81c-f1c442fec89a","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":162,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"3adb52f9-5170-4420-a27e-5f7ea7c3253f","block_type":"box","text":"dividends under these rules.","page_number":162,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"1f25659f-9a87-4256-899b-eaf210d497c4","block_type":"box","text":"II-132","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"75734ccf-7953-4008-9535-310e004c9d3c","block_type":"box","text":"NM1026U-5984554-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6a1d8615-0d87-4507-97c6-aec97da65c84","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":163,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"12128362-1819-44dd-8402-3f65b718e6a4","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":163,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"8d5169b4-432d-4d1e-9f53-8ea8fd47aa8c","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":163,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"8ab5710b-3aff-43da-9ba3-2b51105d9c76","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":163,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"8d25f1eb-ccc5-481c-acab-67316384c8ac","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":163,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"b471832c-feb1-4704-a068-8a757f20f87b","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":163,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"ef01433d-490b-4d93-8398-5e8207d36b65","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":163,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"a2880aa4-702f-4bc4-802c-616ac2aa7929","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":163,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"e6b7a2ed-b0d0-411a-8d4e-af63d13c8212","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":163,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"74765321-90b8-49ed-acdc-03f69e51dae4","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":163,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"bc3b3977-26fc-4830-9f91-c6c7c893999e","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":163,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"5c842967-7da9-4d2d-9405-72d53ef27758","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":163,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"f7bff679-38e7-48be-9e3a-d99541d76140","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":163,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"c757a480-1365-4f5e-8657-e5751ed76b02","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":163,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"22706921-e650-4a9c-a5b6-437013cef5aa","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":163,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"9a41cdc5-063b-49ee-9da0-6462f39f1fb4","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":163,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"57b2af4d-bf99-4a55-a85e-4d8cb095de16","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":163,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"72762439-3843-48c8-be3a-1eee5737e64c","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":163,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"0b5e5c0a-f4cb-4d72-a7b3-ff7033dc5252","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":163,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"53ad423c-cf8b-44ae-8ea0-c92eca29ec70","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":163,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"3f303722-2f97-44d0-831d-c44e871b49b9","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":163,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"68c98f90-3313-469b-b5e9-db864c79cbac","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":163,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"e8b9baa7-6f3d-4946-b110-f958c6c4fb76","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":163,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"8b960259-8baf-4b0f-93de-c331408bf71a","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":163,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"d62cae24-d4a6-4683-b17f-d70cabf5d89f","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":163,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"3a0a03ae-fb52-471c-b42e-b0aef1352bdb","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":163,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"7f5e4502-9c9e-46e5-9dac-edc9e55a6d10","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":163,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"06224626-1a64-435b-b011-ebc1447825d4","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":163,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"6ce9c5b8-a173-43d1-ba84-ea5ee79172b5","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":163,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"d18d81af-76cc-4b9e-a3fd-a37ba14cbb44","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":163,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"630c1454-8a8d-4c00-ad0d-550d1c4eb8ca","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":163,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"5e6295f6-4b3b-40c6-9809-b3e2af9d2a8a","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":163,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"b599920a-7e3e-4ba3-a7d3-9c27218d3344","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":163,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"275a2c75-1235-4c10-a803-deaf3a6bb311","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":163,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"a4a363d1-e493-4f0a-8935-ff57bb2b35a4","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":163,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"b02a259b-a93d-4867-b682-a79065133678","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":163,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"90809e10-bcde-449f-99ff-d771156d7d23","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":163,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"61dc4edf-b732-4a48-bf1f-be1c836a5e1c","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":163,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"0f2f8f65-613c-4372-bedc-e4d525310036","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":163,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"4eeffd9c-da88-4eaa-ba95-238a461284de","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":163,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"2c9550c0-50b3-4629-9495-0951e528e917","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":163,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"6ee5d7c8-c8d4-42c0-b857-7c898efc752e","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":163,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"02a80506-1392-4b8c-a479-00377d4cac05","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":163,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"16f4ebcd-ccbd-487c-970e-3c0d87f25e93","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":163,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"489d4b20-81c1-47de-8347-74c9f7dfc501","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"da1154f2-47ba-4298-b487-bfe82ffef2ae","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":163,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"0f77607b-6415-42db-861a-a026929f09cc","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":163,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"20ca26d1-c212-4885-8787-da07e786c0af","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":163,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"6a3c5861-32b1-4b85-b204-3b26145d0e4b","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":163,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"7cea4fe4-1888-432c-a292-116703659707","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":163,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"b8919c03-b626-4e4a-b723-da3533f29476","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":163,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"af7b22d8-f28a-4f79-bcd0-740b3c5383ba","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":163,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"7cedc606-b113-44c6-bb6e-8c21a7107cfd","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":163,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"edd56e69-4bb8-4c75-9e32-d8fdba1cabf2","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":163,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"8db87efb-4c0b-4a35-bf86-3f6e112333cc","block_type":"box","text":"II-133","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"45ba83a3-a865-4805-8a8c-57ec066f9194","block_type":"box","text":"NM1026U-5984554-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4c3b64db-5b5d-44f8-9ba5-f6e72f4aac6a","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":164,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"23bdba83-2bdb-4f6f-afde-12c8f7f15ef3","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":164,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"d0a8d262-b137-44ab-8316-5cd5a790a90d","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":164,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"8997f9f1-6534-457f-a881-515d660464c5","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":164,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"182047f8-28a9-415b-b0d9-3d6bfc7485e3","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":164,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"31f9b5f3-861a-4d17-bba1-7112c49dad32","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":164,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"22870475-515c-4d70-abb5-04b14511640a","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":164,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"1293d2dc-2379-4260-8f2c-bd1c28d5e9f7","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":164,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"fde1e94c-5765-436b-be1b-6b8eb2d6b56e","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":164,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"e3106842-d04a-4404-9002-bf7708be77da","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":164,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"5f2e24a0-f321-4898-a605-ac323f0dc2ac","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":164,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"2c0ba877-c21b-41ec-a593-fb81565a79e5","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":164,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"39f75ab3-bb90-4723-8f40-06ccca99e13d","block_type":"box","text":"investment oppor tunities.","page_number":164,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"daca1953-e04f-4725-9829-f54307bd8c21","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":164,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"179ccb8a-4145-4094-9b49-f542d261401e","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":164,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"ac2867d4-3d0b-4eb1-8777-544218306f84","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":164,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"999977ae-ddd0-4e80-bdb1-5299e9ed8259","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":164,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"e6c6c386-8963-4bce-806c-7bb707923707","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":164,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"e609a472-9be1-4cd0-bc22-8b929cfeeff0","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":164,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"e8d57467-7b95-4b6b-90d5-2cc6f7510311","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":164,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"6a1abdfe-dae8-4b9f-b2b8-1e6d59147bf8","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":164,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"abcce51b-b108-4d0e-a49a-f78782be92e1","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":164,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"01044f15-746c-42e5-97b1-26fe91577acf","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":164,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"9fd4de08-a4a0-47fd-a9b3-4c8962cff665","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":164,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"32c9ab02-f1e7-4224-9793-c1b2fc16aa32","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":164,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"0c50d888-c2b1-434b-9f89-269c5093e9d2","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":164,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"17d2e773-c5d7-42aa-b773-fbb77fb2e17f","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":164,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"249fa653-ef35-4d1f-8399-2a0a57a6e090","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":164,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"587630e5-580b-463f-8f64-7e7e7c4db312","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":164,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"e6638140-a7c5-46d0-88a6-c4db7c51dfbf","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":164,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"68cc1a28-d588-4dbe-b214-525db356d371","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":164,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"8d01ceed-1925-4225-af69-5e62bd1b4fe3","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":164,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"f8e4f9dd-b5d1-4600-8031-edd70eccea44","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":164,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"fd017ae2-be8f-4141-9dbd-cbc64c748f5e","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":164,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"f1bffec9-e841-445c-8dff-bffadfb7e06d","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":164,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"fb932b02-c4b1-4a40-b767-204fe375e514","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":164,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"b2b2ca2c-ddff-4370-85f0-63688b9513fb","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":164,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"4b1d9e44-a37c-4cff-a87e-e6b983753805","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":164,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"d0d4caec-297f-40c2-b0f0-89671fd1876a","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":164,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"a7eeb68b-5693-47e9-a1c5-fb1b129a1e8a","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":164,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"4877d3f3-5987-4821-9fd1-7d879a436f6f","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":164,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"f5e7b328-19b7-4955-ad59-0c06f9068b69","block_type":"box","text":"positions in its por tfolio (","page_number":164,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"07329186-599c-454f-bd54-f213976b44d4","block_type":"box","text":"i.e.","page_number":164,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"2e682cb2-cd0f-48ea-b332-1560c2f5ecc4","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":164,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"33dea2a9-2164-4408-b91a-1bb5394d10f8","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":164,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"90c2ca59-17d4-4e2a-ae05-d58cd10245ef","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":164,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"c235635b-51b0-4b5d-9ff3-240de11691ba","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":164,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"f6829308-1dbd-47ef-ab23-01034d801a26","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":164,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"f174b524-9a37-4437-a52c-99089480a74d","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":164,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"ff961b8b-19a0-4bd2-9615-5980a892e752","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":164,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"3663f5bf-f2b0-4aca-9600-9239207181c9","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":164,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"105213ea-823d-4737-949c-a84274cf11bb","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":164,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"41a748fd-3082-49b4-8820-d6e185e89b7d","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":164,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"f51e8b1a-0222-4246-b5db-fd00bf8b43c6","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":164,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"5b360a9c-9796-45eb-9bd6-bd3ef7427a21","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":164,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"c7dbfe2a-d2d1-41e3-9e37-a87b3a06ea49","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":164,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"98455cb7-cc1d-4f80-b545-b34dbf3fec02","block_type":"box","text":"II-134","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f9385000-b2e9-42c5-85a7-a64a78c05b9b","block_type":"box","text":"NM1026U-5984554-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"908f4586-63e7-4ca1-b6fd-9867fe004564","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":165,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"f31df1d1-3c8c-41bc-8396-2f11f151c5d5","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":165,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"d3aa6785-9d8a-45c9-801a-fa4a59ed67fe","block_type":"box","text":"capital asset.","page_number":165,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"138a4558-3a3e-4a04-b1cc-c7e7b945339c","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":165,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"26fae8e0-22bd-43c3-9b92-b1822f5bd7e4","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":165,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"d806032c-ca94-454a-8335-6a81b504f470","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":165,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"a482fbbe-29a0-4603-bd54-ba66331e4ec3","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":165,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"b1f016d4-4967-4ec5-8f07-1c142daf2d6b","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":165,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"3872a73b-d3aa-4a6e-b99e-557a3fdd9183","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":165,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"ef6a746d-a34c-4b63-9bc3-9f205b55e35c","block_type":"box","text":"Fund were to invest otherwise.","page_number":165,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"dadaed66-9cda-42bb-8444-dc6edb2dc928","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":165,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"bced6943-425b-4b6d-8531-f667b4d412d7","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":165,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"6573b68d-d04a-4bea-a609-ac53b7d3476e","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":165,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"5a43f871-cf72-4854-a005-a02dcffe49d9","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":165,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"987fe266-5bb1-43ff-88a4-dd603c990ab1","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":165,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"dc8dde9f-1ead-4433-a347-319d046c7647","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":165,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"acb6f517-019b-45fb-a8ca-e39edf0bff3f","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":165,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"8be52ec2-707e-43b9-9de4-4099683abae1","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":165,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"46d866cb-663d-412a-9087-2f017a1f2849","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":165,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"9dabcf90-0487-4c92-a326-ded25f935cec","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":165,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"495a3dad-cd05-446f-93f8-a6e9ac13b9b6","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":165,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"67df3f0b-2791-4f26-b207-c2802eb35a1b","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":165,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"cab8ec93-7cff-432b-895f-90183d3fd7f7","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":165,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"d20e850f-6b9e-43a4-ab02-9554a2082ec1","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":165,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"47889a08-3a74-4203-aae5-d60e2f2e97af","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":165,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"0cd1dc22-27fb-4a9d-a872-a8eee745beff","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":165,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"ee507407-6356-4203-8307-f7f0aa2320dd","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":165,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"aff32313-8241-4826-b06b-a4044bec80ce","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":165,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"f763935c-d34d-455c-8a5a-f7610f868902","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":165,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"6ab585ef-ea1f-4209-8945-db4086225ad1","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":165,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"12042861-c7eb-4e52-8dca-893d7fb34f67","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":165,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"9cf6abc9-7514-41ab-bbef-d6caafbc2d6c","block_type":"box","text":"PFICs.","page_number":165,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"8ca3348d-c2cd-4471-8295-97680f856d20","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":165,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"88b37d13-92e1-475f-8f0e-fef4817d0b56","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":165,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"ad95da29-c54d-42c3-b7e5-ee4658633d6b","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":165,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"5095ddc1-085a-4aaa-a691-52208cf902a7","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":165,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"56ae1d39-faf4-4baf-8aa0-7e4cf785c762","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":165,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"9f939f76-36ad-4365-8ffb-f34db6784843","block_type":"box","text":"difficult or impossible to obtain.","page_number":165,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"ab6e536d-a109-465f-b6c5-679f1957217a","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":165,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"d47f7cbc-7a5c-4e0d-8293-942a79d45fd1","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":165,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"6c8a69d1-67ab-443d-87e0-83db7fbb90cc","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":165,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"25b49ede-977d-4fad-b66d-759e3168d834","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":165,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"ac810458-05d2-4a19-8b5d-e79ad02eaeaf","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":165,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"2a7009d5-55d2-457f-94b9-1ca045c0eb58","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":165,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"de119e08-2e84-4f22-87b2-b336763f9e08","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":165,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"12bc8795-e111-453c-878e-b988e5793c2e","block_type":"box","text":"Municipal Funds","page_number":165,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"6865583d-7764-48af-9d5b-307f5b62a9af","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":165,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"9c08b36f-216a-445f-ba87-6c923e1f3e32","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":165,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"a95fffbd-a94f-4037-8205-3f855fcaef5a","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":165,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"2083c1b8-8684-4b0c-9a68-e1ba5a5ccd59","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":165,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"93239a96-7ded-4d7d-8388-d043ddca9f17","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":165,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"c18154ef-35b8-48e2-a392-a41ed10c5aa3","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":165,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"55284c91-669a-4de8-a843-15a82fdb664a","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":165,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"d7866b6b-ae44-4285-b946-f74da1cc879a","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":165,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"26ddc85b-cc6c-40db-bc7f-cb9d824282ff","block_type":"box","text":"II-135","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"820a45b9-a442-463a-9127-9cce6238d22e","block_type":"box","text":"NM1026U-5984554-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"65e71db3-e386-465a-845f-abaf689cd218","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":166,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"bddabd14-5977-420f-952b-d8aff08efb54","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":166,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"7415de9b-d1ff-418f-8c1e-8b5d0e5b1c62","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":166,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"e1694e7d-a35a-4d29-a064-a6d5f9ab4e8e","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":166,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"4840d3b5-d11a-43ab-aec0-7a0e18287a29","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":166,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"6b0c3f07-a230-49a8-9c69-75fccfba0a1c","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":166,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"e5034db0-cba4-4bf0-ac8d-62801a663b32","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":166,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a4eec178-9274-4d21-8b46-63e3bf32f093","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":166,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"7c2fe99a-ed04-467b-80c3-15bb499c2838","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":166,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"bab06237-9e8e-4c18-9da8-c2f5a99921ae","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":166,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"372b0e4a-12ea-454d-9915-31ad38830c26","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":166,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"d637ba32-e5fc-415a-a40d-093dbb31ae21","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":166,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"04db9073-529f-4e9c-8d27-d76c0d4b3bb8","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":166,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"4154b8ad-9024-4f2e-8956-50fab2b43500","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":166,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"260125b9-114e-49ab-b75c-ed956bc1e5ec","block_type":"box","text":"constitute exempt-interest dividends.","page_number":166,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"6106deed-3eaf-4b34-a69a-5cb4850de479","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":166,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"32215015-ae2c-483c-867c-e3c0147aa638","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":166,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"bef57a0b-78c9-4f51-ba0b-4a7da65e2f2e","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":166,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"31ddf692-8e59-4d61-baca-efa72c551bed","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":166,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"adc6a670-62df-46bd-be23-a1d09338c9d0","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":166,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"d57febfd-f235-46b7-89a3-55fb47cc2f1f","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":166,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"32940699-96f8-4ef4-9dcd-89707dcc148a","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":166,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"bcc947c5-7884-4eb1-9511-a2807b91c119","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":166,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"ac5cc6da-7936-4a4d-8e5e-aa709238b0cf","block_type":"box","text":"income dividends received by shareholders.","page_number":166,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"e41944e7-928c-46f4-9216-7fa6255ba1e6","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":166,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"1d9c4738-29e7-49a9-9ea9-b4a22d43f1be","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":166,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"18a2d562-359a-4f16-96c1-9658b269178c","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":166,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"eb968ec5-d2e2-4c05-8458-6f5ea43ee850","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":166,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"2f237b3b-20b8-42f1-99cd-68688ba4fd5c","block_type":"box","text":"the accrued market discount.","page_number":166,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"f78cdada-ec1c-419c-ad17-2f2820267bf2","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":166,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"6ad049a1-65ea-4756-b539-d3d194d7351c","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":166,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"bcebcee4-a8a7-448c-ac8f-06fd63ae24e6","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":166,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"b612795c-a5a9-4f69-8434-87c917551b3a","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":166,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"88aab696-f406-4101-bea5-a65a420dd5d2","block_type":"box","text":"e.g.","page_number":166,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"1fb537ca-7e9a-40c7-838b-7d4ed206a14a","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":166,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"5d6fe59c-e693-4081-93d3-bb316b1da420","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":166,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"9612a9f1-e8bc-43aa-a746-17cbd844b8d3","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":166,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"be9ad54e-c302-464f-a029-8cef174fabd8","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":166,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"f7d73969-cacb-491b-831a-ae92e148221b","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":166,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"8e04444a-27b3-409e-a1f8-eee225a4f143","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":166,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"df7e2f73-b6bc-4a35-866d-3ee4a23890e6","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":166,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"ef70d667-1c74-4f63-ae0c-c3326ca1bce0","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":166,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"9a754d63-978d-4808-b99e-1324ebc3f80f","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":166,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"8aa48b78-da2c-4789-ad54-ebb10564cc66","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":166,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"a0f1929a-a2f1-42b6-b126-b1a4ca61f095","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":166,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"854ea203-f965-4505-9891-bfdca6bd271d","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":166,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"0da3b172-e375-417c-98ea-b128ed5f6569","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":166,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"8369b581-cb91-4885-822c-f48ea97b3835","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":166,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"fbc2ea1c-2819-4ee6-a839-be5b6e94d4b6","block_type":"box","text":"within each applicable state.","page_number":166,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"3f82228a-159f-4ae6-ad4b-0ae535877300","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":166,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"a669fd7a-d8ae-4215-8242-fd2bfc4794af","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":166,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"2c7e3b50-5dc5-4e3b-adea-4d9f6c9735b5","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":166,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"642a62fe-a159-424f-b763-2797f6dbb048","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":166,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"125a0297-b48f-44c5-99aa-09393ae52489","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":166,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"f3e5ffbc-90cc-4c7e-b5df-7daef555af93","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":166,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"ff8907ef-9546-409f-884f-5f7f2da44e59","block_type":"box","text":"II-136","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd0d86c4-8f1c-4c81-825b-6c75f38d1b00","block_type":"box","text":"NM1026U-5984554-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bec3c499-dd0a-445d-b5e2-9aa907388d2c","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":167,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"83677ce0-766b-4ae1-baf6-8d28cd72c548","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":167,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"84df73c2-c43b-446b-9d31-c3b9f3e805e4","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":167,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"294d45d6-e45b-4680-8cad-e415fc0a187b","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":167,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"a803e958-db71-433d-90b2-e07239430ed0","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":167,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"73058a20-51bb-4a41-b6ff-7d7170eb3c71","block_type":"box","text":"exempt from state income tax.","page_number":167,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"ad2f164a-0b94-4e8d-9026-3a1767da9e8c","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":167,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"fbbc2a1b-52e4-443c-b4a5-19ee8688f26e","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":167,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"39ad50d1-5fe4-412d-9024-5da55aa2131e","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":167,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"9f41cb54-b7a7-4a2a-8af5-bec8419e6d15","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":167,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"f7e616e3-f6cf-4e0c-b350-a1bb4cf4fa16","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":167,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"99baeafe-617a-4349-ba9f-98d6bb477868","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":167,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"812cce9a-5f2e-4cb1-bed5-936682a6e456","block_type":"box","text":"decisions may have a retroactive effect.","page_number":167,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"38cc8ba5-de1f-47f4-ba63-061262c93da9","block_type":"box","text":"PERFORMANCE DATA","page_number":167,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"2553bca0-d7bd-44e9-bef6-db410f16be56","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":167,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"5771737b-87b0-4853-a89a-a896e21bf663","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":167,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"a47abcbe-86bc-4c6f-b6ef-65db1c363aaf","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":167,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"660e2d6c-26c5-42cc-8d32-91cf65f63e86","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":167,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"4beadf6b-262e-47e9-bfba-fd57e991f242","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":167,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"89a260e7-de5a-4588-be37-93678b2aa072","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":167,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"8977b854-b49b-43dc-9855-572f5e0f6b48","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":167,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"f59f44f9-1849-461a-9534-a8cb1c53a547","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":167,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"8df47a3b-f551-4fae-b55b-134f413738f7","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":167,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d022bd0f-c21d-4731-a3e8-560b356cd66d","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":167,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"19f10023-ed71-4118-86f6-a87465ae2b07","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":167,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"66327a7b-37ad-48df-a5f5-8a4f399e56e3","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":167,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"0d2e0586-1b21-4f48-bd5a-9b581ba2c53e","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":167,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"44224a9d-d874-46a2-bc1d-dc9946e2555b","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":167,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"43b7a626-09f6-4a7d-a8ea-ac6762a63029","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":167,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"656fc2da-edaa-4b1b-92ea-693b244cd946","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":167,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"4142738e-49b5-40d3-959e-5ca89c076a05","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":167,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"08dc774a-c0fd-4c59-81f6-9baa7e3e93a1","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":167,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"5f803b67-7cbb-43ab-97c9-72b64001bf46","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":167,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"cd5e01e5-63c0-4dd0-b362-ae2c30ce096f","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":167,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"01558cb7-260d-405a-b27a-b3a607b3a2f5","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":167,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"9a678c7c-cae6-4a1d-98fe-46495eb48095","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":167,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"ff2cea77-c2ed-4e10-a389-c2d50d92f832","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":167,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"2eb7375d-e01e-4e9e-8971-9d8e707bb434","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":167,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"d3be1944-d932-4ed8-b08c-fcd51b763a01","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":167,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"41006f88-7ec7-4f41-a746-69a2e37d57f2","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":167,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"6703c84e-97d4-46a5-b41a-9a03a6745a80","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":167,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"70533f9b-6c7c-4396-917d-6cfc709235d9","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":167,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"a15bbd5a-08fe-48e2-b63f-ae94e66acd34","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":167,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"38a1c203-6cc4-4e07-ba89-41b965bcc319","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":167,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"00fec9aa-5698-4c8e-9d44-01255aae8a3c","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":167,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"d401221b-dff2-476e-810b-3042cabf49c4","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":167,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"c3762930-a759-4556-8f52-c64f5f0cf920","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":167,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"93cefdac-4253-472c-85e0-276ee69b6ead","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":167,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"baea35c6-8825-4c9b-a73e-64bef5f3699a","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":167,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"fbcd9e62-722d-4612-8e58-d97949f5f14d","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":167,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"a98c04ab-145b-4f26-a8dc-6a0faa3b0f03","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":167,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"345f3ba6-f1bb-4378-a692-a62488a972bb","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":167,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"6699950c-f42e-43fb-9f8e-d33344000320","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":167,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"45aa0a88-7e67-42e1-a853-59a56925ae20","block_type":"box","text":"II-137","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"54e6c204-663b-4a41-b2da-37d5f97c3c0c","block_type":"box","text":"NM1026U-5984554-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3ac75471-7bc2-4af7-9602-723d97874250","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":168,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"c2efe69a-05ee-4d50-b516-abb38acbf92e","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":168,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"d9deafa8-cd00-4cbb-92d7-7b2e3286a9b0","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":168,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"9fcee0fb-f5dd-44c3-9338-833acde4798d","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":168,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"3b74b350-c033-4a51-aa0b-e7584ca74f26","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":168,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"c30fddbb-383b-4f2f-a2be-ff2347434a2f","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":168,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"bd04dcba-d204-4b40-9171-5bcf60d84092","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":168,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"d5383c88-6b9a-45a2-a93f-e607932c76b6","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":168,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"f512fc70-3c9d-4c16-af60-ec292c544912","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":168,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"9458e0f4-6f6e-4115-b1fc-166fed3c4a64","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":168,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"0874ee51-9e89-4fba-8c29-092cf7689198","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":168,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"66b522b3-7850-4a10-89d9-f13bd93c2012","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":168,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"1c41ca36-7d0b-4022-bb1f-ed41cdd8a108","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":168,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"830f7cd0-e3e4-48e0-b4f8-5370377875f6","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":168,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"9df2fc85-8cfa-4502-888c-1c7e2989d370","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":168,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"a11d7439-a267-4b8e-b714-a01d6063b474","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":168,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"3278b1cb-2174-483a-8c9a-e5ad45565f9b","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":168,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"31792107-6d15-4843-b8f4-3fd265ceea74","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":168,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"6ea70ce4-8eb2-4481-a5cf-05655c4b3afb","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":168,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"1f2cd6e6-f016-4c7e-aa6d-a62230c7a78e","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":168,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"abf2fe95-8c1e-43fc-9255-8847be58aee9","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":168,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"06ecdd0d-ad4d-4b24-a07f-0cad0786836f","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":168,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"9ff3a9f3-6c38-4238-bf0a-398d56933559","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":168,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"8337d0bd-d5c8-4958-baa0-f4f605a0fbb1","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":168,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"7ff0a8f4-65ea-4461-8c22-09126765602d","block_type":"box","text":"less than their original cost.","page_number":168,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"892199ab-06f2-476f-a0d8-9b0b922ea4c0","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":168,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"7b5ac9cf-17a6-4f80-803b-0604c18894d3","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":168,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"08433706-3227-4ae1-883d-04d30ebdaca1","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":168,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"dd75b4e4-cdec-4c6b-8e9e-1007d4de7229","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":168,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"858cdd38-8672-4caa-b4ee-16f1e865c925","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":168,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"1c24ccf1-31ac-4c1b-a329-f531fd1c3b89","block_type":"box","text":"lower amount of expenses is deducted.","page_number":168,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"e9098e88-4363-4d55-ba00-7a44b9d73666","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":168,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"1d62a550-c73c-4803-bcf4-ec386d3ca3b3","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":168,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"d4561edc-3f38-419d-ad6a-1bb44ce46640","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":168,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"3a3a6991-d3ab-4027-b13a-ee62a0915689","block_type":"box","text":"Money Magazine, U.S.","page_number":168,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"da09170f-5272-4507-8449-80f0015ff431","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":168,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"d0bde868-d719-42b7-b971-c4b74e99d0ab","block_type":"box","text":"or other industry publications. When","page_number":168,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"0c352f76-fc6c-42ef-a940-f7814a2ff248","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":168,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"ce590199-afec-467d-88d3-89a46b0b8688","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":168,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"33aba18c-80f3-49ae-a6d1-f94021f00a24","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":168,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"c9eb7a2b-0fcc-4a33-8441-57af25ef4d57","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":168,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"dda37768-6511-451d-8bed-4f0da28557da","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":168,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"745c6750-64df-4480-a7f2-666b5f551482","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":168,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"adf40bd0-2798-4e05-852f-8d0f0cbcfeb0","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":168,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"822c9bd3-1ec6-4f89-a276-4164d95aacae","block_type":"box","text":"developed by Fund management.","page_number":168,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"fd7b51c3-5fb7-4df1-8118-d33061412f05","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":168,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"e8e15c6d-1b75-4a38-b4a6-e5d185e9c7e7","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"55832190-801a-40d4-8fc3-b2ffdffbcf44","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":168,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"6846f40d-0de9-4725-b36e-c52c79fd58f8","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":168,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"a74302eb-b23b-442c-a522-67a36f393c58","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":168,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"98fa1dc9-0b60-4ccd-92af-c1dca85abf9e","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":168,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"74209fd4-e2ee-40a2-8311-399857d83b95","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":168,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"c197f107-2d0f-4b56-95ba-875abbc02138","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":168,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"34a86ed0-3ae3-4a63-999e-1fc43d49e566","block_type":"box","text":"II-138","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d8522f7-6e7c-4748-b284-487760a9bc43","block_type":"box","text":"NM1026U-5984554-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9bb2078d-e1ae-410f-89b7-30abceb7b57f","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":169,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"86fa4baa-eeca-49de-8069-8361dedcec05","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":169,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"27c1bbe0-2806-49b3-b7a9-76a3144a04f5","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":169,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"ca26e796-fae2-42f6-9ccc-6551ac616b69","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":169,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"d2352da9-9969-445e-aabb-545d19ea82b0","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":169,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"274c5cf1-fe3e-42f5-97d6-c7719ed7e3f2","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":169,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"107e83e6-5a2d-4126-bdb5-ef4d33accf5e","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":169,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"b74e4d78-1938-440b-b11b-bddaddee8825","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":169,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"9b29850c-a68d-4f59-a31f-c49a1f8d60f2","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":169,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"ce04d9a3-e892-40a3-8dc2-399760833d02","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":169,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"67b04628-63aa-4e6c-9648-508fde742dd2","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":169,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"93ea1231-ae2b-4096-93b8-6ff040a1b53d","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":169,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"9854d429-062d-4ad4-b752-b9f197e03398","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":169,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"7694c8eb-aa00-40e6-934e-f15502c2325a","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":169,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"2f665eea-e4b6-44eb-9d66-938cde4ef56b","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":169,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"f6c8424f-becd-4f37-b3ed-294963b2a4ec","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":169,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"cb64e825-8db6-4775-b2bc-9fff2b226b5b","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":169,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"06ee8530-127c-480a-8411-c9966c9a1aa2","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":169,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"4c61c967-5bbb-45ab-bd43-2b9d2a06fc57","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":169,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"1865471f-17f9-472b-9c5b-e6f055d2c396","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":169,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"fb5e77e9-ea52-4bd0-8474-7973b43a5574","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":169,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"b6d32a08-81be-4fc0-9191-fd74368a71f6","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":169,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"81f8bee1-ed9b-484b-b42f-56ff9b1fdf85","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":169,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"68ca59fe-3fde-48c1-a5c3-89c931ac06fd","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":169,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"65b10bd9-1457-431c-995b-ae69f43bd097","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":169,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"9ec3f5e3-025d-4e2c-8352-23cf065cc130","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":169,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"93ba03c8-4dd9-4f65-b70f-42e87ff4f7d0","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":169,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"d2afe379-6218-4f27-a710-16bf5c02d7c6","block_type":"box","text":"GENERAL INFORMATION","page_number":169,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"cf75f8da-7578-40cc-8e0c-8bd296fc41b2","block_type":"box","text":"Description of Shares","page_number":169,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"1fb099c6-ed2c-4143-b3b1-62e3208d82e2","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":169,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"70354932-468c-4a2e-ac39-8eeefe949639","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":169,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"ddba897e-e4b4-43fc-8328-4f4546fd9dcc","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":169,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"9fbb50b4-42c5-4410-adb8-6d370fc41c40","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":169,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"3bfc3b98-5a3b-44f0-bb4f-35615a625230","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":169,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"8c94b04d-012a-41d8-bf64-19f0da317d54","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":169,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"841e8664-afc7-414f-9a2d-e9473286febe","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":169,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"3bed0261-9b80-45f8-8025-c9475314042c","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":169,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"7f5388c6-f3c4-4c7e-8b7b-0cbddd58886f","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":169,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"40cf74b9-cc3d-4134-80b9-c00bad48539d","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":169,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"7bd4d0ae-e150-4c94-aa9d-083ce9b3b6f1","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":169,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"7228df75-6be3-4f2a-8879-49586edc0097","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":169,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"6c92a257-4cf4-4e99-b5f1-e618cc848265","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":169,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"f95e1a49-c4e9-493d-9f9f-64d8f6469732","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":169,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"0504552c-d2a5-460a-83e4-a8278cd7af56","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":169,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"4830e7b3-af53-41ca-9808-ae842762d816","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":169,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"ee8f6f8f-60b8-4a4f-8c6c-c68c8ed56de0","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":169,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"808fa9d6-4dab-4378-a09e-e67b4ddb95cf","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":169,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"f60e3ed7-503d-4109-ab8a-a108a175f12b","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":169,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"abfd5d16-7c57-4a56-ae18-0a3c73c25971","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":169,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"e7fb0f7b-7952-4e57-840f-5cf09d4a23ff","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":169,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"a6dc7e48-e509-438f-895f-88fabb180881","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":169,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"4e2602df-29a6-4185-a6c0-cbe77ec4957f","block_type":"box","text":"II-139","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"06637c3c-55c6-4ffc-bd7d-63efba977af4","block_type":"box","text":"NM1026U-5984554-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b131642e-08a3-42c2-88d2-f344abc05bf7","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":170,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"5880cba0-9349-4182-a55a-036a5dda1dbb","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":170,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"d3c2942e-789a-4afc-9ec3-03cfee983ed8","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":170,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"b5d810b8-6c48-4483-b089-d2844c425fd4","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":170,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"1d2aa371-a7ee-43e7-b651-d6eaa7230123","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":170,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"1b50c0bd-6db2-40b9-953b-1c3cbfa2b5ee","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":170,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"e624ef7a-887d-42d7-a078-d2c54ec89af3","block_type":"box","text":"Additional Information","page_number":170,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"2570f156-0d46-435a-899e-737b6f27be7e","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":170,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"15909806-0334-4fc6-8acf-ee0ae3bbd000","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":170,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"146540c5-5ce6-4510-93c3-e1c94aff50ca","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":170,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"421a3418-c1dd-47fe-b8ef-7bfc9951b0c5","block_type":"box","text":"such name to any other company.","page_number":170,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"806b5e20-ab92-4f10-845d-a4e75381ddd4","block_type":"box","text":"II-140","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ffe2e098-dfe8-408c-9aa2-6dc098bce151","block_type":"box","text":"NM1026U-5984554-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3d2846ce-bd65-4750-8c1c-4fb970916a20","block_type":"box","text":"APPENDIX A","page_number":171,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"374ce58b-af60-45f7-b687-3cbd36b5f07b","block_type":"box","text":"Description of Bond Ratings","page_number":171,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"7565d4ff-76c3-46de-bfb6-c67be38973c7","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":171,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"f5f70f57-4056-4a23-b86a-b22e400e6d0f","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":171,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"1652123d-c5a2-4e39-bd69-59be9832e09c","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":171,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"0a424298-4df6-490a-88b3-6c67c1225734","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":171,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"d524fdd3-fb61-4ed1-b469-cfb9442505d8","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":171,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"5fc55cee-11f9-4600-8a28-3b78c4729756","block_type":"box","text":"NRSROs may rate specific investments (","page_number":171,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"74592402-e203-4704-85ed-261b57a4270d","block_type":"box","text":"e.g.","page_number":171,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"d8a06c84-687d-4940-abeb-a985826b418b","block_type":"box","text":", bonds), issuers (","page_number":171,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"43b9f9db-c50f-4c25-9cfb-c6677a835525","block_type":"box","text":"e.g.","page_number":171,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"5e935abf-d315-468f-8124-8a28466622ec","block_type":"box","text":", corporations, governments and financial","page_number":171,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"342c189c-9afa-462f-a6e7-661580513c8b","block_type":"box","text":"institutions) and/or programs (","page_number":171,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"f0be7d55-8cef-410f-9bc9-08d029888e20","block_type":"box","text":"e.g.","page_number":171,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"8bf60547-5b2e-43b8-859d-e9851d6e2290","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":171,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"4301ddba-b6b5-4f8f-8abc-3788aab4f447","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":171,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"503c6eb4-6771-4757-b8ab-3b9a3d0f44ed","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":171,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"2e95e805-21cc-4bd4-849d-724bdc41e10d","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":171,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"075dd9cc-c4bf-4f9f-af8d-4168f8ca6663","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":171,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"b2e57113-95a4-4241-b795-03e81a972d8c","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":171,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"b9cd842e-02bf-4d0d-921e-51121b511b64","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":171,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"3981d72b-79d9-4e35-818d-526597f3d6aa","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":171,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"c5bb63a4-6702-4f11-8f5b-04ccbade007a","block_type":"box","text":"security (","page_number":171,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"fd42667c-885e-4285-8655-6612b4822d4c","block_type":"box","text":"e.g.","page_number":171,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"69651743-b0fb-4b61-84ad-53aa543f9166","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":171,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"77705406-7e89-4b39-bf08-05803113ec8c","block_type":"box","text":"highest of the multiple ratings.","page_number":171,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"58fe758f-3e35-4e7a-b06c-fe0601768db4","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":171,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"1fb3b0d4-8ac8-4c1c-9318-5911af5fbfad","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":171,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"710a4f91-26c7-4621-98d2-9912a90a2ad4","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":171,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"a565b82c-c55e-4bee-bd6b-56d8b23f502d","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":171,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"840c2efb-3f6e-4d39-885a-a2164c5da8e9","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":171,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"2a8fa7a0-b7bc-4f57-91d5-f2fa92950c7f","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":171,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"9d0610d7-bd5b-4a2a-ac51-dcba1a3d814f","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":171,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"5e7025bc-f331-4858-a179-329e2b02059c","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":171,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"be27718b-a664-416b-8851-9da1c1825665","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":171,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"ac6518e7-47be-433d-aac6-be73680c1463","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":171,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"70480b61-e59e-4b8f-b5eb-f18a4a4372ca","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":171,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"05bc0fef-73f9-4f3b-a4a2-95e6bbe070c7","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":171,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"fad074a2-0e48-408c-992c-884361ac4141","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":171,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"e08e938b-f44b-46be-95da-0eacaac5f842","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":171,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"c8346df0-a679-4f77-b068-c7d09629b295","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":171,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"6749e855-40f7-4f4f-84ae-9064c6ece0cc","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":171,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"20970f21-c1eb-4834-a576-76149d8ea02c","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":171,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"768e057f-3227-49ac-afd4-df10d3ff6682","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":171,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"9c7099ea-56f7-4604-916e-527cc379b464","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":171,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"e94b7eee-5462-448b-bf2b-1c459073f986","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":171,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"9ff407f5-1140-446c-968a-bcc8099b7f32","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":171,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"e2e0703b-1fe7-4a63-8985-1dcbc73b120b","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":171,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"ee55fed2-0b1e-4fee-8c9c-1d9cb9694ca0","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":171,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"59fb0a3a-2c9c-4789-9c5c-360ee00ed6fe","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":171,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"05d365a5-1b43-4a52-a4f5-2249aaf3f0f6","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":171,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"28255c0c-7ce5-46b6-bc21-242bdd72abcd","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":171,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"da6f5218-6788-449a-9fd4-b6133a450a5a","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":171,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"5c3f05ea-c26f-4a4e-b53a-862fa5050b8e","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":171,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"de513339-9c2b-49fd-ae95-1fdd8f9183ba","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":171,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"9d537849-ea57-449e-b51b-189c69503c8b","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":171,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"8482be5b-69f7-4bef-9f2b-eee668e1c2d2","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":171,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"83db551a-18fb-4a0b-92ea-0c7a6c5116cf","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":171,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"54b32a17-5ada-4fe0-9c61-499761fa0e8d","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":171,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"60f860a4-7f72-48a6-b21d-df456be018df","block_type":"box","text":"upon standard sources of variation (","page_number":171,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"5c3c43e4-5a58-4b9a-a235-e1e8fb174dec","block_type":"box","text":"e.g.","page_number":171,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"6ec8526e-9e78-4ba2-878a-986128d6ba0f","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":171,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"0d5692ad-8781-4cfb-b43b-d83bc05d8a04","block_type":"box","text":"A-1","page_number":171,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"343fca69-19d4-4c8a-9a66-8c7c874f537a","block_type":"box","text":"NM1026U-5984554-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6d0ca4e4-e7f9-4b12-a9ac-3e199107e060","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":172,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"621bdc48-80a1-4c72-8e35-bcf953e813fa","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":172,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"b9157b8c-39f7-4978-89c6-2f672b35417f","block_type":"box","text":"e.g.","page_number":172,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"5569e95e-f320-439c-9c14-19bf7c03595c","block_type":"box","text":", equity indexed), absent","page_number":172,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"10632e15-5e22-4800-969c-098a5fb23003","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":172,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"0cbbecc8-fd8f-49d6-8efe-b02c3b77c8e2","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":172,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"b691a23e-ed0a-4475-adb8-76453a64cd74","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":172,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"cea7a63b-9295-4ff5-858f-ae39c8c1ab74","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":172,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"6282fd1f-b870-46fa-bf9e-1ef977b9954f","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":172,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"a7769375-9266-4fa6-946f-f5471f285a9c","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":172,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"cd499524-bce5-4e45-ac78-2615a4e10cc1","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":172,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"89aed59f-6580-40de-81a1-ccaf0390f734","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":172,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"483d2645-85f0-427c-8647-e0daecb78e67","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":172,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"53aebe7a-a5e2-4ebe-a045-c1cef5aa1b0b","block_type":"box","text":"i.e.","page_number":172,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"744c8143-d610-40eb-894c-d4027669d56c","block_type":"box","text":", ratings on nonfinancial","page_number":172,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"a8352d64-6225-4dbc-b233-d7dcc9c4c441","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":172,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"ceacff30-0fa4-41e7-a819-21c7ecbf1af2","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":172,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"64094074-71c0-4b75-a1f4-374fac59483b","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":172,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"6401c8e8-9620-4c35-b423-d8f395960ee2","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":172,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"ae01ee39-b80f-48b5-aaa9-e1e6d4bb1883","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":172,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"292975b3-256d-45a5-9cda-37fe6d3f1470","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":172,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"fb294c73-6c37-46bd-a85a-455a55ef420b","block_type":"box","text":"of time.","page_number":172,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"87d76e1a-0f7d-4132-8109-5e72d389984f","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":172,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"4e1bb08d-31c3-48e7-846d-34137e6317ae","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":172,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"02a8fd8a-5594-4d82-afd5-febd86d25de9","block_type":"box","text":"risk.","page_number":172,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"aca9c94d-156f-42d2-a84c-fccdf61fd354","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":172,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"227f12b0-9c28-45e9-9b54-af8b4b179dba","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":172,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"f6bf8281-9978-40fc-afbd-47044f7f8c53","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":172,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"61193370-a1b7-44ae-9900-572e03d2cc55","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":172,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"e7762b3e-033b-4c19-9853-39495f2b26ca","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":172,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"512422ea-8234-49e1-b2e4-af8c1247c48d","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":172,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"ee5f0a2e-07b3-42f9-80a2-ee87dea7f52f","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":172,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"3e702bf3-3aa1-455c-ac54-d8fcaebf32a6","block_type":"box","text":"credit risk.","page_number":172,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"44a5ff8a-7e20-4b5b-a7ba-31d221378053","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":172,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"0b1d9277-76ea-4edf-b224-ed7fe4e971c7","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":172,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"07f84c1a-cc4c-4e7c-91ef-2c6c40bd9de5","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":172,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"fe673263-070d-48fb-8c49-f6aaf49394ae","block_type":"box","text":"of principal or interest.","page_number":172,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"b1173cb5-3828-45de-b677-a496625433fc","block_type":"box","text":"Note:","page_number":172,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"dd7e0e2c-6d40-45ce-a149-1edc70188655","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":172,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"f9d32b6f-7443-4cbd-8bbd-c7fe343de020","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":172,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"27859949-ec0a-4b1d-88e9-4fe2d40ee67f","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":172,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"1f4b786a-ee24-48cf-98b3-eddaebeebd24","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":172,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"e3e8f4ed-40d7-4d15-8757-1942e9634180","block_type":"box","text":"companies, and securities firms.","page_number":172,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"f54fa302-7c82-4004-968f-1ee66e1f6187","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":172,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"a857a081-bc2b-4d3b-ab29-7a05ecfd4669","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":172,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"7ff23eac-7966-43f3-a4cc-8f1cece16553","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":172,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"e432f19d-0613-4795-b98e-085dcfda85e5","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":172,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"266a5018-73fe-4330-98d6-8437c506bffd","block_type":"box","text":"that security.","page_number":172,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"d44ae08a-00af-423e-ad00-b9677103a627","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":172,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"91a749b0-4a83-4b9d-9925-db56dd600eb4","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"808ff9cb-9d99-4021-a07b-d2946e01884e","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"944e2c36-1aca-4482-a250-ddf3fec1129c","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"e1b2679c-f630-4dc5-8afc-7e52264b91db","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":172,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"981cb81d-9932-46b7-baa1-3bb09bf7651f","block_type":"box","text":"categories.","page_number":172,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"5a66f78d-9fe1-496a-876d-7fcd9a7b0ec3","block_type":"box","text":"A-2","page_number":172,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"718dfe56-6747-46f4-88b7-3bb9dc322b07","block_type":"box","text":"NM1026U-5984554-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"29a1dbc2-7aa5-4c10-8a89-b94b446c89a7","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":173,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"9ba46cce-e24c-4efb-856f-077ac22ea81f","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":173,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"13004d77-19bd-42e8-b1a4-ff44764af8a7","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":173,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"4bf4983b-9d13-4c95-90e6-3283584d932f","block_type":"box","text":"an issuer’s self-liquidity.","page_number":173,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"500b417b-e821-4f7f-9d96-e3249396f57e","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":173,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"1aad19b0-5388-4120-8015-cda478058874","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":173,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"35390f9f-4aaf-404f-9600-4353c1a172d1","block_type":"box","text":"MIG Ratings","page_number":173,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"a06e965b-9740-45d0-a818-f9afc0a1b9f0","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":173,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"193d83a6-138d-4ab4-8d17-0de48531e654","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":173,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"7d5ddd7f-c90e-4831-bcd7-20a5740257a3","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":173,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"4afddd13-bc5d-4402-87a5-fe0d8d8c63d9","block_type":"box","text":"MIG Scale","page_number":173,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"7eb06d1d-3458-4de2-ab19-31aa5ad847a1","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":173,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"26b7c3fd-e74f-43f9-a704-072d27d09bd1","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":173,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"ceb7fdad-200d-4c24-9b8e-1feb3b8cde94","block_type":"box","text":"refinancing.","page_number":173,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"e53829c9-332f-4c88-af89-ee3519192341","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":173,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"803a00c4-7989-492a-a00e-66b89dab5115","block_type":"box","text":"large as in the preceding group.","page_number":173,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"fbef2bfc-2fbb-4d9d-b272-fbde66c04439","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":173,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"c4c0cb7c-8a82-44f3-bc7d-a855adcc83fc","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":173,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"90b0e5a9-65dd-4381-acb9-4ba1409ce2ef","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":173,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"8a7cb1bb-236a-4f1e-9cd9-d110d6c9faeb","block_type":"box","text":"lack sufficient margins of protection.","page_number":173,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"39f232ab-f0c2-488f-9dc3-67dc3e32a008","block_type":"box","text":"VMIG Ratings","page_number":173,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"c1c24bcc-b6c9-4950-bce9-c9631a695d34","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":173,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"0a794c57-14d3-44dd-9645-ecb9c3059c81","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":173,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"bd07e7dd-503f-4153-817d-40d38763eda6","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":173,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"4a14b70e-60f5-4893-af4d-7504a447988b","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":173,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"3c51703a-104a-426d-af95-92918a87c8c1","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":173,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"960705fa-3adc-4b26-8e28-ae23d34c65ce","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":173,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"dd915b8d-321d-475a-81d3-4d447511de25","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":173,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"7a192d69-d0dc-46ec-82b8-a1aa0936b6cd","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":173,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"ed276df4-3c66-4016-82a2-93940b8353f5","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":173,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"bb0996de-b9e0-4e6d-b803-5e9bed4428a7","block_type":"box","text":"grade.","page_number":173,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"9003a324-e20b-4b4a-a4de-8bf309471510","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":173,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"6a30036e-d766-4e64-8db6-5e980bdaa536","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":173,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"70a26a61-7229-48a6-960e-d1e9dd49106a","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":173,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"75455503-17f2-4b9a-809f-6553a6cb03b7","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":173,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"e97f66a7-c7e5-4621-8147-fad0e7a3c1c1","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":173,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"c70a4420-0d04-4c99-9b1d-add5275ab6b5","block_type":"box","text":"liquidity of the corporate obligor.","page_number":173,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"2fe83edd-991e-460d-ba4b-d4a5bf1ce54d","block_type":"box","text":"VMIG Scale","page_number":173,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"8a2fd8a2-44aa-4b52-9b75-e8bc83261cac","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":173,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"b9b8b87a-0c0f-4406-b746-c6cb814d96b8","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"39e2b6fa-a021-42b3-b516-a09b75aa71e7","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":173,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"b82325a4-b4a0-4aa6-ae2e-32e30d3e6133","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"847851e2-285d-48f7-9dfc-09406bcef1a2","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":173,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"c78a3516-fa73-4c21-8520-108a467a8936","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"6eed2412-1beb-44ff-90f2-79efa03c02df","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":173,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"5f402a31-fff3-40f7-bb35-8f459e2ba40a","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":173,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"638b0730-c260-47d8-8ef2-717d59786d91","block_type":"box","text":"may lack the structural or legal protections.","page_number":173,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"7c76c5f4-23da-4c6d-9fd3-66f36f0d26d2","block_type":"box","text":"A-3","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"892d13e8-bc68-4a76-91d1-00365aeee058","block_type":"box","text":"NM1026U-5984554-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8b8c089a-3b91-42c4-ab5a-6a75cc057fbb","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":174,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"3c515e91-3819-4bd0-87a8-26a8aaacb684","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":174,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"a9933902-eab2-40d9-9182-cbdb7a35ca4e","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":174,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"00a0f836-c86a-4766-b55a-1e55ec9c1ef1","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":174,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"e8a66e4e-061e-40b2-9cd9-849cc7215186","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":174,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"a0ad98b1-5daa-475b-a4f2-5ab4d611d4ef","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":174,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"41451962-d9dc-4767-8c9a-adbca2c6c3db","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":174,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"91e03d62-09fa-4792-bbb6-f655c9a0357c","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":174,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"142839db-7c9c-49d3-8e2d-fc14b2e16605","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":174,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"1f7c93e7-f7a5-428f-b2f0-1e345c75ca9d","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":174,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"f963a772-7b73-476b-8a81-98bc062f420e","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":174,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"dc23fd95-6326-4813-88a0-a8cceabb535b","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":174,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"4ad1ca11-0d8c-443a-adf4-2fd932c0241c","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":174,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"a7333fd6-f8d3-43f5-99eb-5d74f98e78f7","block_type":"box","text":"from these guidelines based on market practices.","page_number":174,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"d0e4a4e2-7e24-45ff-9877-d028dd543872","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":174,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"4a44e930-8abc-4fa2-98ef-6ac8d52132e9","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"d4f020a0-ab92-4fd4-9ee7-515204a43056","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":174,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"7c09a55a-cc17-4e33-93c6-6853effad4b4","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":174,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"28783540-90c0-4cef-9b74-17a310e8ac9c","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"a9f74f3a-cc19-48bd-b4fb-6b7a944bd0c5","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":174,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"93479524-9409-400a-b065-d4335f57a9c0","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"feefe4c1-b18c-442e-a5b1-387957ad99d7","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":174,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"a01652f2-ee07-47cb-83e4-79a7286683c9","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":174,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"51d996c1-c9eb-4452-a3c8-6f4918699fa9","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":174,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"a0fa4af4-a44b-44b6-b79d-eb47944efd1b","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":174,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"8ce688cf-17d9-4428-be4b-c7b69e1c67e1","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":174,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"a4271490-55c8-4c64-bc2d-d09664e92182","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":174,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"369991ed-927e-4883-afeb-528c0fc966c8","block_type":"box","text":"obligations.)","page_number":174,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"0791f63a-e544-401f-b241-46c6d8008cc8","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":174,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"e2389fff-c2a0-4f0a-aa9a-967c15d9a588","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":174,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"2a67c331-6f9a-494d-89f7-ef9bd194951b","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":174,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"d117745e-e359-474b-b8f6-d16e033479f3","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":174,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"fb31f4ce-6822-43bc-b278-a90545889ce7","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":174,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"1ad4fabd-b7a9-4640-b079-09b41e8e8e65","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":174,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"b27508f5-253d-45f5-9b47-dd846d7b4296","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":174,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"32b5f936-b05e-4021-9254-4fa96348c3fe","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":174,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"c15ac2b3-3103-4c22-8193-e4c5807eb0c7","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":174,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"d3b54412-fece-4c90-9a5f-9811b3190535","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":174,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"dfb327d7-4233-4a2b-8d50-1438e8e91980","block_type":"box","text":"financial commitments on the obligation.","page_number":174,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"be668565-67b2-4583-b311-ebaff5814b07","block_type":"box","text":"BB,","page_number":174,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"c318a925-f024-4db0-abfc-e9f580d699b4","block_type":"box","text":"B,","page_number":174,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"b48f6571-d22c-4064-8989-f2530f80c020","block_type":"box","text":"CCC,","page_number":174,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"d9f99ff1-cce1-4b85-a4ba-b3292580d6a1","block_type":"box","text":"CC,","page_number":174,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"8a0caf69-a0b9-4a83-8d51-ae5d2b9860b9","block_type":"box","text":"and C","page_number":174,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"30c86b91-22c5-441d-a809-ae17dc8ca09a","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":174,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"241d4a96-c5ec-47ad-808d-9f76440f3cfc","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":174,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"6d12c500-f49f-4526-a6d1-a84ff74f8f99","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":174,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"a826cdde-7735-4fab-83e1-9c526271f158","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":174,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"ea8ff381-b751-4fa8-98ef-25400795be6d","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":174,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"594a64f6-2723-47f7-873a-f70e2d5cfebf","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":174,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"c272ae03-5548-442a-ac98-33da72fd7762","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":174,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"5b883add-0462-4a60-9022-1fb834cafd98","block_type":"box","text":"on the obligation.","page_number":174,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"dc23db69-952d-461d-a009-d426fe2e7c9a","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":174,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"951a435f-a437-450c-b090-8785250079e4","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":174,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"7b1bf45d-cd7c-4fee-930a-aed2ebd30826","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":174,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"5107f72e-5e88-4476-90ee-100f66ad7eed","block_type":"box","text":"financial commitments on the obligation.","page_number":174,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"a667a9dd-bb02-4b28-b6a9-d628e0d9f7a3","block_type":"box","text":"A-4","page_number":174,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"d4d4f003-a593-4a68-a575-b22f0da12e3d","block_type":"box","text":"NM1026U-5984554-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2c946d8f-5ed7-4318-87d3-20e32d3547e6","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":175,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"e594e8ae-be09-4591-ae52-6338ce55ef3d","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":175,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"4cc8311e-fac2-410d-991d-3c012156536c","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":175,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"75a45058-5185-47dc-8478-62c1188657f8","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":175,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"2a474485-afe8-43ad-b4bb-f7cc8e71647a","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":175,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"aa5f5259-38d7-4361-abcc-ac4cdef5f01b","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":175,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"1dc928dd-a30b-4d45-8d30-c489d5ee3675","block_type":"box","text":"anticipated time to default.","page_number":175,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"4f91718c-2872-4110-950a-e61857b1658b","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":175,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"a5bc279c-7da6-40b7-a713-d804f925e0ba","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":175,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"8273357b-ffc2-412d-8204-b47c2859f199","block_type":"box","text":"higher.","page_number":175,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"244afc63-952d-48f2-8e14-1a0e96f536b5","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":175,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"51a2fea5-d686-462c-9221-0d46be7c7403","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":175,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"e1fa3de3-246b-40f6-a006-26f240cb28bd","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":175,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"c71ebc49-9c1b-488b-a18a-b7d7ee4ab231","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":175,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"d2c0429c-fe8d-4d43-b992-577f017eab17","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":175,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"0b79643a-21f2-47e5-9d76-2fd8e6e994d4","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":175,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"99dc1e10-53d1-4a75-8da0-596aff52b253","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":175,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"0828bbc5-c8dc-43db-a89a-a3e80667d656","block_type":"box","text":"restructuring.","page_number":175,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"92b1ed7b-86db-46b8-97d6-a3962c0a74b6","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":175,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"24055253-3879-485c-bec5-3fde7f9feec5","block_type":"box","text":"standing within the rating categories.","page_number":175,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"a705521f-058e-4754-884b-3b7c6e44145e","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":175,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"425d062d-6705-4d27-9870-02b8dcf2dd14","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":175,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"49e42d7c-c83d-4de1-a7c2-1607e4ef5d33","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":175,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"8afc557e-b245-4d5a-a137-3f0ff5fb0f75","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":175,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"fa62c16d-8c4e-40cc-a7e6-613cbe5a9257","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":175,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"9a9252ee-94a3-4726-ba82-23d27dbe73d7","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":175,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"e84f9f61-1293-4f73-9843-d90bc91574bf","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":175,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"dcc14fba-d589-407c-a5a3-c7332b96942b","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":175,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"b4072161-6b1e-4e0e-848b-7e7f4b378a46","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":175,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"f02b2b44-ba5d-4eb6-b2c3-3805f31e430e","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":175,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"2ff7026e-7266-415f-ad3d-9f54f7fbee32","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":175,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"55af5180-3ab5-41f9-9e31-27c0eb270816","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":175,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"673e5c5b-031f-4346-b948-08c2993ea195","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":175,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"25df1977-833e-4a80-937b-e39a2697fb77","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":175,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"5e01dfce-6011-4ca9-b149-f36955c415a7","block_type":"box","text":"financial commitments.","page_number":175,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"ac15faf1-23eb-4bd1-b1dc-3f0f2f10a99a","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":175,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"eb90733e-79ed-47ac-87b7-b1773dd7f8ba","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":175,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"13e6ecde-9ae5-477d-8f51-015cba1eadaa","block_type":"box","text":"commitments on the obligation.","page_number":175,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"d5078569-d13f-4e9c-832d-769ca7507996","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":175,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"7db39b74-d503-4a1a-8a2a-8047c81f7323","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":175,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"a61cbc66-fb2d-475a-8521-3f028c1eb307","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":175,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"27415f46-348c-4b05-96c0-926e5a0f014f","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":175,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"6153e2a2-e883-4edb-9f4e-860388ad2510","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":175,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"71880b85-9924-4760-bcf8-9564ba5845bb","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":175,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"504f6874-afdd-4685-b1f7-14169daba088","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":175,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"8a01701b-3030-4857-8095-6e69c15cb164","block_type":"box","text":"debt restructuring.","page_number":175,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"2d43ea7d-473a-463b-a8d6-9c63ee3d0b93","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":175,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"9668df12-ebba-4f58-af60-62f2e1ddcac8","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":175,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"a078296d-0824-459f-9b35-8f866024d781","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":175,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"31aa6b35-1224-4611-821b-721d9173ad9a","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":175,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"325bb583-6aa2-4e13-91f2-288817d64963","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":175,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"3472fad6-8c74-494e-bc1a-7c9f2f7f68e8","block_type":"box","text":"A-5","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"30bcb7ba-5a35-460e-a0bb-bc41f7d91a68","block_type":"box","text":"NM1026U-5984554-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3aad8d28-762f-479a-815e-7daa46c19b66","block_type":"box","text":"•","page_number":176,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"eed34a5f-f483-42a5-a092-8fce12c92f2d","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":176,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"21704f39-e8da-48d8-a1f4-4685f077a5ce","block_type":"box","text":"as a note; and","page_number":176,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"78ab27f7-60e7-4478-a338-487f0bdd685b","block_type":"box","text":"•","page_number":176,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"5e828617-73cd-48b7-a68a-fc5c0f79fffe","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":176,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"ac723d56-2445-44a7-91d5-38e97b7fc0b5","block_type":"box","text":"treated as a note.","page_number":176,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"a7b9f835-e187-486f-a9f7-1e6811e69bb6","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":176,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"46c579b2-c577-403a-9879-1396dddc30ee","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":176,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"94bf5f8c-006d-4c0a-892b-aa5ede238cde","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":176,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"c1e35ecb-574c-47af-a0f7-3f91bc5b50d0","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":176,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"eb7a3175-1501-437e-b28b-3adc8529dfc5","block_type":"box","text":"economic changes over the term of the notes.","page_number":176,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"e9b2543d-bc0b-4f64-a56d-84dd32173b8f","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":176,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"f9dfd5e7-ceba-4bfa-ab57-43945228564c","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":176,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"b49a16f8-4836-4b03-9eba-c8df8f59c5c4","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":176,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"1116923c-2f86-42e8-ad30-35fd8a78fd77","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":176,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"d8c545d0-d11a-43c0-8963-7f6a4d75b8ba","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":176,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"19891d54-be0d-4599-b5d3-3dfd858bd0dc","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":176,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"6be8437f-0d4d-4996-ad7c-f491247b9f66","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":176,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"e5084726-d8dd-4470-a226-095d24cbc299","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":176,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"c1fe123b-d09e-4d2d-bd9c-405a54790cb7","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":176,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"4990df84-d6d0-476e-a8d8-26915dc814b3","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":176,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"509d5a99-3c6c-4232-a58f-8efc8413506c","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":176,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"11787c53-7aae-41e0-a2cc-b7e051a0eda6","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":176,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"3041dca3-b3a5-46b9-8dc7-ff855a4478bc","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":176,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"78c20fc3-f0b1-4988-932e-8191d92eb21d","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":176,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"2a8b7727-1a74-49af-833b-d4c890269581","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":176,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"504dcf86-7ca9-486e-a8cb-a3ce675670c2","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":176,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"e43133c8-183a-4791-8ca1-e2b9d40c43e3","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":176,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"160a4496-9833-4017-b433-9e13405c6f8a","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":176,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"690c3238-1ae9-4aba-9dff-46d72dc45905","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":176,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"9566956d-d921-47d2-ac99-6d64ce42d9eb","block_type":"box","text":"receivables or other financial assets.","page_number":176,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"f81d2184-0517-4295-bc26-0bcaa2076390","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":176,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"a2129a17-a11d-4263-9a15-219e9bf65cd1","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":176,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"93adf3d9-1892-47d0-812e-6b99e33fb78c","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":176,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"c386c77c-f96f-4829-a231-5fa34ed03dac","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":176,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"fb9cb128-c12c-4f6b-b97d-d42474b11c3e","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":176,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"9355e39b-3576-413d-9137-e2b7ca921678","block_type":"box","text":"occurred.","page_number":176,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"4665fcd2-cd7d-4c33-adfd-23e48bd223d6","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":176,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"6a95e501-5539-4303-8dc5-7c462188e470","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":176,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"ed7d36da-7fd7-4cb0-ab64-8f61c061715e","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":176,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"b2d68c75-769e-4ff3-8536-15d9ad365841","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":176,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"98f0eac5-38ab-4d64-828f-b960f7ff7924","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":176,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"bbc396e4-0669-4142-b41a-467d025396bb","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":176,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"10e31659-64dc-4b60-9b31-f9a98e06b252","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":176,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"76fd92dd-baf4-43ff-a750-3ad0a08bd3f9","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":176,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"b8881d52-588c-43a0-a387-101d8461b293","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":176,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"d5b3ab64-37cb-4000-acb0-eba060f97dd2","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":176,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"b4c0bd1a-6f9c-42b2-a0d6-2912558ccd7f","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":176,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"ab9256d1-39c1-4beb-aa6f-157946eafe15","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":176,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"f0af834d-4d27-45d9-84c9-7d1e9467aa5f","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":176,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"e900606e-dd62-4392-9038-b0e579a210c6","block_type":"box","text":"i.e.","page_number":176,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"4733c9f3-d76b-4598-8cf6-d016cb3ced7f","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":176,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"51656929-57d5-4230-9fce-6db18283773b","block_type":"box","text":"the obligation’s documentation).","page_number":176,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"1892ab66-cf47-47b6-b84f-babdf63ac53f","block_type":"box","text":"A-6","page_number":176,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"526ac46d-4c4c-49ba-b040-03c6bc06b661","block_type":"box","text":"NM1026U-5984554-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7ee82b19-0200-434e-8b63-ff7400e87c43","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":177,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"e291e6e5-fde7-4336-acbf-499f5bed0cad","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":177,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ce2317e8-21e8-4725-9bee-ad4660a60d84","block_type":"box","text":"agents in the form of a rating letter.","page_number":177,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"d93bc0d7-6101-4b3f-b564-9d04416e1995","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":177,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"6e33d039-e501-4b9e-8afd-c7092311892c","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":177,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"64670a8e-1b80-45e5-8b1c-52230d9c5ad4","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":177,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"a148b2fd-17e6-4a94-a493-17159b40c42c","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":177,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"9f6468c4-e20c-45e8-9d92-2d91ca0f3ebc","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":177,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"13739e3b-8a9e-4d88-8bc0-24414faa9b45","block_type":"box","text":"e.g.","page_number":177,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"99540ae6-0c6c-417b-ba95-c96f754a591c","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":177,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"922ed2f4-0366-40bc-8dc0-62fcd5bc13d2","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":177,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"c8ee51e6-a526-4c24-8422-b6847d70ecea","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":177,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"f99ac271-4b13-422e-9620-8b9357fa4cfe","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":177,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"818ada04-0462-4e97-a715-951fa0027008","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":177,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"029cde41-ee14-458d-b9a2-78d310e4d339","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":177,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"401a08f6-5250-4365-ad90-bff48bd427ee","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":177,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"6f6c4ad2-283c-42ce-b58d-2328957c3b9f","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":177,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"754b58f5-5770-4a6d-b5e3-c9aa10acea59","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":177,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"08fc8cd4-feba-40c6-94c7-736b58f4456b","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":177,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"b8342a38-fd35-40c5-93d0-5aeeb9f92837","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":177,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"f25dc59a-f55a-42f4-8e70-4a832e800ea5","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":177,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"5ac27186-9a94-4ff5-92f0-ace33dacee32","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":177,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"297517c7-3d06-409d-8447-f7b862aff57b","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":177,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"fdbd4e53-26fb-4516-8ab8-db046db48674","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":177,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"723954a1-3620-4092-8934-6fab43c63360","block_type":"box","text":"Ratings.","page_number":177,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"445fc7dc-dfa7-4c6c-832b-72171d63e310","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":177,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"4882b598-a625-4438-8674-304d7579f8f8","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":177,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"c9d90970-0527-4ee4-ba05-227745ac4959","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":177,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"3031746f-f98b-4adc-9163-8f5c1f3421b6","block_type":"box","text":"obligation ratings.","page_number":177,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"e5c824ae-7ee5-4230-94bf-27ac69484e06","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":177,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"8235f6be-46d1-4723-bed4-ac2268f38b92","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":177,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"e87c4b37-a23d-43a3-a574-97f46d90d7fd","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":177,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"fbb0d41b-e25c-4231-9570-9e691a397b0a","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":177,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"25641c3d-3a68-49cb-803c-d0b80322b988","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":177,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"6ab5693d-8da0-459f-8b43-98d8ace73d78","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":177,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"7056b358-7134-47f3-91cd-8c28671f48f6","block_type":"box","text":"to foreseeable events.","page_number":177,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"e9beb10b-f325-4e1c-ac99-182e7754b162","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":177,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"83a9472c-c83c-46f8-877b-91d642d76c3a","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":177,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"fefaefa0-1ae3-4deb-a151-677f43ec86a1","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":177,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"9f3e27fb-d4ac-44f1-b66a-2eb91ea86f3d","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":177,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"f08d3b5f-fd03-4220-8dbc-beab1d08ad4b","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":177,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"f62868cd-0ee9-4b32-b5a2-f6943bc24c17","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":177,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"d6700535-0216-48fd-91f8-62d065a4934d","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":177,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"bce5cfbb-457c-4dcb-8d8d-19a473975c07","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":177,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"6ea8c6e2-541b-497c-8d6a-0502bf9cf2ec","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":177,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"c753c3f7-5f9d-4ae5-9e93-1735a1a1a331","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":177,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"2ddc33e5-e6ab-4741-8c8f-cfbc56f54edc","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":177,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"62800a0f-3996-4343-bf00-af190269a9af","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":177,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"161c2f3d-16ff-4135-ae4a-0715b3101cf8","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":177,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"11eb1b32-5f07-4da3-b0a2-3f6857663c4b","block_type":"box","text":"possibility.","page_number":177,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"c30bdc01-8b1e-4055-8205-723475e8d7cf","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":177,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"630277a9-def3-4ce4-bb8f-7219ac8c3507","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":177,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"91fd82ab-94e3-4245-9f91-eb47bf35ed05","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":177,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"9a6ae7fe-303f-4570-b49f-e7d7bf5aa92b","block_type":"box","text":"A-7","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"a31842dc-313b-427d-be5a-52e9a8b35f23","block_type":"box","text":"NM1026U-5984554-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8c38002d-0880-4f5a-8a66-f44b47b884f2","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":178,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"15dd51ec-a139-4f0b-994a-90b9a4fe82cd","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":178,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"403b3531-398b-479e-a96c-3d145bdd5cd7","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":178,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"e3b3362f-9e9b-4f93-a6f4-854f581252af","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":178,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"218eac65-fb68-4c00-abe0-153e07691b77","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":178,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"8a6e956d-8df9-4e6a-9fd6-5540d456f30e","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":178,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"2e54a2cd-44f6-4253-b423-cdb465566d7d","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":178,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"61cc71ea-fecd-4db7-8876-88ae1c90187c","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":178,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"f26a1d71-3433-4e4b-888b-3ea83f371646","block_type":"box","text":"relative status within major rating categories.","page_number":178,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"8af4d7b8-3e8d-4ad1-94dd-03f441a11805","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":178,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"e5c8f02f-f673-4697-9f5e-6e40b2c01bec","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":178,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"d52248bf-33fc-4cb8-9a1b-96464c8f0ba6","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":178,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"37da7dcc-feb3-4c10-b5cd-df88c08d7903","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":178,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"37ada5e8-1977-4942-bd1c-63895100420a","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":178,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"04c373c8-ff87-4dac-8c3d-b673815bab2c","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":178,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"5b759129-dc29-4a93-b465-b0c792941bc8","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":178,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"488525e4-bb7e-4581-9ae4-162ba92bca02","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":178,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"a9a03e5c-4618-4972-8070-9b6e1467d979","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":178,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"71fcbb40-6309-4509-8ea0-8ead43ddec93","block_type":"box","text":"finance markets.","page_number":178,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"88ab41ad-1656-4be2-97d6-dfd957f7d6c3","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":178,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"f5b368f0-da64-4bac-9251-d9525a4da29c","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":178,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"f3b96f4f-df33-406b-88f1-ad1f9d5d7398","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":178,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"17e0348b-50c4-4ae1-a909-ee1493b2a7b9","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":178,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"87720023-6866-4f7a-94c9-9dd43282cbfc","block_type":"box","text":"commitments.","page_number":178,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"514e4aff-a16f-4aea-9c1d-bf1aa8f2362b","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":178,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"8ce3a490-e3bc-4e01-be03-9d116362da94","block_type":"box","text":"adequate.","page_number":178,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"ce0b3c85-cdb9-43ca-af66-a340fdb7aae3","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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companies alongside and on behalf of those teams when appropriate.","page_number":183,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"f92f8b0c-cd67-47e4-a14a-c0889f125072","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":183,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"998b087c-a69d-4d0e-924b-1f971486d167","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":183,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"96dea65b-96bd-4a90-a08f-8456777dd1ff","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":183,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"a7651bf3-0c3b-4246-b107-ca026b2348cc","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":183,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"3038b0dd-4cfe-4a27-af2d-24c099f70918","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":183,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"18e9ee98-7d16-4835-8cef-d20d7d6a827f","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":183,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"3e081725-535b-4cbc-bdbf-294a5ad2c999","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. 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The benchmark policy also may apply to","page_number":183,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"7982084b-07d8-4b73-9e37-be7763f14150","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":183,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"5cc5585c-b916-4d04-9823-52716336fb5e","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":183,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"5fe83d14-1a03-4653-b849-1231334b94e7","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":183,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"57115dd6-67bf-489a-a724-988c47a2b889","block_type":"box","text":"2","page_number":183,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"15d164fb-e9a8-428a-9c57-e42a138bfa4e","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":183,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"29cf8170-a9e5-4e50-b3da-226c13b63750","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its own — it","page_number":184,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"9cf8ac1d-132f-4995-a419-99deaf4eb3b4","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":184,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"5e7a1b33-5b0a-4195-90e0-558a2b8091a4","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":184,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"2498f161-d78d-443c-a816-13a77db3630e","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":184,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"083ec3a2-a66a-4cc6-b6f8-55bb3c74d647","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":184,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"1b970d1a-afed-428f-842f-5ee0b78e3cc5","block_type":"box","text":"this work with research, data and analytics.","page_number":184,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"2966bcc2-8a02-4f95-acbf-ee6272b484bf","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":184,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"29c8d53f-f38b-43c4-b907-74465bed8fb3","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":184,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"124413dc-9b58-4383-bada-ae9c4d926033","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":184,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"85100df3-0b13-4d17-83bd-2aa3abf0a5a9","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":184,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"929b6bbf-9864-4167-bab1-e690a7cb7646","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":184,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"e9f778ff-4fcf-42f5-b4a3-a6bd2b8815c5","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":184,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"f85023c4-9b0c-4927-afc3-304e6fc20563","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":184,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"33c068eb-75fa-44c9-a81b-8623434161bb","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":184,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"65c451f1-6da3-4ff1-8464-b9db6ac11913","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":184,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"b42aeafe-e3b2-4932-ba6a-ef7c93f7e8cd","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":184,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"0eba19a8-834d-4a75-8db6-22758004e7ea","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":184,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"95ca2f2f-ee0e-4d49-91de-7a8a1ba53a25","block_type":"box","text":"shareholder meetings.","page_number":184,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"e528d6e5-7274-4e5c-b6ab-a4e09a413193","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":184,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"a47db40c-c4e3-4454-8e5b-71fe16fe85c0","block_type":"box","text":"investing.","page_number":184,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"d2b25932-c180-43b6-a7b8-6f617e7ca071","block_type":"box","text":"3","page_number":184,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"8f4c704b-9939-46ff-8b5f-6c70e1a3e149","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":184,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"0883882f-745a-4afc-afff-60d921bb9350","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":184,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"43b30ad1-58bb-4f9f-89a8-c3d73070c2e6","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":184,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"9e818b40-38e5-4265-8a85-11d6c51555ea","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":184,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"b8b951d1-ed8b-4985-84a9-f31802ecda84","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":184,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"1941d370-bfbf-40bf-990b-9f3c1da8e443","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":184,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"0ac6b6f4-8710-41f5-aff3-321cc48f12e9","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":184,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"17362a9b-9a0a-4e4f-abdd-d1137a716fc5","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":184,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"fbebcdeb-39af-4372-918e-0655f43f930e","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":184,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"e46af763-209f-4be5-b30f-7f790ffddced","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":184,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"901efc8c-f776-4836-9299-9df7015db3ea","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":184,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"06666cfe-dfdc-4e4c-a23a-a02abfdbca12","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":184,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"294c09f3-aabe-43d4-8bb9-edeca1672438","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":184,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"89455198-e1f8-463c-9bca-6157a3bfe208","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":184,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"5ba45b74-60a3-49ce-a8fd-ad4c6332d28e","block_type":"box","text":"management teams and board directors","page_number":184,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"9949bed4-b54f-45b7-9426-846226008389","block_type":"box","text":"4","page_number":184,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"090f7ef4-c5d5-4adf-b634-f090570d7bf5","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":184,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"94229e80-16e3-4d4c-9bb2-ab378e80f5a1","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":184,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"712c7b49-6291-4221-b980-d5979bf13a44","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":184,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"074c280f-fa4b-4a1d-bd85-9dca1e312ba7","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":184,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"cd7f2101-62d3-4633-be8e-11f2e2c41146","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":184,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"10a81658-bbf7-4da9-9a6a-137f1e2bd6c4","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":184,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"61290ad6-c951-40ec-80bc-07ec693327da","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":184,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"6acaa68b-e822-4ab2-ba98-a6ceb7fe9b5c","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":184,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"2da0912c-250b-4914-956d-c42f40de0533","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":184,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"6ea3a33d-7f20-4ae2-9306-e0d4ce8b2355","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":184,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"2725eece-97d3-4e63-9664-4822cbd634e1","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":184,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"c227f733-6561-4676-b9f6-cb463afd10db","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":184,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"d34fc6d1-b363-447c-8875-4b69ec4393b5","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":184,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"ed600103-6091-458a-9e53-170635126f78","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":184,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"98124135-385a-4119-8a67-6f4226c29163","block_type":"box","text":"3","page_number":184,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"2bbb484f-c614-4a80-8639-fc8426a03c26","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":184,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"de24071e-77cb-4630-8f60-4ef2392447c9","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":184,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"2399479e-165a-4d3d-a5d6-29fecac1195c","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":184,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"ef5b70d1-d32b-4f1b-82ba-f50dd9ce5186","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":184,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"8a14c3d6-b7c6-49e9-b0e2-6fea17717c6d","block_type":"box","text":"4","page_number":184,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"d5c1f5f0-8785-4e7f-97dd-499259602c3d","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":184,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"e63d3df3-c458-48aa-bcb1-ca1782cb3428","block_type":"box","text":"boards and their members, where relevant.","page_number":184,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"89dddd23-6f7a-4f98-a7b9-5450c15608a4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"91b6fd4a-0f44-41f8-b345-30d81625a3b0","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d576c01f-17b0-495d-a978-af7ab99c8084","block_type":"box","text":"NM1026U-5984554-184/232","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ecdd300d-0933-43b8-8ad9-257c35dbded5","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":185,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"bf100d2e-fccb-4429-a903-b8afd46a7f6f","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":185,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"e259baba-6c13-4b03-a489-f34ec8d8a2d7","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":185,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"84feafdb-d5f4-4ea9-9f2e-2754127fa896","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":185,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"cad7e958-3639-4045-9d55-38ecf0d0e6bd","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":185,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"2b98a45d-93c7-4000-9450-b6670c663ba5","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":185,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"256bf12e-854c-4a0c-a6d6-b7ddaac1e726","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":185,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"58e4cbca-2bdc-40e8-96d0-1dd25b4d0ede","block_type":"box","text":"5","page_number":185,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"5669a995-77df-48ab-ad99-2c6a92f57f9f","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":185,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"6bec4c66-1e53-444e-84c8-6a0fc7daaea8","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":185,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"e4c14571-b6a9-43ae-b6a9-8660e4c49fd1","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":185,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"1071cea2-acfe-4f50-908a-941b81338861","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":185,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"ca2980f0-a714-4760-9b69-d58d4ed0f97b","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":185,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"a07a9cb6-0a94-465c-b2f2-c1c8fc9fe839","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":185,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"42043976-9a8c-4c06-9bcf-fd395c0652b0","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":185,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"9e4533d4-51b3-48ed-aba9-edb2aef54fec","block_type":"box","text":"5","page_number":185,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"2edc9eac-5bde-4962-ad93-9535cc693732","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":185,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"de0f3721-2d12-41a4-8c40-d8a9f8248440","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":185,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"a5457ed8-c8c7-4a01-ad42-91bf4a97e85d","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":185,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"09a90d74-4df4-468d-bf98-563f9b0a5669","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"25a74d21-ad21-4cda-9304-8ad93c5149f5","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"aa851d87-518c-4ae4-a5d9-f1da0c141459","block_type":"box","text":"NM1026U-5984554-185/232","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"abb87bf1-6724-4c22-ac98-dc442f836e5d","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":186,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"196d26b0-9b80-42c8-bff5-443c17b240a8","block_type":"box","text":"Roles and responsibilities","page_number":186,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"47575021-55b6-454a-ae18-0275bab900c5","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":186,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"cc8dc4ac-fbc7-448c-9ccc-b094eeee28e1","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":186,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"531cfa6f-2cd4-4ed2-bb6f-0607386eed7e","block_type":"box","text":"6","page_number":186,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"31dc3434-18a9-4f30-8911-a977fea0e6ae","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":186,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"72013dc4-ecbe-4119-b40e-c4846f005155","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":186,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"049bce8c-10ee-4377-8400-0fdb7fea802e","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":186,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"762c026b-be3d-4d5a-9107-3b710b7b6d52","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":186,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"80166718-e1d5-4cf7-b912-3d9897243ac8","block_type":"box","text":"per formance over time.","page_number":186,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"390a009d-802f-489e-a28e-bc54ccc0589b","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":186,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"b2d68103-b6a7-4a56-ab12-284366c3d757","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":186,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"0d08ea8a-cadf-493a-a5e2-4df5a35473d3","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":186,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"60f6b8c9-abf0-49fc-ab94-676ae82bda0e","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":186,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"a52522a8-a284-4c72-92ba-a5120e55e2ec","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":186,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"52299be6-549a-4971-a523-41e9eeed8cf1","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":186,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"05e7b7f6-e2f7-4875-9fbd-8ae473b9efcb","block_type":"box","text":"Composition and effectiveness","page_number":186,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"941fd1bb-cb7d-4973-8497-547f9f65e85e","block_type":"box","text":"Appointment process","page_number":186,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"77acfe52-3771-440a-b35c-b6239d6435b9","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":186,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"753248b3-0ded-42dc-a654-ddfa3ea52c4b","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":186,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"d9028041-1f48-429d-a82b-6cd43fa71bac","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":186,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"71e9ce74-f870-4447-830e-07857cb64916","block_type":"box","text":"e.g.","page_number":186,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"4c6ed80e-65d4-422a-b40e-509bd0f44128","block_type":"box","text":", sector, maturity, geographic","page_number":186,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"a042f774-8f47-4010-9c29-6907efa710eb","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":186,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"2e90fc77-f7cb-443b-a88f-72cd46fbdefd","block_type":"box","text":"e.g.","page_number":186,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"39215408-099f-43d0-8af7-5a63f8d71636","block_type":"box","text":", financial exper tise, industry track record). To","page_number":186,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"7279cec5-f8b7-449b-ab0c-27aa06a0edb8","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":186,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"18e9d6c8-63e7-41a2-ad01-287c7e8c354a","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":186,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"11a44f5f-28b5-4424-b350-4fbead097968","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":186,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"2532ea14-09d3-4417-81ea-9dc0e1b837d9","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":186,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"face77ef-f397-4cd8-a001-392ef677b640","block_type":"box","text":"and local market requirements.","page_number":186,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"c194deda-0df5-4410-8d3d-190c53ab4698","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":186,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"b6f74a23-8f0c-4b8d-8e43-06a87ab8383d","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":186,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"3d3a746b-8614-49a6-beb8-21cd26f876dd","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":186,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"61c4bd0e-7dcd-42e6-acd1-d791b4226b64","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":186,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"61d6a986-2b16-42f1-b0cd-efddc6111cc5","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":186,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"aaabb826-70c9-43ed-aa44-665366522e1a","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":186,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"dcbb44d1-8e12-4d83-b560-d6bb5a79276d","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":186,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"c1d45f1b-5abf-4fb6-a80c-395dd2e04472","block_type":"box","text":"Independence","page_number":186,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"0c925e2b-3cc5-4a0a-bcb2-73001bdfe970","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":186,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"923dd308-42a4-4e01-81ec-d28da6aa36a4","block_type":"box","text":"e.g.","page_number":186,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"874355a3-27f4-4520-b399-96fc41f7dd21","block_type":"box","text":", government or","page_number":186,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"149a0158-e141-4a7d-98d2-2193eb15dadf","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":186,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"74687879-8af1-4625-b0be-910a451f0b46","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":186,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"0bcaa84d-88a9-4575-847e-2fb42d73fb89","block_type":"box","text":"conflicts of interest or undue influence.","page_number":186,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"6ddad59d-cf07-496c-b43c-add87971164c","block_type":"box","text":"7","page_number":186,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"c29faeb9-b81a-457b-91b4-790dcf009142","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":186,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"67c4e8e3-182a-4e73-9d6a-491e9cf975e7","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":186,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"8b9c99ae-436d-43d5-86d5-6af5596c3aa1","block_type":"box","text":"independence should meet those local requirements.","page_number":186,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"65166a6c-8126-4bdf-ac75-599b5d46568f","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":186,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"5f9d6a72-cdb7-4ef3-9412-5cb79a8726d3","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":186,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"1e2e5614-c4fe-4476-8c38-3f22ccddaa62","block_type":"box","text":"composition if this is a perennial issue.","page_number":186,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"bb51e4ca-b6cf-477e-a0c3-750c51be82a4","block_type":"box","text":"6","page_number":186,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"c151c084-9ec7-4ba4-92be-379eaf718a53","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":186,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"69f418e6-44d5-4cca-b0c9-edce7baa806d","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":186,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"81f6cb5f-8a3c-4580-a716-bc660dd16301","block_type":"box","text":"7","page_number":186,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"4c825f50-bbab-4660-8c11-a78266c77ed8","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":186,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"ba181b3e-b45e-4977-bdf7-01bfd4da0d66","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":186,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"61856599-992b-4a88-8abd-44c77c667eaa","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":186,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"f04db6f3-8182-4ad4-a7d0-a640fd894f87","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":186,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"cb25f153-ce09-4cad-8e1e-240ef6b9f1bd","block_type":"box","text":"of the company and shareholders.","page_number":186,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"656075e4-248f-4507-8e4d-69f9162e99ce","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b66a33cf-3d1c-44a5-9435-69d6828810ab","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ec457823-2259-47e2-b04a-e2b35201ca76","block_type":"box","text":"NM1026U-5984554-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cb1a1021-05a5-4ded-a3f8-fd7133b3ab44","block_type":"box","text":"Independent board leadership","page_number":187,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"22d54b55-e226-441d-ae84-7368ca69bb2b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":187,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"f8235c57-f98d-4d04-a6f0-fb81e98ceae0","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":187,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"305cad71-5343-4754-9958-595aaef69df6","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":187,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"65ce657b-e1f7-4c2f-b30f-41d57fa63ce6","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":187,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"e9b529cd-1836-4aa8-b2c4-f69ca2ccb856","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":187,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"faa75dd6-e09d-4546-918a-c225e878f659","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":187,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"68903311-7a3f-418d-a9fb-e79cc51ea9c2","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":187,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"9094de9b-bb55-4871-952e-0f1ceb5e517d","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":187,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"51f9c3e5-34f3-4703-b9dc-8a2773f78ab6","block_type":"box","text":"how it serves the interests of shareholders.","page_number":187,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"4e36982f-310e-4a9c-b631-f2132a38419f","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":187,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"39545b25-930f-41cb-ae21-145d84289afd","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":187,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"bdaddbeb-56c2-4bd2-9b1a-f017fc6b97d7","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":187,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"f0ce248f-e89a-4e6f-ae03-9504d18d0094","block_type":"box","text":"Tenure and succession","page_number":187,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"7641bcce-c6e3-492f-bdad-b97b82f31e8c","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":187,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"03282cfb-ec51-4da0-bf19-b5005f1009da","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":187,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"4e2936ea-dbb1-4bfe-985e-4fcea478def3","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":187,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"26cd4cf0-7760-4fa7-8581-65de3434403e","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":187,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"6c550078-ace5-4e3c-8c02-5c461caf1305","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":187,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"6f06c228-3371-4061-ac5e-5af86c9ed82a","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":187,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"a17944bc-6220-4a46-8095-1534d9b30af2","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":187,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"0ed9aeec-3fee-45ec-bc51-23cfa0fdf3f0","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":187,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"5a48570c-5716-42f5-90bf-0031d948bc42","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":187,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"d7e46438-7172-4007-b433-3fdc7afb4111","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":187,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"25d5d599-daaf-4e15-94c8-ac2df897b570","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":187,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"6a7ffeea-0d44-4e26-b4b5-1f6fabb98005","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":187,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"ca15d129-c275-4895-801a-ad246f519864","block_type":"box","text":"for their continued service is not evident.","page_number":187,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"d57536b4-3348-4701-b4d1-67e81cabb22f","block_type":"box","text":"Capacity","page_number":187,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"ea23cacc-a211-4dfc-9298-08d9b566ef36","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":187,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"be65f309-82de-4de7-b7df-98144f9e1783","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":187,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"7b667b09-c601-4564-bfca-2ec220b49643","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":187,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"7af57957-b6fb-42df-9e56-8cf935b72f5b","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":187,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"22000ea3-f6f9-486d-8d78-8b6207c0cffd","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":187,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"e752357a-3165-4c58-a15e-6a768b514ec5","block_type":"box","text":"determinations across markets.","page_number":187,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"dfc30d61-c41d-40a2-9c64-e54987a3e3d4","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":187,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"fb38d9eb-92af-43c4-9358-819d62bb440d","block_type":"box","text":"their duties to the board and company.","page_number":187,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"68489ac0-9b4a-4966-8bf8-207d3c9bb390","block_type":"box","text":"Director elections","page_number":187,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"c5d1b789-1800-4748-8c20-e953e3093948","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":187,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"3531cfea-2760-466e-a555-37f61d6b3842","block_type":"box","text":"structure","page_number":187,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"7fe368b3-3452-4696-88ba-91688528d582","block_type":"box","text":"8","page_number":187,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"f96ee8e8-d428-48e0-bb97-7517bb7f57a0","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":187,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"dd9ccf9f-aa34-4dcf-91aa-0f52bd3d5c4f","block_type":"box","text":"basis of its business model (","page_number":187,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"da9c5e02-47ad-489f-907a-be0c8c450652","block_type":"box","text":"e.g.","page_number":187,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"40ce69f2-3296-4f3e-82f2-5cc52efda66b","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":187,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"2cf5f3f0-123d-44aa-b52f-c5d46291a5a8","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":187,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"10f8c61c-6a97-41b4-91d8-c4d22b664c58","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":187,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"8b022865-1c4f-41ff-8b4e-4b06e480744b","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":187,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"4ff34c8b-0aeb-496b-af75-aa439ce8adfb","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":187,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"28c3b533-29f8-4e09-bf25-d1b39374a9eb","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":187,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"95454719-1d7a-4741-86a8-a046b7c9d638","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":187,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"7e322147-de20-4b54-a3c4-08d980273ffa","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":187,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"9a59ea4e-4499-451f-ac36-3bfc6f14d850","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":187,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"0241524e-3956-4e2d-b16c-a77cca819876","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":187,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"84d8ae47-459e-4de8-850b-2dc2db7db297","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":187,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"40315ffc-0e90-4b35-acc3-0a03c8b615ee","block_type":"box","text":"8","page_number":187,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"d561b01f-303a-4088-a598-210c81eb7561","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":187,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"f1d8330e-e588-47cd-8ad8-a905ddf7215e","block_type":"box","text":"directors stands for election in any one year.","page_number":187,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"22bf6884-a88c-4880-bab8-addf2d13aa66","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"92586b40-01a4-47d9-be11-b3d3d3d45042","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ab969c5e-e3de-4960-af9c-96945e93e7a4","block_type":"box","text":"NM1026U-5984554-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5495c9ba-1251-47b7-859f-cb2725054135","block_type":"box","text":"Committees","page_number":188,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"9a1d9316-2380-4679-acdb-f73af155658c","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":188,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"b5b8b773-1d39-428d-9052-509104e775de","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":188,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"1dca071d-1d5d-486e-ad53-e6098324a4fe","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":188,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"796a2367-f619-4ae8-9ac8-9e6a77a6a1b0","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":188,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"2134af2c-564b-4e5d-b4fa-4210fe4961d2","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":188,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"e8cafe46-15e9-4390-ac27-4ffbf330d36c","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":188,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"bfd1210d-b20b-421f-83c2-ab930ce07306","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":188,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"5637c0b0-f811-4f25-9ce1-02fd741fe2f2","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":188,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"d0968aa2-36af-49f5-be30-68d427ccb64a","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"e8d0132d-8d92-4ffe-9405-a6fc503bc186","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":188,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"f9d64372-5656-4290-a228-477ab1a0758c","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":188,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"81e3e94d-726a-46eb-bb7f-8977f9223122","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":188,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"89eb8a95-07c5-4999-aeb5-bdcaaaa21efc","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"b74fe64b-8dc9-4c38-a450-6a70a8b85812","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":188,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"36115b90-3822-4ee9-9d66-36d79cb628c1","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":188,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"aaf1931f-123d-4f07-a6a7-c842ec0666d6","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":188,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"c38db7e9-90a2-4c9d-9e60-a1e36eb6e3f2","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":188,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"5269bb38-b875-4bd7-b7aa-951b1e8372c7","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"727ade8b-a973-4e13-88df-1b400ab56514","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":188,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"c36cf745-2224-49dd-914e-2a88495ef24f","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":188,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"2195726a-5e15-44cc-9b52-1823b7db28b9","block_type":"box","text":"firm-wide compensation policies.","page_number":188,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"60beb459-1d5c-42d8-89fb-44d137e51572","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":188,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"e2e0ba3b-9e6a-4570-b8d5-ac4a4c27cf3d","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":188,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"9ebd1bb1-ee06-4dcb-8372-e84aea8bfc9f","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":188,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"223abb88-6208-44d2-bac6-e9009de6ef6a","block_type":"box","text":"Board and director evaluation","page_number":188,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"8b85baa9-eb96-48d4-9d42-54f0922e4073","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":188,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"bb3d8ae9-454f-4afe-b311-24c6ae651201","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":188,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"75873b25-f527-410f-a750-2038b3dc3f43","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":188,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"0f460995-23ef-46fb-8b80-1e287edb7c47","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":188,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"d4513d07-d54a-495c-ab1a-b910d268da83","block_type":"box","text":"a result.","page_number":188,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"99343c33-31b1-470e-8d64-0152b200dcd1","block_type":"box","text":"Access to independent advice","page_number":188,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"9478c714-7d17-4d29-a132-aef7c941a17d","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":188,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"83b72f8c-d77c-40ec-96f3-b8dde87f6bed","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":188,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"b1e28178-a059-4a1a-beff-a85df46ba6fa","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":188,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"cf9d5f0c-7fdf-4ebe-a685-2c433b19705e","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":188,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"73dd5c06-6e9b-4386-bcf9-fd34e615f815","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":188,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"e5df2504-9627-41de-8616-09ef318816df","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":188,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"edf1330f-9f3b-4e0f-87f8-e100c52709b4","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":188,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"e9006448-b5a7-4184-a10b-461f937afb90","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":188,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"313fe2f1-f84e-4436-a2d6-9c35533daf7f","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":188,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"2e5fb5fa-cd81-41b0-85bc-176c55effd61","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":188,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"eeadd765-fa64-498b-8746-60a0e6a34346","block_type":"box","text":"per formance.","page_number":188,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"8d6895a5-06a1-4eba-8346-f144b34d8413","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":188,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"af04c1d7-63ce-45cb-8038-556fbe1a26c3","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":188,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"3b9c0757-e923-4453-8bd5-ad4edf9748d0","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":188,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"49cfdd9a-6d30-40d2-b6b5-1d7629085fb7","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":188,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"5262732d-fcfa-4420-8e6e-c6db93aacbf8","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":188,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"e23375f9-4c61-48f6-86c2-6f7913aeed3b","block_type":"box","text":"recruit and motivate.","page_number":188,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"9cf095e1-db40-44fd-9746-e1e8eefc3453","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":188,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"b63fe278-8f0d-41e2-8d16-32f7cb928001","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":188,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"a7c74f2c-8120-4ece-aff9-6558b3a78e5b","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":188,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"af449d96-ea6d-4a77-a822-5c5c0e05d489","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":188,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"adf7ad33-aaa5-4f47-baf8-3007cd5c5779","block_type":"box","text":"arrangements include:","page_number":188,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"25bdf6d1-8f80-4a4e-adf8-8c8792f8be3d","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"aa4f83ec-40ea-4d2e-8e4b-c7651aec16aa","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":188,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"b22da7fc-2919-4f36-aeb0-0da592dc9b7c","block_type":"box","text":"the company’s size, sector and market.","page_number":188,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"31f7fd10-a808-41f1-be2f-5b1c6a42a681","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e1e06a24-a70f-463b-a61f-88c9697ad4ac","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"83157d2f-ecbd-4d6c-9544-1004e0857433","block_type":"box","text":"NM1026U-5984554-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ef32c53c-b998-44be-9a10-99f95ad75be6","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"35a1cbf0-3979-4bea-8c63-7a127ce3ff3d","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":189,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"98f30468-fc4c-4100-a3b6-48ae6e7fa9cb","block_type":"box","text":"strategic objectives.","page_number":189,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"4594a020-81cb-4316-b90f-c6150925fc26","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"63054a11-9ee3-401b-a9d5-ab29f285040f","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":189,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"883b87b1-da08-4cf0-abba-c5c1a622610d","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"4ad65401-412f-41bd-b266-61e85909e889","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":189,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"f6c95317-007a-4353-83fc-7ebfe08a4980","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":189,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"b53a1f33-5453-48f8-8d71-8497bebd13a1","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"2f15a220-d920-4b4c-a16c-1834b78cd45f","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":189,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"be9962c2-e3a3-4607-b8e2-096b1d6a9c58","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"a489f870-3223-4ae5-81d0-ec8e93885971","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":189,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"7420d0fe-7bf5-4560-a270-6b8941f1b4b8","block_type":"box","text":"transparently.","page_number":189,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"14384fd1-dce5-4c30-aa8d-e008312078f9","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"25fe66fd-db55-4b3f-9523-c794f5c24ad9","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":189,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"fffe4a4e-eb4c-4ce1-8fc6-8fd033618ff7","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":189,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"7ac8bf08-0481-4459-942c-be67e1341077","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"e55f8841-0251-4d5f-b1e0-05cb8b972d6a","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":189,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"48607600-273d-41d5-b758-9b345786aa94","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"b645a87d-58b9-45e0-8212-ace4632bc60a","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":189,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"c209e0c9-d66a-4b85-ad7f-b71af7fc3263","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":189,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"e5b08892-ef91-4f48-8911-7feecdbd483c","block_type":"box","text":"misconduct.","page_number":189,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"d8c686e2-863f-429d-87f9-e97850763c8b","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"2aa504d2-d642-4686-83c0-bd34c3f02efb","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":189,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"5358a015-f2f8-44cb-8bc6-50a64d5bde99","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":189,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"a1184db4-0f2d-466e-a2d8-47f80eb20d1b","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":189,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"fb782075-1f18-4665-98d4-f160e6acca9d","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":189,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"363614cb-b07e-45d4-adb9-259a85e9804d","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":189,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"20972733-4aad-4eaf-80e4-d0bb35d6350f","block_type":"box","text":"committee, or the most senior independent director.","page_number":189,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"c8dd0452-75f6-4293-9eab-fee7fb88b416","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":189,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"02bcc3b4-1c1b-4f73-8908-507ab7fb0581","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":189,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"82b630a3-1133-44fe-9e22-b105bc3e43ba","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":189,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"ce1a1239-b8b1-446f-acaa-360343cc7e5c","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":189,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"d3593f3b-12ab-4bc3-b64f-89f43bbd50a7","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":189,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"b1bcb297-781a-4ccd-a65b-e8f1680d1482","block_type":"box","text":"CAPITAL STRUCTURE","page_number":189,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"71845743-52d1-4b94-a8b8-fb86bfba7229","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":189,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"c491d402-5cf0-464e-989a-26315fc64ea6","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":189,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"56a0e6ef-60f7-4d78-a2ae-ea0faa296426","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":189,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"1979267c-78c3-4bde-a0d0-559e7cc467f4","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":189,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"8d4b496f-d65d-4c26-a7ad-568eb45436bb","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":189,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"72f24061-d265-4650-9adf-793eedf99f2a","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":189,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"f8f5aaf7-18fb-4427-994a-7913efc7cdaf","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":189,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"cf170563-4818-49f9-b448-02dacced4f0f","block_type":"box","text":"Share issuance","page_number":189,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"be8d00e7-4c1a-4a5c-bdcd-411c91747819","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":189,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"1c1816ca-e020-4542-9dae-7d6d347a98bb","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":189,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"44a7179f-6c4e-4803-a772-dd0557d34a9c","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":189,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"1a3efc7e-4a4e-4a65-a7ee-0541960728bb","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":189,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"05627530-e99f-4106-8d5d-e88b548796bf","block_type":"box","text":"market environment.","page_number":189,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"25a11c38-4fcd-46fe-9df5-4f0fc28728ad","block_type":"box","text":"Share buybacks","page_number":189,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"e7b0efa5-263b-48d8-94ba-664418acf035","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":189,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"4d52c8a0-31b0-4903-8e72-0dcc95a15882","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":189,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"31daf619-e306-43f4-b1ef-10e06d12e6fa","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":189,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"9924989e-1dbe-4786-886f-4c1d96e61c25","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":189,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"f28f3ab5-55d0-4903-a711-661e29612537","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":189,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"a1d52a1e-ed70-4dc5-b0fa-079f1bbd0b7b","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":189,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"33653c7e-4754-454f-a765-47f257db093c","block_type":"box","text":"of the company and the market environment.","page_number":189,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"a5fa02e1-5293-44d9-81fc-6147832b9e20","block_type":"box","text":"Dividends","page_number":189,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"c439ed17-0c01-4180-b9d3-742035148853","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":189,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"588c4bd1-120e-4c27-8582-310f297958bd","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":189,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"27992b8f-e6d5-4d17-af82-be578e86f323","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"eaa6d40b-f80f-417a-abeb-5c25cfdadd78","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"75cf2da2-902a-49fb-b6ea-82432abfbf03","block_type":"box","text":"NM1026U-5984554-189/232","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0c0a1a3-6fd0-4de0-bdf9-e0b2bfeb7d11","block_type":"box","text":"Differentiated voting rights","page_number":190,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"20427f55-1691-4057-b451-7e42310da4e9","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":190,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"121cf147-5067-4ffe-acbe-4d2dc50c17ed","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":190,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"e4ba27bc-fde3-44af-8dd0-7c4aad59c76e","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":190,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"e8cd115c-24f0-49b0-80c2-82729e55abb3","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":190,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"efde9c61-a1b9-4394-9afb-70ea0a546a0d","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":190,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"96bb1029-0576-40a6-b57c-00a321b5d236","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":190,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"2a4a7505-2f9b-4ab8-ab70-0bda590c8ca3","block_type":"box","text":"analyses of proposals.","page_number":190,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"03d7bfec-4f8b-47ea-9f64-b36fcb7a8ef3","block_type":"box","text":"Mergers and acquisitions","page_number":190,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"7c201124-ac6b-4e03-8dbf-c0898485b843","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":190,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"eab3c503-ba1d-4019-a73c-4e83b6d9ce6c","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":190,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"fcea595a-e702-4aa2-b9c0-635181226f1e","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":190,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"ae759308-5cb0-427a-8954-e2e852264091","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":190,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"b6195667-42c2-43c6-bd07-28df191eb065","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":190,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"169befdc-33fd-4fa2-8950-94bb8db7b673","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":190,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"175adba0-6a23-4d78-8bf2-72b524a3973a","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":190,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"6c0d6d6a-6e53-4e87-a926-4637c9e1970e","block_type":"box","text":"Anti-takeover defenses","page_number":190,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"6d7b98d7-cd30-4d27-986c-a838f2c182d3","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":190,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"02ecf1a6-35f5-4cc3-8495-d0c09d3768da","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":190,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"58bcba2c-65e9-4d34-9fb7-cb1d3b1a0d74","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":190,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"4a569026-83f1-48ed-89a7-cbffb481e6b1","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":190,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"2ac52d1c-e365-40de-9857-f7a84f27aaab","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":190,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"445738e8-97b7-445e-8bbd-a5d97c4ec293","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":190,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"36dce2c9-815c-4a53-a67c-55adc1951c51","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":190,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"37a92488-429b-4efe-9be2-49da6f29b7f9","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":190,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"2d78f3b5-967e-4925-84e5-31c6cbc89fde","block_type":"box","text":"Shareholder activism","page_number":190,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"54e8a203-e50e-4f95-ae92-c99cb8be2574","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":190,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"84099413-ba0d-44fc-9ddb-0dd11db8a4e3","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":190,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"f98ef1b1-5802-4c96-9236-4a9289c36234","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":190,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"03dff7df-00f9-406f-93be-8d617ebcf91b","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":190,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"8ce356e0-bae6-49b6-8dba-b5f9f92681e5","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":190,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"d353e1f3-e98a-46f4-9f56-a7fc3d5b97bf","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":190,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"5eb60ac4-3fce-4442-8d84-62de5ab40210","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":190,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"5a4ab249-ca68-4054-8111-433b9908dc74","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":190,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"203109a9-0dfd-47aa-8c93-63f1de63a428","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":190,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"d718edb2-4d37-400d-8a9c-f092315188df","block_type":"box","text":"protecting shareholders’ interests.","page_number":190,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"cf0935cd-d2a3-490e-8f6a-91dcfb06adcd","block_type":"box","text":"Significant shareholders and related party transactions","page_number":190,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"f16602a2-0355-4bd5-be29-2cef38edead9","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":190,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"543f8ae4-7b4b-4705-aef7-5321ecb7e812","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":190,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"b90af29d-c77e-44be-b56b-fa28bed636fa","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":190,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"cb68ad7e-c8cd-48e4-9ef4-c3953cd30910","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":190,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"ea648a79-bc95-44e0-bfd7-6be962d0bf57","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":190,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"89392f45-fbd8-42c4-b9df-e623cce7ec69","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":190,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"86c8efaa-6d62-4e61-88d1-304824fa22c2","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":190,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"5420c17a-4d56-4765-9470-3fc1ae694761","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":190,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"b6926874-4324-4fd1-9aaf-da90c86806a1","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":190,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"ff8fb557-3f02-4afd-a821-d507bd7ea8c6","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":190,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"7b6a36f9-314d-4f87-9d0e-6d09949028ee","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":190,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"f4ebcc80-3813-4093-ad02-1d5b79584920","block_type":"box","text":"audit.","page_number":190,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"4b8f1d1b-f3f8-4e1d-ba90-dcce9e83c0fe","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":190,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"5eadd75b-2577-41dc-8c0e-ccd3bf5aec91","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":190,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"61e5923b-b121-464a-b923-ff13fe25817c","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":190,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"6de54696-7b3f-4a76-8e39-630fdd5e294d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bea36cb5-ec07-4150-accf-8a85d1b39a9a","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b642920b-36de-4220-926d-13e9736ab270","block_type":"box","text":"NM1026U-5984554-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"57ba8778-600f-40b1-b288-2b83aa1bf996","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":191,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"ee4cb7bc-191c-4aa2-9ae0-7baaff282172","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":191,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"1e35e369-b43e-44f1-ae2b-c52bed387e9d","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":191,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"974b5ea3-0773-49ba-9644-3e2671815548","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":191,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"4a0b792c-38e5-4e77-9aba-b644af646354","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":191,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"9f0c5e50-a86c-487b-9e16-f398b5eec6f7","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":191,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"b699e26f-6ad5-49d0-aa2b-5503e3d01b09","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":191,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"30a88d04-86b9-4a44-bc44-2d0a17ae942c","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":191,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"44834ab7-f79b-4f32-ab4b-8ea9c3e176c0","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":191,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"e7adcd90-8147-44c4-a16d-b4b0bceb295f","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":191,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"66c70e0d-c336-4656-8912-f935fb1009a5","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":191,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"579922a3-bbd8-43c7-9d06-27bb6dc771db","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":191,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"a7812386-50fb-45d9-97d5-0eb3fff05906","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":191,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"133dbe95-d64d-43d2-88dd-8b2b4c133a78","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":191,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"f728cabd-955d-4163-b4b7-811e725857bf","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":191,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"064d913f-700f-44d5-aa91-2356d0a10dca","block_type":"box","text":"9","page_number":191,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"6c6a1b49-9959-4fa0-acf7-b0b7ad982987","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":191,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"4a960b49-08a0-44e2-b72d-f3d95d55397d","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":191,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"caa26810-abde-4821-909d-26eedd69f6d1","block_type":"box","text":"standards specified by policy makers.","page_number":191,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"063051f0-8502-4a38-b7c1-943d78bba90d","block_type":"box","text":"10","page_number":191,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"0ab625fb-508d-4f3b-a881-eda7295fd426","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":191,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"cab2faa3-377a-4129-abc8-709fa5c8f8e1","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":191,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"31a6e89e-f499-4e33-b083-d8a9cd1303cd","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":191,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"f961b656-d981-43b8-861d-7a34d3df1575","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":191,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"2ef560ed-b942-4d5b-b049-b971bb1c9421","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":191,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"eac74b0d-653c-4104-be9b-42100cae7763","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":191,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"777acc3e-484d-4426-b10c-eeb8af87ca82","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":191,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"a637dc93-e91b-4909-84b0-b86db24007b4","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":191,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"d101cebc-1456-4674-abbd-b319d7d1c5e6","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":191,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"8036c82d-2008-4b5e-8177-c90700cb0620","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":191,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"a6a5796c-810c-46c1-93cc-a08029e9a33e","block_type":"box","text":"remained independent.","page_number":191,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"9f1116b6-1730-4a45-963c-4c777efa7e6d","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":191,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"873d8fa2-d7cd-42d1-9413-69e15ebc6bf7","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":191,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"c5f32954-c0ed-4d69-ab9c-71e003d25e54","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":191,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"ecc13f60-ea7d-4fcc-a400-51f9b8f2552f","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":191,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"e2994084-06f9-479c-b62a-dfae92244e39","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":191,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"c0af8120-98d4-444a-933d-6730bc00b4c3","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":191,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"630d6db4-f88a-46d5-a837-7e0049cdad14","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":191,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"e330303e-1212-4649-a061-9e52cfe452b4","block_type":"box","text":"General shareholder meetings","page_number":191,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"885e458a-5036-4286-85a9-99caa29f7afc","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":191,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"d83e55bd-5f07-4fd2-ae02-3e61f93c51e5","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":191,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"0b80b29e-e695-4b7f-8c2d-04317ca18c7e","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":191,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"10d2fc93-e961-46a3-af27-cf344849b31f","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":191,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"8a64a645-e068-4e07-98da-c2368ebbf94b","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":191,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"95c65390-8c45-4035-afb5-4fff9541a4c5","block_type":"box","text":"an in-person meeting.","page_number":191,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"0abec7c1-3bd9-43d7-b23b-913ade5da266","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":191,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"9307f135-90de-4bc7-8e2d-7e4807b3015e","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":191,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"f18f6410-61ce-4905-94cd-9b741c9a15d3","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":191,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"485aac25-698b-4225-b17e-e6b4fd123b56","block_type":"box","text":"par ticipation.","page_number":191,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"42dbc423-e580-45da-aa10-a878603219ad","block_type":"box","text":"9","page_number":191,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"e351e8a9-a231-4300-8950-8e1000f77f4d","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":191,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"d3754316-9d46-416a-ac79-c08c2ab6f8ca","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":191,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"cc0bf9eb-65d3-435b-a78a-4fd9560dfac3","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":191,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"dd3c73cd-8214-4949-9272-b5d58dd6a3f3","block_type":"box","text":"Disclosures.”","page_number":191,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"2935e416-31bd-486b-85d8-1015fc8d69dc","block_type":"box","text":"10","page_number":191,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"af05b12a-12e9-42f7-b489-09d603c853f0","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":191,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"4779e433-af67-4e7d-9889-7848c824624c","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":191,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"2b5beeff-b155-4ce4-a304-a29b183d0079","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":191,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"1daa13f3-db73-443e-82b6-1f87e968a693","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b87d1d8e-0707-49b9-91bc-2c33c5e88b69","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f7cf7241-0c70-458b-8bcb-41170254a6e8","block_type":"box","text":"NM1026U-5984554-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ba12eec0-3723-4201-80c6-2b9a7dba87d6","block_type":"box","text":"Bylaw amendments","page_number":192,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"da3d4af2-eb76-4fe1-b4a6-638cea3b0827","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":192,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"a9a617b4-70ff-4f8c-b6b2-ff8d693f4190","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":192,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"abb56dc8-92d0-413c-81ee-d20536676e65","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":192,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"f7c9218a-58d5-4105-8d6c-7c63261aee86","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":192,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"f59403a5-8768-40e0-8dea-074216d89988","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":192,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"fb36bd54-24ad-46b5-9455-eff067f53010","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":192,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"fafdcec3-c123-4e09-a730-dd3966f2e8ce","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":192,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"a56ba2c6-1636-40a2-95b7-0ae0b9a9cd06","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":192,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"28108f17-b8c4-4138-85ab-dbeedb0a02a1","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":192,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"ec70afd8-3b30-4b6c-8c52-ce8f86bbff06","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":192,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"467f1520-c52e-4d5e-970f-d8e59697e904","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":192,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"cc5a187e-aef1-49f3-81f6-989a61011aeb","block_type":"box","text":"nomination process.","page_number":192,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"5e89ee12-196b-497b-975b-8fc2d832fcfe","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":192,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"8301531e-966d-4187-a13e-5bf0b8662856","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":192,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"ad93d5cc-2b79-4ba1-adae-0694a836fe4c","block_type":"box","text":"Change of domicile","page_number":192,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"94353fb2-0887-4285-80e4-4e539ba70a66","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":192,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"f6f99d7b-3e19-43d4-9801-e304c934ef8f","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":192,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"7d587f47-b2a8-4a8a-b4ab-3d81263fa5e7","block_type":"box","text":"immaterial.","page_number":192,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"66a1a5b7-0088-401c-8245-9b2e0efcb165","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":192,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"f3e6f706-e868-4976-b882-d0eb6986747d","block_type":"box","text":"with our clients’ financial interests.","page_number":192,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"8808928d-b22d-4cbb-8c91-9f80bd11ca76","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":192,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"2beeb9bd-9fbe-42c2-8a0a-cfc883f0b870","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":192,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"f9a064e5-48e6-4458-ab68-0757db506021","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":192,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"293e3ee5-a40f-469c-afb1-69a9f3d8b42e","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":192,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"f88254d8-d605-4705-82ec-c66b90ad472e","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":192,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"d541f38e-9f39-42e0-ac92-8c887812b1d1","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":192,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"34351c45-bb75-4aed-b7e6-d0d5b6c1b99f","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":192,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"f922d084-2fae-46fb-b063-abee351ea79e","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":192,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"b0c324b3-761e-459b-bff9-ac86cd027008","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":192,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"a6500f1c-e564-494d-b3f2-3b1d6b3f906c","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":192,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"60fd4def-18ae-4ed1-adfa-088da6b14643","block_type":"box","text":"relevant to a company’s business.","page_number":192,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"b66a1918-f455-4bd5-aa9a-4d5f03b2dcac","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":192,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"e16f6756-6c87-4d96-a944-ca3ad2f89124","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":192,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"a5b167d8-8e6d-4461-871c-6f707fe7817d","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":192,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"8554dff0-f24f-4796-972d-d12bceb8bfd3","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":192,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"a876d93a-7a60-4b8b-a7b9-edb133d9ae96","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":192,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"1686e759-e9f4-4051-9792-66814e2efcd7","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":192,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"a675fbd1-16f1-4023-8e3b-b543ffc2a7fd","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":192,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"aaf670d7-5b71-4eba-8e04-39a570ca3125","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":192,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"d92d9f62-e2f5-45ce-8d29-c27c7038c69b","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":192,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"c616ea76-bbcc-4ba9-b5c3-67418c5d529a","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":192,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"892b0f47-22b7-428d-8ae5-777b2a191298","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":192,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"816608e1-b68c-42c5-9172-c273169f7287","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":192,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"5c121f33-57a8-4cd3-ad6d-3b3b2c1032e6","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":192,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"821ca7d9-2dc6-4959-903c-c1f236130b83","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":192,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"314082fc-9433-47b0-9c9c-f771b1492415","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":192,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"7d31a84c-f1de-4c8e-b111-136761f2ba33","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":192,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"47387464-b90b-408d-a7b2-92488e04385b","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":192,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"bef97618-4ddd-46af-bae3-2dbc2614ec27","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":192,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"97dca7d2-7c82-4e8d-b0c4-e80ba254e95c","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":192,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"d73a93b2-38da-4296-883a-3c99a71a17de","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":192,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"9a43b00d-bacd-417a-ac66-c3dcecdfa914","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f8f6cfd2-342f-480a-8be6-320451325553","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"5a2e07ba-bdd6-4d4c-9c03-adf5f8709d59","block_type":"box","text":"NM1026U-5984554-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5f162e8b-f2b6-4127-a8f9-abeb11c892f6","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":193,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"c2fc5466-bde8-46ce-9024-1243a6c9d1f5","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":193,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"298ad3d7-cbf2-461c-8a21-cf952cc1c74c","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":193,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"a233a310-898c-412e-9b19-59a9174007e3","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":193,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"27121fef-7ca3-4f30-8b4b-58f8c9b39280","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":193,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"05e4a485-9847-4fdf-9bc3-68b9f85ac0a9","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":193,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"c303abf4-c708-4337-9634-3fd8d2e1e7e9","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":193,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"71a42046-f2f3-41ab-8bda-b940bbbd2495","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":193,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"ed8b7f59-1252-4d9a-84d7-00c983e2b878","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"600ceb80-24e3-49f3-99b0-4965b88986f1","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0c262a23-b655-4409-b3ed-47b9cfcb0d18","block_type":"box","text":"NM1026U-5984554-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b0d96f80-0303-44fd-8bec-7d1f82148eee","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":194,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"bc502ff8-2e8f-4730-a933-8b4b747058bf","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":194,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"7f0f4e2c-8051-4752-81b9-ab4a98fb6dd6","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":194,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"a3a40b7d-9c3d-469f-b787-96c6cf2d4abd","block_type":"box","text":"11","page_number":194,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"b8f481e3-6a3a-446f-9d33-d56d3815d2d7","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":194,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"36f6c446-e8d7-41b1-8c4d-33cf411483f3","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":194,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"8eb072ba-8c6c-4241-ad2e-a6ca4a2d19a9","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":194,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"69e0f8e8-42df-46b8-9355-82d877f38d24","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":194,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"ee1b0259-5369-4eee-9870-bbbb003628b8","block_type":"box","text":"regulatory requirements.","page_number":194,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"453fc5e5-9e9d-415d-841d-436d60bd5c9a","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":194,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"7ed8e321-6c4b-48c2-9b1d-5b2fd0d8aaed","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":194,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"c9f5282e-fd16-4a1b-a166-792f0347186c","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":194,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"cd7207f9-b4f6-4b2b-a1e0-98e851a8b79d","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":194,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"145517ed-f579-4efa-8150-67d8c794b856","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":194,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"354d5ed2-efb6-4879-82eb-e916e379c678","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":194,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"526442d8-c358-49c4-9f2f-fdebe6f9718e","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":194,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"8ba7f194-eb2c-433c-85fd-608b6e49fb5a","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":194,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"6ec1be7b-d83c-4baf-b59f-f575a7cb9870","block_type":"box","text":"returns.","page_number":194,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"3fb95867-8535-49ee-89e7-8be52e1ae533","block_type":"box","text":"KEY STAKEHOLDERS","page_number":194,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"60035fc8-aba8-4c12-a235-6d207708f533","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":194,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"162f59a4-294f-41c6-b312-a6279fae5d93","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":194,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"fbef15c3-46f7-4e70-bd8c-c313252f0a2b","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":194,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"5d494d8d-d799-4db7-bbfe-44f5a9e2063c","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":194,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"be7a7737-6006-4267-b105-cc32a62e1c16","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":194,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"67a47cab-dd05-4ab6-8988-47b84b0c0f62","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":194,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"70354d6f-6290-481f-b7a6-871057e86c28","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":194,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"71aca15e-4e4c-453a-94d9-4f236d7f68fd","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":194,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"1df21fe9-cb40-45b1-ae8a-15e85b05b597","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":194,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"6947de52-203d-4651-b1d9-58ce323cb493","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":194,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"f6ccd853-c8e4-4cf6-bb43-b5c83c28b772","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":194,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"e59b8d10-b3c4-46ad-be5c-7f535079b919","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":194,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"e5c2e9f9-7758-4904-a47e-38a4eb6f7ee2","block_type":"box","text":"i.e.","page_number":194,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"d2716494-2dc9-4928-ae09-4e929137f677","block_type":"box","text":", one in which global","page_number":194,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"c0219368-8c97-4f69-8aab-6e9c9b42d0ca","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":194,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"3143164e-4313-4b02-944c-26106e08828b","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":194,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"fbf305f4-eee2-468b-892e-98bba50f2420","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":194,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"8bdc990f-8da9-43fb-a686-916de9efaa43","block_type":"box","text":"client.","page_number":194,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"fa9d9373-1c4b-4a93-9503-7953ff592366","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":194,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"8a87b194-a756-4ead-8f42-9e244dacff48","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":194,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"9af29f17-b256-4d6f-9cd3-6c7ff7f91506","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":194,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"eb9a57b4-4682-4468-adf4-7654a124742d","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":194,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"111c3874-bd3b-4c54-9734-aa46d7d14394","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":194,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"3d9cf7b3-6653-4cd0-b1f3-77bab683c5e2","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":194,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"9b30777f-bea2-4f8a-99e5-13a32929ef7a","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":194,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"f3af9729-0a5b-4388-837e-5f441dc2903f","block_type":"box","text":"1 and 2 emissions.","page_number":194,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"15b23782-f1a1-4c19-9dad-85eed319311e","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":194,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"54f94d53-2778-4f74-8dc6-7d80cc9c8e32","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":194,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"57f29a57-46ee-4d9b-af59-8dd15432d756","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":194,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"d6cfa303-aa6d-43da-bd9d-627c881216ae","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":194,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"c70d718e-acbc-4b85-a246-1b0ef636af5d","block_type":"box","text":"11","page_number":194,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"7d5da880-6828-48b2-abe2-94b58e9bba77","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":194,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"bb16105d-27c7-4567-bc62-bdfd36b82f09","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":194,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"b4efbee6-6653-403d-9dcd-7b6b9024908f","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":194,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"297adc7c-2f73-476f-9dc0-746b68a7e7a0","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":194,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"18c4a415-867b-4e6f-8b91-f9646ca3299e","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":194,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"dbc5bf9f-1b57-4c9e-9f83-ac5f5464e0f7","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":194,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"e52ec706-805d-4c4d-bc62-bb209f01f9b1","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":194,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"bdee6484-0215-43d9-8a71-67ee8898d652","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":194,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"6536b0b9-da31-4600-aa47-6d3582df63ea","block_type":"box","text":"sound governance framework.","page_number":194,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"f57239e1-53c7-4176-b4b0-ae4b87868302","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4f62faef-93e9-45b8-981f-28d0bb90fbad","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"84a9fbf6-6adb-46bc-b285-aca24bd5dd7d","block_type":"box","text":"NM1026U-5984554-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9784e006-4645-4e2a-bf0c-c3f2ef376df7","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":195,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"2af3adb7-1262-4a3f-9ead-1ca02fb8514f","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":195,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"88f67185-f2db-4f14-9ff5-9827018811c8","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":195,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"442d1680-4ee8-4908-972e-212df334db33","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":195,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"38ac52e3-ba8d-4c9e-89cb-9b41e65de215","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":195,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"b603d2d8-b9d8-4bcc-90d1-ecc31d865877","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":195,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"8da91f0b-04b1-4360-96a2-d76b0d8c7f0f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"06ab5033-e36e-4a2d-822d-2cefbef77038","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"261871b1-72da-4dad-87e2-ec82a2b00b25","block_type":"box","text":"NM1026U-5984554-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d036c054-dd5c-43e6-a12e-3143673cc280","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":196,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"31d4f812-0cb6-42c2-87f7-c9f8598a78bc","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":196,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"abb601c4-daca-4c67-90eb-e8452a129c34","block_type":"box","text":"Oversight","page_number":196,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"9e8c491d-72e9-40e3-a13d-1e5fe11f3354","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":196,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"adf96fc5-fa15-46c6-839e-93d2afdf6cb3","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":196,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"c916bf56-4c14-4dec-bfbc-7ff7b9076a4c","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":196,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"141c9f00-1046-4538-a6e5-b558c6efe2e4","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":196,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"b85afab0-43e6-41e3-8799-9bffdcb7a89c","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":196,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"fe040513-50bb-422d-a43b-c0ca88a2ec80","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":196,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"3f9ef155-b460-4318-a6ed-554b6b9ba08e","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":196,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"f2659a64-1f1e-4ce7-b0cb-b4d64c41d18d","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":196,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"c70fddad-3186-461d-96eb-b81ad53d1c6b","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":196,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"924a2913-9ed1-49a6-87ba-15f236b1cf7d","block_type":"box","text":"relevant active equity investors.","page_number":196,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"39e43b12-b3fa-41d8-8e29-ffbfdc56b6a5","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":196,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"2e71581c-0f6d-40bd-beab-32ff719db4bb","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":196,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"ff445820-dd14-42ff-bbe3-4325602148c7","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":196,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"1b20d3ea-c9dd-42f8-bb65-b786ba668a11","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":196,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"52651dc4-91ed-4850-98ef-85717a86527a","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":196,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"6ea2c019-5edf-4c19-8bba-eb6e21df5301","block_type":"box","text":"third-par ty vote services providers” below).","page_number":196,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"0b73eda0-798c-45a9-9a86-f4a61aab50dc","block_type":"box","text":"Voting guidelines and vote execution","page_number":196,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"ffdfb62a-8742-402c-a60e-23536c04ea02","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":196,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"7a9d54a5-8741-4e37-a974-07bf800fa5bd","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":196,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"35831bf0-b634-4467-9114-c904b17abcbd","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":196,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"10be5350-e23e-4745-9d8e-76ec4f7a232a","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":196,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"48e384c9-8e13-48f8-9f4e-b2fdd02dc4e7","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":196,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"dfb78375-7733-4de5-a3fe-cb0fd61e34ab","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":196,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"50a00dca-7d9b-4aaf-8399-30f04f0af001","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":196,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"4a22fcf7-fa91-4de0-846f-d1f9bc3427b4","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":196,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"33697af8-54ef-4907-851c-c4ca7dfaa4c2","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":196,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"a9e7f50b-1d3b-49b6-8377-6d3b47791989","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":196,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"8e631847-a1a2-482f-a812-933ea34aafa7","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":196,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"77a2ce55-2edf-4e9b-b5ab-5994f1236ed4","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":196,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"7fe655f4-fc5c-4c51-a535-6e9e60d79bdc","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":196,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"a132f312-285a-4b46-bd7c-440db577cd73","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":196,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"75389705-ff92-4261-b003-dd9142dfe751","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":196,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"45a5599d-d8e5-4dfc-b2fd-e807bc6d8de1","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":196,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"2524cb3b-cf12-40cc-8b0a-62f14a6c957c","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":196,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"b9a218c4-fe2e-4ef3-8520-87ee4da8a49a","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":196,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"d723df67-11c8-4f5e-b6e6-3ce80b5fdbe3","block_type":"box","text":"well as the desirability of voting such proxies. 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We are not suppor tive of impediments to the","page_number":196,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2d7e6f18-4d5d-4b1a-91a7-d1650a747541","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":196,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"7930428e-f167-405f-9446-46a02a3fd74b","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. 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BlackRock contracts primarily with the vote services provider ISS and","page_number":197,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"21f0f8cd-1ab2-46ce-8337-89ca863d807a","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":197,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"cb89a414-66fe-4a58-abd1-11b1cbed90b7","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":197,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"b36d4f1b-baf6-482e-bcde-3b75ff7857ef","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":197,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"2c9a6ad2-5c3b-41a7-8dd7-70be4cc0e759","block_type":"box","text":"voting recommendations. 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Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":197,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"8d86836e-df5b-4890-843c-fddc52b72ca2","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":197,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"33cba9a6-4489-4c39-a612-133968b6ae09","block_type":"box","text":"vote services provider at any time prior to the vote deadline. 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":200,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"94624ba7-a5dc-4262-b37c-a0326bb80f9f","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":200,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"f3536b8e-eef3-4819-b52b-9030c7d33d05","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":200,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"c9c8272d-3d24-4703-8d3d-9a1ce5b5d4a1","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":200,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"6fe3b152-60f2-4cd4-857e-866db4fc0413","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":200,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"18db2af9-6423-4107-b18f-24dd209b75db","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":200,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"2523bf33-3704-4854-b83b-29a2fe4f43ca","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":200,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"182b9c39-63ad-49ec-bd92-0ed7dc01d0fa","block_type":"box","text":"Appendix A.","page_number":200,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"cbefca8a-c45b-447a-94cf-d01e53570dd8","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":200,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"75528a71-68ad-44b9-89eb-441b4eb9b445","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":200,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"00471049-c1b5-4e7f-8b24-0ad24b2774ca","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":200,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"0286273a-cf0c-416b-b458-8db625a63f6d","block_type":"box","text":"Conflicts Management","page_number":200,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"92db98a2-b8e6-4959-b277-14217fb4296a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":200,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"24aa1fbb-b9fc-44a8-a8a4-d0d36857a4e2","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":200,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"df00f830-6c19-4c40-8564-ba44bbd29ea4","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":200,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"c143fb7d-10f8-443e-917a-62b8eaa5a825","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":200,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"2492e546-bc53-499b-af81-3494c284b793","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":200,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"186e9faf-7a86-4261-8daa-645e8b5e7014","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":200,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"6a3bdfb2-9e79-4ddc-b29e-baf9070e3d66","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":200,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"38f3f5eb-ce51-42f3-9944-6c4244fdbbd3","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":200,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"dbbc9228-fc6c-48b6-af53-c2cda7005642","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":200,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"24df9df4-1b5d-4ca0-804b-4e6b1b7315b5","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":200,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"1f8fb087-5923-483c-bc74-3aaa61a66c7e","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":200,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"02bc4177-93e4-4767-ad31-3eeda82a972b","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":200,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"0ee9f37b-af5a-40ae-adca-afbfaeafb424","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":200,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"a53ee166-6d11-4af7-b84b-07771f4072e6","block_type":"box","text":"connection with proxy voting.","page_number":200,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"898acd39-4d3c-43f1-8886-bc196b838f31","block_type":"box","text":"Reports to the Board","page_number":200,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"fad15ec8-c15b-4be3-a1fd-8971077edc18","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":200,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"97f2eaef-458c-4dbc-b84c-b81a0a986040","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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Voting at shareholder meetings","page_number":204,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"f9675a73-16ad-412c-8568-bd4e6df6420e","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":204,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"b2e1b51c-3fb5-4670-b24d-502ca44346b4","block_type":"box","text":"to vote on their behalf.","page_number":204,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"c900f827-fa35-475d-8e92-284580ef647c","block_type":"box","text":"3. 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Reporting on our activities to inform clients","page_number":204,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"60eb870b-2b12-4435-9247-66bb40a5e25a","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":204,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"6674774e-ffdd-4fe7-befb-952a5926f65d","block_type":"box","text":"publications on our website and direct client communications.","page_number":204,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"c8390d9b-41b7-4096-8d36-b931ae1d5e37","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":204,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"df57e782-05cb-4826-aacf-a5d1f0e60d56","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":204,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"80ac3689-5807-42d5-87b5-a72964d62804","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":204,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"a91021e3-8828-4ea5-9764-82898bf60d2c","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":204,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"fa8d774e-eb88-4f60-9ea6-0a7f7b563ee2","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":204,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"94bc4866-b5b9-49f5-be51-81363aeaef7b","block_type":"box","text":"2","page_number":204,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"f7be4e60-35fe-47e3-83be-9d3323b82969","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":204,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"d53f113c-ae3b-4c81-af1a-847105997081","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. 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Our role, on behalf of clients as long-term investors, is to better","page_number":204,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"15d8ad87-1c68-4f70-a255-4bfee463a9e0","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":204,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"9b99b9aa-512b-491b-99b3-6c3a51b2677f","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":204,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"4beca910-1463-40e0-bf50-a3c3b9ac65c7","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":204,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"1a29b4c6-63a0-47d5-9080-bd28644c7217","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":204,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"60a6b1be-e168-4e81-9328-cccc698d16b6","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":204,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"d6322292-33a3-45ab-8115-a889f885c6c7","block_type":"box","text":"individual investors that they serve. 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Engagements provide companies with the","page_number":204,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"1ca2d52f-7b1d-4e42-bf17-ad912c1ee44b","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":204,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"ea1231dd-fca1-45c4-bda8-0bcc6b4a6ad9","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":204,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"6c5a1cc4-7a70-49d0-a2f9-19d31c4c36b0","block_type":"box","text":"1","page_number":204,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"943dc64e-62d1-42dd-be38-3338839bff23","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":204,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"dbe7b148-dd67-4cbe-a9c8-c75f05f6cf9f","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":204,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"21f0a192-b93f-4a4c-aeb1-9b4962a484a4","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":204,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"8846fb35-0af8-402d-9cd8-7b4c12d0a771","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":204,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"871a4afb-712b-4b00-a78c-12056897240c","block_type":"box","text":"2","page_number":204,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"7d6d2b68-88f2-4575-be63-7a0d3220a870","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":204,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"89104d41-ae77-4a1f-9994-77a9fe7ce2f8","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":204,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"40d8414f-d046-4561-99ba-f3b01247174b","block_type":"box","text":"material business risk or oppor tunity.","page_number":204,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"75215a4b-ab18-4167-bfae-2c390579cfd5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1aa1ac94-8bc9-4897-a3f8-656570ee30d2","block_type":"box","text":"Global Principles | 3","page_number":204,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"315c7568-f1f0-4c5f-b679-424562a5103e","block_type":"box","text":"NM1026U-5984554-204/232","page_number":204,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e5ea9850-34ad-4cdb-a054-72f3d9817ece","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":205,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"362dc761-620c-4cef-8b1f-e46c9036690e","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":205,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"07e8391c-7b50-4af1-8a44-906f88952579","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":205,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"40bdf0d2-c158-4cf9-8286-7d3761acac5a","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":205,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"5c61941c-783c-4723-a510-290a9045523a","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":205,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"b1928396-2b96-47f0-a24c-b756ce7dd9e4","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":205,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"7b2a3bec-1eee-4cea-9307-fa280829044f","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":205,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"17c4cc09-9c1e-4c9b-8450-88aa4dd23bd2","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":205,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"70acc30f-cc88-48a6-9cc7-2bfc9c3a0ecc","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":205,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"35f2f17d-8756-4e3a-9a4b-7fab0ff55f03","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":205,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"445fc1ad-2340-4728-a7c3-c869a98e7ed7","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":205,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"3e33e2a1-4433-4f87-b1db-bd61ea917bc9","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":205,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"c2188bc2-47c4-4864-8212-bb54c8de1aab","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":205,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"aae46350-d046-4b21-b669-8c91c9b90db5","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":205,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"e6ff19bd-7cbd-4b69-92a5-c88034c3eb76","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":205,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"15e1ab2d-ac05-4a6e-9b8d-d134ed94aa14","block_type":"box","text":"3","page_number":205,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"1d4c8b87-2e3b-49c7-b96e-7806b3376f61","block_type":"box","text":"For example, in","page_number":205,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"0061744e-d690-4335-8e79-4fe6761d965a","block_type":"box","text":"most markets, shareholders have the right to:","page_number":205,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"a98970d6-cd51-4aec-b4c9-b31c736269fe","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"fe07549e-d118-4b6f-b159-1accaacdd43b","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":205,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"84af9954-9c97-4405-9d9f-0de32a956820","block_type":"box","text":"char ter or bylaws.","page_number":205,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"8d094f1e-d39d-4955-a632-94cf3cb65303","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"04f6ae8a-42ab-4641-af03-3aa63efb2171","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":205,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"1b908b2d-358b-423e-bf3a-9c0d11d99577","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":205,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"2c343481-8128-4341-97df-09d506162744","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"45d487c3-7388-4aac-9496-c447cd0b2987","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":205,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"b6c850c5-2cae-4627-be17-6573750ea6a0","block_type":"box","text":"are material — to make informed decisions.","page_number":205,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"3de5fc44-7fac-46a4-a0b9-57e70f498eb3","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":205,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"249bb255-6ca8-455e-8e92-e537aa247cec","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":205,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"ad7a228d-1037-48bb-acd5-eb530c731698","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":205,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"9a675cbe-ed5b-4020-915e-d0e3952290ea","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":205,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"b2620fbf-89e8-4bc5-98dc-b4bcecd00a95","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"d1f038c0-d938-43d0-8028-63ce6434a456","block_type":"box","text":"Boards and directors","page_number":205,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"13be373a-80ff-4477-acbe-1b766615a105","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"48d54eb7-8c26-43a7-93a1-f3731fd7c07c","block_type":"box","text":"Auditors and audit-related issues","page_number":205,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"f8e386c4-485d-401a-909f-ed5b3fd5ff11","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"06e4f40c-37b3-4823-a48c-c0c998a4e7bc","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":205,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"e719a69b-f51b-4b76-8978-05eb5d9a007d","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"286ae45a-e098-4da5-bc0f-885cd4dd1ceb","block_type":"box","text":"Executive compensation","page_number":205,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"27b4c3b2-1e83-4c3b-b645-485e5b376b48","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"c4c03362-286f-417d-bd81-659e8e18551b","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":205,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"b8a2a045-0cdc-4535-ae3c-fe380b62d0b7","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"25880c2b-14c2-46cc-85c4-3c35dbde381b","block_type":"box","text":"Shareholder proposals","page_number":205,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"91de6117-8e8e-4c14-9208-d06e066bf6d7","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":205,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"bfc42db4-72fd-41f1-b7d3-63147d3f3465","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":205,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"a1c443fb-0d14-40ad-94b7-b77fcb943d9e","block_type":"box","text":"which companies operate.","page_number":205,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"6c46ecef-d11e-495d-b7c5-e6b35a3ee513","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":205,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"03cfbd78-e980-4000-9960-1b07e321a9e5","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":205,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"c0085caa-8077-4cd7-a3a1-4a5403eec4c4","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":205,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"4443d7dd-acbc-41d2-b667-b9a3304fff91","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":205,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"90d37d7a-9665-4d45-abca-b9704b785cec","block_type":"box","text":"4","page_number":205,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"152af5d5-393c-4a97-b43d-71a36fdc32b2","block_type":"box","text":"3","page_number":205,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"3aca5b70-c43d-48c1-8ebf-b84acc8af6e9","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":205,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"a13b0899-7b23-4817-b09c-799c93fafd0b","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":205,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"066a58c8-f2d1-4e76-84c9-767ab86514c5","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":205,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"8fd13b97-67ba-4186-9e57-281078cb6713","block_type":"box","text":"4","page_number":205,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"0e0fb2e9-1438-432c-bc3f-cbeb318bb6d6","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":205,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"d75c65c6-d21c-4dd3-a2ad-8dc4620cc5d6","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":205,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"93eeedcf-3007-4d51-a2b3-c7b0b126995e","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":205,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"529e6afa-b2f7-4e80-b043-20c71ee09228","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":205,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"5020c158-1ba6-49ab-831a-c55673d3e8ed","block_type":"box","text":"guidelines.","page_number":205,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"01655582-5790-4b30-8cb6-5f8858f216f8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c7df0dd3-6a9f-4bcd-9e89-295c9cadea5a","block_type":"box","text":"Global Principles | 4","page_number":205,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"80e466c5-d4b3-43f0-a0fc-a6f4d224691a","block_type":"box","text":"NM1026U-5984554-205/232","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"797ae591-47f8-4374-97c8-d40d956f4d01","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":206,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"98f4c2d1-a283-44bf-96ce-9d1d60104842","block_type":"box","text":"Oversight role of the board","page_number":206,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"0762fb5b-f049-4ec0-89e5-c3872b00a962","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":206,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"aadb652a-e2ef-46cd-a578-403ac74a0897","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":206,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"5bb4ca0c-06eb-4cfe-8f8c-f5fe0632747b","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":206,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"4f6357ce-a3fe-4086-962a-3aa5936f0398","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":206,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"4ee71702-71e8-45da-acb8-a6d72bfaf091","block_type":"box","text":"long-term financial per formance.","page_number":206,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"7f9046d1-a6b2-496e-8dbe-1c4bf4c837ad","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":206,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"def5db42-2f87-4959-8b8e-90d435c71f3a","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":206,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"90751cc8-aa0d-4fdc-b958-b066e0a37115","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":206,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"b4028a49-30a4-45bc-ac90-65df7f79ef81","block_type":"box","text":"the business environment in which a company is operating.","page_number":206,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"385bc569-1c83-458d-bf5b-b69a4876a1fd","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":206,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"ad2a1d72-e4eb-4519-814a-592cad242bb1","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":206,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"ccf9c0c9-3ddc-4b0f-8f83-15b0a136fdf1","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":206,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"f2a0bbf9-54c6-400a-8743-22314bb507b7","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":206,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"1311177d-5d50-467e-974c-1018efa1cc70","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":206,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"51f1867b-7b31-4289-8a5a-07fc17ee67cf","block_type":"box","text":"mitigating such risks.","page_number":206,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"4b5368a5-9b2a-4591-a929-f882e92c0afc","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":206,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"20af7c8a-1787-4e55-adcd-93c12dd19936","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":206,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"aafff74a-03b0-40ef-bda1-dbf7368b52e7","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":206,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"8a1eeee9-2bb7-467b-9d41-e91a75271756","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":206,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"859ab945-6872-4545-888f-0c34627e0694","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":206,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"0fb52b31-5975-4554-939b-bb9505713ebf","block_type":"box","text":"strategy.","page_number":206,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"e6c628df-f4dd-4ca8-9f11-9fc161c60e7e","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":206,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"61a021f0-635b-4ba3-b47a-cd27fe5c3074","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":206,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"2bc248cc-4a48-42fa-a8f5-24fe62ca3b28","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":206,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"d27cc377-75d2-42c0-9eaa-28d689b07b38","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":206,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"4148931b-a94d-46bd-8bea-cb89b1bca928","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":206,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"5e87db86-df17-456f-889a-e2dcbbfc7b1a","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":206,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"184226f4-d437-4b7e-8575-ba30e51abfd5","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":206,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"0688479a-2c35-4ead-a50a-696f37e27ee8","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":206,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"efcb34be-375f-41ea-b408-42263369ddb1","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":206,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"0f0ddb74-d3ad-47ee-970a-71dc4892624d","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":206,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"953f2c84-cb24-4762-9194-cdec59061172","block_type":"box","text":"Regular accountability through director elections","page_number":206,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"f4a5de9f-5474-4297-9210-9d2cb24e9bf7","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":206,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"982ce8a1-dac2-429d-aa72-35b2ded9cbd4","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":206,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"efa588f2-b009-4634-98a5-8f63a9f12086","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":206,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"34d8e9a5-c327-4fda-bf67-aca6cc45d773","block_type":"box","text":"5","page_number":206,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"b185b764-2ace-4197-9ce2-802dcf5d09c3","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":206,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"9bd3b1ea-eda6-4c96-aa9f-478ad2f677ad","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":206,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"2e5e61d9-594b-4207-9487-4443756d3c07","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":206,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"cf889a6e-fb57-471b-869d-630ffdc5a265","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":206,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"0efca82e-95f7-4265-8fde-647bcd09e724","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":206,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"f81fa062-54dc-44c8-b47b-2e62de571e83","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":206,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"f83b4bb9-ec31-406c-af22-a2d99b15fc58","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":206,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"619a3949-0955-4699-ac99-2d4a93424a8d","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":206,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"b89ed138-f46a-456b-a89d-85a6cfe69cfc","block_type":"box","text":"5","page_number":206,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"e245290d-fd44-4f50-9230-adf0c52b29a5","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":206,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"fdf464bb-ff76-4a92-8652-760514a2d33d","block_type":"box","text":"market regulation or voluntary best practice.","page_number":206,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"87d18e62-18ea-427d-bf91-789ae36c7b62","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e960bb35-9bc7-4573-aba5-383dd47181b7","block_type":"box","text":"Global Principles | 5","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8269c1f3-fd8e-4cd2-baaa-71d40fa44ab2","block_type":"box","text":"NM1026U-5984554-206/232","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"69d983f0-d7df-400a-810f-3d86327c15c8","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":207,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"123a0443-1caa-4221-9380-dd5bf8c0b0d2","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":207,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"63f7c19b-7818-4995-95b8-f7f684a774f0","block_type":"box","text":"recently.","page_number":207,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"15400cee-87d7-4d4a-9e11-ab8cc58727d4","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":207,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"4f74103a-f75a-45b0-a695-ae5dd07e01f1","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":207,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"d70de06e-e016-4027-8056-3b1bf31655d5","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":207,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"01c9099f-1fa6-4f4a-8ce6-23584135bf0b","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":207,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"4aeec2b9-0bf1-425c-9509-264b5d6cbc6b","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":207,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"8ceb7409-533a-4575-a54b-af84e3db319d","block_type":"box","text":"Director independence","page_number":207,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"9a8049dd-c8e4-4234-ae46-4202d20e2899","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":207,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"bbeda412-e6e1-4fda-89fa-f677f8d3031a","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":207,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"60887086-04dc-4d55-bfe4-71743e38163f","block_type":"box","text":"6","page_number":207,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"bfb29e16-05a9-4085-befb-b6e70d93bc33","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":207,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"3ab0451f-e9f2-43a2-985c-bb63c36ed6c6","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":207,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"c720d664-9842-4e57-9423-57441369924e","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":207,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"cb05e905-d1f0-4311-979b-c5bbc7b1c45f","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":207,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"64e0c992-8777-4c14-9cd2-6327a4ca6ec2","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":207,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"7b4563b6-b604-4678-9943-0a3f44b9dfdf","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"2796cdd7-bb3b-48b0-aa2b-9a3554cedfc5","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":207,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"ad0d0fd1-7c7e-4e95-bcaf-022508d5c2fb","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d25a2e9d-10dc-44e2-9181-6aea1e0534f5","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":207,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"b61f8a7c-474d-4b8f-bd0b-f27c12db6f64","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"193dd5fe-cfe8-4e34-b3b7-7afaebb3d52c","block_type":"box","text":"Interlocking directorates","page_number":207,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"284980fa-dc59-40a4-a5d1-29f52a0ffb24","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"084fcbb6-1c1e-4bfa-b027-0ad08a2afd71","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":207,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"af251712-6019-48b6-a8a1-88a2e52aff25","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":207,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"92f61b43-fe3a-4ba5-860b-f8fb30d6261e","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":207,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"198cebf4-80aa-46d6-9a2d-c7b9452dea40","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":207,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"f8159026-baaa-4722-8b4d-86b2caff1045","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":207,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"4bd2ced8-2f10-43e3-be9a-3420f918be4e","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":207,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"a3dbaf98-debd-471c-b8aa-90440f3e8ce4","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":207,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"22a643b1-7daf-4757-aa34-162963b2b0c7","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":207,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"7f2dd77b-f22c-4a04-9939-4810ff1a0a6f","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":207,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"b35ee575-e510-45f6-90d9-15874dd09a7f","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":207,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"4caf5d60-0532-43bf-b435-a422dbf00a83","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":207,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"fc2ab02e-1f48-4795-b180-960e42340f92","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":207,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"058ac558-5ab1-4d10-9e92-3d2af7129744","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":207,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"71008907-3c17-4392-918d-73c9d4f69f02","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":207,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"22b64349-7d77-4337-b149-c53824b12cb4","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":207,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"366a1d8d-0d5a-4174-a914-f03d73d85159","block_type":"box","text":"Sufficient capacity","page_number":207,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"5716bfea-f50e-47ec-9bfe-179baaec554c","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":207,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"74ac77e8-1e14-4a49-9572-d0a24445f5a2","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":207,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"f39231e4-65ab-4cc8-824a-c2d1d35401f2","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":207,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"a8d9325d-4467-4c60-a2ea-7070e661a9ae","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":207,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"e7cb027b-d47b-4847-b1bc-bf7bffd334e8","block_type":"box","text":"Board composition","page_number":207,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"8ce6aaa0-713b-460e-9700-c862c69790e5","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":207,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"1dd6dea6-7f0b-4223-8017-1d93e9e51533","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":207,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"10a4ea8b-bcd5-44c0-97e9-eff7ceeda57b","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":207,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"624a2aae-0395-499f-81a7-f1163f7099a9","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":207,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"ae035cea-7de0-4fcd-a567-9dbe10360bd9","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":207,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"34848fa3-5028-4c4d-ab7d-8c70cc371925","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":207,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"35654658-0d1b-4e67-b12e-e2ff4ed9af05","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":207,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"cc542de6-f03d-46b0-ae15-891c939cb578","block_type":"box","text":"6","page_number":207,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"55ea8573-d095-430b-8225-038f5f9b3ed0","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":207,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"d53ae6b9-1a77-44df-ad58-890e4a8c5f6a","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":207,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"777b4d1c-4328-42dc-95d2-7ce41152492e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"09d6ed48-a7a4-4969-8b42-2b11a2ee8997","block_type":"box","text":"Global Principles | 6","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"15b95572-47cb-48f5-8c32-becfd89a6bab","block_type":"box","text":"NM1026U-5984554-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"abcf4cf0-bb1a-4d22-8a56-99f9601decc0","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":208,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"263d0649-64b0-4e52-ab5d-fef8780e14dc","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":208,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"a8cdffa0-acc7-44fb-88f8-2408af05d847","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":208,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"d519a474-ed78-4c4f-bc5c-f1a070a7035a","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":208,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"f809780b-36d0-4315-8836-96afaa5a6977","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":208,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"cc3e91f7-6d09-43c9-85b6-5f34de2116ce","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":208,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"1c9da0ce-f94a-48c6-aa75-c0acaaf6d5d9","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":208,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"eb45957f-e625-42d4-a515-9c1774fa0e72","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":208,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"ec7828cd-d371-4e03-9317-d573a66f9ecf","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":208,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"03d69004-9493-4627-8ce2-300cafb5f5d5","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":208,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"f7f2006d-f742-43b1-8d04-44d05d089686","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":208,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"a8da562f-9ed8-4df6-9822-3f95db99a058","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":208,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"72ad49a6-0157-47b9-9d64-68eff8f20c50","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":208,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"64024c72-47c9-48e7-b716-912102274bbd","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":208,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"b172ba0f-617c-4c14-b1ab-0906afb034f4","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":208,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"3e54da06-d092-44cd-83d9-ff9f8d87ea48","block_type":"box","text":"systems.","page_number":208,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"c55fd38a-1b4f-441a-9d6b-44f242091b7e","block_type":"box","text":"7","page_number":208,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"49ad6963-ab76-40af-8ac2-7cbc98ddf55b","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":208,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"b1fc178d-ce2e-4302-a140-9da93c1bc40e","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":208,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"13bfe74b-d562-4158-980b-80cf1c786611","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":208,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"7f69a44b-2a06-4906-8ced-8986322dace6","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":208,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"a21a3215-3e2b-465f-9368-5b67cd1f568f","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":208,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"dae09a9c-2d4d-4665-bfb7-ada455c66ce9","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":208,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"b6b0244e-352a-428f-94f3-f56ec1955f82","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":208,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"dd6b829d-1306-4051-a12b-6698e7cf041b","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":208,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"f081c4bd-eb49-45ca-bab5-d20709da00b3","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":208,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"21d85fac-b73d-4fb9-8349-47153ebeb854","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":208,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"397c1b4d-7c25-48cb-8ce8-014bbd9696da","block_type":"box","text":"or internal audit function.","page_number":208,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"c1026b15-2d8f-4be8-b6f1-f17230a19273","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":208,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"a33f489d-5b9a-47bf-b36c-99336bd51db2","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":208,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"d12d68ad-397a-43e9-8a5b-f69531d2042b","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":208,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"6c1143f7-1ae8-4c78-a34d-0ab3925a38d1","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":208,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"c9c58842-5d4a-4187-a762-f9c84f899f56","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":208,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"31fcc842-ec85-49b2-92c9-f09c75dda4cd","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":208,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"897a030b-d4a1-47aa-a475-8558cc918c3e","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":208,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"3ee009f0-5308-4bb3-912a-bc859b9fe107","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":208,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"436fa342-06ae-4cae-a1c1-940ac9ea971d","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":208,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"2d279d58-2ea1-41a8-a2d1-aaacbad7590a","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":208,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"34e2df7c-1411-43ec-b9e9-3334dfd17b5f","block_type":"box","text":"risk.","page_number":208,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"b77955fb-5b0f-4fc3-8b4b-b3f7c2f4af68","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":208,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"40436e53-ee6c-401b-9743-297d415c82c5","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":208,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"48bf8ad6-8695-44ea-94bd-1910009f0ad6","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":208,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"cff428cb-13b4-4370-9ec9-6b085ea85b3f","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":208,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"ce08dafc-b5c9-4a9e-bd26-e5bb9f4efc0b","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":208,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"55f8cef0-9662-4ccf-ab5a-bf71353fc7e7","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":208,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"5425ac94-a8dd-4291-8883-9ca177a79aee","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":208,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"ef08bb67-9080-4cd2-b2ad-e677283475c5","block_type":"box","text":"7","page_number":208,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"a999bc43-3bb6-45cd-a770-025520644132","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":208,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"95c2bad8-b51b-4417-ae16-2857c690e453","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":208,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"3e0b2f39-bae9-40d3-b4fb-9509c17a60f0","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":208,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"0cdf15ce-3e83-48eb-86b7-a110179065b2","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":208,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"2287a22f-a077-412f-921d-6b1d934768dd","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":208,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"285f4d6f-7180-4d77-bb32-de51d25ff60a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e4d32a3d-d664-4768-a2ef-80617d8ebf3a","block_type":"box","text":"Global Principles | 7","page_number":208,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"834724da-3b77-4b8f-85ac-1822ec3bed6f","block_type":"box","text":"NM1026U-5984554-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0b1de1e-6811-4271-b02a-aa2344ed44e2","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":209,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"414c825e-ebe1-401a-8c59-3dbc530582f9","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":209,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"a738f092-80bf-4970-9745-f0242a183935","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":209,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"ef3b0242-43e6-4810-8208-725d94b8cf28","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":209,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"381ea589-5afb-4b93-9377-bfe15690390f","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":209,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"36022ca1-243e-4017-af23-38fe050f05a8","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":209,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"70039564-c32a-4d88-987f-598d2e37b5f3","block_type":"box","text":"minimizing costs to shareholders.","page_number":209,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"8325158f-f3f2-4579-8e45-e63e3a0256be","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":209,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"e5a0ebd2-a09e-41ee-aa29-3715ad10cb7c","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":209,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"7d176155-e62f-4b7c-a475-a2350573ca0b","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":209,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"dfd073fa-03dd-44d5-989f-9ccb86f3068b","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":209,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"36b9ec46-fa01-4132-9015-c1b2f164fa0e","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":209,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"21dfe3e2-4f2d-4419-8ae9-fdffca7763f6","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":209,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"65119cc1-7be6-45d8-af3e-8dfc1727b37a","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":209,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"b4f9acaf-c329-417b-b2ed-a4e24d7e28fc","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":209,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"10aba638-1e95-4c5a-9c0c-7733a85d472c","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":209,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"039801f1-1bd5-4d96-bd6a-630d3c2b94d5","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":209,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"ac7b693f-424c-49f8-aece-5d63eb412552","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":209,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"4dfbb999-bafb-468c-8688-8ba9a9e9cf9d","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":209,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"f63d8389-12f5-44ba-bc6f-778a571c9d87","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":209,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"93b19f1d-d000-4e35-8f12-00526359bf61","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":209,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"8abf7c5e-a273-475c-84ec-a83bb1a7fa0d","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":209,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"ca35ceb3-b19b-479b-922f-d232d1b51706","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":209,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"93ca445d-6e88-4262-a7f8-e42292f7e293","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":209,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"bb25b5af-714a-4f4c-b03a-1da62abadd9f","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":209,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"b9c8cb97-b0bb-4ee3-9368-7de9f3836b0c","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":209,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9d8183ae-b7c0-4c33-b78d-360cefa59b2b","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":209,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"327ee6fb-4418-4277-b082-e6484180d778","block_type":"box","text":"ownership.","page_number":209,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"da02864a-1670-481f-a6ed-d3864d03bbb8","block_type":"box","text":"8","page_number":209,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"f45501b4-dca9-4b62-bbdc-3dd494c8f10e","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":209,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"df960bf6-e379-4a18-9a97-a60e20a62d41","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":209,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"31f46fce-a1da-4332-aac3-656bb85890db","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":209,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"d4804f52-1be7-456b-aad5-8fc1377bd3a2","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":209,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"6a5593ca-e1f4-4a2d-bff9-ebb7ae64e427","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":209,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"c454981b-5638-43bd-802b-970a49057e76","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":209,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"4c82fad3-3af5-4d06-87f8-e9ae14802517","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":209,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"f6a69e7f-3b18-45e7-8e61-efd01ce28f74","block_type":"box","text":"results over a period of years.","page_number":209,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"162b3cc0-577c-4f1d-8e4b-d506a3e541be","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":209,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"b29fb3e6-31cf-4245-af20-67d5489d3f0b","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":209,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"3de4fda1-4b80-42ba-9ee9-6fd4ecf05205","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":209,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"b4bdce47-ff7c-44fe-b8e1-b7060adf63ff","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":209,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"fa35c6ba-2a90-4da0-904f-16aa9a381a7b","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":209,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"4d0b60a4-40d9-44be-9577-9cd76d01b843","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":209,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"068147d0-737d-42b3-8785-0a1e9ac6d009","block_type":"box","text":"executive compensation strategies.","page_number":209,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"7b8d8cbd-9964-4a14-9d01-66cdff683ff4","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":209,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"3bfa7cfa-6ef5-4240-90cf-0670814f0202","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":209,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"331331d0-4fe5-46c7-8539-cab1a0fb027f","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":209,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"a074f4bf-3ca5-4cbb-892d-ef32caafeb9f","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":209,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"ef2a826e-e523-4ed3-b06d-7301da4b30a5","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":209,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"9dad6803-8599-4f41-a49d-3ae6e1c0d3f3","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":209,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"c9fc4aed-473a-4cea-a355-573e14a24832","block_type":"box","text":"8","page_number":209,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"9108854f-0dfb-49a3-9729-aa777cab6ceb","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":209,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"bc35b880-884b-40d6-9e11-c32020ec1019","block_type":"box","text":"different markets.","page_number":209,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"668a8d0d-eb3e-4893-bcfe-707a441c4a85","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d7e37ae7-517d-426a-81ac-48a9666c2ad0","block_type":"box","text":"Global Principles | 8","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"021dc217-03e1-401f-9594-2bd582645a11","block_type":"box","text":"NM1026U-5984554-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"00d8ffbc-21b5-4e31-a4af-56a52a043f55","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":210,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"514ca633-a7a8-45e6-bf0f-6cd116192bf6","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":210,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"7464bcec-2e73-4d29-b5f1-fa7320b2e27d","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":210,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"4f8e210d-48b5-4925-a207-13b6adc42112","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":210,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"97b6ad58-35b7-4bfa-ba98-2d8a8e6814e4","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":210,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"aa4870c5-2c77-4218-b2b7-35695fbac46f","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":210,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"fb5e2f94-927c-4fe4-a4b4-1b5233d1fbae","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":210,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"fc335333-e4bd-4773-a104-f4043dffbbc4","block_type":"box","text":"whom they are charged with overseeing.","page_number":210,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"6328b231-4a63-42f5-8442-91ba53c034cb","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":210,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"16d9d8ab-ecea-4109-bef6-7f0ec931d8e9","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":210,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"bd597394-1a61-4709-9204-9630a4ee51bb","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":210,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"c215dd90-17ed-474e-9f78-66bbe5feadc6","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":210,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"e88a7844-5a6b-4892-9470-35243c444636","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":210,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"7d71976c-ad75-40cd-8ca8-12fe9a8291d9","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":210,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"a72ab238-3629-462b-baf7-bb62ff266a4c","block_type":"box","text":"structures.","page_number":210,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"dc65da7b-b581-4142-89d9-0cdff22ca7f3","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":210,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"c596c662-ae8c-461f-b3d0-0fc162c2f3a7","block_type":"box","text":"Corporate form","page_number":210,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"d9ddd984-a695-4ffe-8df8-b4439230d2fa","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":210,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"a5dbced9-4c5d-42e8-8318-dcd9652d6514","block_type":"box","text":"the company’s purpose and business model.","page_number":210,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"f5a4b3cf-f95b-41c5-8a53-56cf5cf73e2e","block_type":"box","text":"9","page_number":210,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"b7004a99-5afe-4d5a-82c1-d7f1f8d3c48f","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":210,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"9a444302-4728-45e5-9535-484c93973273","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":210,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"e42c7c4f-fc6d-493a-a1d5-80a19909b1f0","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":210,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"8df4ff44-a080-4663-8c88-037bf571738b","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":210,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"3d9edf03-5247-4342-b2ea-29871601770b","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":210,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"521bee80-bf79-4ca6-8197-670c626e806d","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":210,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"f418040b-c8c8-4ea1-90c5-8c774c2ae9fb","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":210,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"748b5218-a2f6-4afc-8af2-562af5253d02","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":210,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"825373be-baf8-461e-bca1-865c237ed985","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":210,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"a137cf65-8382-4180-9ce8-ccd299118887","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":210,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"fd071850-6c84-40af-9c35-f82ccf8cadc8","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":210,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"665df3fe-0ba2-441b-b730-4f8fb8e5c37e","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":210,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"5acee8a4-bcd9-41d4-a96f-3c4eacbb7da1","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":210,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"380969d2-c55f-43c8-9074-f3ae4f9be13c","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":210,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"0580fc81-90a2-460b-a070-e80696805500","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":210,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c6c92aeb-fdc0-44ce-8731-b32cc0bda1e8","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":210,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"4a96bb6b-cff6-4c1a-993b-fc4c13744e9e","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":210,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"8c362a06-5108-48f3-8306-5ccd31411361","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":210,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"e67af94c-6f1b-4381-9a21-6332573f81b9","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":210,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"cf1e92e5-4e6b-407f-bfc3-5c584d7ab8fc","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":210,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"aea179e7-ab0a-4785-910d-73df2595ad74","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":210,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"7a4eb237-049c-41b3-b6c8-d677015b5e99","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":210,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"07f8aef4-38d7-45ae-8b83-04c0e6be995f","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":210,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"b06a94d0-8807-4ac1-acc2-de1d7e7dfef7","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":210,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"27a7a5dd-2167-42d3-aae2-48c0f506f58e","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":210,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"d69eaf2a-340f-45ad-a3de-fdc7ff3853e1","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":210,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"1e91d9c5-0a61-4e7c-97f0-86563680a04f","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":210,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"dc848fd3-0e1d-4d88-a1cb-8a9b03772d4e","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":210,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"01c6be15-6804-42ea-81c5-62b604feee92","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":210,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"2a58ee2f-dea6-4a79-858a-0c11bfabda22","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":210,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"8470c581-f306-48e4-bd29-12e44fb1ec12","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":210,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"15ad1a52-f3aa-4abd-b812-05e38f400455","block_type":"box","text":"9","page_number":210,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"3b92347e-f8a0-4f25-8cb0-de3738393426","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":210,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"3f778390-c939-47b4-8e05-06c820a51575","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5240db8a-8b48-4961-9bee-1b0876426052","block_type":"box","text":"Global Principles | 9","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6dc37fdd-0f10-42fd-af60-137451754a2d","block_type":"box","text":"NM1026U-5984554-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"25af8fc8-674b-4c84-86ec-18595153f7da","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":211,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"d25a0670-0fc7-44e4-ae1d-6690bf74e5fd","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":211,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"7cb8a7c3-a9c9-4752-9e10-910832d0eea7","block_type":"box","text":"long-term financial interests.","page_number":211,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"70f62712-93b9-47e1-a9ac-90312215c9f5","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":211,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"9c2639a3-861b-4c03-9cfe-3e0c909673ef","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":211,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"f5b93cd8-bd1b-4fb2-97fe-17a297b0faae","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":211,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"8ab4c8ce-14a5-4e2d-980d-4d58061d6aeb","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":211,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"e19e4341-3d38-4be8-8930-b3aebe9e4a71","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":211,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"90cdbea3-97ac-45c3-8731-f06f7ae3741a","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":211,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"eb32a887-6d7c-477d-a72b-53a42033c615","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":211,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"f86fe975-08c2-4a55-b777-0a2a583ee733","block_type":"box","text":"term financial value creation.","page_number":211,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"f56a1409-a1fb-4cf3-bb9b-170213b9e526","block_type":"box","text":"10","page_number":211,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"db358954-c401-4c7c-b784-b2018ebafc6a","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":211,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"4cb68f2b-cd34-452f-9cf7-65f65c3d3f66","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":211,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"c1607b82-7433-4a78-938e-a1c7173dba56","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":211,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"4683a860-1a70-4e8f-b892-db55d2c4cd46","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":211,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"0b50efbe-7c42-4185-963e-0ff9642a0ee6","block_type":"box","text":"industry-specific metrics.","page_number":211,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"42280e43-3984-4d23-80f0-aca0ca0e2f49","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":211,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"04597764-dc1f-4902-a242-4222db6fe65d","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":211,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"b9bd38ee-0d44-49af-8cdc-209567cd4c5c","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":211,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"2e6ef33d-3c7c-47e7-aa4d-ce98fadfc3a7","block_type":"box","text":"11","page_number":211,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"243e2d01-d930-451f-8c79-8b340174ed39","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":211,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"ce667dca-8b56-4d56-b8ed-e30a13200a00","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":211,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"73372039-bd83-4e4d-8989-c4af1cdfdd5e","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":211,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"60753ef9-d2a3-4b6c-90a7-c4cbad77270e","block_type":"box","text":"specific.","page_number":211,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"074b3173-0b1f-4943-b875-32e98e63a3d7","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":211,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"d8653534-fcaf-4ca0-ab4d-f1c7301b399b","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":211,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"df1f365f-62d3-4015-9bcc-7f10b5329089","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":211,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"e02afecc-ef0a-4afb-b991-94b83697918f","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":211,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"65cf878f-7085-4337-aba2-37f4f4e6fcae","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":211,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"b267e776-a3ca-40d2-b4e6-9ef6bf1f7a82","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":211,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"b2166661-f099-4a1f-9e31-8da9bd8b6cb8","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":211,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"c7e51c5a-bea6-455f-83c1-e8b361aed89b","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":211,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"b046f4f1-a361-44ca-80cf-f0b364008aea","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":211,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"4043e742-2bf4-461f-8b92-081d7d8d639f","block_type":"box","text":"10","page_number":211,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"96581c44-9078-44ce-b496-8210a8eb62e3","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":211,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"fb0ab926-729b-40ba-97cc-5701af26685b","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":211,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"cf214d2b-b75f-45ca-88a0-30ae53dca3be","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":211,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"b21177ec-0d12-485c-bead-c7c964b3bfae","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":211,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"a9b125bd-404c-46de-bf10-b4b771ac9b4c","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":211,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"dec75081-6fa3-4618-ace5-2c1c84ab54cc","block_type":"box","text":"11","page_number":211,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"23127848-bf59-4337-ba49-5e07a1d06139","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":211,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"33c1678d-4287-414b-ab77-412b23b1fb8b","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":211,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"113838af-717f-4be7-8095-a3fa3b4de0dd","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":211,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"7a1b4f3c-aa6c-4d03-9f4b-6ed800659fcd","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":211,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"0fab7603-c0d6-4a85-a8b3-00fad1608b8f","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":211,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"d1830794-c077-49e3-b844-67a0a699c9db","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":211,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"ac4bc4cc-c4d9-4da8-8881-4c3cd1b86337","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b49962e2-793d-485b-a625-0ae0d85b864e","block_type":"box","text":"Global Principles | 10","page_number":211,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"5e44d546-a6a2-406f-89c5-1f6f90f07965","block_type":"box","text":"NM1026U-5984554-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"27739794-6d61-42f4-9531-645bc694a7e1","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":212,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"9b3e0245-f373-4817-94e0-d2c262df50ee","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":212,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"5e622abc-a8c6-43e8-b8cf-12a7b1c0e844","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":212,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"b8f9986a-e60b-47eb-b14c-9b7565671455","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":212,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"1b452fee-2013-4a5e-9ab8-780a4934e1e5","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":212,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"59d381a0-1872-4da0-bbcf-90c39aa29c5d","block_type":"box","text":"12, 13","page_number":212,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"88c89fc1-e311-43ee-9523-5fbf07646fed","block_type":"box","text":"From company disclosures and","page_number":212,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"e338ee28-64be-4d92-a298-31f939b866d5","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":212,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"ef5ea524-f630-4760-89ed-f74800954853","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":212,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"813fafb6-21e3-483e-9beb-aee6e8e82ba1","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":212,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"6a8fbfa4-5f51-4316-8588-2fe6b6c6d2bd","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":212,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"b7d826ca-b15c-46e1-aaf3-b4ca9ca91c23","block_type":"box","text":"viewed as best practice in the market.","page_number":212,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"06783d70-08c4-4f7f-bc34-9e1921ad45dd","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":212,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"fc333626-33d0-4521-8e96-92972f082593","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":212,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"94a5569d-8af8-45fb-b555-2512c431d171","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":212,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"44022b9a-0b68-4121-b0c4-6f31df92a4d0","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":212,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"6e9631db-3d0d-42e3-80d8-1ba06df6a6fc","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":212,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"9fbd9512-3e97-4761-9455-97bdfe161ec9","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":212,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"07c87a6e-be7c-4b6b-ab94-8ef3ca9a6f5c","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":212,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"e0eb90c5-223a-4481-9971-1e5043286923","block_type":"box","text":"interests of their investors.","page_number":212,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"fd40eec3-d439-4647-a4db-5e6da5e40f7a","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":212,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"d2839307-8dd0-4300-8d33-6246e55eb1da","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":212,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"c153e982-2478-49f1-bf55-26ae7ad08ead","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":212,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"2b156b9e-157f-4584-a659-386e440c4928","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":212,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"6be98d6b-afdd-4608-8715-ed55b8084861","block_type":"box","text":"good-faith basis as methodology develops.","page_number":212,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"3db7cbee-379a-4443-b3f4-cd7ca0803597","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":212,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"2f70540b-4cd5-4e5c-8f69-f8b4fb77467b","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":212,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"2d5ff11d-d176-4874-96f5-644f6c16f994","block_type":"box","text":"generate long-term financial returns.","page_number":212,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"66dd0f5a-aec1-4724-9866-f12c99c36350","block_type":"box","text":"14","page_number":212,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"a22c858f-37a7-49eb-b282-538d4e4622dd","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":212,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"e8d7fae8-5473-469d-82c0-4015ff20bd6f","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":212,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"f1c282a8-cbbd-4e2e-9a13-1db58b029a16","block_type":"box","text":"15","page_number":212,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"b1db006d-139e-4e0a-b6ac-4ee98e1f7226","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":212,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"9f956f28-b152-4335-a621-5a67893e94b9","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":212,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"efd3a599-58c8-407d-ac51-b8120f0a208f","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":212,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"c4069cc0-12c2-46a9-9c83-545c4cc5f15e","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":212,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"6b7190bc-4379-44e5-b56b-f7b2f7dd5962","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":212,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"d3a5837d-555e-46d0-813e-c71f0a068a30","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":212,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"430d8f31-825a-471d-8315-8e430b2ce3f8","block_type":"box","text":"12","page_number":212,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"bd156094-722d-4023-8a23-2f75e5ec94f9","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":212,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"23544298-8191-4a16-acae-130db1193cd2","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":212,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"6751ced1-b7db-43ba-b8ad-c4f85398a208","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":212,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"370aab10-a530-4eac-9d63-9ef3c2649fe8","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":212,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"1298cec7-5b32-414c-91ac-d37e211973f2","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":212,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"32213041-fb1e-45bd-835d-739e9d70ae57","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":212,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"83c808e5-3b96-4546-ae42-a717bbc45f77","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":212,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"312d1965-77d0-46d1-bcc7-ebb69e8aff77","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":212,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"560a9b50-2b5d-4731-8987-2e1394728769","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":212,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"387526b0-b3f0-42d8-bad6-7acddbc920b8","block_type":"box","text":"13","page_number":212,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"8e184387-1ee7-4315-a4e3-e3a1ad38be79","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":212,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"2684a795-6235-48fc-beb7-1324912d25dd","block_type":"box","text":"2025.","page_number":212,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"ddae3a22-45b4-4c65-b86d-dea6da2b4364","block_type":"box","text":"14","page_number":212,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"aaa22c43-3f1f-487c-859c-7356ff9cdab5","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":212,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"c8d06add-9b9f-4918-bb7d-fc6c1d65588f","block_type":"box","text":"2025.","page_number":212,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"6c98c31b-f345-4092-b903-5b7f9760adec","block_type":"box","text":"15","page_number":212,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"c7ac0057-7431-4d9d-b14d-a627225f7710","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":212,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"7ca54e77-5b32-4b9a-850e-1d981757f0bd","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":212,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"38caef5d-c284-4d9e-b0e1-4e29ec0156f8","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":212,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"a2ed9028-becc-41bb-9e11-05d2336ad4d8","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":212,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"97d1f5b2-e56c-47f9-9162-abb943785371","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":212,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"5653523f-90e2-4ae3-b95f-423a2c936107","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a02f3ec6-d927-4f17-904f-3624d16958cc","block_type":"box","text":"Global Principles | 11","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"00c0a7c2-c38a-4069-848e-c46a64822af1","block_type":"box","text":"NM1026U-5984554-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"98afbd76-9f61-42af-ae2d-1709732d9302","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":213,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"553c450f-32a4-4479-9c04-332d0f946ea4","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":213,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"b4ea76b7-06ae-4db9-bd2b-b816d78cbec1","block_type":"box","text":"16","page_number":213,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"2b7247c3-822b-4233-b4cb-55659e8fe358","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":213,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"b0d41609-63e6-45d7-a34a-27967eb02e21","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":213,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"3978bd76-cd3e-4965-a26d-e1f4d0bc0159","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":213,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"c639c612-f225-421f-886d-6f29c6b113f2","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":213,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"6c832296-63e8-48a2-8f2d-f5294b1764cf","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":213,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"4e63477a-2049-4597-b3a8-e086373c6c5f","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":213,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"77bdf055-1af0-4247-85e1-e8cb6291598e","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":213,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"13b86fa1-8496-4c48-a0dd-0986ec553225","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":213,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"e8d435b2-4d8b-4675-b7ce-138d4f94bbc2","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":213,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"792d005f-61eb-4361-a1e9-5160719a4a86","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":213,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"f890f59b-e562-4d25-b70e-8d0cdb9805a3","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":213,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"ce147326-cb78-4f5e-bb80-add48fc44f7c","block_type":"box","text":"impacts.","page_number":213,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"65dc8080-d79c-43b7-870a-314f0e4a1d58","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":213,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"70357522-3ec1-4c9d-86bc-b69b7d1028a4","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":213,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"1153c91f-92db-4f54-9413-9f0f75ccf14e","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":213,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"0838ccca-0602-4fd8-ac8c-25eafd4a2182","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":213,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"8d1dadeb-59a7-4530-82a8-6b11ae421aa3","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":213,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"cf880d39-5326-48a2-8e15-26abc848f73b","block_type":"box","text":"clients at the global and regional level.","page_number":213,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"d5b275ad-feb3-4460-8c36-469b5ae54391","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":213,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"7ab8a8ac-c6b6-4744-999b-d7232f1735c0","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":213,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"3c446461-10d4-4e87-a583-68ebe05aed09","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":213,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"6918bcc4-8127-4d54-a31f-5ea5a312ea35","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":213,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"eaf2a054-3f07-4fab-ac69-63d60854eedf","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":213,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"24f2ffd3-2b7f-499a-8f69-563a78923988","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":213,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"1d193d3f-5b87-40e5-8278-7a02281d5104","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":213,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"6bc5b8b8-5bce-4e3c-83ce-135c0ec42b5f","block_type":"box","text":"are independent from the investment stewardship function.","page_number":213,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"fca6196b-fde8-48df-9e3a-e0bfd2a6ad4e","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":213,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"137a23ce-72ec-4584-ba63-e1c70f949b79","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":213,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"7d3b63cb-60a9-4fbf-ba7e-617add530810","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":213,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"495fa479-82ff-4728-917e-ae35f7f262aa","block_type":"box","text":"VOTE EXECUTION","page_number":213,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"deba77ca-8d4d-4377-ba9d-5a9210d1fd79","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":213,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"e472d68b-c5d8-4b93-85a9-88b27063920d","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":213,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"6e3f56e2-0f14-4dbd-8d7e-e1a1ea3d9cae","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":213,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"3184f60b-6f63-4e99-bb3b-dc8884c6c80b","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":213,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"57a12f6c-492b-4cd7-a815-cd1295743d3f","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":213,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"ee577f26-7846-4f76-abb9-26efae3eb3fa","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":213,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"3d0fb3d0-b407-4101-8978-0a420c025458","block_type":"box","text":"management policies and procedures,” below).","page_number":213,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"28855b05-d74c-41db-bfb6-6063444b1737","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":213,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"da18ef08-793f-4960-90ec-16d28cfe395f","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":213,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"723e0738-f940-481e-a525-d4695978a803","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":213,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"08d898b7-9fdb-4576-869d-425f09364dcb","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":213,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"dc5ca886-3600-46e8-9896-8cb845b74418","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":213,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"b3c9b01d-b74f-4319-9238-405eb61e7b66","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":213,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"69431be0-ad06-47c5-ab6c-f4f099c28ffc","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":213,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"5bde7706-7906-4acf-8ce8-fa31a7839abf","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":213,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"c2c66291-6d88-4f25-9db1-d8ac49060169","block_type":"box","text":"16","page_number":213,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"2ccb560e-bf22-4508-8e5f-28a1e51bd790","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":213,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"02bccc12-9fb4-4394-ac7e-37d0a624306b","block_type":"box","text":"December 2025.","page_number":213,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"77898e69-6345-4c5e-b4f7-eee944dd640e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bac5fdaf-8466-4e41-a98b-bc4d815b9969","block_type":"box","text":"Global Principles | 12","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"36a5813e-f941-4057-ab91-cff6590e715e","block_type":"box","text":"NM1026U-5984554-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8bcdcd83-93f5-4938-aa53-f4e9351fec8b","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":214,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"139fa7a8-4f40-4180-ada2-b4390e04ebec","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":214,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"96f83fd6-6051-46a8-b3b7-fdf3f88a5658","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":214,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"61ba5b44-6396-4ef5-b892-34636853af8e","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":214,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"e79ce03c-91eb-429f-afe7-c7502576feb9","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":214,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"4a751225-3d86-42ed-ac34-46a5873d50c0","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":214,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"d7f1cd1b-4632-4d51-b491-e8421ed29d3a","block_type":"box","text":"enterprise-level vendor management activities.","page_number":214,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"24ee0bab-4a41-4398-94c5-52d0532a689d","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":214,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"4beffcdd-db70-4efb-9b83-16c4e6318465","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":214,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"532eddc7-aabe-4767-ae37-62dc8cc01b4d","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":214,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"c2b187c4-789b-4850-9264-7dbde43d060a","block_type":"box","text":"BlackRock employees.","page_number":214,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"d8a9f28f-c000-4d75-bb84-8a29bdea9ad8","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":214,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"3c5d649a-48d2-498b-aea8-597c15dfe2d1","block_type":"box","text":"SECURITIES LENDING","page_number":214,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"c6f885c6-9424-482e-a6a1-842d475fa908","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":214,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"13a88bfa-7c71-47a1-8fef-d182040d46a0","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":214,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"e94441e2-0ab1-4579-968d-b6065ebde405","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":214,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"435fda56-ee88-4db3-9182-376a4ff5ed61","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":214,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"73589ad9-538a-4961-8dcb-1098ff9130bf","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":214,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"90db3007-0bdc-4feb-a419-302ba44e2bff","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":214,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"101adc80-831c-42c5-a92e-0a87714ffdcd","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":214,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"775d47e9-37cb-474e-965c-6e9aef5e5ff3","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":214,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"a07c3781-8da4-4956-91d2-7e10f76115c4","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":214,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"a47882bb-b98c-4b3c-91cb-df8e5ca2426f","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":214,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"a9f3289c-4de6-4a1d-82b3-7445b3027056","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":214,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"1c7f22f3-06e8-4374-b71d-21d9cf4fa288","block_type":"box","text":"of recall consideration).","page_number":214,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"24b2617c-0fb9-4f08-bb53-a0ea8a995ef6","block_type":"box","text":"17","page_number":214,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"4f2fcce1-4320-48e8-a0d2-90949f351691","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":214,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"aac3826e-b983-407d-b6f6-0ecc1d4964eb","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":214,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"9eae130e-0cef-4b3e-bfc6-18fa01f51d4a","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":214,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"2138584a-897f-4ad6-80a8-4da2295cab89","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":214,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"9093b9eb-2fc0-4673-b215-45a667720ccd","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":214,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"e7eef35b-b90e-4e63-be7d-1c77c0461de8","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":214,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"1bf725a2-f922-4231-8856-84c064ad8f30","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":214,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"ed112953-9aed-4ed4-a802-8531e5abfc7c","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":214,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"515f18b2-fbea-4f34-960a-88c35915bc62","block_type":"box","text":"and may modify it as necessary.","page_number":214,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"b96b1da9-7c72-4385-a6ed-acb274d8e2b3","block_type":"box","text":"VOTING CHOICE","page_number":214,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"b8eea73e-5ae1-467d-b907-d3150b579ee6","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":214,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"a9e07488-b71a-4b1f-85e2-d654fde91929","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":214,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"ae813239-daf5-4033-bea0-52e32bb54459","block_type":"box","text":"18","page_number":214,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"2820807c-b517-4abf-bc03-c84bd3ee0529","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":214,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"0c1c60aa-7fe5-41c9-ab20-8748db86fbb7","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":214,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"b759d224-098c-4586-a3c7-73b782532a66","block_type":"box","text":"17","page_number":214,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"ce85de34-a239-47b6-a5f1-8eb26be52396","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":214,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"0814f1b7-cb53-40f2-8c27-b5c5437cde3b","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":214,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"719e0221-5a3d-4aaf-a40d-39961debbe0b","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":214,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"a085b4a4-3a3c-481e-b278-dec05b86d373","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":214,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"d04e4be6-82c8-4889-a1fb-99290efb6727","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":214,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"c22769b1-9ddb-42be-a846-a55e1a203e60","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":214,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"d46af515-c8ce-40f9-abea-5a47e1d142e8","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":214,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"118d5cc3-6f7b-45c8-92a5-5d5f321a808a","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":214,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"04b71c23-0efe-4182-b30a-96e222fd36c6","block_type":"box","text":"18","page_number":214,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"e509b803-9eee-43ca-b618-205c7ee47f41","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":214,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"628c177d-cb40-4581-bed5-430fae0de6cc","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":214,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"977cc00c-e60d-4244-9ca9-80825d832db6","block_type":"box","text":"including the decision to lend securities.","page_number":214,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"b2d5db10-5478-497e-b5c7-766248ce3669","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"abf26357-f52f-45c6-b98d-8396eabc127c","block_type":"box","text":"Global Principles | 13","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"69226e52-73ba-4a3d-9603-bfeeb1bfd0c0","block_type":"box","text":"NM1026U-5984554-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d0983635-a14d-4f9d-b065-0ef32f4a0cea","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":215,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"5786ae76-c580-4954-b480-87a52ab43554","block_type":"box","text":"(SAE) strategies. 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Net zero commitments are sourced from respective","page_number":219,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"d54d3fa5-fe17-4a53-b3cf-f7d66d306092","block_type":"box","text":"company websites, as of January 2025.","page_number":219,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"e7c2ba7a-ba08-4fa9-a43c-a91e52865341","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"85958869-e35b-45c3-8ed5-583e78e4e7ac","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":219,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"353917d5-d69e-4d72-9cf3-528ef8c151cc","block_type":"box","text":"6","page_number":219,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"08fcc916-4e94-4417-afce-251c31d3af7b","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":219,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"e0f7c2a7-12ab-466e-b811-91129fc4dea8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"60dfcad1-da01-4f02-9f0e-34b5168d657e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":219,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"0c412cbf-6864-4c5a-bc69-c0d6445e5dad","block_type":"box","text":"NM1026U-5984554-219/232","page_number":219,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3940769b-69dc-4cdc-9970-c6232f9ee5b2","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":220,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"d1bb7aee-0fab-4047-8288-2144ad93787a","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":220,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"8491bf7a-a540-4043-82db-e860c237422b","block_type":"box","text":"7","page_number":220,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"92b7a593-3c47-48f1-8a60-8de468c14ded","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":220,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"903f0635-0897-4668-b6f1-0a14b8ccbd9f","block_type":"box","text":"Benchmark Policies.","page_number":220,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"73513593-a3c2-49c3-ac38-abd06beae6d3","block_type":"box","text":"8","page_number":220,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"fc244734-5e2a-489a-b781-d0704642b34f","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":220,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"1e252a32-a7d1-49e6-8723-8bb86d5b126e","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":220,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"9bca9960-174c-4497-80c6-83ac732b4a0f","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":221,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"2677ae42-fe56-412d-8ff8-c69c9b44c936","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":221,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"3fd80510-f228-4935-9bdc-baefac4f0090","block_type":"box","text":"14","page_number":221,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"043750d1-70a4-433e-b73f-53342f4d64e8","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":221,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"d9e144e2-dacc-4555-9fb1-fc18193bcfb8","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":221,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"14b64aaf-0d74-42e7-8058-ad0b06609319","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":221,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"815d4659-66be-4007-be55-4a5060e7066d","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":221,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"cab2df72-c929-4bf2-873d-b8f5832072ae","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":221,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"4aa6e0a4-c7ea-47cf-a5ce-21273b31c63f","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":221,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"70ee51e7-3dbc-44a7-8a50-955a368891cf","block_type":"box","text":"15","page_number":221,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"0bef79fb-d6b3-49bd-9a55-6ea1ed89fa45","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":221,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"6634a930-867d-47f0-8adc-8f037ce106a6","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":221,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"3f29e437-d45b-4b2a-8a25-41142c847361","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":221,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"df644164-a23b-46a1-a04c-ed1179068133","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":221,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"af5f42a8-19e7-422b-8b33-8608b06f1739","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":221,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"c830a4f6-be7c-406d-9b33-2fa0d483b594","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e1008d0e-4a55-49dd-862b-4e1a04098eda","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":221,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"77b78fa0-9efa-452d-9e10-365436babd6e","block_type":"box","text":"NM1026U-5984554-221/232","page_number":221,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"80b3a24f-2e34-48d4-b51b-c041f1a292a1","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":222,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"660258c7-82a8-42ac-9967-53301746688e","block_type":"box","text":"16, 17","page_number":222,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"b0672cad-e214-4c2c-b0c5-a992cd31f5d3","block_type":"box","text":"In addition, the dedicated team looks to","page_number":222,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"a2626b68-ecd0-4908-8842-f7f57766dbf1","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":222,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"7e864ee3-d966-4755-a530-086cf4c98024","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":222,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"2f0ac12e-3d56-434a-973c-a6c9e35216bf","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":222,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"d8d00595-57db-48f7-89c1-ccc275ccea68","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":222,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"3562fb6d-183a-4904-82ec-5d0f84be3c1d","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":222,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"b19af31f-1b2d-4e1c-9d45-a48d08657210","block_type":"box","text":"18","page_number":222,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"853543ea-a0d5-455b-a668-070aa0d60b6e","block_type":"box","text":"However,","page_number":222,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"698465dd-a87b-40a5-97d3-0f68ebb1e79c","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":222,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"dd3f4852-b291-47bf-aae9-d01271446079","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":222,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"082cfdc7-975b-4d00-b01f-926e1cdfcb53","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":222,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"5587f9b2-4a79-46da-b5ab-f166abfcf034","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":222,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"61752e9a-be8b-4c08-82e5-05ad2c88e4f4","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":222,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"ca589b65-f6c1-44c4-85d9-5250e26ad179","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":222,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"2fd3ebe0-5326-457e-a2df-2dee27af9bbd","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":222,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"750034b0-1b45-489e-ba56-d40a51983961","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":222,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"37300a87-e289-4c27-9341-2887ad3f1412","block_type":"box","text":"transition risks.","page_number":222,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"772b471e-bb7e-45c9-9613-9605e0cb86aa","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":222,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"87a7efd4-bac4-4490-8e20-3bf93620a58b","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":222,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"af5fac36-0b7e-4b9e-970b-6e692a35796d","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":222,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"c7707efa-034e-4689-97be-36ca008a5f34","block_type":"box","text":"Transition plans","page_number":222,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"4b9f2d1f-2d8e-48c9-b891-2d6c4406e3ec","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":222,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"17223b7f-d0b6-4f6e-a605-4398d31c4091","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":222,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"31bceacf-24ef-4998-983a-d51f58ab6e36","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":222,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"66648641-f5aa-47ef-adee-e70282f49ea8","block_type":"box","text":"(see Appendix 1).","page_number":222,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"8c61a6c6-d36e-4e84-8bc5-0fa97b75cb39","block_type":"box","text":"19","page_number":222,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"a8e09675-bfc9-4b14-8e70-1441547c1022","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":222,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"76385166-f69f-4f6b-89e2-033d1b2f8826","block_type":"box","text":"transition plans.","page_number":222,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"fc85f7d7-a3c4-4d8b-8d32-7f74f2063ab3","block_type":"box","text":"20","page_number":222,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"89bfc4c0-7549-4fe4-ae4a-41936da91cab","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":222,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"553aa6bf-d079-464d-80b2-d9b8486eab9f","block_type":"box","text":"repor ting approaches.","page_number":222,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"2cfaa4bf-5fca-43cb-b39c-2664febf1c73","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":222,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"6ac548a9-9828-4e5f-aeb9-de358d568ae3","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":222,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"716ffaa9-96a2-4fb4-b276-e8ff53a31dde","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":222,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"70dc304e-9db7-47c7-bee3-a567fd4a73fb","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":222,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"b01413c0-7072-402e-8396-88e5eec73f39","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":222,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"7235ee52-e045-41dd-a776-ae188b6527a7","block_type":"box","text":"informed voting decisions.","page_number":222,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"fe58f5ba-8945-4d4c-933b-5f6140ad1a46","block_type":"box","text":"16","page_number":222,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"6e5084d7-a444-40d1-b9f2-5141be1571f2","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":222,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"5ae9dd05-1dd0-4ed6-8384-743bd065f44a","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":222,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"f773b058-e2e8-4a98-a78c-158b3a5ea811","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"75bf0002-71df-4ceb-a7b3-e2a274dcf3ef","block_type":"box","text":"17","page_number":222,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"3df2e3ca-e250-4133-a523-4e08ca850046","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":222,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"a818e5a0-f222-4fc1-a838-f83046a5d5c9","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":222,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"2b015fe6-c3e8-4338-8169-f39547e5c283","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":222,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"72329220-8817-4648-9aa0-0a1b575e5a0c","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":222,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"e8721d5f-27eb-4701-a875-d4b160a33f05","block_type":"box","text":"18","page_number":222,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"91ef25ec-c6f8-44a9-bf14-0a18362e905f","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":222,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"7dc86944-155f-4c86-9269-190f653ee61e","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":222,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"99987522-886e-4007-b98f-c05552b0e763","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":222,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"4bd62b77-d113-4281-8d0d-a6849c6e520c","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":222,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"6ba92ac4-8f94-4293-9367-30d8aaddd493","block_type":"box","text":"material to their business models.","page_number":222,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"4f6c4e89-a998-4066-b622-6fbe7253ea2f","block_type":"box","text":"19","page_number":222,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"a519acdb-b6a6-463b-aa09-c815db5c031b","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":222,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"67523f8d-5665-47ca-b7bb-1fbd6aa61de9","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"d275f94d-1f3c-426a-bfba-f901696f0380","block_type":"box","text":"20","page_number":222,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"0b3c81fb-201c-41e0-ab90-227f5e26e02f","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":222,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"a1fc22a0-bd39-477b-8cfe-abe2012a2e86","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":222,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"5c39c4a7-515d-4b73-b930-439d3b6af9f1","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":222,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"d65244c9-2723-4b17-9f78-7a01013b2d2f","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":222,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"cf768d0c-5eb0-4635-b8d7-274cbb4aefb9","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":222,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"2d617323-fd07-4e8d-94c8-a8620811a407","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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In assessing the role and effectiveness of the board in this regard, the dedicated team seeks to","page_number":223,"box":{"x":68,"y":98,"width":825,"height":11}},{"id":"42414e40-4a15-45e1-885b-185d907b8b8f","block_type":"box","text":"understand whether:","page_number":223,"box":{"x":69,"y":113,"width":145,"height":9}},{"id":"84ebf2d1-1b8a-4fee-992b-5de7c42adc8d","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":136,"width":6,"height":4}},{"id":"3b75d109-6e85-4f5c-8e3c-9588bd51ffe8","block_type":"box","text":"The board has clear oversight responsibilities for climate and low-carbon transition-related risks and","page_number":223,"box":{"x":101,"y":133,"width":711,"height":11}},{"id":"ba2e3a41-16ce-4dc6-bab0-925177486235","block_type":"box","text":"oppor tunities in the company’s business model. 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Where the dedicated team","page_number":223,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"843d2796-23b6-479e-8ee2-dcbebd1443f1","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":223,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"71918823-47f0-400b-b2fa-f8b6b5489746","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":223,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"7ab1666f-caba-4c33-9be6-2a054d3dafd1","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":223,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"d43cf93e-e697-477d-a3da-a00b6de037ce","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":223,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"47b2ccd2-376d-40ef-a0b7-e043c87cbb4a","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":223,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"60747886-505a-4393-8749-baf0a6c52b7b","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":223,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"6fe0e663-93b4-4e92-9090-fa1dc1129e03","block_type":"box","text":"Website accessed in December 2025.","page_number":223,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"e923f5b1-e063-43c4-b474-ca48f522dbae","block_type":"box","text":"22","page_number":223,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"a7e03c87-ec1b-4437-9622-719104c40e2e","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":223,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"973292d5-e5a2-40d4-8cd4-4ebef8c0f79b","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":223,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"a31e2264-2383-4042-8aec-722b46af0c10","block_type":"box","text":"23","page_number":223,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"0768daa7-7164-43c5-88d2-e65d4a53b2a4","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":223,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"1e715167-885e-4ad5-ab2f-af118bc09a22","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":223,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"aebfd4b8-d349-4156-8fd2-f028daf34068","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"98bece3d-3d46-4a08-8c97-0b4a448ae399","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"44a69912-4128-4183-aeb7-fcc84560d85b","block_type":"box","text":"NM1026U-5984554-223/232","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e71d5227-4a6b-4cdd-9be2-3c1071aa7a75","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":224,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"b7ac8252-2f5c-4b29-b701-2a765770104d","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":224,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"88b472b7-9a04-4f38-9e78-91ab9df0fa79","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":224,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"2ab99985-094f-48ac-96ea-80659f81870a","block_type":"box","text":"24","page_number":224,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"e4ea3d16-0b8a-46a7-936a-a3d9d15014cf","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":224,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"b1198774-d76a-4b56-820d-17fd0212ebb6","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":224,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"6134ede0-a76f-400c-a9fb-baa2c21f9ad1","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. 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Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":224,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"0b224917-bc9b-4b01-ba83-d26d42aea458","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":224,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"f79afd2a-be79-49fa-a5e3-18807c053850","block_type":"box","text":"transition plan and targets.","page_number":224,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"3dbce5a1-41c9-43d7-8d0e-e52b4ab4669c","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":224,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"8a32e9b7-5a7d-4463-a415-0862fbecc988","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":224,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"448f6122-2678-4ad1-9311-c88f34202930","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":224,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"c157f000-b12e-4328-a118-febe05c6127d","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":224,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"83b7369c-5f13-4469-a27b-2acefa0194dc","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":224,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"e0daf0db-d8a9-4ad5-b216-6ff33e55782a","block_type":"box","text":"company’s individual circumstances. 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Under the Guidelines, the team may suppor t","page_number":224,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"88ac5352-f95d-4c8b-bf67-4d4193784134","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":224,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"970421ea-ad6c-4278-809b-a1235631a158","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"b95149e0-d091-4d9c-838a-df79087bdcef","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":224,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"c5ddd57a-8341-4e39-a880-9cc738a76125","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":224,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"b1ec0554-55c7-4e70-8095-ac1ed2737c6a","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"0fe281df-73b5-404a-a3a3-b86afc561c48","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":224,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"0f6bbd70-e9a8-490a-9423-37e7a5d9bab4","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":224,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"b49e9725-4b5d-4c8f-98cd-32fa6aeec99a","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"e81f122f-4aea-4d28-ac17-624f3f5f1fda","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":224,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"655f6524-7361-45b4-8148-1f796047b92c","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"cb09eb75-8255-4d35-974b-c1c661fb3f4c","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":224,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"e01f4bb0-7d6d-4517-ba6e-1c8cf720cba3","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":224,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"f3718575-7001-4d98-a478-71e53a4b2e94","block_type":"box","text":"25","page_number":224,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"dd366450-8338-4413-8ddb-b5122c015b75","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":224,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"4055b7d1-7a80-4646-8dbb-e70fac37b710","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":224,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"e3885d4b-13f2-436c-b84c-d855da0e1419","block_type":"box","text":"RELATED MATTERS","page_number":224,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"8000ebd7-9e89-438b-b2b1-100f8cff951d","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":224,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"b9299343-97ec-4bab-8494-76031cd856f6","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":224,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"c3c3a48d-5909-4719-8c0e-7eccfa3c1129","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":224,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"84acce61-baea-4567-b64a-4645753fa926","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":224,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"38019928-a850-4a72-af53-d82b6b6e8cfa","block_type":"box","text":"Executive compensation","page_number":224,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"e5685bf8-55de-41e4-9438-f84564b65686","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":224,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"a9345386-f972-4454-bcdb-2ea3edc04878","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":224,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"fdd72c9f-8e0f-4cd6-b7ae-77b6bdf26162","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":224,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"44dc8def-dabf-49e0-bbd2-41424cad2ff3","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":224,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"ae391d48-83e8-40b9-924b-b1444ba903d2","block_type":"box","text":"24","page_number":224,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"94f3a0f4-5179-4d0d-8dda-3d1695aa3a69","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":224,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"f2a7b0a1-64bc-4536-9d15-e42e1fcca376","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":224,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"16a98b69-0da4-4fe0-ae1a-2fc8f08412cc","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":224,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"5f4a5373-27e8-4712-80c8-bfa13f33144c","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":224,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"923c2cb1-de1d-45e4-9970-f1f2a448a859","block_type":"box","text":"25","page_number":224,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"0c3ddaf6-48c7-4b70-9116-a0120b9977c9","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":224,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"a72fe1c3-8445-493a-b739-815ff1b2c212","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":224,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"4244797d-cbfe-49de-a7cf-d3f6bd0d795f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8910ffd3-26c2-4c98-bcd6-8a4a01f16efb","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"68332e13-ab51-461f-b1b0-5280fb34f5e0","block_type":"box","text":"NM1026U-5984554-224/232","page_number":224,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3fdca5bd-0ded-4811-a9b0-29c8d5996e89","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":225,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"9f04fb59-dbbb-41a6-ae3d-42ea1360d97c","block_type":"box","text":"strategy and risk management.","page_number":225,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"3d79960f-a0a8-4c9c-ae5e-ec902f7d0383","block_type":"box","text":"Auditors and audit-related issues","page_number":225,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"d2807671-11a7-4b46-a2da-438c1094f4d9","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":225,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"d005702e-5fe3-42c1-84b6-b2497959bb26","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":225,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"50cbe868-69bd-4566-a528-a30633ffeaa1","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":225,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"040e0d5f-4428-4925-94c6-87614af70433","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":225,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"eaec782f-bfe5-48da-8501-2a9b8a50a34c","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":225,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"936f3567-088c-4f8e-a69a-b8835d2603d4","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":225,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"901623ad-4837-4283-9be6-cc7d565455ee","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":225,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"455b42de-8a00-4517-be97-12f140b2a82d","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":225,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"50d72b35-8d45-41c0-b2ee-4976a4e27c88","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":225,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"84abfeb5-ec85-4527-9b79-b8b4b6a80e32","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":225,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"63be1e81-9d79-45f7-9d1e-1da265d88bfa","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":225,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"6c1e6aea-142e-4f28-87ae-138a4a91170b","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":225,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"27e87742-ec4f-44c6-bb6a-4352663f90de","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":225,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"3ade9b36-1162-4747-b6c4-195507c53534","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":225,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"24faa1d1-07a3-4e51-9555-5e654777436e","block_type":"box","text":"stakeholders.","page_number":225,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"2e65d302-788a-4011-8ff4-c0eaa387df38","block_type":"box","text":"26","page_number":225,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"17516438-67ff-4fbe-ae05-9f7a1061562d","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":225,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"028eb22a-18b5-4715-90c9-ba4b63cdbad1","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":225,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"ead9bb7f-9677-4a61-b0ff-21f55ca27577","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":225,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"7a6c74ba-fa4b-4ef9-bc07-a7d2b6b5a633","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":225,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"d951f33e-9cc9-4593-8425-94b208ef0c8f","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":225,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"169f71d8-162e-47d3-a36b-a5884e1d6d28","block_type":"box","text":"26","page_number":225,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"d1492fe2-51a0-4f70-a490-14f1a6a8f219","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":225,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"4b2a8919-702b-4d19-807a-9cb1d7b8b152","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":225,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"76e95cbb-3992-42e0-8564-a4541d7309da","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1cb11fad-a6df-46e6-b7bf-b087ddcfa9ef","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"beaabd5e-79a2-4200-8d68-be1f25cefe4d","block_type":"box","text":"NM1026U-5984554-225/232","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7f76f65d-5865-48b8-a2e5-40fa20234a2d","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"2be40aff-0d53-4ada-8966-94f499731e01","block_type":"box","text":"Terminology","page_number":226,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"26947007-f84d-44b4-996c-6811c257fb23","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":226,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"b22777ae-91fb-41cd-beab-53667e908cc8","block_type":"box","text":"Climate risk:","page_number":226,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"222a0857-2065-47b6-83d0-90ee9cb7f043","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":226,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"1e0630f0-a272-47ba-9f52-7778c469380f","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":226,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"1bab627a-d972-440c-ae7c-5ed206024a1a","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":226,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"28e58110-e2aa-4c60-abf7-6b522d036530","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":226,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"c3ee6591-672a-431d-937c-4a78ad1fbaef","block_type":"box","text":"The global economic shift toward lower","page_number":226,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"2aea18d3-f834-4f57-938c-47c9644b4f2f","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":226,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"0be6c332-e40d-436c-a9e9-35128b81216e","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":226,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"f3da69fa-3718-4254-bd80-e1bc3a526fc1","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":226,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"58e2dfb8-742a-427e-a878-71591164cd64","block_type":"box","text":"Decarbonization:","page_number":226,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"294b169f-5dbe-4633-ae01-1be9aff5f05b","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":226,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"cb8473d2-8c85-40c3-870d-e0f5ac77a0f2","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":226,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"87facb0d-c09e-4b30-ba61-907d48b2e534","block_type":"box","text":"individual consumers. 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